ed quality product if given a compelling reason. The use of peroxide and baking soda, which are recognized as more naturopathic, is a compelling way to capture market share. In the area of oral care, the use of baking soda and peroxide continues to grow (Specialized line drives sales, 1997). During the 12-month period ending march 1997, 25 new toothpaste formulations with a total of 58 stock keeping units (SKUs) went on the shelf. Competition is getting stiffer (Offshore markets offer hope..., 1997).
Manufacturers also point out that older Americans are far less likely to lose their teeth as they age and are generally more concerned about oral hygiene than previous generations. Colgate is offering Ultra Brite Whitening Fluoride Toothpaste with Baking Soda and Peroxide at a competitive price. In this way, Colgate is offering the basic product, plus all the bells and whistles offered by other core brands (Heightened consumer awareness..., 1997).
Because of mounting competition for the $3.57 billion a year oral care category, Colgate-Palmolive is trying to meet and beat the competition (Heightened consumer awareness..., 1997). Price mark-ups have been under 3% for the past decade, and more recently, under 1%. While this is typical in a mature market, product formulations that make a "difference" will continue to command premium prices (New publications..., 1997).
Despite the growth in other segments, the greatest share of oral care sales continues to come from dentifrices, which generate more than twice the dollar volume of any other part of the category. While suppliers have worked to build profitability through value-added line extensions, retailers note that the category is still largely the domain of commodity-price merchandise that is often heavily discounted (Heightened consumer awareness..., 1997).
The makers of core brands have reacted to increasing competition with line extensions aimed at protecting their ...