Title:

MARKETING PLAN OF COLGATE

Submitted By…
Name: Nowrin Hoque

ID: 6034

Batch: 6th

Submitted To…
Prof Dr. Md. Kamal Uddin

Course Name: Global Marketing

Department of International Business

University of Dhaka

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Colgate Marketing Plan

Table of Contents Page Number

Executive Summary……………………………………………………………………. .4-7
Colgate Toothpaste Analysis…………………………………………………………..8-20
Company Overview………………………………………………………......... 8-9
Product Overview ………………………………………………………………... 9
Product Analysis………………………………………………………………. 9-13
Market………………………………………………………………………... 13-14
Target.………….…………………………………………………………….. 14-16
Price……………………………………………………………………………... 16
Promotion………………………………………………………………………... 17
Place……………………………………………………………………………... 18
Trends………………………………………………………………………...18-19
Strengths, Weakness, Opportunities and Threats…………………………….19-20
Competition
Aquafresh…………………………………………………………………………….21-24
Product Analysis..……………………………………………………………21-22
Market……..…………………………………………………………………….22
Target…………………………………………………………………………22-23
Price……………………………………………………………………………..23
Place/promotion…………………………………………………………………23
Strengths and Weakness……………………………………………………..23-24
Marketing Plan
Crest……………………………………………………………………………..……24-27
Product………………………………………………………………………..24-25
Target…………………………………………………………………........… 25-26
Market Share……………………………………………………………………..26
Price………………………………………………………………………....…...26
Promotion………………………………………………………………………...26
Place……………………………………………………………………………...27
Strengths and Weakness Analysis……………………………………………….27
Colgate Mission……………………………………………………………………….…28
Market Research Data………………………………………………………………..29-32
Keys to success and Critical Issues…………………………………………………..33-34
Goals……………………………………………………………………………………..34
Strategy ………………………………………………………………………………34-38
Control……………………………………………………………………………….…..38
Budget………………………………………………………………………………..38-39
Projections…………………………………………………………………………….….39
Work Cited……………………………………………………………………………….40
Marketing Plan

Executive Summary

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The Colgate-Palmolive company is acknowledged as the world’s leader in personal care. This
report analyse the Colgate’s current situation in order to give recommendations on their actual
toothpaste product line.

The report is divided into two parts. The first parts will analysis the current situation of Colgate.
On the basis of a SWOT analyse the strengths, weaknesses, opportunities, and threats of the
company as well as of Colgate’s toothpaste product line will be analysed. Furthermore additional
information on the company’s current market share, profitability, sales and the external
environment of Colgate within the scope of the PEST analysis will be presented. At the end of
the first part the competitive advantage of Colgate will be mentioned. The second part includes a
suggested marketing strategy of the author using marketing tools such as segmentation targeting
& positioning, SMART objectives as well as the marketing mix. To better recommend
improvements, the actual state of Colgate referring to their products, objectives, etc. is in some
parts shortly mentioned. At the end a conclusion is drawn concerning the current situation of
Colgate and suggested improvements for the future.

Perception of brand and category

Current status: Colgate Toothpaste has been fighting bad breath and maintaining proper oral
health for over 200 years. With an array of 40 different patented toothpastes and 13
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classifications of oral care, Colgate remains competitive in the market place. The toothpaste
category sales are estimated at $3 billion or 3% of the oral health care industry. The current
Colgate market share is 36.2%. Crest is at 30% and Aquafresh is at 8.13% of the toothpaste
market. Colgate is a strong earner and its market share reflects this. Strong competition from
Crest has cost Colgate valuable market share over the last five years.

Keys To Success:

 Colgate toothpaste is the leader within the product category holding 36.2% of the market
or $1,114,137,768 in sales.
 Colgate has a vast product line of toothpaste and many are less than a decade old. While
others date back over thirty years and the original is over one hundred years old.
Therefore, it is imperative to keep Colgate’s brands fresh but maintain a rich history of
quality products.
 The highest selling trend within toothpaste is the toothpaste and not toothpaste-gel.
 The target market for Colgate toothpaste is Black and Hispanic individuals age 18-35,
with several children aged 7 and younger.
 Colgate commits millions of dollars to community programs and the ADA “Give A Kid
A Smile” Program.
 Colgate has established Colgate Smile a social network, an interactive iphone application,
Facebook page, Twitter account and My space page.
 Colgate is committed to Reducing Environmental Impacts (REI) around the world.
 Colgate is not the leader with regard to technological advancement within the category.

 Colgate’s success is linked to its culture, which encourages all Colgate people to
demonstrate personal leadership every day. Personal leadership also include three
fundamental global values of the company: Caring, Continuous Improvement and Global
Teamwork.

Goals

The main goals of Colgate are to better understand consumers behaviour, launching new
products through innovation, increasing effectiveness and efficiency as well as strengthening the
leadership worldwide ( Colgate-Palmolive Annual Report 2009, p.4) In order to remain a leader
in the category four goals must be achieved:

 Increase Colgate market share by 1.7% or $1,326,546,098

 Increase website traffic and Facebook friends by 10%.
 Carry over current 2010 margin at 18% of Colgate sales into 2011 expenditure.
Introduction

Colgate is the world market leader in oral hygiene products. The toothpaste product line consists
of strong brands. This is due to a very successful marketing strategy of the company in the past.
But especially in a competitive environment like the personal care industry it is essential for
Colgate that it upgrades its organisational as well as marketing strategies in order to meet the
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customer’s needs and strengthening the leadership. Furthermore nowadays a wide range of
different toothpaste products is offered to the customers. This in particular means for Colgate
that they must differentiate their products from the competitor’s products by being innovative
and unique. Moreover the toothpaste market is growing constantly which means that more
different needs and expectations of the customer will arise. Therefore Colgate must make use of
marketing tools such as market segmentation to better identify their needs in order to supply
them with the right products.

