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Colgate Marketing Plan 2011 Max Firestein

Marketing Plan Table of Contents Page Number Executive Summary..4-7 Colgate Toothpaste Analysis..8-20 Company Overview..........8-9 Product Overview ...9 Product Analysis.9-13 Market...13-14 Target....14-16 Price...16 Promotion...17 Place...18 Trends...18-19 Strengths, Weakness, Opportunities and Threats.19-20 Competition Aquafresh.21-24 Product Analysis..21-22 Market...22 Target22-23 Price..23 Place/promotion23 Strengths and Weakness..23-24

Marketing Plan Crest..24-27 Product..24-25 Target........25-26 Market Share..26 Price.......26 Promotion...26 Place...27 Strengths and Weakness Analysis.27 Colgate Mission.28 Market Research Data..29-32 Keys to success and Critical Issues..33-34 Goals..34 Strategy 34-38 Control...38 Budget..38-39 Projections..39 Work Cited.40

Marketing Plan

Executive Summary Perception of brand and category Current status: Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for over 200 years. With an array of 40 different patented toothpastes and 13 classifications of oral care, Colgate remains competitive in the market place. The toothpaste category sales are estimated at $3 billion or 3% of the oral health care industry. The current Colgate market share is 36.2%. Crest is at 30% and Aquafresh is at 8.13% of the toothpaste market. Colgate is a strong earner and its market share reflects this. Strong competition from Crest has cost Colgate valuable market share over the last five years. Critical Issues/Keys To Success: Colgate toothpaste is the leader within the product category holding 36.2% of the market or $1,114,137,768 in sales. Colgate has a vast product line of toothpaste and many are less than a decade old. While others date back over thirty years and the original is over one hundred years old. Therefore, it is imperative to keep Colgates brands fresh but maintain a rich history of quality products. The highest selling trend within toothpaste is the toothpaste and not toothpaste-gel. The target market for Colgate toothpaste is Black and Hispanic individuals age 18-35, with several children aged 7 and younger.

Marketing Plan Colgate commits millions of dollars to community programs and the ADAs Give A Kid A Smile Program. Colgate has established ColgateSmile a social network, an interactive iphone application, Facebook page, Twitter account and Myspace page. Colgate is committed to Reducing Environmental Impacts (REI) around the world. Colgate is not the leader with regard to technological advancement within the category. Goals: In order to remain a leader in the category four goals must be achieved: -Increase Colgate market share by 1.7% or $1,326,546,098 -Increase website traffic and Facebook friends by 10%. -Carry over current 2010 margin at 18% of Colgate sales into 2011 expenditure. - Systematically phase-out 5% of the brands that are currently struggling financially. Strategy: Brand Reduction The strategy is to phase-out unproductive toothpastes in the baking soda/gel varieties specifically Colgate Baking Soda & Peroxide Oxygen Whitening Frosty Mint Striped Gel, Colgate 2in1 Oxygen Whitening and Cavity Protection Winterfresh Gel. The product packaging will be advertising other Colgate products in an attempt to retain brand loyal users. By October 2011, these varieties of Colgate will no longer be produced for the United States market. In effect, this will generate more cash flow that can be

Marketing Plan diverted into the creation of new brands and new marketing campaigns thereby decreasing stress upon margin levels. Fostering Positive Colgate Image In order to gain favorable PR and keep Colgate in the light of the media, this plan suggests a campaign that will donate a 1% of specially marked packages to a charity of ones choice. Partnering with www.charitynavigator.org to create a micro list of charities and their information. Purchasers will be able to choose and track the donations via the Colgate website by answering several demographic questions and entering a unique code. Facebook will feature a separate page that will promote Colgate, describe the donation campaign and charities offered by charitynavigator.org. Also, a downloadable iphone application will be created to track contributions. This marketing tactic will foster a positive image of Colgate, create an increase of sales in specific Colgate brands, harvest demographic customer information, draw added consumers to the Colgate website and more of a presence on Facebook. Increase Brand Share Colgate is one of the most recognized brands in the United States and the world. Colgate is popular among the consumer target and beyond. It has an amazing 93% penetration while only retaining 35% of the market. In terms of the product life cycle, Colgate toothpaste is beyond the mature stage. Some brands have declined with regard to sales, profits, customer interest and market share. This idea will be retrofitted to print ads as well by using the same twenty images with the smiling, foamy face and underneath the images will appear the Colgate slogan, Colgate A World of Care. This marketing campaign has the ability to touch a vast

Marketing Plan consumer base. There is universality to the idea. The concept relates and is identifiable with people because everyone brushes their teeth in the their pajamas. Maslows hierarchy of needs dictates that the identifiably social component of the commercial will appeal to the subconscious of viewers creating the added value necessary to enhance the image of Colgate and gain added market share. Choosing actors specifically by gender and racial profile can appeal to start-up and young bustling families. This commercial will attract potential users and reaffirm current consumers. The investment in a revitalizing campaign to improve the image of Colgate will inevitably increase market share by 1.00% or $11,141,377 at a minimum.

