GROUP - 6
COLGATE VS P&G
ANKITA PATEL - 2313012
JEFFRI J - 2313056
LAKSHEETH B- 2313077
MOHANRAM R - 2313096
PRIYA R - 2313114
MARKET SHARE
Oral care market comprised of:
• Toothbrushes
• Toothpaste
• Dental Floss
• Mouthwashes
• Freshners
• Denture Care
• Market size of Oral care is $37.7 billion as of 2023 and
expected to grow at 6.7% CAGR from 2024-2030.
Market Share of Whitestrips and simply white
90
80
70
60
50
40
30
20
10
0
Jul-02 Oct-02 Nov-02 Jan-03
Whitestrips Linear (Whitestrips) Simply white
Colgate Palmolive Colgate Palmolive P&G
Particulars Amount in Rs Particulars Amount in Rs Particulars Amount in Rs
Sales ₹9,294.30 Sales ₹24,784.80 Sales ₹40,238.00
Less: Variable Costs ₹7,281.20 Less: Variable Costs ₹7,281.20 Less: Variable Costs ₹33,560.00
Cost of sales ₹4,224.20 Cost of sales ₹4,224.20 Cost of sales ₹20,989.00
Selling, general and Selling, general and marketing, research and
aministrative expenses ₹3,034.00 aministrative expenses ₹3,034.00 aministrative expenses ₹12,571.00
Other expenses ₹23.00 Other expenses ₹23.00
Contribution ₹2,013.10 Contribution ₹17,503.60 Contribution ₹6,678.00
Less: Fixed Costs ₹724.80 Less: Fixed Costs ₹724.80 Less: Fixed Costs ₹2,326.00
Interest ₹142.80 Interest ₹142.80 Interest ₹295.00
Income tax ₹582.00 Income tax ₹582.00 Income tax ₹2,031.00
Net income/(loss) ₹1,288.30 Net income/(loss) ₹16,778.80 Net income/(loss) ₹4,352.00
Units sold 619.62 Units sold 619.62 Units sold 1,005.95
priced at $ 15 ₹9,294.30 If priced at $ 40 ₹24,784.80
Contribution Margin Contribution Margin
ratio 21.66% ratio 70.62% Contribution Margin ratio 16.60%
ANALYZE THE OPTIONS
AVAILABLE FOR P&G
• P&G needs to communicate the unique benefits of Whitestrips and counter any misleading claims made by Colgate. This
could be a defensive move to protect P&G's market share and brand image.
• Increasing focus on Ads can create brand awareness of P&G over simply white. This is to strengthen the P&G’s position in
the market.
• A comparative advertisement campaign can highlight the superiority over Simply white, which is an aggressive strategy to
directly challenge colgate.
• Lowering the price can attract price-sensitive customer, to create a better perception. This is a tactical move to maintain
market share.
• Coupons can encourage trials and repeat purchase, which is a short-term promotional strategy to boost sales.
• Introducing new products addressing customer needs, which diversifies P&G’s Portfolio, and capture different segments of
market.
SUGGESTIONS TO COUNTER
COLGATE’S RECENT ADVANCE.
• File complaint National Advertising Division (NAD).
• Increase the media weights for P&G’s current AD campaign.
• Comparitive advertising.
• Drop in Price.
• Increased in coupons.
• Making product more convinient.
• P&G could attack on the colgate’s product quality as it met the quality standards of customer.