Company Profile

Colgate, founded in 1806 by William Colgate, is acknowledged as the world’s leader in personal
care sales including oral hygiene products such as toothbrushes and toothpastes. Colgate has
many subsidiary organisation located in more than 200 countries, but it is publicly in only two,
the United States and India. Colgate Toothpaste has been fighting bad breath and maintaining
proper oral health for over 200 years.

Company Timeline
• 1806-William Colgate starts a starch, soap and candle business on Dutch Street in New York
City.
• 1857-Upon the death of founder, William Colgate, the company is reorganized as Colgate &
Company under the management of Samuel Colgate, his son.
• 1896- Colgate introduces toothpaste in a collapsible tube.
• 1911- Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and
provides hygienists to demonstrate tooth brushing.
• 1953-Colgate-Palmolive Company becomes company's official name.
• 1956- Colgate opens corporate headquarters at 300 Park Avenue in New York City.
• 1968- Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
• 1996- Bright Smiles, Bright Futures oral health education program expands to 50 countries, and
today reaches over 50 million children annually.
• 1997- Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader.
Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.
• 2000- Colgate creates, Colgate 2in1 Toothpaste.
• 2007- Colgate launches Colgate Max Fresh toothpaste line.
• 2009- Colgate launches Colgate Luminous.

Growth and profitability

Global sales as reported were $15,327 million during the financial year ended December 2009
($15,330 million in 2008). The operating profit was $3,615 million during 2009, an increase of
16.6% over 2008. At present, Colgate has a market share of 44, 4% in the world’s toothpaste
market operating in more than 200 countries and territories. In the United States, one of the
world largest consumer markets, Colgate is the market leader in toothpaste sales with a market
share at 36.2 % (Colgate-Palmolive Annual Report 2009, p.2-4). Operating in more than 200
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countries the company is not depending on one single market. Significantly for the global
presence is that over 82% of the company's 2009 revenues came from outside the United States.
The markets in industrialised countries are largely saturated. Because of the strong presence
especially in emerging countries such as India and Brazil Colgate takes advantage of the positive
consumer trends in these countries and can compensate the sluggish economic growth in
industrialised countries. Please see appendix to find further financial information on Colgate.

Product Overview
Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria.
Specifically:
• Toothpaste contains abrasive materials that physically scrub away plaque. In addition,
toothpaste abrasives help remove food stains from teeth and polish tooth surfaces.
• Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel
weakened by acid attack, making it more resistant to future acid attack from plaque bacteria and
food.
• Technological improvements in some toothpaste contain ingredients that chemically hinder the
growth of plaque.
Colgate’s brands consists of a multitude of unique toothpastes lines, specializing in them
preservation and treatment of oral hygiene. Colgate has created an array of 40 different patented
toothpastes keeping Colgate competitive in the market place. There are 13 different
classifications and varieties of Colgate toothpastes. Colgate’s toothpastes feature; cavity
protection, plaque & gingivitis prevention, long lasting fresh breath, tartar control toothpastes,
tooth whitening, baking soda and peroxide, enamel strengthening, sensitivity relief and
toothpaste designed for children.

Product line analysis

The Colgate has a fairly wide product mix, consisting of dozens of brands that you can ´trust to
care for yourself, your home, and the ones you love`. This mix is organised into five major
product lines: oral care, personal care, household care, fabric care and pet nutrition (Amstrong,
G. (2009) Marketing: an introduction, p.243). The most recognizable product line is oral care,
including 31 different toothpaste products. Please see appendix to find all toothpaste products of
Colgate.

