COLGATE v/s P&G

Decision Sheet

Overview:
● Crest Whitestrips, a unique product of its sort, was released by P&G in August
2000.
● P&G asserts that the new product was 10 times more effective than Colgate Tartar
Control Whitening.
● P&G dominated the share market by more than 80% in just two years.
● With Simply White, Colgate made a comeback in August 2002.
● Colgate's USP was that it placed a strong emphasis on affordability and
convenience.
● One month after its release, Simply White had a 50% market share, whereas Crest
Whitestrips had lost 50% of its market share.
Problem statement :
● Drop in share price from 80% to 37% causing loss of almost 50% of market share.
● What decision to take in order to respond to the loss of market share and
advertising campaign in order to improve the current situation
Analysis :
● Whitestrips were priced $40 whereas simply white was priced $15 with contribution
margin of 45%
● Market share of whitestrips dropped from 80% to 37% while simply white gained
market share of almost 50%
● Whitestrips was 10 times as effective as whitening toothpaste whereas effectiveness
of simply white was not what the company showed.
Recommendations :
● P&G should not attack colgate directly by filing a complaint about false allegations
as it might backfire in terms of brand image
● They also have an option to reduce price but it might cause trust issues and unrest
among the consumers