Marketing Plan

Company Overview Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for over 200 years. Company Timeline[3] 1806-William Colgate starts a starch, soap and candle business on Dutch Street in New York City. 1857-Upon the death of founder, William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son. 1896- Colgate introduces toothpaste in a collapsible tube. 1911- Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing. 1953-Colgate-Palmolive Company becomes company's official name. 1956- Colgate opens corporate headquarters at 300 Park Avenue in New York City. 1968- Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities. 1996- Bright Smiles, Bright Futures oral health education program expands to 50 countries, and today reaches over 50 million children annually. 1997- Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems. 2000- Colgate creates, Colgate 2in1 Toothpaste. 2007- Colgate launches Colgate Max Fresh toothpaste line. 2009- Colgate launches Colgate Luminous. 8

Marketing Plan Product Overview Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria. Specifically: Toothpaste contains abrasive materials that physically scrub away plaque. In addition, toothpaste abrasives help remove food stains from teeth and polish tooth surfaces. Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel weakened by acid attack, making it more resistant to future acid attack from plaque bacteria and food. Technological improvements in some toothpaste contain ingredients that chemically hinder the growth of plaque. Colgates brands consists of a multitude of unique toothpastes lines, specializing in the preservation and treatment of oral hygiene. Colgate has created an array of 40 different patented toothpastes keeping Colgate competitive in the market place. There are 13 different classifications and varieties of Colgate toothpastes. Colgates toothpastes feature; cavity protection, plaque & gingivitis prevention, long lasting fresh breath, tartar control toothpastes, tooth whitening, baking soda and peroxide, enamel strengthening, sensitivity relief and toothpaste designed for children. Product Analysis[3]
* Colgate Cavity Protection Great Regular Flavor * Colgate Cavity Protection Winterfresh Gel * Colgate Tartar Control Whitening Cool Mint Gel * Colgate Tartar Control Whitening Crisp Mint Paste * Colgate Total Advanced Whitening * Colgate Total Advanced Clean * Colgate Total Advanced Fresh Gel * Colgate Total Clean Mint * Colgate Total Whitening Paste * Colgate Total Whitening Gel * Colgate Total Mint Stripe

Marketing Plan

* Colgate Total Enamel Strength *Oxygen Bubbles Whitening Brisk Mint Paste *Oxygen Bubbles Frosty Mint Striped Gel * Colgate 2in1 Oxygen Whitening * Colgate 2in1 Whitening * Colgate 2in1 Icy Blast * Colgate 2in1 Kids Strawberry * Colgate 2in1 Kids Watermelon * Colgate Max Fresh w/ Mini Breath Strips * Colgate Max Fresh w/ Mouthwash Beads * Colgate Max White w/ Mini Bright Strips * Colgate Sparkling White CinnamonMint * Colgate Sparkling White Mint Zing * Colgate Sparkling White Caribbean Cool

* Baking Soda & Peroxide Oxygen Whitening Frosty Mint Striped Gel * Colgate Baking Soda & Peroxide Whitening * Colgate Sensitive Multi Protection * Colgate Sensitive Enamel Protect * Colgate Sensitive Maximum Strength Whitening * Colgate ProClinical Daily Whitening * Colgate ProClinical Daily Cleaning * Colgate ProClinical Daily Renewal for Enamel * Colgate Dora the Explorer Mild Bubble Fruit * Colgate SpongeBob Mild Bubble Fruit * Colgate My First Toothpaste * Colgate Pop Stars * Colgate Luminous Crystal Clean * Colgate Luminous Paradise Fresh

Colgate Regular: In over 173 years, Colgates original flavored mint toothpaste has changed very little. It cleans, strengthens, protects teeth and breath. Colgates Original formula uses active fluoride to keep teeth and gums healthy. Colgate Regular is ADA approved and doctor recommended. Colgate Tartar Control Toothpaste: One of the top sellers in the Colgate toothpaste line and for good reason. Colgate Tartar Protection fights tartar build up and removes stains to whiten teeth and fight cavities. Colgate Total is the most popular toothpaste under the Colgate brand. It has eight products and flavors within the line that all promote 12-hour protection from: gingivitis, stains, plaque, whitening, cavities, tartar, weak enamel, tender gums and bad breath. Colgate Totals products all protect against these unwanted oral issues, but some target specific individual problems in a variety of toothpastes and gels. Including, Colgate Total Enamel Strength Striped paste, protects from acid wear

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for 12 hours. Colgate Total Advanced Whitening uses Dual-Silica Technology to remove tooth stain and helps to prevent new stains from forming. Colgate Total Advanced Clean is available in both a gel and paste form and contains silica, which is similar to what dentists use to maintain a professional cleaning feel. Colgate Total Advanced Fresh Gel contains an added flavor booster to keep breath ultra fresh for up to 12 hours. Colgate Total Clean Mint Paste has a delightful mint taste. Colgate Total Mint Stripe Gel is a minty blend of gel and paste that leave the users mouth fresh and clean. Colgate Oxygen Bubbles Toothpaste: When activated, the product foams to get in between teeth to fight cavities and kill germs that cause bad breath. Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of your teeth. Colgate 2in1 Toothpastes is a mix of two distinct features in one gel toothpaste. Whitening foaming that gets between teeth to fight cavities and kill germs that cause bad breath and Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of teeth Colgate Sparkling White Toothpaste is clinically proven to protection teeth from wear and tear staining. The formula is a patented creation for sparkling, healthy, white teeth accompanied by a unique flavor experience. It is available in the following flavors: Colgate Sparkling Mint Zing, Colgate Sparkling White CinnaMint, and Colgate Sparkling White Caribbean Cool.