Product Analysis

* Colgate Cavity Protection Great Regular Flavor

* Colgate Cavity Protection Winterfresh Gel
* Colgate Tartar Control Whitening Cool Mint Gel
* Colgate Tartar Control Whitening Crisp Mint Paste
* Colgate Total Advanced Whitening
* Colgate Total Advanced Clean
* Colgate Total Advanced Fresh Gel
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* Colgate Total Clean Mint
* Colgate Total Whitening Paste
* Colgate Total Whitening Gel
* Colgate Total Enamel Strength
*Oxygen Bubbles Whitening Brisk Mint® Paste
* Colgate 2in1 Oxygen Whitening
* Colgate 2in1 Whitening
* Colgate 2in1 Kids Strawberry
* Colgate 2in1 Kids Watermelon
* Colgate Max Fresh w/ Mini Breath Strips
* Colgate Max Fresh w/ Mouthwash Beads
* Colgate Max White w/ Mini Bright Strips
* Colgate Sparkling White CinnamonMint
* Colgate Sparkling White Mint Zing
* Colgate Sparkling White Caribbean Cool
* Baking Soda & Peroxide Oxygen Whitening
* Colgate Baking Soda & Peroxide Whitening
* Colgate Sensitive Multi Protection
* Colgate Sensitive Enamel Protect
* Colgate Sensitive Maximum Strength Whitening
* Colgate Pro Clinical Daily Whitening
* Colgate Pro Clinical Daily Cleaning
* Colgate Pro Clinical Daily Renewal for Enamel
* Colgate Dora the Explorer Mild Bubble Fruit
* Colgate My First Toothpaste
* Colgate Luminous Crystal Clean
Colgate Regular: In over 173 years, Colgate’s original flavored mint toothpaste has changed
very little. It cleans, strengthens, protects teeth and breath. Colgate’s Original formula uses active
fluoride to keep teeth and gums healthy. Colgate Regular is ADA approved and doctor
recommended.
Colgate Tartar Control Toothpaste: One of the top sellers in the Colgate tooth paste line and
for good reason. Colgate Tartar Protection fights tartar build up and removes stains to whiten
teeth and fight cavities.
Colgate Total: is the most popular toothpaste under the Colgate brand. It has eight products and
flavors within the line that all promote 12-hour protection from: gingivitis, stains, plaque,
whitening, cavities, tartar, weak enamel, tender gums and bad breath. Colgate Total’s products
all protect against these unwanted oral issues, but some target specific individual problems in a
variety of toothpastes and gels. Including, Colgate Total Enamel Strength Striped paste, protects
from acid wear for 12 hours. Colgate Total Advanced Whitening uses Dual-Silica Technology to
remove tooth stain and helps to prevent new stains from forming.
Colgate Total Advanced Clean: is available in both a gel and paste form and contains silica,
which is similar to what dentists use to maintain a professional cleaning feel.
Colgate Total Advanced Fresh Gel: contains an added flavor booster to keep breath ultra fresh
for up to 12 hours. Colgate Total Clean Mint Paste has a delightful mint taste. Colgate Total Mint
Stripe Gel is a minty blend of gel and paste that leave the users mouth fresh and clean.

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Colgate Oxygen Bubbles Toothpaste: When activated, the product foams to get in between
teeth to fight cavities and kill germs that cause bad breath. Oxygen Whitening works to gently
remove surface stains to reveal the natural whiteness of teeth.
Colgate 2in1 Toothpastes: is a mix of two distinct features in one gel toothpaste. Whitening
foaming that gets between teeth to fight cavities and kill germs that cause bad breath and Oxygen
Whitening works to gently remove surface stains to reveal the natural whiteness of teeth
Colgate Sparkling White Toothpaste is clinically proven to protection teeth from wear and tear
staining. The formula is a patented creation for sparkling, healthy, white teeth accompanied by a
unique flavor experience. It is available in the following flavors: Colgate Sparkling Mint Zing,
Colgate Sparkling White CinnaMint, and Colgate Sparkling White Caribbean Cool.
Colgate Sensitive Multi Protection fights tartar, removes plaque, promotes healthy gums and
whitens teeth for a healthier smile. The sensitive element in the three Colgate Sensitive
Toothpastes protects from painful oral sensation.
Colgate Sensitive Enamel Protect helps protect tooth enamel from acid attacks.
Colgate Sensitive Whitening helps restore the natural whiteness of teeth.
Colgate Pro Clinical is relatively new to the market. It comes in three varieties inspired by
dentists to create a high quality and satisfaction guaranteed product. Colgate Max Line
established in 2007 consists of three varieties.
Colgate Max White with Mini Bright Strips freshens breath and helps to bring back the
natural whiteness of a persons smile. Colgate Max Fresh with Mini Breath Strips is packed
with hundreds of mini breath strips. These breath strips unleash a powerful rush of freshness and
are formulated to whiten teeth. Colgate Max Fresh with Mouthwash Beads contains concentrated
mouthwash beads that leaves the users mouth ultra clean and fresh. Colgate has several lines of
toothpaste targeting children in regard to packaging, flavor and theme. Including Colgate Dora
the Explorer Mild Bubble Fruit, Colgate SpongeBob Mild Bubble Fruit, Colgate My First
Toothpaste and Colgate Pop Stars.
Colgate Luminous is Colgate’s newest brand launched in early 2009. It is manufactured in two
flavors, Crystal Clean Mint and Paradise Fresh Colgate. Luminous is a specific formula that
safely lifts off yellowing surface stains to restore the natural whiteness to teeth. Using fluoride
mineral formulation, Colgate Luminous strengthens weakened teeth enamel. Colgate Luminous
Reinforces enamel layers by rebuilding the weak spots on teeth, protecting against stains and
yellowing that occurs over time.

Colgate Products Percentage Breakdown

Market Information
Oral Heath Industry
Americans brush their teeth with toothpaste 200 billion times a year. The oral health industry is a
vibrant sector of the current economy equal to $106 billion annually, of which 3% will be spent
on toothpaste products.The toothpaste market itself is increasing up, a 8% in 2010 to 2008 and
12%from 2005.Therefore, it can be assumed that the market will continue to increase over the
next 5 five year.

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Toothpaste Market
Toothpaste in the United States is a massive market. Sales are estimated $3,133 million total
market sales, consuming an average of 895,379,714 tubes per year. Colgate-Palmolive (stock
symbol (CL) is publicly traded on the New York Stock Exchange at $75 a share and is worth an
estimated $15,327,000,000. Colgate Toothpaste contributes 10% or $1.5 billion to the total value
of Colgate-Palmolive. [3] With a penetration of 76.35%, almost 3/4 of the families in the United
States have tried Colgate toothpaste at least once. Based upon past and current Colgate
toothpaste market share percentages, future market share can be expected to grow to record
highs. At the current rate of increase, market share can be predicted to surpass the five-year
benchmark high of 37.3% to a new record of 37.5% in 2011. Colgate must maintain that leading
position to ensure future growth over the next several years. Dips in market share have occurred
in the recent past such as in 2008-2009. In order to maintain current consumers and attract new
potential users, it is imperative that Colgate vitalizes new or existing appreciation among
consumers for their toothpaste brands.

