Colgate

Topics: Marketing, Brand, Advertising Pages: 3 (1151 words) Published: November 12, 2013

You probably know about Colgate toothpaste – perhaps you’ve even used it. But what would you think of Colgate aspirin or Colgate antacid? How about Colgate laxative or Colgate dandruff shampoo? That’s exactly what Colgate-Palmolive wants to know. To find out how consumers would react to such products sold under the Colgate brand, the massive packaged-goods company has quietly established a test market in Peoria, Illinois, to test a line of ten over-the-counter (OTC) health-care products, all using the Colgate name. The line includes Colgate aspirin-free pain reliever, to compete with Tylenol; Colgate ibuprofen, to compete with Advil; Colgate cold tablets, to compete with Contac; Colgate night-time cold medicine, to compete with Nyquil; Colgate antacid, to compete with Rolaids; Colgate natural laxative, to compete with Metamucil; and Colgate dandruff shampoo, to compete with Head & Shoulders. Colgate’s new line represents a significant departure from the higher-margin, high-visibility household goods that Colgate traditionally markets. Colgate chairman Reuben Marks indicates that “The Colgate name is already strong in oral hygiene, now we want to learn whether it can represent health care across the board. We need to expand into more profitable categories.” Colgate won’t talk specifically about its new line, but Peoria drugstore operators say the company began the test marketing last fall. Since then, Colgate has blitzed the town with coupons and ads. Representatives have given away free tubes of toothpaste with other Colgate purchases and handed out coupons worth virtually the full price of the new products. One store owner notes, “They’re spending major money out here.” If all that promotional support weren’t enough, the manager of one Walgreen store points out that Colgate has priced its line well below competing brands, as much as 20 percent below. The same manager reports that the new products’ sales are strong but also adds, “With all the promotion...
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