Colgate-Palmolive the precision toothbrush
Part: 1 Summary
In the toothpaste market, Colgate claimed 45% global market share and 32% of the toothbrush market. It was second after P&G in the U.S and held a significant market share in the emerging markets. The company had a variety of products and competed effectively for its share in the market locally and globally in provision of toothpaste and other dental products. Leveraging of the competitive brand by making sales under the name Colgate was a helpful scheme for maintaining a market position for emerging products. The company maintained its brand equity and allowed for innovation of new products. Through research and marketing strategies, the company managed to capture the attention of its markets using media and maintenance of a positive relationship with dentists who helped in endorsing the products. The company thrived on optimizing their portfolio by maintaining its brand and focusing on promotion of oral health. It ventured into emerging markets and ensured close relationships to oral health professionals, retailers, wholesalers and pharmacists. Through a focused organizational structure focused on innovation, the company maintained its presence across the world in an innovative and focused commitment in the competitive practice in the global changing trends.
Part: 2
1. To explore the evolution of a product category, demand for which is largely derived from usage of a related product. What changes are occurring in the toothbrush category? Assess Colgate-Palmolive’s competitive position.
The competitive positioning of Colgate faced rivalry from retail outlets having different brands. Other than store brands, Unilever and P& G had a significant influence in the market though Colgate categories overlapped with them. That led to the reduction of prices by competitors and venturing into intensive advertising and these made it hard for Colgate to beat them in the market. The competitive risk taken by competitors led to the acquisition of Oral-B brand bought with a ready brand identity. The changes in the toothpaste market led to the focus on defense of the market. This took various efforts such as endorsements and training in new markets. The brand equity enjoyed by Colgate supported such efforts and helped in the sustaining of its global position. Because of the oral health initiatives by Colgate, the market become more conscious of its oral health needs and that presented a change in demand. Definitely, demand for toothbrushes went up and with the trust in this need, the market remained loyal to Colgate because of the assurance of quality and professionalism.
2. How is the toothbrush market segmented? Compare consumer behavior for toothbrushes and toothpaste.
The segmentation of this market has patients, parents, children and youths. Since the Colgate Company knew the importance of professional endorsement of its products, it ventured into turning its marketers to becoming oral consultants. That led to development of relationships with dentists, and oral hygienists making it the brand highly recommended by oral specialists to patients. The major segments of the market defined by Colgate are pet nutrition, personal care and oral care. As Colgate maintained an advancement of its products into the market, it depended on the experience it had from its years of operation and the expertise of its marketers. It had adequate knowledge of local tastes and preferences and that made the demand for its toothpaste and toothbrushes to keep growing. In fact, the growth rate in emerging markets was advancing faster than those in developed markets were. However, the consumption of toothpastes in emerging markets such as China and India was low both for toothbrushes and for toothpaste while the U.S. had the highest consumption records. The education of consumers on oral hygiene for its market segments initiated the need for maintenance of oral health habits among children in more than 80 countries and that made the demand for products in new markets to show a rising trend.
3. What are the arguments for launching Precision as (a) a niche products and (b) a mainstream brand?
The launch of precision as a niche was targeted in getting the interests of consumers and fulfilling them by providing a product they needed to maintain oral health. The Colgate company utilizes the social media to interact with its consumers as a strategy for learning the needs of its different market segments and thriving to provide them with what suits their needs. Niche marketing also embraced store advertising to ensure constant presence. On the contrary, mainstream branding focused on the realization of the needs of the community and taking care of it. The example was in the research among the Indian families, which revealed that Indian parents had a concern for their children to have adequate and quality education. Colgate takes up that need and builds its corporate positioning by offering scholarships to the children. That makes the Indian community capable of identifying with the product and remaining loyal to its use.
Part 3
Evolution of a product category
Retail rivalry in the market within retail outlets was a problem
In the toothpaste market, Colgate claimed 45% global market share and 32% of the toothbrush market.
The company decided to maintain retail marketing as a means for ensuring constant presence
Competitors such as Unilever and P& G added to the competition felt by Colgate in retail stores
Competitors lowered prices and ventured into intensive advertising
Colgate decided to do research to understand its local and global markets
It acquired oral B and worked in partnerships with oral health professionals like dentists who helped in the endorsement of Colgate products to patients
The company organized oral health trainings as a defense mechanism for maintaining its market share.
The company focused in maintaining its brand equity
Oral health trainings promotes consciousness and triggered the demand
The company maintained its brand equity and allowed for innovation of new products.
Optimized their portfolio by maintaining its brand and focusing on promotion of oral health
It maintained close relationships to oral health professionals, retailers, wholesalers and pharmacists
How is the toothbrush market segmented? Compare consumer behavior for toothbrushes and toothpaste.
The segmentation of this market has patients, parents, children and youths.
It used professional to endorse its products,
It turned its marketers to becoming oral consultants
The major segments of the market defined by Colgate are pet nutrition, personal care and oral care.
Experience from its years of operation and the expertise of its marketers helped in maintenance of the market niche and adventuring into new markets
It took knowledge of local tastes and preferences and that made the demand for its toothpaste and toothbrushes to keep growing.
Growth rate in emerging markets advanced faster than those in developed markets were.
Consumption of toothpastes in emerging markets such as China and India was low both for toothbrushes and for toothpaste while the U.S. had the highest consumption records.
The education of consumers on oral hygiene for its market segments initiated the need for maintenance of oral health habits among children in more than 80 countries
It maintained competitive brand name Colgate as a scheme for maintaining a market position for emerging products
What are the arguments for launching Precision as (a) a niche products and (b) a mainstream brand?
The launch of precision as a niche was targeted in getting the interests of consumers and fulfilling them by providing a product they needed to maintain oral health.
The Colgate Company utilizes the social media to interact with its consumers as a strategy for learning the needs of its different market segments
Niche marketing also embraced store advertising to ensure constant presence.
Mainstream branding focused on the realization of the needs of the community and taking care of it.
The example was in the research among the Indian families, which revealed that Indian parents had a concern for their children to have adequate and quality education.
Colgate took up that need and builds its corporate positioning by offering scholarships to the children and developing a lasting corporate image
That makes the Indian community capable of identifying with the product and remaining loyal to its use.
Through a focused organizational structure focused on innovation, the company maintained its presence across the world in an innovative and focused commitment in the competitive practice in the global changing trends.
Work Cited
Henderson, Rebecca, M. and Johnson, Ryan. Colgate-Palmolive: Staying Ahead in Oral Care. Boston, MA: Harvard Business School Publishing. (2011): 1-9