Colgate Toothpaste Target Consumer Profile

The over all target consumer for Colgate’s many toothpastes are Black and Hispanic men/women
aged 18-34 with a college education employed as professionals earning $75,000 or more. The
target consumer is currently married with children, six years old or younger, living in homes
worth $200,000-$499,000 in the top five media markets in the United States.

Customer

The selling of Colgate’s products depends on chain reactions. If there is a growing population
rate worldwide or in local markets, the need for oral hygiene products increases. Today the world
population is approximately 6.85 Billion, predicting a world with 9.2 people by midcentury.
Because of the globally presence of Colgate, there will be 2.35 billion new potential customers
until 2050 (United Nations world population prospects 2008). Here is to point out that the
average age of the population is not essential because all people have a need for oral hygiene
products. Furthermore Colgate offers premium products which mean the consumer is willing to
pay a high price for the product in order to receive high quality products.

Colgate Toothpaste Overall Target Market

Colgate has so many products it becomes necessary to aim strategies at a limited target
consumer. Based upon demographics supplied by MRI and Spectra, the target consumer of
Colgate is categorized as “younger bustling family” living within the mid-scale suburban mix
community. The target’s life is centered on his/her family. The target earns for their household,
while balancing interests and pursuits. Media selection, outdoor activities and neighborhood
selection all mirror a family centric target.The consumer lives in the midscale suburban mix
placing the target in the middle of the socioeconomic ladder. The midscale suburban mix can be
characterized by residents that earning a living in blue-collar jobs and live in older, modest
homes in ethnically diversity areas.
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Price
Colgate features products in the oral health isle of almost all stores carrying oral health products.
Colgate has a large span of shelf space on nine rows, totaling 35 items per store that illustrates
the wealth of variety Colgate offers. It is important to note that Colgate is the first product on
display in the toothpaste section of the oral health isle. The subtotal of all of Colgate’s products
per ounce is 28.58 equaling $0.81 per ounce, making it the most expensive brand of the three
toothpaste category leaders. The most expensive toothpaste per ounce is the Colgate Pro Clinical,
which is featured at eye level on the top shelf. The least expensive toothpaste per ounce is the
Colgate Regular super tube, which is located on the second shelf from the store floor or shin
level of the consumer.

Promotion
The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of
mediums. The advertisements and promotions are located in a targeted media selection that
appeals to the target consumer.
• Website: Colgate has a dynamic website with the title, “Colgate World of Care,”that details
products, oral care, company history, e-newsletter and special offers.The website also has a
social networking page called Colgate Smile to engage the consumer to get involved with their
oral health and the Colgate-Palmolive Company. Colgate also has social media pages on
Facebook, Twitter and Myspace.

• Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section
of the website. Colgate coupons can also be found as cutouts in the weekend coupon sections of
500+ newspapers around the country.

• Television: Colgate and its advertising agency produce several television advertisements a year
using humor and pseudo scientific displays to appeal to consumers.

• Magazines/Outdoor: Colgate’s marketing campaigns have been known to use historical, sexual,
cultural and social inferences in their advertisements.

• Donations: Colgate donates millions of dollars annually to the ADA’s “Give a Kid A Smile.”
Colgate is a direct partner with this ADA program.
Place
Colgate’s product distribution is immense. Almost all super markets, discount chains and
pharmacies such as Wal-Mart, Albertsons, Target, Walgreens and CVS carry Colgate Toothpaste.
Colgate toothpaste is physically located in the oral health isle of stores. Colgate toothpaste can
sometimes be found in more prominent locations when on sale or launching new products into
the market.

Trends
Health Trend: It is proven through scientific study that a healthy lifestyle which includes
exercise, eating and drinking with health in mind. As society grows more aware of the benefits of
a healthy lifestyle, marketers have created an abundance of products to cater to this growing
trend. These include tens of thousands of products such as gyms in and outside the home, health
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drinks, and foods high in fiber, low in fat and rich in vitamins. A healthy lifestyle extends into
oral health awareness also.

Dietary and Habits: Some foods have a strong residue such as garlic, onion, cheeses, alcohol
and coffee, which causes an adverse effect on oral freshness. Tobacco is a popular stimulant in
many cultures around the world and is an accompaniment before, after and during meals, with
coffee or alcohol. Tobacco is now illegal to use indoors in most major cities throughout the U.S.
Tobacco is damaging to proper physical/oral health and is linked to causing cancer, bad breath
and stained teeth.
Technology: Technology is changing daily life within the world markets from the way people
create and use a shopping list to the cars people purchase. Toothpaste has a direct correlation
with the toothbrush. Every year new toothbrush models come out claiming superior plaque
removal using such selling points as super sonic technology to blast away plaque build up or
crisscrossing bristles to lift and brush plaque away. Also under the heading of technology are
cameras and Facebook. Today people carry cameras at all times. Any event is now a potential
photo shoot. The ease of access and spontaneous nature of camera usage requires the consumer
to be aware of their smile at all times.
Social/Cultural: Humans are social beings and face-to-face interaction is commonplace in
business, relationships, school, family and with friends. Halitosis creates a stressful social
interaction making it difficult to be close to someone suffering from bad breath. The media has
made fresh breath the norm and anything contrary is unacceptable, putting emphasis on
toothpastes to sweeten breath even hours after brushing.

