Context:
P&G launched its first tooth whitening product,” Crest Whitestrips” in 2000. It created
a whole new category in oral care holding more than 80% of the tooth whitening
market share in the US
In 2002 Colgate came with its tooth whitening product named” simply white” priced at
$15 which is way cheaper than P&G’s price ($40).
Even if the expected quality of the product was low within one-month Colgate
captured 50% of the market share
Problem statement:
Colgate launched Simply white as a competitor of P&G ‘s Crest Whitestrips and the
product under examination was found to be an inferior quality product, but still,
Simply white priced at $15 was able to take 50% market share in one month resulting
in P&G’s share depreciation from 80% market share to 37% and P&G found in
concept test that consumer prefers “Simply white” over “crest Whitestrips”. The
dilemma in front of P&G is What action should they take to get back their market
share
Fact:
In 2002 P&G was the world’s largest consumer products company
In Sep 2000 P&G launched Whitestrips by spending app $130 million
By may they produced 10m in sales
In 2002 Colgate launched Simply white at $15 as a stronger product in the market
Product was a hit due to (i) seemed effective and (ii) Easy to use
Colgate launched Simply white night in April 2003 adding more pressure on P&G
Probable Solution:
1. P&G can reach out to the NAD (National advertising division) and file a complaint
against Colgate for misleading advertisement
2. P&G can develop more advertising campaigns focusing more on value added to the
product (Colgate was an inferior quality product)
3. P&G can give attractive offers to attract more customers
4. They can even bring a change in their advertisements by bringing a public face and
thereby attracting people’s attention
5. They should increase emphasis in advertisements on the longevity of the whitening
effect of their product
