Brighter Smiles For The Masses - Colgate vs. P&G
Brighter Smiles For The Masses - Colgate vs. P&G
Brighter Smiles For The Masses - Colgate vs. P&G
P&G
PGP-BL01 | Section B | Group 04
Q1: What is the goal of Mr Ayman Ismail (PnG, GM for Global Oral Care; PnL) and What is the goal of Mr
Mcbride (President Colgate)?
Ismail is responsible for profit and loss accounting of the Oral Care business of PnG. With loss in White Strip’s
market share from 80% to 37%, his goal is to maintain or improve the profitability of White Strip and regain the
lost market share by counter acting Colgate’s launch of Simply White.
Mcbride’s goal is to maintain the sales momentum of Simply White and to anticipate the counter moves of his
rival and respond with the befitting measures and be the leader of the at-home-tooth-whitening market.
Q2: What should be the response of Mr Ayman Ismail? What would be the reaction of Mcbride to the same?
Comparative advertising campaign against Simply White complimented with a drop in price of White Strips.
Reasoning: Contribution Margin of White Strips (79%) is higher than Simply White (45%). So they can afford to
reduce the price. To compensate the loss of profit by reducing the price, launch strong comparative advertising
campaign to establish White strip makes teeth 5 times more white, and can remain the white for longer amount
of time. This can increase the sales (revenue) & regain the market share from Simply White.
Increase Marketing Budgets and strengthen their message and do not engage in price war by maintaining their
original price.
Reasoning: They are already low cost leaders in this category and have higher market share. So they will not
reduce the prices any further. Mcbride should respond to the comparative advertising by strengthening their
communication and allocating more budget to their marketing campaign.
The above conclusion was formulated using the framework of competitive analysis.
Competitor Analysis:
Low