2. COMPANY BACKGROUND
Colgate Palmolive (CP) was a global leader in household and personal care
products in 1991.
CP’s five year plan for 1991 to 1995 emphasized new product launches and
entry into new geographic markets with improved efficiencies in
manufacturing and distribution and the continuing focus on core consumer
products.
Since 1985, gross margins had climbed from 39% to 45% while annual
volume growth had averaged 5%.
The company faced tough competition in international markets from Procter
and Gamble, Unilever, Nestle’s L’Oreal division, Henkel of Germany and Kao
of Japan.
In 1991, CP helfd 43% of the world toothpaste market and 16% of the
toothbrush market.
In 1991, CP held the number one position in the US retail toothbrush market
with a 23.3% volume share.
3. EVOLUTION OF US
TOOTHBRUSH MARKET
1. As early as 3000BC, ancient Egyptians used toothbrushes fashioned from twigs.
2. In the 20th century the first nylon bristle brush was launched by Dr. West by the
name Miracle Tuft Toothbrush.
3. In 1940s , Oral-B began selling a soft-bristle brush which was better for the gums.
4. In 1961 , Broxodent launched the first electric toothbrush.