Traditions: Within our ever-changing world, consumers enjoy products and services that they
feel a connection to or have a history with. A person knows they can trust a product they saw
their parents use. There is something intimate and potentially nostalgic about bathroom products.
This helps Colgate to maintain its status as a mature, trustworthy product and symbol of the
Colgate-Palmolive Company.

Colgate Toothpaste Overall Positioning

Positioning Strategy:

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All marketing strategy is built on STP: Segmentation, Targeting, and Positioning. A company
discovers different needs and groups in the marketplace, targets those needs and groups that it can
satisfy in a superior way, and then positions its offering so that the target market recognizes the
company's distinctive offering and image. If a company does a poor job of positioning, the market
will be confused as to what to expect. If a company does an excellent job of positioning, then it
can work out the rest of its marketing planning and differentiation from its positioning strategy.
Positioning is the act of designing the company's offering and image to occupy a distinctive place
in the mind of the target market. The end result of positioning is the successful creation of a
customer-focused value proposition, a cogent reason why the target market should buy the
product. Hertz is thought of as the world's largest auto-rental agency, Coca-Cola as the world's
largest soft-drink company, and Porsche as one of the world's best sports cars. These brands own
these positions, and it would be hard for a competitor to claim them.

As companies increase the number of claimed benefits for their brand, they risk disbelieve and a
loss of clear positioning. In general, a company must avoid four major errors:

1. Underpositioning: Some companies discover that buyers have only a vague idea of the brand.
The brand is seen as just another entry in a crowded marketplace. When Pepsi introduced its
clear Crystal Pepsi in 1993, customers were distinctly unimpressed. They didn't see "clarity" as
an important benefit in a soft drink.

2. Overpositioning: Buyers may have too narrow an image of the brand. Thus a consumer might
think that diamond rings at Tiffany start at $5,000 when in fact Tiffany now offers affordable
diamond rings starting at $1,000.

3. Confused positioning: Buyers might have a confused image of the brand resulting from the
company's making too many claims or changing the brand's positioning too frequently. This was
the case with Stephen Jobs's sleek and powerful NeXT desktop computer, which was positioned
first for students, then for engineers, and then for businesspeople, all unsuccessfully.

4. Doubtful positioning: Buyers may find it hard to believe the brand claims in view of the
product's features, price, or manufacturer. When GM's Cadillac division introduced the
Cimarron, it positioned the car as a luxury competitor with BMW, Mercedes, and Audi. Although
the car featured leather seats, a luggage rack, lots of chrome, and a Cadillac logo stamped on the
chassis, customers saw it as a dolled-up version of Chevy's Cavalier and Oldsmobile's Firenza.
The car was positioned as "more for more": customers saw it as "less for more."

Strengths, Weakness, Opportunity and Threat (SWOT) Analysis:

Strengths: Colgate has a history of producing quality products and a stellar reputation for oral
health products. Colgate has strong channels of distribution not only on a national scale but also
globally. Thereby, Colgate is the number one selling toothpaste in the world. Colgate is accepted
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by the ADA as effectively helping to prevent and reduce tooth decay. Within Colgate’s website is
a social network that asks consumers to get involved with the brand called “Colgate Smile.”
Colgate has 40 product facings in stores, which is the most out of any toothpaste brand. Colgate
has 93% product penetration.
Weakness: Within the product life cycle most of Colgate products are either mature or declining,
creating the need for Colgate to keep introducing new products. Colgate’s product line is broad
with over 40 different products varying in tube size, quantity, flavor and desired effect.
Toothpaste promotion is cut throat. Products are frequently on sale, which appeals to price
buyers and potential brand switchers. This may also cost the company profits due to regular users
taking advantage of the discounted price.
Opportunities: Colgate commands 37% of the toothpaste market share opening the door to
brand growth through marketing, acquisitions and mergers. Colgate’s brand image is an ever-
revolving door opening the opportunity for rebranding and new promotion/marketing tactics to
be explored.
Threats: Aquafresh’s products use innovative technology in packaging and development. Within
the last several years Colgate has lost its leadership position to Crest. While the lost market share
was regained, Colgate must remain aware of the competition. Both Crest and Aquafresh products
are cheaper per ounce than Colgate’s.

Swot-Analysis of the company

A Swot analysis is a technique specially designed to help identify suitable marketing strategies
for a company to follow. It encompasses both the internal and external environments of the firm
(Hollensen, S. (2003) Marketing Management: a relationship approach, p.265).

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Climate

A company exists within an external environment consisting of the actions of other players such
as the government and competitors who are outside the business. A PEST analysis is a useful tool
for understanding the ‘big picture’ of the environment in which an organization is operating.
Colgate is affected by all external environment factors listed in the following table

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Competitors

The main competitors are Unilever, Procter & Gamble and the Clorox Company. The personal
care industry is mostly controlled by these companies. On the one hand in order to gain more
market share within this industry, the only way is to take it away from one of these competitors.
On the other hand Colgate must also be aware of losing market shares to their competitors.

Competition Situation Analysis

Aquafresh
Products
Aquafresh was established in 1973, and is currently owned by GlaxoSmithKline (stock symbol
(GSK). Aquafresh is originally known for its tri-colored red, white and turquoise stripes. The
Aquafresh product line has expanded into some unique features not offered by other toothpaste
brands. The Aquafresh Extreme line uses micro-active foam to clean and smooth teeth over time,
creating a deeper clean feeling among consumers. The Aquafresh ISO-Active products start as
gel from a unique pressurized canister that turns into an “active foam” similar to shaving cream
but retrofitted for toothpaste.
Advanced White products are advertised to safely penetrate the tooth enamel to create greater
whitening rather than potentially harmful and abrasive techniques to polish teeth. Also,
Aquafresh advertises unique flavored toothpastes such as citrus mint and icy mint in Aquafresh
Advanced as well as a children’s flavor bubblegum-mint. All of these features make Aquafresh a
modern and competitive toothpaste brand.

