Colgate Palmolive
COLGATE PALMOLIVE PRECISION TOOTH BRUSH
Synopsis :- The analysis of the two different launch strategies
1. Introduction and Company Background. Colgate Palmolive was the global leader in household and personal products, with sales of $6.06 billion and gross profit of $2.76 billion, as in 1991. The company was also the No. 1 in US retail tooth brush market with 23.3% of volume share. The company had 43% of the world’s tooth paste market and 16% of the world tooth brush market. In 1991 there was an increase. There was an increase of 12% in the worldwide sales of CP’s oral care products amounting to $1.3 billion which was 22% of CP’s total sale. The Colgate-Palmolive case involves the Precision toothbrush, which was entered into the market in 1993 by Colgate-Palmolive. This marketing plan summarizes the company’s situation at the time the Precision toothbrush was introduced, and the different marketing strategies that we believe would be best for Colgate-Palmolive and their new toothbrush. In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products. It was also the leader inretail toothbrush sales in the United States. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. As therapeutic toothbrush sales rose it became apparent that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. As a result, the toothbrush industry experienced amassive influx of worthy competitors and the formation of a niche, super-premium market. In order to gain an edge eachcompetitor worked on developing new toothbrush technology, forming alliances with dental professionals, expandingadvertising budgets and offering promotions that would grab consumer attention.
Growth in the US Oral care market
Retail sales-$2.9 billion with annual growth rate of 6.1% since 1986
Toothpaste=46%
Tooth brushes=15.5%
Expenditure in R &D was $ 114 million and media
Synopsis :- The analysis of the two different launch strategies
1. Introduction and Company Background. Colgate Palmolive was the global leader in household and personal products, with sales of $6.06 billion and gross profit of $2.76 billion, as in 1991. The company was also the No. 1 in US retail tooth brush market with 23.3% of volume share. The company had 43% of the world’s tooth paste market and 16% of the world tooth brush market. In 1991 there was an increase. There was an increase of 12% in the worldwide sales of CP’s oral care products amounting to $1.3 billion which was 22% of CP’s total sale. The Colgate-Palmolive case involves the Precision toothbrush, which was entered into the market in 1993 by Colgate-Palmolive. This marketing plan summarizes the company’s situation at the time the Precision toothbrush was introduced, and the different marketing strategies that we believe would be best for Colgate-Palmolive and their new toothbrush. In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products. It was also the leader inretail toothbrush sales in the United States. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. As therapeutic toothbrush sales rose it became apparent that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. As a result, the toothbrush industry experienced amassive influx of worthy competitors and the formation of a niche, super-premium market. In order to gain an edge eachcompetitor worked on developing new toothbrush technology, forming alliances with dental professionals, expandingadvertising budgets and offering promotions that would grab consumer attention.
Growth in the US Oral care market
Retail sales-$2.9 billion with annual growth rate of 6.1% since 1986
Toothpaste=46%
Tooth brushes=15.5%
Expenditure in R &D was $ 114 million and media
Cited: Laidler, Nathalie. “Colgate-Palmolive Company: The Precision Toothbrush.” Harvard Business School. 1993 McCarthy, Jerome E. and William D. Perreault. Basic Marketing: A Global-Managerial Approach. New York: McGraw-Hill Companies, 2002. 276-277. Younger, Vicki. “Colgate Palmolive.” Redgum Soaps. 8 Sept. 2002. http://www.redgumsoaps.com.au/soaphistory/colgate.htm.