Colgate Palmolive

Topics: Marketing, Toothpaste, Oral hygiene Pages: 25 (7683 words) Published: February 15, 2012

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 advertising was $ 428 million. The company ‘s five year plan for 1991 to 1995 emphasised new product launches and entry into new geographic markets. The company also incurred expenditure in upgrading 25 of its 91 manufacturing plants at a cost of $243 million. 275 new products were introduced worldwide. The company’s gross margin had grown since 1985 from 39% to 45% and annual volume growth 1986 was 5%. 2.

Share of Col-palm in international sales in 1991|
sales| 64%|
profits| 67%|

2.CP Oral Care Market -Pie Chart of Oral Care Market – Unit Sale, Net Sale, Cost Of Sale , Operating Profit 3.Customer Perception and Fact - Tables as per slide 6.
Purchase frequency| | | |
Year| duration| | |
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| | | |
| | Customer %| habbits|
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Customer %| habbits| | |

4.Product Segment Tabulated.
5.Customer Segmentation.
6.US Market Share of Colgate. Graph /pie Chart
7. Competitors – Common table of all the competitors Pg 5 and 6 of case Tabulated to be made 9.Existing Channels. Pie Chart of Exhibit 7 for volumes of sale.

Issues and Challenges
10.Costing . Table E abridged as per format in slide 14 of the link ppt. 11.Communication and Promotion Alternatives.
(a)Result of Concept Testing
(b)Budget issues
12.Pricing Alternatives. Slide 14
13.Positioning and Marketing Mix Alternatives . Performa Income statement to compare profit implications from following options and analysis of profit loss from other product segments if launched as :-

(a)As Niche Product slide 15 of ppt to be converted
(b)As mainstream product Positioning. Slide 16.
14.Distribution Channels Alternatives. Slide 17 & 18
15.Branding Recommendations. Slide 19
16.Advertising Strategies. Contents of Slide 20 21 22 23 paraphrased 17.Communication and Promotion. Slide 25 &26 28 Paraphrased.

18.Future Outlook. Slide 38 t0 43...

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.
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