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What Are The Challenges Faced by P&G With The Launch of Simply White?

P&G faced several challenges with the launch of Colgate's Simply White product. First, Simply White gained significant market share, reducing P&G's from 85% to 37%. Simply White was also more convenient for consumers to use than P&G's Whitestrips. Additionally, the FTC alleged P&G made false claims about Whitestrips being 10 times more effective than competitors, which hurt their credibility. Intellectual property like patents on Whitestrip's delivery system previously protected P&G but new competitive products challenged their position.

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112 views2 pages

What Are The Challenges Faced by P&G With The Launch of Simply White?

P&G faced several challenges with the launch of Colgate's Simply White product. First, Simply White gained significant market share, reducing P&G's from 85% to 37%. Simply White was also more convenient for consumers to use than P&G's Whitestrips. Additionally, the FTC alleged P&G made false claims about Whitestrips being 10 times more effective than competitors, which hurt their credibility. Intellectual property like patents on Whitestrip's delivery system previously protected P&G but new competitive products challenged their position.

Uploaded by

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

CHALLENGES P&G-1) False claim for 10 times effective results pertaining to the Whitestrip product.

2) Launch of the Simply white by their competitor "Colgate"

3) Loss of their overall market share

OPPORTUNITY P&G

1) Huge investment in the R&D of their products and marketing of their products.

2) Several patents applied for the products

3) One of the biggest player in the oral care sector

CHALLENGES COLGATE

1)

3. How does intellectual property issue affect strategic decisions and explain its impact on P&G.

Ans: The intellectual property issue affect the strategic decisions in the following ways:
Impact the market competition: P&G applied for patents in 1997 , for "a delivery system for a oral care
substance", which covered the Whitestrip. Now, since the "Whitestrip" was protected by several patents, the
company had a clear vision of how to further proceed with the launch and various other strategies surrounding
their new product. Also, due to this patent, it became increasingly difficult for the other competitors to copy their
product. Hence, it reduced the competition for the company in the market and hence allowed the product to
dominate the oral care products market for quite some time.

The company further spent $130 million on R&D.

4. What are issues related to advertising? what would you recommend?

Ans: The issues related to advertising are as follows:

1. What are the challenges faced by P&G with the launch of Simply white?

The challenges faced by P&G with the launch of Simply White are as described as follows:
1. A competitive product launched by their biggest rival in the oral care sector: With the launch of Simply
Wash by colgate, the market share of the P&G Crest Whitestrip lost almost 50% of their market
shares. With colgate palmolive introducing Simply White in A 2002, its market share went all the way
up to 49%,whereas, P&G came thrashing from 85%(July 2002) to a 37%(October 2002).

2. More convenience to consumers in terms of its usage: The Simply White was easy to use compared to
the Whitewash. The consumers had to simply swab the simply white on their teeth (very much similar to the
toothpaste gel, which the consumers were accustomed of using). On the other hand, the White Strips made the
customers to apply the strips on their teeth for a longer time duration (~ 30 minutes) for effective results.
3. False Advertising: The company claimed that the Whitestrips were 10 times as effective as the leading
product in this category, Colgate Tartar Control Whitening. However, this seems to be a false advertisement,
due to the fact that the American Dental Association had awarded its seal of Acceptance to best whtening
toothpaste, implying that they whitened teeth upto 2 shade as measured by Vita shades guide. For, P&G to
support thier claim, they need to whiten the teeth by 20 shades, but the typical shades used by the dental
industry was upto 16 shades, which proved the Whitestips claim to be false.

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