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Products
Aquafresh ISO-Active
Aquafresh ISO-Active Whitening Fresh Impact,
Aquafresh ISO-Active Whitening Deep Impact
Aquafresh ISO-Active Whitening Lasting Impact

Aquafresh Advanced
Aquafresh Advanced Protection
Aquafresh Extreme Clean
Aquafresh Extreme
Aquafresh Extreme Clean Whitening Action
Aquafresh Extreme Clean Freshening Action
Aquafresh Extreme Clean Polishing Action‘s
Whitening
Aquafresh White and Shine Original
Aquafresh Ultimate White
Aquafresh Original
Aquafresh Cavity Protection
Aquafresh Extra Fresh
Aquafresh Tartar Control Whitening
Aquafresh Maximum Strength Kids Aquafresh Bubble Mint Paste

Market
Aquafresh, owned by global giant GlaxoSmithKline PLC (Stock symbol: GSK), had total annual
sales for 2010 equate to $28,368 million. Aquafresh’s market share of 8.13% translates to
$918,937,367 or 3.23% of the GSK net sales. Aquafresh’s market penetration is approximately
18.11%.

Target

The target market consumer for Aquafresh toothpaste is men and women age 18-35. The target is
collage educated and earns an income of $50,000-$75,000 in office occupations. They are
married and market profiles are most similar to younger bustling families. The Younger Bustling
Families behavior stage is predominantly White and Hispanic. 60% are non-Hispanic Whites
with 2.7 children, aged 6-17. At this behavior stage children develop their own tastes and needs,
and begin to rebel against their parents. They are seeking to define their boundaries and this will
manifest itself in what they eat, fashions, music, movies and television programs. This busy
family lives in a house they own in neighborhoods classified as Cosmopolitan Centers. These
Cosmopolitan Centers are typically found in the most densely populated urban cores of our
major metropolitan centers. The target consumer resides in a mix of multi and single unit
housing, ranging from high rise apartment buildings to smart townhouses and other single family
housing. They are socially and politically liberal. Within these neighborhood classifications
interests include the arts, environment, and human rights. They believe in taking care of
themselves as well, and are receptive to a health and diet issues. Television can be a poor choice
for reaching this group, which has fairly low levels of viewing. Magazines, newspapers, and the

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internet are more likely to guide their choices. Cosmopolitan centers residents are above average
readers as measured by Spectra.

Price
Aquafresh had only nine product facings, none of which were eye level with the consumer. The
subtotal of the product per ounce is $0.75 ranking in the middle between Crest (low) and Colgate
(high).

Place/Promotion

Aquafresh can be found in the oral health islet at the following stores; Target,
Walgreens,Walmart, Costco, CVS Pharmacy and Wegmans. Aquafresh can also be found online
at these websites: Costco,com Drugstore.com and Amazon.com. Aquafresh has a comprehensive
promotions campaign using outdoor, print and television created by Media Com. The online
design of the Aquafresh website is modern and easily navigable.

Strengths and Weakness Analysis

Strengths: Aquafresh uses innovative oral health technologies to appeal to a younger audience.
The packaging of Aquafresh Extreme Clean is a shimmering, glittery box that appears hip and
current. This along with low product facings is a marketing ploy to appeal to children whose eye
level is lower than adults. Aquafresh is priced in the middle of the toothpaste market in order to
appeal to consumers.
Weakness: Aquafresh is a strong brand owned by the world's third largest pharmaceutical
company. While the Aquafresh original is instantly recognizable by its distinct red, white and
blue ribbon, other newer products are not as known. Aquafresh shelf facings are weak. Aquafresh
products are usually displayed on the shelf below the consumers’waistline. Compared with Crest
and Colgate, Aquafresh has fewer facings in stores. Aquafresh appeals to a younger demographic
leaving out older, higher spending consumers.

