Description
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
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.
Colgate Marketing Plan 2011
Max Firestein
Marketing Plan
2
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
3
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
4
Executive Summary
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
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.
Critical Issues/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.
Marketing Plan
5
- Colgate commits millions of dollars to community programs and the ADA’s
“Give A Kid A Smile” Program.
- Colgate has established ColgateSmile a social network, an interactive iphone
application, Facebook page, Twitter account and Myspace 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.
Goals: 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.
- Systematically phase-out 5% of the brands that are currently struggling
financially.
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 Winterfresh 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
Marketing Plan
6
diverted into the creation of new brands and new marketing campaigns thereby
decreasing stress upon margin levels.
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
Marketing Plan
7
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.
Marketing Plan
8
Company Overview
Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for
over 200 years.
Company Timeline
[3]
• 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.
Marketing Plan
9
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 the
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 Analysis
[3]
* 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
* Colgate Total Clean Mint
* Colgate Total Whitening Paste
* Colgate Total Whitening Gel
* Colgate Total Mint Stripe
Marketing Plan
10
* Colgate Total Enamel Strength
*Oxygen Bubbles Whitening Brisk Mint® Paste
*Oxygen Bubbles Frosty Mint Striped™ Gel
* Colgate 2in1 Oxygen Whitening
* Colgate 2in1 Whitening
* Colgate 2in1 Icy Blast
* 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
Frosty Mint Striped™ Gel
* Colgate Baking Soda & Peroxide Whitening
* Colgate Sensitive Multi Protection
* Colgate Sensitive Enamel Protect
* Colgate Sensitive Maximum Strength Whitening
* Colgate ProClinical Daily Whitening
* Colgate ProClinical Daily Cleaning
* Colgate ProClinical Daily Renewal for Enamel
* Colgate Dora the Explorer Mild Bubble Fruit
* Colgate SpongeBob Mild Bubble Fruit
* Colgate My First Toothpaste
* Colgate Pop Stars
* Colgate Luminous Crystal Clean
* Colgate Luminous Paradise Fresh
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
toothpaste 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
Marketing Plan
11
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.
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
your 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.
Marketing Plan
12
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
Marketing Plan
13
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.
[1]
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.
[1]
The toothpaste market itself is
increasing up, a 8% in 2010 to 2008 and 12%from 2005.
[7]
Therefore, it can be assumed
that the market will continue to increase over the next 5 five years.
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.
[8]
Colgate-
Palmolive (stock symbol (CL) is publicly traded on the New York Stock Exchange at $75
6.00%
7.00%
18.00%
12.22%
14.86%
10.13%
3.67%
25.58%
2.50%
Colgate 2 in 1
Colgate Max Fresh
Colgate Regular
Colgate Sparkling White
Colgate Tartar Protection
Colgate with Baking Soda and
Peroxide
Marketing Plan
14
a share and is worth an estimated $15,327,000,000.
[9]
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.
[8]
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.
[3]
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.
[7], [8]
2006 2007 2008-2009 2010
Percent Change 2.00 1.96 -4.6 350.00%
Market Share 35.30% 37.30% 32.70% 36.20%
Percent Change Value $22,124,832 $22,124,833 $51,904,857 $37,676,156
Margin 18% 18% 18% 18%
Total Market Value $1,106,241,637 $1,128,366,470 $1,076,461,612 $1,114,137,768
Marketing Plan
15
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 there 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.
[8]
Marketing Plan
16
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.
Established Couples
2+ person HHs, No Children, 35-54
Senior Singles
1 person HHs, No Children, 65+
Senior Couples
2+ person HHs, No Children, 65+
Empty Nest Couples
2+ person HHs, No Children, 55-64
Total
Small Scale Families
Small HHs with Older Children 6+
Start-Up Families
HHs with Young Children Only < 6
Older Bustling Families
Large HHs with Children (6+), HOH 40+
Younger Bustling Families
Large HHs with Children (6+), HOH
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
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.
Colgate Marketing Plan 2011
Max Firestein
Marketing Plan
2
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
3
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
4
Executive Summary
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
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.
Critical Issues/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.
Marketing Plan
5
- Colgate commits millions of dollars to community programs and the ADA’s
“Give A Kid A Smile” Program.
- Colgate has established ColgateSmile a social network, an interactive iphone
application, Facebook page, Twitter account and Myspace 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.
Goals: 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.
- Systematically phase-out 5% of the brands that are currently struggling
financially.
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 Winterfresh 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
Marketing Plan
6
diverted into the creation of new brands and new marketing campaigns thereby
decreasing stress upon margin levels.
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
Marketing Plan
7
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.
Marketing Plan
8
Company Overview
Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for
over 200 years.
Company Timeline
[3]
• 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.
Marketing Plan
9
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 the
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 Analysis
[3]
* 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
* Colgate Total Clean Mint
* Colgate Total Whitening Paste
* Colgate Total Whitening Gel
* Colgate Total Mint Stripe
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* Colgate Total Enamel Strength
*Oxygen Bubbles Whitening Brisk Mint® Paste
*Oxygen Bubbles Frosty Mint Striped™ Gel
* Colgate 2in1 Oxygen Whitening
* Colgate 2in1 Whitening
* Colgate 2in1 Icy Blast
* 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
Frosty Mint Striped™ Gel
* Colgate Baking Soda & Peroxide Whitening
* Colgate Sensitive Multi Protection
* Colgate Sensitive Enamel Protect
* Colgate Sensitive Maximum Strength Whitening
* Colgate ProClinical Daily Whitening
* Colgate ProClinical Daily Cleaning
* Colgate ProClinical Daily Renewal for Enamel
* Colgate Dora the Explorer Mild Bubble Fruit
* Colgate SpongeBob Mild Bubble Fruit
* Colgate My First Toothpaste
* Colgate Pop Stars
* Colgate Luminous Crystal Clean
* Colgate Luminous Paradise Fresh
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
toothpaste 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
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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.
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
your 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.
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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
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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.
[1]
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.
[1]
The toothpaste market itself is
increasing up, a 8% in 2010 to 2008 and 12%from 2005.
[7]
Therefore, it can be assumed
that the market will continue to increase over the next 5 five years.
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.
[8]
Colgate-
Palmolive (stock symbol (CL) is publicly traded on the New York Stock Exchange at $75
6.00%
7.00%
18.00%
12.22%
14.86%
10.13%
3.67%
25.58%
2.50%
Colgate 2 in 1
Colgate Max Fresh
Colgate Regular
Colgate Sparkling White
Colgate Tartar Protection
Colgate with Baking Soda and
Peroxide
Marketing Plan
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a share and is worth an estimated $15,327,000,000.
[9]
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.
[8]
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.
[3]
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.
[7], [8]
2006 2007 2008-2009 2010
Percent Change 2.00 1.96 -4.6 350.00%
Market Share 35.30% 37.30% 32.70% 36.20%
Percent Change Value $22,124,832 $22,124,833 $51,904,857 $37,676,156
Margin 18% 18% 18% 18%
Total Market Value $1,106,241,637 $1,128,366,470 $1,076,461,612 $1,114,137,768
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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 there 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.
[8]
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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.
Established Couples
2+ person HHs, No Children, 35-54
Senior Singles
1 person HHs, No Children, 65+
Senior Couples
2+ person HHs, No Children, 65+
Empty Nest Couples
2+ person HHs, No Children, 55-64
Total
Small Scale Families
Small HHs with Older Children 6+
Start-Up Families
HHs with Young Children Only < 6
Older Bustling Families
Large HHs with Children (6+), HOH 40+
Younger Bustling Families
Large HHs with Children (6+), HOH