PG vs Colgate - 1091 Words

Introduced in September 2002, Colgate’s ‘Simply White’ posed a threat to PG’s dominant market share in the over- the-counter teeth whitening product category. Colgate emphasized that its product bleached teeth as effectively as PG’s Crest Whitestrips and priced it at a significant 65% lower than Whitestrips which allowed it to gain almost 50% market share. Although concept tests done by PG indicated that consumers perceived both products to be equal in terms of whitening levels, PG’s internal scientific data suggested that the whitening level for Whitestrips was 5 times higher than Simply White. Thus PG is faced with the core issue - Whether Simply White works as well as Whitestrips and how can PG regain its market share by†¦show more content†¦If PG’s claim is substantiated by the ADA it could influence the outcome of the issue in contention. As both NAD and ADA, the key interest groups in the arena, prefer to provide accurate data to the consumer, the support of these two possible can further influence the resolution of this issue in PG’s favor. This is further supported by PG’s previous knowledge of NAD’s workings and PG can leverage its market power to access key decision makers on the NAD’s panel such as advertisers, academics and public sector officials. PG can also use NAD’s ruling against Den-Mart, which based its argument on ADA’s scientific report on correct whitening levels, to lobby with ADA, influencing ADA to accept PGs own method of documenting tooth color changes. In order to regain its market share PG needs to respond using a combination of non-market and market responses. PG needs to lobby with both the NAD council and the ADA in order to create a pool of allies and also get scientific acceptability of its method of documenting tooth color changes. At the same time it can fund independent research and publication in order to increase awareness amongst consumers. Once PG has scientific basis for its argument it should immediately file a claim against Colgate. Although, since such non market strategies may take time, which would further increaseShow MoreRelatedIndividual Case Analysis Colgate vs. PG796 Words   |  4 PagesBrighter Smiles for the Masses----Colgate vs. PG [pic] [pic] BY: ZHUANG Lingzhi ( Erin ) 52373176 Individual Case Analysis The Procter Gamble Company (PG) was the first one to launch the over-the-counter tooth-whitening product, Crest Whitestrips, which is able to be used at home to the market. After two years, Colgate followed to launch the rival product, Simply White, and snatched big part of the market share from PG. The market share of WhitestripsRead MoreSwot Analysis : Procter Gamble Essay1001 Words   |  5 PagesIntroduction Procter Gamble (PG), a leader in the personal products industry relies on branding, product innovation, and delivering value and quality products to consumers worldwide. However, PG has seen stagnant growth in profits. PG is a position to reevaluate and restructure its strategy by identifying external threats and weakness which is a key step to solidifying a corporate strategy for long-term growth. This is an PEST and Five Forces external analysis of PG’s threats and weaknesses,Read MoreColgate Case Analysis1497 Words   |  6 Pagesmarketing strategy for the launch of the new Colgate Precision. The issue can be divided into the following four major areas: 1. Positioning: Which market should be targeted? 2. Branding: Should Colgate make the most of the company’s brand? 3. Communication Promotion: How does Colgate distribute its advisement expenditures among products? 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