Colgate Marketing Plan [PDF]

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Colgate Marketing Plan 2011 Max Firestein



Marketing Plan 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



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Marketing Plan 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



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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.



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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.



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The highest selling trend within toothpaste is the toothpaste and not toothpaste-gel.



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The target market for Colgate toothpaste is Black and Hispanic individuals age 18-35, with several children aged 7 and younger.



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Colgate commits millions of dollars to community programs and the ADA’s “Give A Kid A Smile” Program.



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Colgate has established ColgateSmile a social network, an interactive iphone application, Facebook page, Twitter account and Myspace page.



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Colgate is committed to Reducing Environmental Impacts (REI) around the world.



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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



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Marketing Plan 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



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Marketing Plan 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.



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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.



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1857-Upon the death of founder, William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son.



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1896- Colgate introduces toothpaste in a collapsible tube.



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1911- Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.



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1953-Colgate-Palmolive Company becomes company's official name.



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1956- Colgate opens corporate headquarters at 300 Park Avenue in New York City.



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1968- Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.



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1996- Bright Smiles, Bright Futures oral health education program expands to 50 countries, and today reaches over 50 million children annually.



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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.



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2000- Colgate creates, Colgate 2in1 Toothpaste.



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2007- Colgate launches Colgate Max Fresh toothpaste line.



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2009- Colgate launches Colgate Luminous. 8



Marketing Plan 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.



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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.



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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 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



* Colgate Tartar Control Whitening Cool Mint Gel * Colgate Tartar Control Whitening Crisp Mint Paste



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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 2.50%



6.00% 7.00%



Colgate 2 in 1 Colgate Max Fresh



25.58%



Colgate Regular 18.00% Colgate Sparkling White



3.67% 10.13%



Colgate Tartar Protection



12.22% 14.86%



Colgate with Baking Soda and Peroxide



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] ColgatePalmolive (stock symbol (CL) is publicly traded on the New York Stock Exchange at $75



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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] 2006 Percent Change Market Share Percent Change Value Margin Total Market Value



2007 2.00



35.30% $22,124,832 18%



$1,106,241,637



1.96 37.30% $22,124,833 18% $1,128,366,470



2008-2009



2010 -4.6 350.00% 32.70% 36.20% $51,904,857 $37,676,156 18% 18% $1,076,461,612 $1,114,137,768



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]



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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, outdooractivities 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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LifeStyle BehaviorStage



Cos Centers



Affluent Suburban Spreads



Comf Struggling Country Urban Cores



Modest Working Towns



Plain Rural Living



Total



Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH