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
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.
Same as Total Advanced without silica
Minty flavour, all benefits of Total with more breath fresheners
Reinforces enamel layers to help protect against stains and yellowing of teeth
Colgate ProClinical White
Clinical levels of whiteners
Entry level for sensitive teeth
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
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.
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)-
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-
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…