Colgate, an oral hygiene product line and one of the namesake brands of the Colgate-Palmolive
Company, is a manufacturer of a wide range of toothpastes, toothbrushes, and mouthwashes.
Toothpastes produced in Italy, Spain, Germany, Philippines, Malaysia, Singapore and Poland in
Europe, Mexico, Colombia and Brazil in Americas and in South Africa for African market.
Toothbrushes of Colgate manufactured in People's Republic of China and Switzerland, in Switzerland
produced and the mouthwash of Colgate, the Colgate Plax.
Colgate Ribbon Dental Cream was the first toothpaste in a collapsible tube,[1] introduced in 1896. It
had previously been sold in glass jars since 1873.
Future strategy on 4p`s basis:
1. Product:
They try to position some innovative toothpaste with a brand name other than Colgate but
under the umbrella of Colgate Palmolive.
Focusing toward rural rich and consuming class by endorsing the development of ‘Colgate
Ayurvedic Toothpowder‘.
They would come up sachets of these tooth powder and position toward rural population
who buy in smaller lots.
For Urban population, they would come up with the products suiting to young generation.
For Urban rich and consuming class, they would come up with the products on the
basis of functional benefits.
Eg: 1.They launch different toothbrushes for different age groups.
2. They launch a special toothpaste and toothbrush for kids in the age group from 4-
10years.
2. Price:
Based on the competitor's price .
Charging higher premium which focused on consuming and lower income classes.
Pricing done on the basis of price points
Packaging would be customized on the basis of price points.
3. Promotion
They positioning Colgate dental white crème and toothpowder towards rural rich
segment.
For rural consuming class they endorsing Cibaca toothpaste.
Advertisement through T.V. media, Print media.
FM Radio for Urban population & MW and SW radio for Rural population.
Hoarding on National highways.
4. Place:
They would try to increase product penetration to rural population.
They would try to increase the wholesalers to smaller towns.
They would track the distribution path so that they are covering all the village areas around
the towns
III. Marketing Strategy
A. General marketing strategy
1. Niche/mainstream positioning strategy
The main focus of niche positioning would be placed on consumers
who are concerned about the prevention of gum diseases. There would be
many positive benefits to the company if Colgate-Palmolive were to position
the Precision toothbrush as a niche product. These benefits would include
one, by targeting the segment of consumers who are worried about gum
disease; Colgate-Palmolive would be able to charge premium prices. Two,
Colgate-Palmolive would be able to differentiate the Precision toothbrush
from other toothbrushes, because of Precision’s technological superiority over
the other toothbrushes already on the market. Three, it is safe to say that
SKU’s would not decrease if Colgate-Palmolive were to position the Precision
as a niche product. And four, if costs were to decrease then it enables Colgate
to reduce the losses of Precision if it were not successful. Niche positioning
not only offers positive benefits, but it also offers negative ones as well.
The negative benefits if Colgate-Palmolive were to position the Precision
toothbrush as a niche product would include one, sales in mass merchandisers would decrease, and
two, retail sales would be less if niche positioning were
used.
Mainstream positioning would place emphasis on the Precision toothbrush
as being the most appealing and effective toothbrush available on the market.
The advantages of using mainstream positioning for the Precision toothbrush
would be one, most retail stores are under a mainstream position rather than a
niche position. Two, in the super-premium category, the Precision toothbrush
would be the most superior product. And three, by positioning the toothbrush
as a mainstream product, it would in return increase name recognition for
Colgate. Negative advantages of using mainstream positioning for the
Precision toothbrush are one, although the toothbrush would be superior to the
other super-premium toothbrushes, the prices for the Precision and other
brushes would be equal. Equal prices would then lead to increased
competition, which in return could cause prices to go up. A second
disadvantage could also lead to the cannibalization of Colgate-Palmolive’s
other super-premium toothbrush, the Colgate Plus. And three, a mainstream
position would probably lead to the reduction and removal of one or more
SKU’s.
We believe that maximizing your profitsis the most important thing, and that positioning the
Precision toothbrush as a mainstream product, rather than a niche, it would create higher profits.
2. Product differentiation strategy
By differentiating a product, it creates a difference that sets certain
products apart from other products, and also targets certain market segments.
Colgate-Palmolive will need a product differentiation strategy that will make
the Precision toothbrush unique from all other toothbrushes already
available on the market. The company will also need a strategy that will
appease to certain consumer segments. By coming up with this strategy, it in
return will cause Colgate-Palmolive to increase profits and market share.
The main area of this strategy’s focus should be placed on the design and
packaging of the toothbrush. For example, we suggest Colgate make
sure the consumers know that the bristles are of different lengths for a reason,
for the reduction of plaque build-up in places such as the gum line and in
between the teeth, and that no other toothbrush on the market is designed this
way. We suggest that a picture is placed on the toothbrush package showing
the different lengths of bristles, and an explanation of what each length is
responsible for doing. Also we suggest that the bristles be different colors
representing the different lengths. This way the consumer will be able to
differentiate the Precision from all other toothbrushes.
We suggest that Colgate-Palmolive package the Precision toothbrush
differently than the other toothbrush companies. We think that the
toothbrushes’ packaging should be very colorful in order to draw customer attention away from
other brushes. The name Precision should also be placed
on the packaging in a distinct font.
3. Price/quality differentiation strategy
Our main focus here is on the customers. We want them to be able to get
the most for their money. By producing a superior toothbrush, that offers
more qualities than the other toothbrushes available on the market, at or
around the same price as the competition, consumers will hopefully want to
purchase the Precision toothbrush over the others. There will be more
qualities offered at no extra charge.
The price of the toothbrush if positioned as a mainstream product will
have to be equal to the prices of the other toothbrushes already available on
the market. If the Precision toothbrush is profitable and there is a high
percentage of consumer demand, then Colgate-Palmolive might want to
consider increasing the price of the toothbrush by a small margin.
4. Mission marketing strategy
Colgate-Palmolive’s mission strategy is to be successful in the toothbrush
market, and hope the Precision toothbrush is not a failure. They will strive to
gain a competitive advantage over other companies, while producing a profit,
and satisfying the wants and needs of buyers. A goal of Colgate-Palmolive is
for the Precision toothbrush to add utility or value to its consumer’s lives.