Crest Toothpaste
Products
Crest Nature’s Expressions Gel Toothpaste — Pure Peppermint Fresh
Crest Baking Soda & Peroxide Whitening with Tartar Protection Striped Toothpaste — Fresh
Mint
Crest Kid’s Barbie Burstin’ Bubblegum Gel Toothpaste
Crest Kid’s Cavity Protection Gel Toothpaste — Sparkle Fun
Crest Kid’s Spider-Man Liquid Gel Toothpaste — Super Action Mint
Crest Plus Scope & Extra Whitening Toothpaste - Mint Splash
Crest Plus Scope Liquid Gel Toothpaste — Minty Fresh
Crest Plus Scope Liquid Gel Toothpaste — Peppermint
Crest Sensitivity Clinical Sensitivity Relief Whitening Plus Scope Toothpaste
Crest Sensitivity Clinical Sensitivity Relief Extra Whitening Toothpaste
Crest Tartar Protection Gel Toothpaste — Fresh Mint
Crest Tartar Protection Toothpaste — Regular
Crest Tartar Protection Whitening Toothpaste — Cool Mint
Crest Cavity Protection Gel Toothpaste — Cool Mint
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Crest Cavity Protection Toothpaste — Regular
Crest Extra Whitening with Tartar Protection Gel Toothpaste — Clean Mint
Crest Extra White Plus Scope Outlast Toothpaste — Long Lasting Mint
Crest Multicare Whitening Gel Toothpaste — Fresh Mint
Crest Pro-Health Enamel Shield Toothpaste — Fresh Clean Mint
Crest Pro-Health Night Toothpaste — Clean Night Mint
Crest Pro-Health Clinical Gum Protection Toothpaste — Clean Mint
Crest Pro-Health Gel Toothpaste — Clean Mint
Crest Pro-Health Whitening Gel Toothpaste — Fresh Clean Mint
Crest Sensitivity Clinical Sensitivity Relief Extra Whitening Toothpaste
Crest Vivid White Striped Toothpaste — Refreshing Mint
Crest Vivid White Night Striped Toothpaste — Moonlight Mint
Crest Vivid White Night Striped Toothpaste — Revitalizing Mint
Crest Whitening Plus Scope Striped Toothpaste — Cool Peppermint
Crest Whitening Expressions Striped Toothpaste — Refreshing Vanilla Mint
Crest Whitening Expressions Striped Toothpaste — Extreme Herbal Mint Crest appeared on the
market in 1950 with a revolutionary cavity preventative product created by Proctor and Gamble.

The classic Crest product line consists of a classic mint flavor in both gel and paste form. This
toothpaste addresses the issue of fresh breath and cavity prevention in weak areas. Beyond the
classic line, Crest has expanded to 40 plus individual toothpastes. This allows Crest to appeal to
a broader market than most other toothpastes. Crest created many innovations over the past 60
years, including a vast amount of creative flavorings in both gel and paste form such as:
Cinnamon Rush, Refreshing Vanilla Mint, Burstin’ Bubblegum, Scope Minty Fresh, Herbal mint
and Citrus Splash. Crest also has the widest variety of children’s toothpaste. These kid’s
toothpastes come in gel form and feature famous children’s characters. For instance, Barbie
toothpaste come in Burstin’ Bubblegum flavor and Crest Kid’s Spider-Man Liquid with Super
Action Mint flavor. In 2004, Crest introduced a higher quality, dentist-inspired toothpaste
product line called Crest Pro-Health. Crest Pro-Health is the only toothpaste accepted by the
American Dental Association for six different areas: cavities, gingivitis, plaque, whitening,
sensitivity, and bad breath.

Target
The Crest target consumers are white men and women aged 35-54. These capable men and
women are college graduates earning $50,000-100,000+. These individuals are married with
children aged 6-17 years old.
The Crest lifestyle and behavior is that of older bustling families, established couples and empty
nesters that all live in their own homes in cosmopolitan centers. These urbanites are involved in
their community’s civic happenings and also politically. These dual income families are well off
and tend to splurge on personal items, but are also mindful of the financial burden of their
children’s future college price tag.

Market

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Proctor & Gamble (stock symbol PG) has been producing household goods, health and well
being, as well as, beauty and grooming products for over 179 years. P&G is the parent company
of such brands as Tide, Bounty, Febreze, Gillette and Crest. P&G’s estimated enterprise value is
$20,935 million. Specifically, the market share for Crest in 2010 is 32%, which is equal to
$1,029,757,700 in Net Sales. That is 8.95% of the P&G health care segment and only half of a
percent of its overall net sales.

Price
Crest has 37 product facings at consumer eye level and preferred shelving areas. Crest is the
category leader in product volume offered with 37 facings per store. Crest toothpaste is also the
least expensive of the three major brands at $0.69 per ounce.
Promotion
Coupons are the largest form of promotion offered by the home product giant P&G. Coupons can
be found online via the Crest and Oral-B e-newsletter. Sent out monthly, the e-mail newsletter
includes updates, latest advances, new products and exclusive offers at P&G. Crest also sends
out the P&G Brand Saver found in over 500 local Sunday newspapers nationally. This coupon
booklet provides discounts on P&G products that are redeemable at purchase.

Place
Crest toothpaste products can be found in the oral health isle of the following stores: Target,
Walmart, Kmart, Dominicks, Sam’s Club, Walgreens, Meijer, Jewel Osco and CVS. Crest
toothpaste can also be found at Amazon.com, Drugstore.com CVS.com Walgreens.com and
Soap.com.

Strength and Weakness Analysis

Strengths: Crest, owned by Proctor and Gamble (stock PG), is a huge company. It is thirteen
times the size of Colgate-Palmolive. P&G has more available capital and over all presence
throughout the market place. Crest spent $1.3 billion over the last 5 years on advertising. Based
upon market research, Crest out ranks other brands in taste preference. Crest has the most
product facings in a given store and cheapest overall price per ounce.
Weakness: Proctor and Gamble is a huge company where Crest makes up a very small
percentage of the total sales of the company. Therefore, it would seem that Crest products are
given a large marketing budget but lack the proper care and attention needed to foster consumers
and market share. Crest goes against the current and past trend by offering more gel than most
other toothpaste companies. Crest spends an incredible amount on advertising but their market
penetration is only equal to 62% of the market place.

Colgate Mission

Based upon Colgate and its competitor’s situation analysis, a comprehensive strategic plan has
been compiled with goals, rational, insights and initiative. These elements are in accordance with
the three fundamental values stated in the Colgate Mission statement. The three fundamental
values of Caring, Global Teamwork and Continuous Improvement are the foundations for
Colgate’s business strategy and are reflected in every aspect of work life.

