P&Gs Come Back Actions

Name Abhishek Rehan Ankit Garg Madhvi Bhalla Sanchit Garg Swati Chhabra Subhash SN Shreeharsha Roll Number 301 308 321 339 354 350 D284 Phone Number 9539097607 8943693426 8943687844 8943695153 8943687620 8943694839 9539706633 E-Mail ID abhishekr16@iimk.ac.in ankitg16@iimk.ac.in madhvib16@iimk.ac.in sanchitg16@iimk.ac.in swatic16@iimk.ac.in subhashsn16@iimk.ac.in ketavath.srih16@iimk.ac.in

Colgate vs. P&G

P&Gs Innovation and Growth

P&G Created an entire new Category in Oral Care 2003 $590 million

2000 New Product in the Oral Healthcare IndustryCrest WhiteStrips

2000-2002 Better and cheaper option from 3 whitening options 1)Dentist Treatment 2)Toothpaste

2002 Market Share-80% No competition

2002 2 $460 0 Market Leader New Market Million 0 was created 3)Dentist 1 made tray $ 3 1 0 Crest Whitestrips are whitening Products used at home. M Strips need to be applied for 30 minutes twice daily for 2 weeks . 10 times whitening achieved as compared to toothpastes
Colgate vs. P&G

Competition and effects on P&G

Den-Mat Corporation, known for its whitening toothpaste challenged the advertisement of P&G s claim of providing 10 times more whitening Den Mat was certified for 2 shades whitening by American Dentist Association It challenged P&G for 20 shades of proof Failure of producing a chart by industry of more than 16 shades led to the victory of P&G Market Entry of Colgate Share drops Colgate from 80% introduced a to 37%

whitening gelSimply White in 2002

Crest Whitestrips no longer the leader Colgate vs. P&G Lost 50%

Market Share rises from 0% to around 50%

Competitor Analaysis
Market Commonali ty Resource Similarity
High shareholders of the oral care market Oral care is a significant market to both Colgate (33.3% of sales) and P&G (12% of sales) Similar Products Hence, Market commonality is HIGH Colgate and Crest are both dominant players in the market Both firms have significant and similar human and financial resources Product Components are similar Aggressive R&D and Marketing Force Hence, Resource Similarity is HIGH

Colgate vs. P&G

Crest WhiteStrips
First movers advantage 10 times whitening than toothpaste No washing away Long lasting 30 minutes is long Priced at $40 Not convenient as compared to 30 seconds gel

Colgate Simply White

Claimed 10 Gel Washes times whitening away easily due as Crest to saliva Only 30 seconds Concept Test application shows false $15 is cheaper claim of 10 times whitening to buy Had consumer Shorter duration support due to effect low price

Colgate vs. P&G

Possible Counter Moves- Evaluation

File complaint with National Advertising Division (NAD)
Sue Colgate on the false claims of 10 times whitening as Crest This would not generate any immediate results Suggest legal complaints go unresolved for months to years- E.g. Apple vs. Samsung Case Will spoil the image and respect for P&G with competitors Healthy competition will not exist Colgate will retaliate with a NOT SO EFFECTIVE new advertisement Colgate vs. P&G Colgate has consumer

Increase the media weights for P&Gs Current Ad campaign

Aggressive Marketing is needed is combat Simply White Immediate effect on the sales Add more media options: Radio, Newspapers, outdoor media Market share will increase with increase in media visibility Same ad will be less effective Decrease in Profit Margin Colgate can afford as it EFFECTIVE has higher profit Margin of 45%

Possible Counter Moves- Evaluation

Comparative Advertising Crest needs a new advertisement as there is competition in the market Pointing out the Point of differences is needed Comparison with Simply White will show the consumers the difference Will be an Eye opener on the washing away of gel in Simply White or similar product Need not be very EFFECTIV explicit to harm E Colgate Colgate vs. vs. P&G P&G competition Drop In Price Leads to Brand Dilution of Crest Quality of Whitening Strips are under the question Market Share can increase New consumers FMCG industry has no price wars as Perfect Competition

3/14/2013

NOT EFFECTIVE

Possible Counter Moves- Evaluation

Increased Used of Coupons Will help in gaining market share without brand dilution Immediate effect on sales Coupon System can be modified into Combo Offers Help Branding of complementary products Offer will attract Consumers Colgate is new in this Market and with the new product it will not introduce many offers as Market Price of its product is already low
EFFECTIVE

Colgate Colgate vs. vs. P&G P&G

3/14/2013

Recommended Countermoves
Other options in the long run should be Product Innovation : Like Simply White Night Crest can introduce Strips that can be kept overnight instead of twice daily for 30 minutes

Coupons and Combo offers

Comparative advertisement but not explicit

High Weight on Media to increase visibility

Colgate vs. P&G

Thank You

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Colgate vs. P&G