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Colgate Sensitive Multi Protection fights tartar, removes plaque, promotes healthy gums and whitens teeth for a healthier smile. The sensitive element in the three Colgate Sensitive Toothpastes protects from painful oral sensation. Colgate Sensitive Enamel Protect helps protect tooth enamel from acid attacks. Colgate Sensitive Whitening helps restore the natural whiteness of teeth. Colgate Pro Clinical is relatively new to the market. It comes in three varieties inspired by dentists to create a high quality and satisfaction guaranteed product. Colgate Max Line established in 2007 consists of three varieties. Colgate Max White with Mini Bright Strips freshens breath and helps to bring back the natural whiteness of a persons smile. Colgate Max Fresh with Mini Breath Strips is packed with hundreds of mini breath strips. These breath strips unleash a powerful rush of freshness and are formulated to whiten teeth. Colgate Max Fresh with Mouthwash Beads contains concentrated mouthwash beads that leaves the users mouth ultra clean and fresh. Colgate has several lines of toothpaste targeting children in regard to packaging, flavor and theme. Including Colgate Dora the Explorer Mild Bubble Fruit, Colgate SpongeBob Mild Bubble Fruit, Colgate My First Toothpaste and Colgate Pop Stars. Colgate Luminous is Colgates newest brand launched in early 2009. It is manufactured in two flavors, Crystal Clean Mint and Paradise Fresh Colgate. Luminous is a specific formula that safely lifts off yellowing surface stains to restore the natural whiteness to teeth. Using fluoride mineral formulation, Colgate Luminous strengthens weakened teeth enamel. Colgate Luminous Reinforces

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enamel layers by rebuilding the weak spots on teeth, protecting against stains and yellowing that occurs over time. Colgate Products Percentage Breakdown
2.50% 6.00% 7.00% Colgate 2 in 1 Colgate Max Fresh 25.58% 18.00% Colgate Sparkling White 3.67% 10.13% 14.86% 12.22% Colgate Tartar Protection Colgate with Baking Soda and Peroxide Colgate Regular

Market Information Oral Heath Industry Americans brush their teeth with toothpaste 200 billion times a year. [1] The oral health industry is a vibrant sector of the current economy equal to $106 billion annually, of which 3% will be spent on toothpaste products. [1] The toothpaste market itself is increasing up, a 8% in 2010 to 2008 and 12%from 2005. [7] Therefore, it can be assumed that the market will continue to increase over the next 5 five years. Toothpaste Market Toothpaste in the United States is a massive market. Sales are estimated $3,133 million total market sales, consuming an average of 895,379,714 tubes per year. [8] ColgatePalmolive (stock symbol (CL) is publicly traded on the New York Stock Exchange at $75

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a share and is worth an estimated $15,327,000,000. [9] Colgate Toothpaste contributes 10% or $1.5 billion to the total value of Colgate-Palmolive. [3] With a penetration of 76.35%, almost 3/4 of the families in the United States have tried Colgate toothpaste at least once. [8]
2006 Percent Change Market Share Percent Change Value Margin Total Market Value 2.00 2007 1.96 37.30% $22,124,833 18% $1,128,366,470 2010 -4.6 350.00% 32.70% 36.20% $51,904,857 $37,676,156 18% 18% $1,076,461,612 $1,114,137,768 2008-2009

35.30%
$22,124,832 18%

$1,106,241,637

Based upon past and current Colgate toothpaste market share percentages, future market share can be expected to grow to record highs. At the current rate of increase, market share can be predicted to surpass the five-year benchmark high of 37.3% to a new record of 37.5% in 2011. [3] Colgate must maintain that leading position to ensure future growth over the next several years. Dips in market share have occurred in the recent past such as in 2008-2009. In order to maintain current consumers and attract new potential users, it is imperative that Colgate vitalizes new or existing appreciation among consumers for their toothpaste brands Colgate Toothpaste Target Consumer Profile The over all target consumer for Colgates many toothpastes are Black and Hispanic men/women aged 18-34 with a college education employed as professionals earning $75,000 or more. The target consumer is currently married with children, six years old or younger, living in homes worth $200,000-$499,000 in the top five media markets in the United States. [7], [8]

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Colgate Toothpaste Overall Target Market Colgate has so many products it becomes necessary to aim strategies at a limited target consumer. Based upon demographics supplied by MRI and Spectra, the target consumer of Colgate is categorized as younger bustling family living within the mid-scale suburban mix community. The targets life is centered on his/her family. The target earns for there household, while balancing interests and pursuits. Media selection, outdooractivities and neighborhood selection all mirror a family centric target. The consumer lives in the midscale suburban mix placing the target in the middle of the socioeconomic ladder. The midscale suburban mix can be characterized by residents that earning a living in blue-collar jobs and live in older, modest homes in ethnically diversity areas.[8]

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LifeStyle BehaviorStage
Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total Cos Centers Affluent Suburban Spreads Comf Struggling Country Urban Cores Modest Working Towns Plain Rural Living Total

Price Colgate features products in the oral health isle of almost all stores carrying oral health products. Colgate has a large span of shelf space on nine rows, totaling 35 items per store that illustrates the wealth of variety Colgate offers. It is important to note that Colgate is the first product on display in the toothpaste section of the oral health isle. The subtotal of all of Colgates products per ounce is 28.58 equaling $0.81 per ounce, making it the most expensive brand of the three toothpaste category leaders. The most expensive toothpaste per ounce is the Colgate Pro Clinical, which is featured at eye level on the top shelf. The least expensive toothpaste per ounce is the Colgate Regular super tube, which is located on the second shelf from the store floor or shin level of the consumer.

