Case Study: ”Colgate Dental Cream Toot hpaste”

Background

From a modest start in 1937, when handcarts were used to distribute Colgate Dental
Cream Toothpaste, Colgate-Palmolive (India) today has one of the widest distribution
networks in India - a logistical marvel that makes Colgate available in almost 5.8 +
million retail outlets across the country.

Since 1976, Colgate has worked in close partnership with the Indian Dental Association
(IDA) to spread the message of oral hygiene to children across the country under its
'Bright Smiles, Bright Futures' Schools Dental Education Program. This program has
successfully reached more than 162 million school children between the age of 6-14
years across 4,11,000 schools in urban and rural India across the country since its
launch. In the year 2018 alone, the BSBF program reached 11.5 million children across
the country. The program focuses on children so that the message of good oral hygiene
is carried home to families and the community at large. In 2004, as an additional effort
to create awareness for good oral hygiene 'Oral Health Month' (OHM), was introduced.
Since its launch, OHM is conducted each year during October-November, where free
dental check-ups are conducted by Colgate in partnership with Indian Dental
Association across the country.

In 2009, Colgate-Palmolive (India) was adjudged as the Best Value Creator (Mid Cap
Category) in the 2009 Outlook Money NDTV Profits Awards. Colgate was ranked as
India's #1 Most Trusted Brand across all categories for seven consecutive years from
2011 to 2017 by Brand Equity's Most Trusted Brand Survey, conducted by Nielsen. It is
the only brand to be in the top three since the inception of the survey in 2001. Prior to
this, Colgate was also rated as the #1 brand by the A&M - MODE Annual Survey for
India's Top Brands for eight out of nine years during the period 1992 to 2001.

Issues and Concern

1. What makes Colgate Total different from other toothpastes?

2. What germs/bacteria is Colgate Total effective against?

3. What is the unique combination of ingredients in the Colgate Total formula?

Point of View
My own point of view the Colgate has worked directly in the Indian Dental
Association in order to promote the program of proper good oral hygiene to the families
and community at large and to create awareness for good oral hygiene.

Statement of the Problem:

How does Triclosan work in preventing gum problems?

Objectives
1. To help fight cavities, reduce plaque, prevent gum problems, control tartar,
and protect against bad breath.
2. To reduce the germs that can cause gum disease and gum problem.
3. To provide antibacterial ingredient to your teeth giving you 12 hours
protection even after you eat or drink.

Areas of Consideration

1. Assess the Market

Prior to finding solutions to the problem, an extensive analysis on the Company’s
strength and weakness must be done. This helps us to know the potential areas of
improvement and the inner strengths. Was a global leader in the house hold and
personal care products Was unable to achieve proper credibility from the dental
association on its products when compared to its competitor ORAL- B.

2. Set the Objectives

Each having different expectations from toothbrushes Oral-B and Johnson & Johnson
trying to capture more market in super-premium range Competitors offering coupons,
refunds etc. to get an edge. Sizeable revenues spent on advertisement Super-premium
category can help increase market share.

3. Market the Brand

Company to manage toothpaste and brush position as number one leader, it has to take
a missionary selling strategy, brand positioning, and communication strategies. Several
pricing services are available but I have designed a strategy of market penetration
pricing to enable Colgate to build larger plants geared towards increment in production,
a benefit of low price setting, and the end acquisition of more market shares.
4. Measure the Results

The key factor towards success in this segment is the right branding strategy as well as
the distribution and product quality. Colgate-Palmolive have a large product line it is
helping the company to occupy large shelf space resulting into high visibility & organic
promotions.

 Market share- Colgate Palmolive is a worldwide producer and distributor of

household, health care and personal care products. It is a global leader in the
oral care hygiene market, with a market share of 42.1% in the global toothpaste
market and 32.3% in the manual toothbrush market.

 Overall sales- The statistics shows the net sales worldwide of Colgate-
Palmolive’s oral, personal and home care segment and the pet nutrition segment,
as well as combined total net sales, from 2011 to 2018. In 2018, the total net
sales generated worldwide by Colgate-Palmolive was 15.54 billion U.S dollars.

 Brand image-Colgate-Palmolive it was ranked No.155 in the list of Fortune 500

companies in the year 2012, with revenue of US$ 16.73 billion.

 Product innovation- The Colgate-Palmolive CP’s five-year plan emphasizes

new product launches and entry into new geographic markets and a continuing
focus on core consumer product. The company has always made offerings to
meet the needs of the consumer.

Alternative Courses of Action

1. The main objective of any advertisement is to get customer to purchase their

companies product.

Advantages:

1. The situation of Colgate-Palmolive and the introduction of the precision

Toothbrush is evaluated based on strength, weaknesses, opportunities, and
threats.
2. The company with its dedicated customer relationship management
department has able to achieve high level of customer satisfaction among
present customer and good brand equity among the potential customer.
Disadvantages:

1. They don’t actually whiten your teeth instead, they contain an abrasive that
grinds away stains on the enamel, making your teeth seem brighter.

2. It should not contain cinnamon and any artificial chemical and dyes.

2. Maintain the existing business process and marketing strategies and be contented on
the existing performances.

Advantages:

1. Creating a bristle configuration & handle design/maximum plaque-removing

efficacy.
2. Determine through clinical and consumer research, the efficiency and
acceptance of the new toothpaste design.

Disadvantages:

1. Safety product of herbal toothpaste that which is certified as organic

otherwise they may also endanger our tooth.
2.

Plan of Action

1. As the decision gains popularity, they use some of the advertising and marketing
expenditures for out premium lines to advance their Super Premium product, in this way
certainly will result in cannibalization of some of their premium product line but they feel
that the benefit of capturing potentially a great deal of the competitors market share by
providing a better product as a lower price serves their interests as a company in the
long term.

2. The benefit is that has more of an available consumer base to serve as newer
products develop in the Super Premium Category in the coming years.

3. Colgate has implemented fantastic marketing strategies over time, including roping in
dentist to brand the product which has resulted in Colgate being the leader in the oral
hygiene industry.

4. The Colgate precision will advertised as a better toothpaste in comparisons with other
super-premium toothpaste from competitors instead of their premium toothpaste.