Individual Case Analysis Colgate vs. P&G

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Game Theory And Strategic Marketing
Individual Case Analysis

Brighter Smiles for the Masses----Colgate vs. P&G


BY: ZHUANG Lingzhi ( Erin ) 52373176 Individual Case Analysis
The Procter &Gamble Company (P&G) was the first one to launch the over-the-counter tooth-whitening product, Crest Whitestrips, which is able to be used at home to the market. After two years, Colgate followed to launch the rival product, Simply White, and snatched big part of the market share from P&G. The market share of Whitestrips dropped from 80% to 37% while Simply White achieved almost 50%. Apparently, Colgate has won this teeth-whitening competiton. Usually, a new product would have a strong brand image and consumers would form a habit of the usage if the product is the first one to the market. It’s difficult for the followers to compete in the same market with the same target consumers. Crest Whitestrips is definitely an effective product and it even won the challenge before the NAD. P&G did a test about Simply White and came out the results that it was gone in five minutes which means Whitestrips is more effective than Simply White. However, the perception of the consumer about the product is much more important than its actual effect. About 50% of the consumers whou had tried Simply White thought the product worked, which is significant for Colgate to win over P&G. Colgate is the second to the market. Sometimes second-to-market could be a good strategy cause the fisrt one has already opened the market and you don’t need to do much marketing to help the consumers understand the new product. You just get in and share the market. But if you want to be dominant of the market, an efficient marketing strategy is needed. Actually, the strategy of Simply White is quite simple, convience and a lower price. Meanwhile, Colgate emphasize that Simply White bleach teeth as effectively as Whitestrips. So from te...
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