Colgate Toothpaste essay

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Marketing Toothpaste Flavors

Marketing Plan -- Product Extension: Using Child Appropriate Flavors for Children's Colgate Toothpaste

Company Background and Organization

Overview of Children's Toothpaste

Situational Analysis for Colgate and Toothpaste in Australia

Economic forces and issues

Sociocultural analysis and issues

Technological forces

Legal forces

Competitive Analysis

Market and Market Share

Major competitors and advantages

Customer base, client analysis

SWOT Analysis of issue

Functions of Packaging and Preliminary Ideas

Introduction- Toothpaste is a generic term for oral paste or gels that, along with a toothbrush, clean and maintain the health of teeth. Toothpaste aids by providing abrasiveness in removing dental plaque and food from the teeth, lowering bad breath, and delivering ingredients like fluoride and xylitol to help prevent tooth and gum disease. While most of the cleaning is achieved by the mechanical action of the toothbrush, taste, flavor, and color. While toothpaste is never meant to be swallowed, research finds that children are more likely to brush, and brush longer, when using a good tasting toothpaste (Toothpaste, 2011).

One of the leading global producers of toothpaste is the Colgate-Palmolive Company, an American multinational that, in 2009, posted $15.3 billion in revenue. Colgate focuses on household and personal care products like soaps, detergents, veterinary products, and of course, oral hygiene (Colgate-Palmolave, 2011). Currently, Colgate produces 13 brands of toothpaste that are designed to promote oral health in specific niches:

Niche and Benefits

Colgate Total Advanced

Has advanced whiteners, but also lasts 12 hours in germ prevention and plaque reduction; also includes silica.

Colgate Sensitive Pro-Relief

Clinically proven to relieve sensitivity; for those with oral or sensitive teeth issues.

Colgate Total

Same as Total Advanced without silica

Colgate Max-Fresh

Minty flavour, all benefits of Total with more breath fresheners

Colgate Luminous

Reinforces enamel layers to help protect against stains and yellowing of teeth

Colgate ProClinical White

Clinical levels of whiteners

Colgate Sensitive

Entry level for sensitive teeth

Colgate 2in1

Liquid gel varieties

Colgate Sparkling White

Whiteners Plus Mint

Colgate Cavity Protection

Strong levels of fluoride

Colgate Baking Soda and Peroxide Whitening Bubbles

Baking soda and peroxide primary ingredients

Colgate Tartar Protection with Whitening

Primarily designed as cavity fighter

Colgate Ultrabrite

Advanced whitening formula

Colgate Triple Action

Family toothpaste designed for cavity protection, whiter teeth, fresher breath

Colgate Kid's Toothpastes

Broken in to age groups 0-2, 2-5, 5-8, and 8-12; also Sponge Bob and Dora the Explore themes; younger children's products are mildly fruit flavoured and safe to swallow.

(Toothpastes, 2011)

It is extremely important to develop good brushing habits in young children as early as possible. There are a number of ways dentists and nutritional support scholars suggest: a colored toothbrush, charts, flavors, etc. But at least twice a day is imperative for proper oral health (Maritz, 2009). For marketing professionals, the children's market has been huge over the years. When marketing pros figured out that children's tastes became an important and decisive factor in parent's buying habits, they changed their focus. For example, a classic marketing niche situation is embodied within the toothpaste industry. The companies had to sell to appeal to a wide niche (parents, grandparents, adolescents, kids, etc.) so they chose mint or cinnamon. Kids tended to not like either, so they moved to bubble-gum, and the kids loved it -- with numerous product extensions (Mouthwash, toothbrushes, dental floss) (Stanton & George, 2005, 251). A recent review of products available in Australia or through mail order found that there are almost 500 different flavored toothpastes for children currently on the market (Child Flavored Toothpastes, 2011).

Situational Analysis -- (PEST for Australia)-

Political

Economic

Social

Technological

Legal

Active and diverse member of Developed nations

Sophisticated and modern economy; faces recessionary times with other developed nations

2.1 million, 69% of population between 15-64; mostly literate, 5% GDP to education

Eastern urban areas hubs for technological development.

Developed capitalistic economy with governmental oversight

Open door business policy that encourages international and multinational development

Open market and good relationships with both the East and West

Fairly high immigration, 200-300,000 new citizens per year, most from Asia.

$30-40 billion in intellectual property rights; strong education system and robust tech focus.

Product safety groups and advocates

Stable parliamentary democracy; tends towards economic conservatism and more liberal social policies

Complex and robust trading policy; exports more than it imports (slightly)

10% GDP on healthcare, like most developed countries, facing obesity, diabetes and heart issues due to diet.

Improving communications industry outside coasts; vase underdeveloped areas in interior.

Similar to British system of advocacy

(Central Intelligence Agency, 2011)

Competitive Analysis -- Colgate came into the Australian market in the 1920, and is thus quite mature within it stake and market share in the country, and is the top selling brand country wide. The soap and toothpaste manufacturing industry is worth about $3 billion in Australia, and has shown about a 3% annual growth rate (Soap, Detergent Manufacturing in Australia, 2011). Consumers overwhelmingly view Colgate as the benchmark for quality and oral protection -- Australians have a relationship with Colgate -- something they grew up with and continue to grow. This is particularly relevant as the population ages, and Colgate becomes more of the total lifespan oral care preference (Sydney Morning News, 2003).

Customer base, client analysis - With approximately 20% of Austalia's population under the age of 14, the market for children's toothpaste is considered to be about 5 million individuals. On average, a tube of toothpaste lasts 30 days, so the potential market is 5 million X 12, or 60 million SKUs of toothpaste per annum. This is particular true since almost 90% of Australia's population lives in urban areas where attention to dental hygeine and visits to the dentist are regular and state supported (Australia, 2011).

SWOT Analysis of issue-

Strengths

Weaknesses

Opportunities

Threats

Colgate literally owns the market for toothpaste in Australia

Fickle market, lack of research on whether kids will like flavors

Be a leader in the market with innovative flavors and names.

Too little, too late; dental groups need to be advocates, too.

Strong market presence, already in almost 100% of appropriate outlets

Could be seen as gimmicky.

At average of $3AU, 60 million ski's means a potential of 180-200 million per annum

Imitation from competitors; particularly from Asia with lesser quality product.

Company has resources to advertise and grow the market.

Lack of interest in the product in some segments.

Sampling, school seminars with cartoon characters teaching oral habits and sending children home with kits.

Schools may resist some marketing efforts.

Most of the hard costs have already been absorbed; flavors available just need go ahead.

May have to change out and provide new flavors regularly.

Extensions into oral care products branded with names and characters. Potential tie ins with movies (Star Wars, etc.).

Too little, too late. Market share may not be enough to frame costs in ROI and benefit analysis.

Strong brand management in industry.

Incursion into market area from competitive products (Tom's of Maine, Crest, etc.)

Advertising and promotional tie-ins with dentists

Incursion into market area from competitive products (Tom's of Maine, Crest, etc.)

5. Functions of Packaging and Preliminary Ideas -- Flavor and packaging are critical for this venture. The product will already have the Colgate name and reputation attached, so parents will know it is made well and is safe. Thus, the issues will be whether the kids will like the new flavors and whether they will respond to those flavors in a toothpaste product. Adding color or at least color in the striping of the product will have a positive effect for children. Finding ways to tie in with popular children's movies and/or Holidays would also help with the push (e.g. White, Green, Red for Christmas, candy cane flavor; Orange and pumpkin for Fall, etc.; children are also fond of glowing, or odd colors that…[continue]

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