II. Situation Analysis
A. The Industry
1. Definition of industry
The purpose and main focus of the oral health care industry is to prevent
teeth and gum diseases and to deliver cosmetic benefits. Examples of
products in this industry include toothbrushes, toothpaste, dental floss, and
mouth rinses.
2. History of Industry
Toothbrushes first evolved in 3000 B.C., and advancements have
continued ever since. Such advancements include the head shape, size,
flexibility, bristle texture and type, color, and angled handles. Companies,
other than Colgate-Palmolive, that have entered into the toothbrush market
include Oral-B, owned by Gillete, Johnson and Johnson, Procter and Gamble,
Smithkline Beecham, Lever, Pfizer, and Sunstar.
3. Growth Patterns
Consumers first purchased toothbrushes without much knowledge or
information concerning the product’s benefits. As new product development
increased, and consumers became better informed about the benefits of
toothbrushes, they began to focus their interest not only on cavity prevention,
but also on the health of their gums, their oral hygiene, and their cosmetic
appearance. Because consumer interest and toothbrush purchases began to
increase, advertising and promotion also began to increase, which lead to the
development and addition of the super-premium product class. The superpremium
product class was a “sub-category of toothbrushes partly offset by
downward pressure on average retail prices in mass-merchandiser channels,”
(Harvard). Consumers began to purchase toothbrushes based on the specific
benefits each toothbrush and company had to offer.
B. The Company
1. Brief History
The Colgate-Palmolive Company was founded ...