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Promotion The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of mediums. The advertisements and promotions are located in a targeted media selection that appeals to the target consumer. Website: Colgate has a dynamic website with the title, Colgate World of Care, that details products, oral care, company history, e-newsletter and special offers. The website also has a social networking page called Colgate Smile to engage the consumer to get involved with their oral health and the Colgate-Palmolive Company. Colgate also has social media pages on Facebook, Twitter and Myspace. [3] Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section of the website. Colgate coupons can also be found as cutouts in the weekend coupon sections of 500+ newspapers around the country. Television: Colgate and its advertising agency produce several television advertisements a year using humor and pseudo scientific displays to appeal to consumers. Magazines/Outdoor: Colgates marketing campaigns have been known to use historical, sexual, cultural and social inferences in their advertisements. Donations: Colgate donates millions of dollars annually to the ADAs Give a Kid A Smile. Colgate is a direct partner with this ADA program. [3]

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Place Colgates product distribution is immense. Almost all super markets, discount chains and pharmacies such as Wal-Mart, Albertsons, Target, Walgreens and CVS carry Colgate Toothpaste. Colgate toothpaste is physically located in the oral health isle of stores. Colgate toothpaste can sometimes be found in more prominent locations when on sale or launching new products into the market. Trends Health Trend: It is proven through scientific study that a healthy lifestyle which includes exercise, eating and drinking with health in mind. As society grows more aware of the benefits of a healthy lifestyle, marketers have created an abundance of products to cater to this growing trend. These include tens of thousands of products such as gyms in and outside the home, health drinks, foods high in fiber, low in fat and rich in vitamins. A healthy lifestyle extends into oral health awareness also. Dietary and Habits: Some foods have a strong residue such as garlic, onion, cheeses, alcohol and coffee, which causes an adverse effect on oral freshness. Tobacco is a popular stimulant in many cultures around the world and is an accompaniment before, after and during meals, with coffee or alcohol. Tobacco is now illegal to use indoors in most major cities throughout the U.S. Tobacco is damaging to proper physical/oral health and is linked to causing cancer, bad breath and stained teeth. Technology: Technology is changing daily life within the world markets from the way people create and use a shopping list to the cars people purchase. Toothpaste has a direct correlation with the toothbrush. Every year new toothbrush models come out

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claiming superior plaque removal using such selling points as super sonic technology to blast away plaque build up or crisscrossing bristles to lift and brush plaque away. Also under the heading of technology are cameras and Facebook. Today people carry cameras at all times. Any event is now a potential photo shoot. The ease of access and spontaneous nature of camera usage requires the consumer to be aware of their smile at all times. Social/Cultural: Humans are social beings and face-to-face interaction is commonplace in business, relationships, school, family and with friends. Halitosis creates a stressful social interaction making it difficult to be close to someone suffering from bad breath. The media has made fresh breath the norm and anything contrary is unacceptable, putting emphasis on toothpastes to sweeten breath even hours after brushing. Traditions: Within our ever-changing world, consumers enjoy products and services that they feel a connection to or have a history with. A person knows they can trust a product they saw their parents use. There is something intimate and potentially nostalgic about bathroom products. This helps Colgate to maintain its status as a mature, trustworthy product and symbol of the Colgate-Palmolive Company. Strengths, Weakness, Opportunity and Threat Analysis Strengths: Colgate has a history of producing quality products and a stellar reputation for oral health products. Colgate has strong channels of distribution not only on a national scale but also globally. Thereby, Colgate is the number one selling toothpaste in the world. [3] Colgate is accepted by the ADA as effectively helping to prevent and reduce tooth decay. Within Colgates website is a social network that asks consumers to get

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involved with the brand called Colgate Smile. Colgate has 40 product facings in stores, which is the most out of any toothpaste brand. Colgate has 93% product penetration. [8] Weakness: Within the product life cycle most of Colgate products are either mature or declining, creating the need for Colgate to keep introducing new products. Colgates product line is broad with over 40 different products varying in tube size, quantity, flavor and desired effect. [3] Toothpaste promotion is cutthroat. Products are frequently on sale, which appeals to price buyers and potential brand switchers. This may also cost the company profits due to regular users taking advantage of the discounted price. Opportunities: Colgate commands 37% of the toothpaste market share opening the door to brand growth through marketing, acquisitions and mergers. [8] Colgates brand image is an ever-revolving door opening the opportunity for rebranding and new promotion/marketing tactics to be explored. Threats: Aquafreshs products use innovative technology in packaging and development. Within the last several years Colgate has lost its leadership position to Crest. While the lost market share was regained, Colgate must remain aware of the competition. [3], [8] Both Crest and Aquafresh products are cheaper per ounce than Colgates.

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Competition Situation Analysis Aquafresh Products Aquafresh was established in 1973, and is currently owned by GlaxoSmithKline (stock symbol (GSK). [6] Aquafresh is originally known for its tri-colored red, white and turquoise stripes. The Aquafresh product line has expanded into some unique features not offered by other toothpaste brands. The Aquafresh Extreme line uses micro-active foam to clean and smooth teeth over time, creating a deeper clean feeling among consumers. [2] The Aquafresh ISO-Active products start as gel from a unique pressurized canister that turns into an active foam similar to shaving cream but retrofitted for toothpaste. [2] Advanced White products are advertised to safely penetrate the tooth enamel to create greater whitening rather than potentially harmful and abrasive techniques to polish teeth. Also, Aquafresh advertises unique flavored toothpastes such as citrus mint and icy mint in Aquafresh Advanced as well as a childrens flavor bubblegum-mint. All of these features make Aquafresh a modern and competitive toothpaste brand. Products[2] Aquafresh ISO-Active Aquafresh ISO-Active Whitening Fresh Impact, Aquafresh ISO-Active Whitening Deep Impact Aquafresh ISO-Active Whitening Lasting Impact Aquafresh Advanced Aquafresh Advanced Protection Aquafresh Extreme Clean Aquafresh Original Aquafresh Cavity Protection Aquafresh Extreme Aquafresh Extreme Clean Whitening Action Aquafresh Extreme Clean Freshening Action Aquafresh Extreme Clean Polishing Actions Whitening Aquafresh White and Shine Original Aquafresh Ultimate White Aquafresh Extra Fresh Aquafresh Tartar Control Whitening

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Aquafresh Maximum Strength Market