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Caring: The company cares about people; Colgate employees, customers, shareholders and
business partners. Colgate is committed to perform with compassion, integrity, honesty and high
ethics in all situations and to listen with respect to others and to value differences. The company
is also dedicated to protect the global environment and to enhance the communities where
Colgate users live and work. It is also committed to be compliant with government laws and
regulations.
Global Teamwork: Colgate is part of a global team that is committed to working together across
countries and throughout the world. By sharing ideas, technologies and talents, the company can
achieve and sustain profitable growth.
Continuous Improvement: Colgate is committed to improving every day in all it does, as
individuals and as teams. By better understanding consumers' expectations and continuously
working to innovate and improve products, services and processes, Colgate will "become the
best."

Market Research Results

Survey findings from multiple toothpaste questionnaires shed light upon consumer minds and
behaviors. The research has determined toothpaste traits the consumer finds important when
making purchase decisions.

Buy Process Percentages:

The survey analyzed the rank of important characteristics when buying toothpaste. This chart
breaks down the importance of each quality in to percentages. The toothpaste composite of
criteria is: flavor 20%, price 20%, availability 19%, past usage 15%, packaging 14% and tube
size 11%. The research specifically highlights the almost equal importance of price, flavor, and
quality of toothpaste. These three elements make up 60% of the decision making process.
19%ube Size
Preferred Toothpaste Qualities:
The survey also revealed what attracts individuals to specific brands: Colgate, Crest and
Aquafresh toothpaste. The data agreed that consumers use toothpaste products based upon flavor,
price and availability. This data confirmed that consumers preferred the flavor of Crest
toothpaste over the other brands. The survey also showed that the packaging of Colgate
toothpaste the weakest element discussed in the survey.

Implementation

Strategy:

Brand Reduction
The strategy is to phase-out unproductive toothpastes in the baking soda/gel varieties specifically
Colgate Baking Soda & Peroxide Oxygen Whitening Frosty Mint Striped Gel, Colgate 2in1
Oxygen Whitening and Cavity Protection Winter fresh Gel. The product packaging will be
advertising other Colgate products in an attempt to retain brand loyal users. By October 2011,
these varieties of Colgate will no longer be produced for the United States market. In effect, this
will generate more cash flow that can be diverted into the creation of new brands and new
marketing campaigns thereby decreasing stress upon margin levels.

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Fostering Positive Colgate Image
In order to gain favorable PR and keep Colgate in the light of the media, this plan suggests a
campaign that will donate a 1% of specially marked packages to a charity of ones choice.
Partnering with www.charitynavigator.org to create a micro list of charities and their information.
Purchasers will be able to choose and track the donations via the Colgate website by answering
several demographic questions and entering a unique code. Facebook will feature a separate page
that will promote Colgate, describe the donation campaign and charities offered by
charitynavigator.org. Also, a downloadable iphone application will be created to track
contributions. This marketing tactic will foster a positive image of Colgate, create an increase of
sales in specific Colgate brands, harvest demographic customer information, draw added
consumers to the Colgate website and more of a presence on Facebook.

Increase Brand Share

Colgate is one of the most recognized brands in the United States and the world. Colgate is
popular among the consumer target and beyond. It has an amazing 93% penetration while only
retaining 35% of the market. In terms of the product life cycle, Colgate toothpaste is beyond the
mature stage. Some brands have declined with regard to sales, profits, customer interest and
market share. This idea will be retrofitted to print ads as well by using the same twenty images
with the smiling, foamy face and underneath the images will appear the Colgate slogan,“Colgate
A World of Care.” This marketing campaign has the ability to touch a vast consumer base. There
is universality to the idea. The concept relates and is identifiable with people because “everyone
brushes their teeth in the their pajamas.” Maslow’s hierarchy of needs dictates that the
identifiably social component of the commercial will appeal to the subconscious of viewers
creating the added value necessary to enhance the image of Colgate and gain added market share.
Choosing actors specifically by gender and racial profile can appeal to start-up and young
bustling families. This commercial will attract potential users and reaffirm current consumers.
The investment in a revitalizing campaign to improve the image of Colgate will inevitably
increase market share by 1.00% or $11,141,377 at a minimum.

Colgate Control Plan

To insure the goals of this plan and easy access of continuity, a set of controls are to be
established. This plan suggests renewing the company subscription to Spectra Systems and to
assess Colgate’s penetration within the United States consumer market as well as other parts of
the world.This plan also suggests preferred card services from all retails environments to be
reported to the marketing department in order to further appraise Colgate’s penetration.The
accounting department is to report quarterly total (excluding new brands) Colgate toothpaste
earnings to the marketing department in order to determine company statistics compared to years
past. The accounting department is also to report all toothpaste coupon usage by retail chain and
region. Tech support and website analytics departments are to report monthly Colgate toothpastes
webpage visit counter.

References:

1. 2011, By. "Americans to Spend $106 Billion on Dental Care." TopNews United States.
2. "Aquafresh Products." Aquafresh: A Lifetime of Protection. GlaxoSmithKline.

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3. Colgate A World Of Care. Colgate-Palmolive Co. Colgate Quarterly reports
4. "Crest Toothpastes." Crest Healthy, Beautiful Smiles for Life. Proctor & Gamble.
5. Mehdi, Syed Nazare. "Colgate-Palmolive (NYSE: CL)." WikiInvest. 2009-2010.
6. Finance - Business Finance, Stock Market, Quotes, Web. Oct.-Nov. 2010. PG

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