Cmpetitive advantage of Colgate Palmolive.
WAC for Colgate-Palmolive "The Precision Toothbrush"
Introduction
Colgate-Palmolive (CP) is a global leader in household and personal care products, with over $6.06 billion in sales and a gross profit of $2.76 billion. CP's five-year plan emphasizes new product launches and entry into new geographic markets and a continuing focus on core consumer products. Although international sales remained CP's strong suit, accounting for 64% of sales and 67% of profits in 1991, the company faced tough competition in international markets from P&G, Unilever, Nestle's L'Oreal Division, Henkel of Germany and Kao of Japan.
Situation
In 1991, CP held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP's oral care products increased 12% to $1.3 billion, accounting for 22% of CP's total sales. Toothbrushes represented 19% of CP's U.S. Oral Care Division sales and profits, and CP held the number one position in the U.S. retail toothbrush market with a 23.3% volume share.
In 1991 the U.S. Oral Care market was $2.9 billion in retail sales; toothbrushes accounted for 15.5% ($453 million in retail sales). Dollar sales of toothbrushes had grown an average rate of 9.3% per annum since 1987, but in 1992 they increased by 21% in value and 18% in volume, due to the introduction of 47 new products and line extensions. Net sales in 1993, however, was projected to be slower due to a buildup in household inventories of toothbrushes in 1992 as a result of increased sampling of free brushes through dentists and an abnormally high number of two-for-one consumer promotions. Due to the high competency level of the toothbrush industry, and an ongoing search for innovation and product differentiation in the market, CP has planned to launch its most recent creation - "The Precision Toothbrush".
The situation of CP and the introduction of the Precision Toothbrush is evaluated based
Introduction
Colgate-Palmolive (CP) is a global leader in household and personal care products, with over $6.06 billion in sales and a gross profit of $2.76 billion. CP's five-year plan emphasizes new product launches and entry into new geographic markets and a continuing focus on core consumer products. Although international sales remained CP's strong suit, accounting for 64% of sales and 67% of profits in 1991, the company faced tough competition in international markets from P&G, Unilever, Nestle's L'Oreal Division, Henkel of Germany and Kao of Japan.
Situation
In 1991, CP held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP's oral care products increased 12% to $1.3 billion, accounting for 22% of CP's total sales. Toothbrushes represented 19% of CP's U.S. Oral Care Division sales and profits, and CP held the number one position in the U.S. retail toothbrush market with a 23.3% volume share.
In 1991 the U.S. Oral Care market was $2.9 billion in retail sales; toothbrushes accounted for 15.5% ($453 million in retail sales). Dollar sales of toothbrushes had grown an average rate of 9.3% per annum since 1987, but in 1992 they increased by 21% in value and 18% in volume, due to the introduction of 47 new products and line extensions. Net sales in 1993, however, was projected to be slower due to a buildup in household inventories of toothbrushes in 1992 as a result of increased sampling of free brushes through dentists and an abnormally high number of two-for-one consumer promotions. Due to the high competency level of the toothbrush industry, and an ongoing search for innovation and product differentiation in the market, CP has planned to launch its most recent creation - "The Precision Toothbrush".
The situation of CP and the introduction of the Precision Toothbrush is evaluated based