Colgate Case Study free essay sample

Colgate-Palmolive is recognized as the global leader in household and personal care products. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. As therapeutic toothbrush sales rose it became obvious that consumers were becoming increasingly concerned with their oral health, specifically their gums. As a result, the toothbrush industry experienced a massive arrival of worthy competitors and the formation of a niche or premium market. In order to gain an edge each competitor worked on developing new toothbrush technology and forming alliances with dental professionals, expanding advertising budgets and offering promotions that would capture a consumer’s attention. Some of Colgate’s key competitors included Gillette, Johnson Johnson, Proctor and Gamble, and Smithkline Beecham. Each of these companies owned products that appealed to consumers for various reasons and for an everyday purchase was relatively inexpensive. For example, Gillette’s toothbrush featured indicator bristles that signal the consumer when to change toothbrushes. We will write a custom essay sample on Colgate Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In addition, in 1992, Gillette announced that it would restage its dental floss, roll out a new mouthwash, and possibly introduce specialty toothpaste in efforts to be the leader in the oral care category. On the other hand, Johnson Johnson offered the reach design that cleans in hard to reach places. Crest Complete created the rippled bristle design that reaches between teeth like a dental tool. Finally, Smithkline Beecham offered a pressure sensitive, flexible neck linking brush that prevents gum irritation. Compare Consumer Behavior for Toothbrushes and Toothpaste The majority of consumers were not focused in detail on dental products although everyone faces the risk of gum disease and plaque buildup. Based on the research presented in the case, consumers of the baby boom generation have become increasingly concerned about oral hygiene. Some consumers aim to avoid oral care problems while others focus mainly on preventing bad breath and maintaining white teeth. It was noted that consumers generally believed that both toothbrushes and toothpastes were important in achieving effective oral hygiene, the presence of uninvolved consumers affected sales because they tend to make adjustments only when confronted by oral hygiene problems. Increasing the demand for toothpaste proved to be difficult and any new brands tended to decrease the sales of existing toothpaste products. However, it was noted that for the toothbrush category, increased advertising and special promotions generated a greater demand as the consumer was provided with additional options. Colgate-Palmolive has been able to maintain its substantially high percentage of sales in both the toothpaste and toothbrush market. Arguments for launching Precision as (a) a Niche Product and (b) Mainstream Brand Launching Precision into the market mix would give Colgate-Palmolive sufficient supply to meet the demand for a niche product. Precision would also not take away from other product offerings from CP’s various other product offerings. Precision would in many ways provide additional help to other product’s like floss and mouth wash with its ability to remove more plague. Through studies conducted using infrared technology it was determined that no matter how a consumer brushed their teeth, (vertical or back and forth) the design of precision would achieve the goal of removing more plague from the gums and between teeth, making Precision a mainstream brand. Another option that CP has is to enter the Precision toothbrush as a niche, super-premium product. As a niche product, compared to the other CP models, Precision would be expected to earn roughly 32% volume share and 46% value share. One positive factor of introducing the Precision as a niche product is not only would it give Colgate enough time to build up a stock of the product, CP would also be able to avoid taking the Children’s Plus model off store shelves. With the Precision toothbrush, CP could finally introduce a super-premium product into the mix and give the therapeutic consumer segment some much needed attention. Recommendation Create a comprehensive product that appeals to all consumers with minimal advertising and marketing costs. Launch as a niche product because there remains a large segment of consumers who only demand the basics in oral hygiene. Precision could be introduced as Colgate’s premiere product.