How Colgate is still able to Survive in the market

 

 

What is the first brand of product do we think about when we hear the word “Toothpaste”?

To some of you it might be Close up, Crest, Pepsodent, or even Sensodyne. But we’ve all heard about “Colgate” undoubtedly. This particular product has been around for decades and there are reasons as to why they still exist while other “once-big-shot” products are struggling to survive in the market. But first of all let’s get a brief description about Colgate and we’ll see how they have maintained their strong position in the market. 

William Colgate first introduced the toothpaste in a flexible/bendy tube around 1872 and the product has been around since then. It faced major competition by rival companies like Forhans and Binaca (which later became Cibaca) during the early ‘60s to late ‘70s but needless to say Colgate had outdone them and remained strong in the market. However around late 1980s Close-up changed the way people viewed the product concept of toothpaste. Along with high ingredients on freshness, which gives a minty aftertaste, and making the paste look transparent and gel-like, Close up were able to achieve a large share of the oral care market. Colgate did not back down and launched similar product called “Colgate gel” and even though it couldn’t be the top leader of the market in the gel category, it did however manage to regain its shares. 

So how exactly did Colgate manage to survive for so long? The answer is pretty basic and simple: Differentiation of products. Although the first thing we think about when we hear “Colgate” Is toothpaste, but there are many broad segments under that strange word “toothpaste” and they are  

• Germ and tooth decay 
•  Sensitivity
• Gel 
•  Gum
• Whitening 
•  Multi benefits

Colgate has been able to differentiate their products by introducing various goods that target specific consumer requirement. Such as

•  Colgate Gel: It comes in various names and packages such as Max fresh in Clean mint, Fresh mint, Spear mint. Max white is gel toothpaste which also helps whitening teeth along with giving a refreshing minty flavor. 
•   Colgate sensitive: This product is for sensitive teeth and gums. It’s target market are the older crowd between the age of 55 and above who suffers from sensitive gums and toothache.
•  Colgate herbal: This product is also mainly targeted at the middle age to older aged people. It contains natural herbs like Eucalyptus, Sage, and Chamomile etc to soothe and heal the gums while removing germs. After all organic products are safe and healthy. 
•  Colgate Active Salt: There was an advertisement as well as a campaign for this product as they introduced salt with the toothpaste. The salt minerals attack the cavities and help healing toothaches 
•  Colgate Total: This product guarantees 12 hour germ protection and helps recovering from tooth decay and sensitive teeth.
•   Colgate Whitening: This product insures to remove stains and whitens teeth after daily use.

So we can clearly see from above that Colgate has come up with a product for every consumer requirement there is for personal oral care. Moreover, the company conducts several practices which aim for success while targeting the benefits for people and the environment. They have several programs to motivate people to consume their products such as; they have a “You Can Make A Difference Program” which differentiates Colgate people for their splendid effort.

 

Another reason why Colgate has been able to maintain its high share in the market is because the company focuses highly on their marketing which leads to strong brand equity. They even launched a product (toothpaste) line just for kids by constructing medium yet fun sized tubes with popular cartoon characters printed on the body of the tube to attract the attention of children and to make it even better, those particular toothpastes come with different flavors such as strawberry and tooti fruity.

 

 They offer products to consumers based on their needs after intense research and pass along the benefits of their products via the internet and exercising techniques/methods like giving off free samples. Using these methods worldwide has definitely helped in increasing their sales but also in acquiring a larger size of the overall oral care category of the market. Not to mention, the brand also enjoys a strong level of consumer recognition.

When the threat of the rival companies increased, Colgate took an innovative approach by promoting the fact that they are the most recommended brand by the dentist and you will see that this is mentioned in almost all their advertisements to insure people that their product is as legit as it gets.

  

Colgate has been able to penetrate the Asian or South East Asian markets by targeting the lower class people of developing countries like Bangladesh, India and etc. They conducted surveys all around different villages of Bangladesh and inquired or gathered data on what the majority of the population preferred when it came to oral hygiene. It showed that almost everyone did care for their teeth but didn’t have the capability to afford a single tube of toothpaste. So the company introduced small and affordable sashes of toothpaste and distributed among specific villages to see if the consumers would actually purchase the product. To their satisfaction, it was a huge success and Colgate was able to penetrate yet another market through research and innovation. 

So maybe you’re a Pepsodent or a Crest consumer, but there is no doubt that Colgate is a significant player in the market and the company has done all it could to sustain their competitive edge to remain in the market. 

REFERECES: 

 

•  http://www.thehindubusinessline.com/on-campus/case-studies/case-study-will-colgates-branding-strategy-beat-the-competition/article6317514.ece
•  http://www.ukessays.com/essays/marketing/industry-and-market-analysis-of-the-colgate-company-marketing-essay.php