Kids Aquafresh Bubble Mint Paste

Aquafresh, owned by global giant GlaxoSmithKline PLC (Stock symbol: GSK), [2] had total annual sales for 2010 equate to $28,368 million. Aquafreshs market share of 8.13% translates to $918,937,367 or 3.23% of the GSK net sales. [8] Aquafreshs market penetration is approximately 18.11%.[8] Target The target market consumer for Aquafresh toothpaste is men and women age 18-35. The target is collage educated and earns an income of $50,000-$75,000 in office occupations. They are married and market profiles are most similar to younger bustling families. The Younger Bustling Families behavior stage is predominantly White and Hispanic. 60% are non-Hispanic Whites with 2.7 children, aged 6-17. [7], [8] At this behavior stage children develop their own tastes and needs, and begin to rebel against their parents. They are seeking to define their boundaries and this will manifest itself in what they eat, fashions, music, movies and television programs. This busy family lives in a house they own in neighborhoods classified as Cosmopolitan Centers. [7], [8] These Cosmopolitan Centers are typically found in the most densely populated urban cores of our major metropolitan centers. The target consumer resides in a mix of multi and single unit housing, ranging from high rise apartment buildings to smart townhouses and other single family housing. They are socially and politically liberal. Within these neighborhood classifications interests include the arts, environment, and human rights. They believe in taking care of themselves as well, and are receptive to a

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health and diet issues. Television can be a poor choice for reaching this group, which has fairly low levels of viewing. Magazines, newspapers, and the internet are more likely to guide their choices. Cosmopolitan centers residents are above average readers as measured by Spectra. [7], [8] Price Aquafresh had only nine product facings, none of which were eye level with the consumer. The subtotal of the product per ounce is $0.75 ranking in the middle between Crest (low) and Colgate (high). Place/Promotion Aquafresh can be found in the oral health isle at the following stores; Target, Walgreens, Walmart, Costco, CVS Pharmacy and Wegmans. Aquafresh can also be found online at these websites: Costco,com Drugstore.com and Amazon.com. [2] Aquafresh has a comprehensive promotions campaign using outdoor, print and television created by MediaCom. The online design of the Aquafresh website is modern and easily navigable. Strengths and Weakness Analysis Strengths: Aquafresh uses innovative oral health technologies to appeal to a younger audience. The packaging of Aquafresh Extreme Clean is a shimmering, glittery box that appears hip and current. This along with low product facings is a marketing ploy to appeal to children whose eye level is lower than adults. Aquafresh is priced in the middle of the toothpaste market in order to appeal to consumers. Weakness: Aquafresh is a strong brand owned by the world's third largest pharmaceutical company. While the Aquafresh original is instantly recognizable by its distinct red, white

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and blue ribbon, other newer products are not as known. Aquafresh shelf facings are weak. Aquafresh products are usually displayed on the shelf below the consumers waistline. Compared with Crest and Colgate, Aquafresh has fewer facings in stores. Aquafresh appeals to a younger demographic leaving out older, higher spending consumers. Crest Toothpaste Products[5]
Crest Natures Expressions Gel Toothpaste Pure Peppermint Fresh Crest Baking Soda & Peroxide Whitening with Tartar Protection Striped Toothpaste Fresh Mint Crest Kids Barbie Burstin Bubblegum Gel Toothpaste Crest Kids Cavity Protection Gel Toothpaste Sparkle Fun Crest Kids Spider-Man Liquid Gel Toothpaste Super Action Mint Crest Kids Sesame Street Cavity Protection Toothpaste Bubble Fun Crest Plus Scope & Extra Whitening Toothpaste - Mint Splash Crest Plus Scope Liquid Gel Toothpaste Minty Fresh Crest Plus Scope Liquid Gel Toothpaste Peppermint Crest Sensitivity Clinical Sensitivity Relief Whitening Plus Scope Toothpaste Crest Sensitivity Clinical Sensitivity Relief Extra Whitening Toothpaste Crest Tartar Protection Gel Toothpaste Fresh Mint Crest Tartar Protection Toothpaste Regular Crest Tartar Protection Whitening Toothpaste Cool Mint Crest Tartar Control Whitening Plus Scope Liquid Gel Toothpaste Minty Fresh Crest Cavity Protection Gel Toothpaste Cool Mint Crest Cavity Protection Toothpaste Regular Crest Extra Whitening with Tartar Protection Gel Toothpaste Clean Mint Crest Extra White Plus Scope Outlast Toothpaste Long Lasting Mint Crest Multicare Whitening Gel Toothpaste Fresh Mint Crest Pro-Health Enamel Shield Toothpaste Fresh Clean Mint Crest Pro-Health Night Toothpaste Clean Night Mint Crest Pro-Health Clinical Gum Protection Toothpaste Clean Mint Crest Pro-Health Toothpaste Clean Cinnamon Crest Pro-Health Gel Toothpaste Clean Mint Crest Pro-Health Whitening Gel Toothpaste Fresh Clean Mint Crest Sensitivity Clinical Sensitivity Relief Whitening Plus Scope Toothpaste Crest Sensitivity Clinical Sensitivity Relief Extra Whitening Toothpaste Crest Vivid White Striped Toothpaste Invigorating Mint Crest Vivid White Striped Toothpaste Refreshing Mint Crest Vivid White Night Striped Toothpaste Moonlight Mint Crest Vivid White Night Striped Toothpaste Revitalizing Mint Crest Whitening Plus Scope Striped Toothpaste Minty Fresh Striped Crest Whitening Plus Scope Striped Toothpaste Cool Peppermint Crest Whitening Plus Scope Striped Toothpaste Citrus Splash Crest Wild Expressions Liquid Gel Toothpaste Burstin Bubblegum Crest Wild Expressions Liquid Gel Toothpaste Cinnsational Swirl Crest Whitening Expressions Striped Toothpaste Refreshing Vanilla Mint Crest Whitening Expressions Striped Toothpaste Extreme Herbal Mint Crest Whitening Expressions Gel Toothpaste Cinnamon Rush Crest Whitening Expressions Gel Toothpaste Wintergreen Ice Crest Whitening Expressions Liquid Gel Toothpaste Refreshing Vanilla Mint Crest Whitening Expressions Liquid Gel Toothpaste Cinnamon Rush Crest Whitening Expressions Liquid Gel Toothpaste Extreme Herbal Mint

