Colgate Case

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Category: Business and Industry

Date Submitted: 02/03/2015 09:33 AM

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By Theofilos Amoiridis,Chalmoukis Dimitrios,Aggelos Malindretos.

1) Millions of dollars have been invested by toothbrush manufacturers during the last years.The toothbrush’ history goes back to late 1930’s,when consumers were unaware of the toothbrush-mania.In a few years, companies start to offer different types of toothbrush.Different types,with various colors and many changes between them,their quantity in the market is obvious.During the 1940’s,Oral-B introduced a softer toothbrush in the market,while in the 1960’s Broxodent brought the first electric one.In the 1980’s,toothbrush became synonym to fashion and lifestyle,with the first changes such as the ‘’angled necks’’ from the companies make their appearance.After a decade,CP translated its idea to introduce oral care products into profits,while Colgate was the market leader by holding the 33,2% of it.Other competitors was Oral-B (23,1%),Level (6,3%) and Johnson&Johnson (19%).As can be seen,there was a high-level competition,which gradually developed the toothbrush market into a ‘’war’’ between the companies in order to make the best product,for every type of consumer.

2) Until 1990,we could see two segments.The value and the professional.After 1990,a new segment was introduced,called ‘’super-premium’’.Τhe product’s sales proved the acceptance it had from the consumers,despite its high cost.As we mentioned before,CP is facing strong competition. Value brushes are priced on average at $1.29, professional brushes between $1.59 and $2.09, and super- premium brushes are priced between $2.29 and $2.89. The market is also segmented into consumer types.The three categories are the therapeutic brushers,the cosmetic brushers,and the uninvolved oral health consumers.

3) The habits of consumers are different when we speak about toothbrushes and toothpastes. The toothpaste is shared by members of the same household.More attention is paid in the selection of the right toothbrush rather that...