Marketing Report: Colgate Palmolive Ultra Brite Toothpaste
Consumers will step up to a higher price or enhanced quality product if given a compelling reason. The chief marketing objective for Colgate Ultra Brite is to capture that consumer market. Product formulations that make a difference continue to lead the market and command premium prices.
The makers of core brands have reacted to increasing competition by addressing niche sales, including Colgate's Ultra Brite with peroxide and baking soda. Industry reports note that baking soda and peroxide products annual sales were up 14.2 percent through 1996, and that the whitening segment was up 43 percent during the same period. To capitalize on Colgate's branding and the acceptance of new formulations, Colgate introduced Ultra Brite in December 1996.
Market-wide dentifrice sales for the 52 week period ending February 27, 1997 slipped 1.4 percent from the previous 52 weeks. Ultra Brite has captured 1.9 percent of Colgate's over 20 percent market share or world sales in oral hygiene products. Considering the acceptance of enhanced products, there is a suspicion of cannibalization. The trend toward discounting in developed economies may have slowed Ultra Brite's acceptance.
Nevertheless, the prospects for marketing Colgate-Palmolive oral care products in developing economies remains strong. While Colgate's introduction of new products may cause confusion in developed markets, Colgate continues to develop good consumer relations in Asia, Africa, South America and Eastern Europe. Ultra Brite will continue to fill a niche, selling a top brand at an affordable price.
The chief marketing objective for Colgate Ultra Brite toothpaste is to capture market share that comprises people willing to buy products that offer a whiter smile, plaque-free teeth or fresher breath. Manufacturers note that consumers have demonstrated a willingness to step up to a higher price or enhanc...