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Crest appeared on the market in 1950 with a revolutionary cavity preventative product created by Proctor and Gamble. [5] The classic Crest product line consists of a classic mint flavor in both gel and paste form. This toothpaste addresses the issue of fresh breath and cavity prevention in weak areas. Beyond the classic line, Crest has expanded to 40 plus individual toothpastes. This allows Crest to appeal to a broader market than most other toothpastes. Crest created many innovations over the past 60 years, including a vast amount of creative flavorings in both gel and paste form such as: Cinnamon Rush, Refreshing Vanilla Mint, Burstin Bubblegum, Scope Minty Fresh, Herbal mint and Citrus Splash. Crest also has the widest variety of childrens toothpaste. These kids toothpastes come in gel form and feature famous childrens characters. For instance, Barbie toothpaste come in Burstin Bubblegum flavor and Crest Kids Spider-Man Liquid with Super Action Mint flavor. In 2004, Crest introduced a higher quality, dentist-inspired toothpaste product line called Crest Pro-Health. Crest Pro-Health is the only toothpaste accepted by the American Dental Association for six different areas: cavities, gingivitis, plaque, whitening, sensitivity, and bad breath. Target The Crest target consumers are white men and women aged 35-54. These capable men and women are college graduates earning $50,000-100,000+. These individuals are married with children aged 6-17 years old. [7], [8] The Crest lifestyle and behavior is that of older bustling families, established couples and empty nesters that all live in their own homes in cosmopolitan centers. These

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urbanites are involved in their communitys civic happenings and also politically. [7], [8] These dual income families are well off and tend to splurge on personal items, but are also mindful of the financial burden of their childrens future college price tag. Market Proctor & Gamble (stock symbol PG) has been producing household goods, health and well being, as well as, beauty and grooming products for over 179 years. P&G is the parent company of such brands as Tide, Bounty, Febreze, Gillette and Crest. P&Gs estimated enterprise value is $20,935 million. Specifically, the market share for Crest in 2010 is 32%, which is equal to $1,029,757,700 in Net Sales. That is 8.95% of the P&G health care segment and only half of a percent of its overall net sales. [1] Price Crest has 37 product facings at consumer eye level and preferred shelving areas. Crest is the category leader in product volume offered with 37 facings per store. Crest toothpaste is also the least expensive of the three major brands at $0.69 per ounce. Promotion Coupons are the largest form of promotion offered by the home product giant P&G. Coupons can be found online via the Crest and Oral-B e-newsletter. Sent out monthly, the e-mail newsletter includes updates, latest advances, new products and exclusive offers at P&G. Crest also sends out the P&G BrandSaver found in over 500 local Sunday newspapers nationally. [5] This coupon booklet provides discounts on P&G products that are redeemable at purchase. [5]

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Marketing Plan

Place Crest toothpaste products can be found in the oral health isle of the following stores: Target, Walmart, Kmart, Dominicks, Sams Club, Walgreens, Meijer, Jewel Osco and CVS. Crest toothpaste can also be found at Amazon.com, Drugstore.com CVS.com Walgreens.com and Soap.com. [5] Strength and Weakness Analysis Strengths: Crest, owned by Proctor and Gamble (stock PG), is a huge company. It is thirteen times the size of Colgate-Palmolive. P&G has more available capital and over all presence throughout the market place. Crest spent $1.3 billion over the last 5 years on advertising. Based upon market research, Crest out ranks other brands in taste preference. Crest has the most product facings in a given store and cheapest overall price per ounce. Weakness: Proctor and Gamble is a huge company where Crest makes up a very small percentage of the total sales of the company. Therefore, it would seem that Crest products are given a large marketing budget but lack the proper care and attention needed to foster consumers and market share. Crest goes against the current and past trend by offering more gel than most other toothpaste companies. Crest spends an incredible amount on advertising but their market penetration is only equal to 62% of the market place. [8]

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Marketing Plan

Colgate Mission[3] Based upon Colgate and its competitors situation analysis, a comprehensive strategic plan has been compiled with goals, rational, insights and initiative. These elements are in accordance with the three fundamental values stated in the Colgate Mission statement. The three fundamental values of Caring, Global Teamwork and Continuous Improvement are the foundations for Colgates business strategy and are reflected in every aspect of work life. Caring: The company cares about people; Colgate employees, customers, shareholders and business partners. Colgate is committed to perform with compassion, integrity, honesty and high ethics in all situations and to listen with respect to others and to value differences. The company is also dedicated to protect the global environment and to enhance the communities where Colgate users live and work. It is also committed to be compliant with government laws and regulations. Global Teamwork: Colgate is part of a global team that is committed to working together across countries and throughout the world. By sharing ideas, technologies and talents, the company can achieve and sustain profitable growth. Continuous Improvement: Colgate is committed to improving every day in all it does, as individuals and as teams. By better understanding consumers' expectations and continuously working to innovate and improve products, services and processes, Colgate will "become the best."

