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
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
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…
By giving more information to the consumers, Colgate is telling its consumers that they must make informed choices in buying oral care, personal care, and home care products. And because Colgate is known for manufacturing quality oral care products, and is the leading brand and manufacturer in the market, it is only but wise for a consumer to buy and patronize its products. Although Colgate offers a multitude of products
Colgate Palmolive's toothpaste and toothbrush business is a mature market in most countries, with limited growth prospects. The company is positioned at the high end of the market with its flagship Colgate lines, and this positioning is supported by extensive marketing campaigns aimed at bolstering the brand. The company has responded to this by focusing its efforts on growth in emerging markets. Naydenov (2012) notes that the company derives over
Colgate-Palmolive Evaluation of current research techniques used. The stated goal of the chairman of Colgate-Palmolive (CP) is to remain "deeply committed to advancing technology which can address changing consumer needs throughout the world." The CP message states: "Our goal is to…create products that will continue to improve the quality of life for our consumers wherever they live." Colgate Palmolive: Business English Materials.com: ESL Lessons) To that end, Colgate-Palmolive positions its toothbrush and toothpastes
Colgate Case Study Colgate is a consumer product company that is well-known and has its base in New York. Colgate had a strong presence in the international presence traditionally.it was operational in Latin America, Australia, France, Canada, and Germany. Previously Colgate had made detailed analysis of the international markets for demand. Colgate made a decision of buying a 50% partnership in the Hawley and Hazel group worth $50million in August 1985.the
Colgate-Palmolive Case Study Colgate-Palmolive Company: The Precision Toothbrush The intent of this analysis is to evaluate the current promotional strategies, integrating marketing communications (IMC) strategies for the Colgate-Palmolive Precision toothbrush. Recommendations for a promotion and IMC-based strategy for the company are provided in addition to support for the specific decision. In 1992, Colgate-Palmolive faced the decision of positioning their latest generation toothbrush as mainstream, niche, or super-premium. Compounding this decision of which
Academic and Theoretical Foundations Brief Histories and Organizational Backgrounds Procter & Gamble Procter & Gamble was established in Cincinnati, OH in 1837 by brothers-in-law William Procter, a candle maker and James Gamble, a soap maker, continuing to this day under the name of Procter & Gamble (Procter & Gamble, 2015). It began as a two-man partnership but by 1859, the partnership had 80 employees and annual sales exceeding $1 million, and then