Colgate Case Analysis

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Colgate-Palmolive Company is global leader in household and personal care products, especially their oral care division that produces toothbrushes and toothpaste to consumers. In the United States, they hold the number one spot in toothbrush sales with a 23% market share. Many changes were occurring in the toothbrush category because consumer research indicated that consumers of the baby boom generation were becoming more concerned about the health of their gums opposed to cavity prevention and were willing to pay a premium for new products. This prompted Colgate-Palmolive to develop new products to satisfy those needs. A SWOT analysis would further explain how Colgate-Palmolive could adapt to the changes in the toothbrush category. Strengths Colgate-Palmolive has are their worldwide dominance because they have many manufacturing facilities in Eastern Europe and China and they introduced 275 new products worldwide. They invest heavily into research and development and have a strong commitment to innovation and the Precision toothbrush is an example. As shown in Exhibit 1, they have increased their sales and operating profit by a lot between 1989-1992. Their large number of stock keeping units for their toothbrush line allows them to supply demand and target larger market segments. Lastly, their positive relationship with manufacturing partner can be very beneficial to their upcoming Precision toothbrush line. Weaknesses include the large amounts of resources used in their media expenditure and only getting 19% share voice in return. The release of Precision may also cause cannibalization of the Colgate Plus and Colgate Classic. Lastly, Colgate lacks professional dental endorsements, unlike their competitor Oral-B. Opportunities include creating new products like the Precision that could satisfy the markets various needs. Emerging in the niche “super premium”

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