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Marketing Plan

Market Research Results Survey findings from multiple toothpaste questionnaires shed light upon consumer minds and behaviors. The research has determined toothpaste traits the consumer finds important when making purchase decisions. Buy Process Percentages:

11% 20.00%

19% 20%

Availabilty Flavor Packing (tube, box color) Past Usage Price Tube Size

15%

14%

The survey analyzed the rank of important characteristics when buying toothpaste. This chart breaks down the importance of each quality in to percentages. The toothpaste composite of criteria is: flavor 20%, price 20%, availability 19%, past usage 15%, packaging 14% and tube size 11%. The research specifically highlights the almost equal importance of price, flavor, and quality of toothpaste. These three elements make up 60% of the decision making process.

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Marketing Plan

Preferred Toothpaste Qualities:

The survey also revealed what attracts individuals to specific brands: Colgate, Crest and Aquafresh toothpaste. The data agreed that consumers use toothpaste products based upon flavor, price and availability. This data confirmed that consumers preferred the flavor of Crest toothpaste over the other brands. The survey also showed that the packaging of Colgate toothpaste the weakest element discussed in the survey.
!

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Marketing Plan

Toothpaste Purchase Location:


120 100 80 60 40 20 0 Box Retail Chain Membership Stores
85-69 Str. Agree 68-52 Agree

Internet

Pharmacy

Supermarket

51-35 Indifferent

34-18 Disagree

17-1 Str. Disagree

0 N/A

The analysis of information illustrates where consumers buy their toothpaste. The majority of consumers buy their toothpaste, according to rank, at the supermarket, retail chain and pharmacies stores.

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Marketing Plan

Product Quantity:

The data showed that most purchasers of toothpaste buy their products individually showing less importance for cheaper bulk buys. 66% of consumers interviewed spent an average $2-5 monthly for toothpaste products.

16%

16% Strongly Agree Agree Indefferent Disagree Strongly Disagree

16%

16%

8% 25%

N/A

The chart above shows how consumers felt about using coupons when purchasing toothpaste. 25% are indifferent 16% are strongly agree, agree, strongly disagree, and N/A this data can be interpreted to mean that coupons are not the greatest form of incentive for toothpaste consumers. 32

Marketing Plan

Critical Issues/Key To Success Colgate toothpaste is the leader within the product category holding 36.2% of the market or $1,114,137,768 in sales. Colgate has a vast product line of toothpaste and many are less than a decade old. While others date back over thirty years and the original is over one hundred years old. Therefore, it is imperative to keep Colgates brands fresh but maintain a rich history of quality products. The highest selling trend within toothpaste is the toothpaste and not toothpaste-gel. The target market for Colgate toothpaste is Black and Hispanic individuals age 18-35, with several children aged 7 and younger. Colgate commits millions of dollars to community programs and the ADAs Give A Kid A Smile Program. Colgate has established ColgateSmile a social network, an interactive iphone application, Facebook page, Twitter account and Myspace page. Colgate is committed to Reducing Environmental Impacts (REI) around the world. Colgate has many creative advertisements in several forms of media such as magazines, coupons books and television spots. Colgate is not the leader with regard to technological advancement within the category.

33

Marketing Plan

Colgates products can be found in almost all major grocery stores and online retailers. Goals

Colgate toothpaste product goals and measurable accomplishments for 2011: -Increase Colgate market share by 1.3% or $14,483,790 to reconfigure total sales to $1,128,621,559 -Increase website traffic by 10% and Facebook friends by10%. -Carry over current 2010 margin at 35% of Colgate sales and expenditure into 2011. - Systematically phase-out 5% of the brands that are currently struggling financially.
*1% of the market share is equal to $11,141,377 whereas, 5-7% would be increasing sales dollars to an unrealistic amount.

Strategy Brand Reduction To insure that the three goals are met and maintained, a series of strategies are to be implemented. Keys to success can be determined based upon Colgate and its competitions past and current market share, trends, strengths and weaknesses. Over the past sixty years there has been a power struggle between Colgate, Aquafresh and Crest to acquire market share. As a category leader it is imperative to follow and predict trends within the United States toothpaste industry. Based on the MRI data, regular paste outsells beyond all other types of toothpaste and has the highest percentage of users.

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Marketing Plan

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Baking Soda Tartar Control Trend TrendGel '09 Trends Paste and Peroxide Trend '09 Whitening '09 '09 '09

Therefore, the strategy is to phase-out unproductive toothpastes in the baking soda/gel varieties specifically Colgate Baking Soda & Peroxide Oxygen Whitening Frosty Mint Striped Gel, Colgate 2in1 Oxygen Whitening and Cavity Protection Winterfresh Gel. This will be accomplished by removing coupons and all promotional items in stores, advertisements, online, printed publications and television. The product packaging will be advertising other Colgate products in an attempt to retain brand loyal users. By October 2011, these varieties of Colgate will no longer be produced for the United States market. In effect, this will generate more cash flow that can be diverted into the creation of new brands and new marketing campaigns thereby decreasing stress upon margin levels. Fostering Positive Colgate Image Colgate can position a positive image by presenting itself as a proactive, helpful product that is good for teeth, but also for community and country as a whole. In order to gain favorable PR and keep Colgate in the light of the media, this plan suggests a campaign

35

Marketing Plan

that will donate a 1% of specially marked packages to a charity of ones choice. Donations will grow parallel to product sales by partnering with www.charitynavigator.org to create a micro list of charities and their information. Purchasers will be able to choose and track the donations via the Colgate website by answering several demographic questions and entering a unique code. Facebook will feature a separate page that will promote Colgate, describe the donation campaign and charities offered by charitynavigator.org. Also, a downloadable iphone application will be created to track contributions. This marketing tactic will foster a positive image of Colgate, create an increase of sales in specific Colgate brands, harvest demographic customer information, draw added consumers to the Colgate website and more of a presence on Facebook. Increase Brand Share Colgate is one of the most recognized brands in the United States and the world. Colgate is popular among the consumer target and beyond. It has an amazing 93% penetration while only retaining 35% of the market. In terms of the product life cycle, Colgate toothpaste is beyond the mature stage. Some brands have declined with regard to sales, profits, customer interest and market share. Colgates brand image is nostalgic yet antique in comparison to the cutting edge features of Aquafresh ISO-Active. Colgates newest line, Colgate Luminous, simply does not compete with respect to the innovative features offered by competitors. With few products in the pipeline, this plan suggests that Colgate embrace its current brands and create a marketing campaign to reflect the

