Colgate Case Essay

6/24/2015

Colgate-Palmolive
Case Study

Regina Maturo
WHITMAN SCHOOL OF MANAGEMENT | SYRACUSE UNIVERSITY
MAR 600 - Global Marketing Strategy
Summer 2015

Regina Maturo

Global Marketing Strategy

Colgate-Palmolive

SUMMARY
In the 1980s a unique shift occurred in the oral care industry – consumers became less concerned with the
aesthetics of their toothbrushes and more concerned added benefits, like greater plaque removal an ease of
use. This shift created a surge of product development and improved performance features in existing
product lines. During this time, Colgate-Palmolive (CP) spent a significant amount of time and funds
developing the Precision toothbrush, which was believed to be superior to all other existing products in its
ability to prevent gum disease and remove more plaque. CP developed the Precision with the objective of
launching the product in the super-premium, niche segment, but CP executives questioning whether it
might be beneficial to target a broader audience by launching the product in the mainstream market.

INTRODUCTION
Oral hygiene and general dental care is a hot-button topic among many consumers. Adults are looking for
toothbrushes that provide added benefits as well as effectiveness and efficiency when brushing their teeth.
As such, many consumers are opting for professional performance toothbrushes, or upgrading to superpremium brushes with value-add claims. The competitive landscape is rapidly developing with new
entrants stealing market share by launching technologically superior products. To counter increased
competition, industry leaders are doubling advertising budgets and increasing promotional initiatives to
entice consumers to buy their brand. CP is in a unique position to launch a new product because they are
the top competitor in the industry, holding 23.3% volume share. Concept tests and consumer trials have
proven that the three-tiered bristle system on the Precision is effective when compared to current brushes.
The...