Essay Example on the Rise of Colgate in the Global Toothpaste Industry

Introduction

It is one of the respected and leading producers of toothpaste globally. For decades, it has taken the lead within the industry of toothpaste production due to its associated ingredients. The paper focuses on the in-depth discussion of Colgate and its competitors.

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Key Fact

The Colgate (Toothpaste) company seeks to increase its international market share in the toothpaste industry. To accomplish its aim, the company understands that it must utilize its resources effectively and efficiently to gain a competitive advantage in the industry (Jumanca et al., 3). Apart from research and development, the company puts a priority on sales and marketing because a fact which absolutely cannot get disputed is that everyone wants a Colgate smile. The company also places greater emphasis on the quality of products and services they offer. The company's current success in the industry is attributable to the effectiveness of these strategies.

The Problem Advertising must Solve

Colgate Company has been in existence for many years. Its products, however, are mainly used by the older generation. The advertising, therefore, seeks to solve the problem of reaching the younger generation of consumers. The product's advertising must be appealing to the younger generation to catch their eyes and attention. It can get achieved by creating better and more appealing ads than its competitors in the industry. The advertisement can be done through various social media platforms to reach the younger population because a majority of the younger generation regularly uses social media platforms such as Facebook and Twitter, among others. This would enable the company to reach a younger generation of consumers.

Advertising objective

The objective of the company's advertising team is to create an advertisement that would be appealing to the youth (Mondol 35). The ads should be simple and easy to understand. They should also contain short but creative videos that give more information about the company's product as well as its usage.

Principal Competition

Colgate Company competes with other toothpaste giants such as Crest, Sensodyne, Arm, and Hammer as well as Aqua fresh. The companies do not only compete with each other in the sale of their products but also the procurement of the manufacturing materials. The companies in the industry do not make any market-related agreements with competitors on matters relating to pricing, terms of business, sales limits, manufacturing plans, as well as market share. The three most competitive toothpaste brands in the U.S. are the Crest 3D white toothpaste, Sensodyne Pronamel toothpaste, and Colgate toothpaste. In 2019, the Crest 3D White toothpaste was the leading brand in the U.S. with sales of 263.9 million U.S dollars. It had a sales share of 9 percent. Sensodyne Pronamel brand came second with sales of 196.7 million U.S dollars. It had a sales share of 6.7 percent the same year. In terms of market share, Crest had a market share of 34.7 percent while Colgate had a market share of 33.5 percent in the U.S. Globally, Colgate has the leading market share of 45 percent with a global market penetration of 67.7 percent (Mondol 40).

Prospect Competition

According to the estimates of the United States Census Bureau, the young population between ages 10-19 makes up 13 percent of the country's total population. About 72 percent of the American population uses some type of social media to connect, acquire news content, share information, and also entertain themselves. The young population is among the earliest adopters, and they continue to use these platforms at increasing rates (Pew Research Center).

The most popular social media platforms in the U.S.A are YouTube and Facebook. A smaller population of Americans, however, uses other social media platforms like Twitter, Pinterest, Instagram, as well as LinkedIn. Social media usage is almost a daily routine for most users. For instance, about 75 percent of Facebook users and about 60 percent of Instagram users access these platforms at least once daily (Pew Research Center). By creating more appealing ads that can get accessed through the various social media platforms, Colgate Company would be able to reach a significant number of the younger generation consumers, thereby giving it a competitive advantage in the industry shortly.

Key Consumer Benefit

Apart from cleaning an individual's breath, Colgate toothpaste also whitens an individual's teeth. The product gets made with a unique combination of ingredients that get attached to the teeth and gums (Zeng 5). These ingredients cannot be washed away even after eating or drinking hence giving 12-hour protection, which is useful in fighting cavities, reducing plaque, preventing gingivitis, controlling calculus buildup, as well as fighting bad breath. Also, Colgate toothpaste contains Fluoride ingredients which are capable of restoring a tooth's enamel provided that the tooth has not yet decayed.

In terms of pricing, Colgate Company offers extremely affordable toothpaste products to its consumers. The toothpaste is of different sizes and prices to suit the needs of different consumers in the market. The large-size toothpaste, which is of higher amounts, are mainly meant for individuals with larger families with better incomes. The small- size toothpaste is of lower prices and is purposely for individuals such as the younger generation consumers who still do not have sustainable profits (Plata et al., 7). Moreover, Colgate toothpaste comes in the form of different brands that are appealing to different classes of consumers with varying tastes and preferences.

The Single Sentence

Upon seeing or hearing the advertising, an individual would say to him/herself, "I would love to have a Colgate smile."

Reasons Why

First, Colgate toothpaste contains fluoride, which is useful for protection against cavities. Fluoride is also effective in reducing tartar and ensuring long-lasting fresh breath for users of Colgate toothpaste. Secondly, the prices of Colgate toothpaste are affordable for individuals with different levels of income. Moreover, the toothpaste comes in various sizes and brands such as Colgate Total, Colgate Sensitive, and Colgate 360, among others, which effectively suit the tastes as well as preferences of different consumers in the market (Zeng 7).

Colgate toothpaste contains sweetening ingredients such as Saccharin or Sorbitol, which gives the toothpaste its sweet flavor. The sweet taste makes the toothpaste more appealing for children's use. Consumers need to note that Colgate toothpaste, unlike other toothpaste, does not contain sugar and, therefore, does not have any decaying effects on teeth (Zeng 7). Also, Colgate toothpaste contains detergents such as sodium lauryl Sulphate, which generally leads to adequate foaming experienced as an individual brushes his or her teeth.

Mandatories

Every ad must have the tagline, "Colgate, for strong teeth and healthy gums naturally."

Works Cited

Jumanca, Daniela, et al. "The Effect of Hydroxyapatite from Various Toothpaste on Tooth Enamel." development 1. 2019. 2. https://www.revistadechimie.ro/pdf/61%20JUMANCA%207%2019.pdf

Mondol, Jubairur Rahman. "Distribution Channel Strategies at ACI Ltd: A Study on Colgate Toothpaste." 2018. http://dspace.uiu.ac.bd/bitstream/handle/52243/287/Revised_Report_jubairur_Latest.pdf?sequence=1

Plata, Rolando, et al. "Toothpaste Composition." U.S. Patent No. 9,468,592. 18 Oct. 2016. https://patentimages.storage.googleapis.com/62/5e/3a/a9f2c77cc3cef7/US9468592.pdf

Zeng, Yuyan, et al. "Methods of treating Gingivitis using high Salt Toothpaste." U.S. Patent Application No. 15/102,537. https://patentimages.storage.googleapis.com/5d/07/60/1302288216b7ee/US20170035663A1.pdf