36

Marketing Plan

national impact of Colgate. The advertising will be a globally inspired campaign similar to the Pepsi Cola forever young commercials and Microsoft Me Ads. The television spots will depict a montage of 20 images of individuals in pajamas smiling into a bathroom mirror with toothpaste on their faces. Each image will appear for 1.2 seconds. Each image is to fade out as the next image fades in. The age, ethnicity, sex, world location and toothpaste will change in each of the clips. Each image setting is a different bathroom. The actors in the scenes have their backs to the camera but will be looking into a mirror (that the camera can see) smiling with toothpaste foam on their face. The sink countertop will feature different Colgate toothpaste in each scene that is deliberately visible to the camera. After 24 seconds and all 20 clips will have run their course and the last segment fades-in with all the individuals turned facing the camera, clean faced and smiling. The Colgate slogan, Colgate A World of Care then appears. This idea will be retrofitted to print ads as well by using the same twenty images with the smiling, foamy face and underneath the images will appear the Colgate slogan, Colgate A World of Care. This marketing campaign has the ability to touch a vast consumer base. There is universality to the idea. The concept relates and is identifiable with people because everyone brushes their teeth in the their pajamas. Maslows hierarchy of needs dictates that the identifiably social component of the commercial will appeal to the subconscious of viewers creating the added value necessary to enhance the image of Colgate and gain added market share. Choosing actors specifically by gender and racial profile can appeal to start-up and young bustling families. This commercial

37

Marketing Plan

will attract potential users and reaffirm current consumers. The investment in a revitalizing campaign to improve the image of Colgate will inevitably increase market share by 1.00% or $11,141,377 at a minimum. Colgate Control Plan To insure the goals of this plan and easy access of continuity, a set of controls are to be established. This plan suggests renewing the company subscription to Spectra Systems and to assess Colgates penetration within the United States consumer market. This plan also suggests preferred card services from all retails environments to be reported to the marketing department in order to further appraise Colgates penetration. The accounting department is to report quarterly total (excluding new brands) Colgate toothpaste earnings to the marketing department in order to determine company statistics compared to years past. The accounting department is also to report all toothpaste coupon usage by retail chain and region. Tech support and website analytics departments are to report monthly Colgate toothpastes webpage visit counter. Also a count of the number of members from: Colgate Smile, Facebook, Twitter and Myspace. Thank you in advance to all the members within these departments for your help and cooperation. Budgeting Information- 17.63% of sales = $198,981,900 to be dispersed to spent Production of new commercial campaign Television Placement Out Of Home: Magazine: $2,000,000 $43,000,000 $23,000,000 $23,000,000

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Marketing Plan

Placement Internet: Ad placement Google words Donation campaign: Colgate Choice Donation ADA Give A Kid A Smile In Store Promotion: Product Slotting Colgate Signage $29,000,000

$18,981,900

$60,000,000

Total: 198,981,900 Projections


2010 % change Market Share % change value Margin Total Market Value

3.50% 36.20% $37,676,156


18%

$1,114,137,768

2011 1.30% 37.50% $14,483,790 18% $1,128,621,559

2012 2013 2014 -0.90% 3.30% 2.20% 36.40% 39.10% 41.30% ($10,157,594) $36,909,310 $25,418,212 18% 18% 18% $1,118,463,965 $1,155,373,275 $1,180,791,487

2015 1.75% 43.50% $20,663,851 18% $1,201,455,338

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Marketing Plan

Work Cited 1. 2011, By. "Americans to Spend $106 Billion on Dental Care." TopNews United

States. Web. 08 Dec. 2010. <http://topnews.us/content/211645-americans-spend-106billion-dental-care>. 2. "Aquafresh Products." Aquafresh: A Lifetime of Protection. GlaxoSmithKline.

Web. Oct.-Nov. 2010. <http://www.aquafresh.com/Products_Main.aspx>. 3. Colgate A World Of Care. Colgate-Palmolive Co. Web. Fall 2010.

<http://www.colgate.com/app/Colgate/US/HomePage.cvsp>.Colgate Quarterly reports 5. "Crest Toothpastes." Crest Healthy, Beautiful Smiles for Life. Proctor & Gamble.

Web. Oct.-Nov. 2010. <http://www.crest.com/crest-products/crest-toothpastes.aspx>. 6. Mehdi, Syed Nazare. "Colgate-Palmolive (NYSE: CL)." WikiInvest. 2009-2010.

Web. Nov.-Dec. 2010. <http://www.wikinvest.com/stock/ColgatePalmolive_Company_(CL)>. 7. Http://www.mriplus.com. Rep. MRI, Fall 2009. Web. Fall 2010.

<http://www.mriplus.com>. 8. Spectra Systems. 2009. Web. Oct.-Nov. 2010. <https://www.spectrainfinet.com>.

"PG Income Statement | Procter & Gamble Company (The) Stock - Yahoo! Finance." 9. Yahoo! Finance - Business Finance, Stock Market, Quotes, News.

Http://www.yahoo.com. Web. Oct.-Nov. 2010. <http://finance.yahoo.com/q/is?s=PG Income Statement&annual>.

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