Colgate Pricing Strategy
In a highly competitive oral care market, Colgate holds its’ own, and maintains a category leadership position. The company 's strategies to category growth are accomplished by long-term, joint planning with retailers; understanding consumers and how they shop; and employing integrated marketing to demonstrate the benefits of new products. The company has long been on the voyage to establish the best brush possible, and in doing so, has developed a number of impeccable products along the way. The introduction of the Wisp portable mini-brush, which was voted 2010 Product of the Year and marketed through online video and social media, increased Colgate 's market share of the U.S. manual toothbrushes to a record 32.2% last year. In the toothpaste segment, Colgate took the leadership position with 36.2%. Earlier this year, Colgate introduced Wisp Plus Whitening with over 15 million impressions in the second quarter. Articles in Fitness and InStyle magazines and mentions on “The View” television program and numerous blogs further promoted awareness of the product, as did sampling at colleges and conducting a Facebook fan drive. In keeping up with consumer trends, Colgate began to focus on features, comfort and professional recommendations.
Consumers first purchased toothbrushes without much knowledge or information concerning the product’s benefits. As new product development increased, and consumers became better informed about the benefits of toothbrushes, they began to focus their interest not only on cavity prevention, but also on the health of their gums, their oral hygiene, and their cosmetic appearance. Because consumer interest and toothbrush purchases began to increase, advertising and promotion also began to increase, which lead to the development and addition of the super-premium product class (McCarthy, 2002). Consumers began to purchase toothbrushes based on the specific benefits each toothbrush and company had to offer. One study
Consumers first purchased toothbrushes without much knowledge or information concerning the product’s benefits. As new product development increased, and consumers became better informed about the benefits of toothbrushes, they began to focus their interest not only on cavity prevention, but also on the health of their gums, their oral hygiene, and their cosmetic appearance. Because consumer interest and toothbrush purchases began to increase, advertising and promotion also began to increase, which lead to the development and addition of the super-premium product class (McCarthy, 2002). Consumers began to purchase toothbrushes based on the specific benefits each toothbrush and company had to offer. One study
References: Colgate Palmolive. (0020, May 17). Media Week, 20, 17-36. Laidler, N. (2003). Colgate Palmolive company: the precision toothbrush. Harvard business school. Extracted from Colgate-Palmolive Company: The Precision Toothbrush.” Harvard Business School. McCarthy, J, (2002). Basic marketing: a global managerial approach. New York: McGraw-Hill Companies, 2002. 276-277. Pauszek, K. (2009). Colgate palmolive – marketing plan. Retrieved January 27, 2011, from http://franklincollege.ed Younger, V. (2002). Colgate palmolive. Retrieved Jan. 27, 2011 from http://www.redgumsoaps.com.au/soaphistory/colgate.htm.