CASE WRITE-UP

Name: Swapnil Verma

Section: B
Case title: Brighter smile for the masses- Colgate vs. P&G

Roll No: 155137

Date: 11/16/2016

1. What are the key aspects of P&Gs Whitestrips launch strategy? How would this
translate to value appropriation by P&G?
Key aspects of the P&G launch strategy were:- Priced at $40, Whitestrips proved to be an effective alternative for tooth whitening services
compared to conventional methods of power bleaching and dentist made trays costing around
$1000 and $450 respectively.
- Advertisement focused on comparison with a product, which was familiar to the consumer,
so that the difference in features can be emphasized.
- P&G marketed Whitestrips with an initial advertisement spending of $75 million and sold the
product in the beginning through dentists offices and internet.
Whitestrips led to the formation of a new product category within oral care segment. P&G
generated business of $200 million by selling 12 million units of Whitestrips, within six months
from its launch. It proved to the most successful product launch of P&G in the last two decades.
Since the product was patent protected, competitors like Colgate and Unilever found it difficult
to come up with a rival product for almost two years, thereby helping P&G to control 80% of the
market share till August 2002.
2. How did P&Gs launch of Whitestrips impact Colgates oral care business and Market
position? Why?
Colgate, a $9.3 billion dollar company had one third of its sales coming from the oral care
segment. It dominated the US oral care market with 32.5% market share followed by P&G with a
market share of 27.3% till March 2001. With the launch of Whitestrips, P&G developed a new
category of at home tooth whitening products within the oral care segment, which it dominated
till August 2002. Colgate could not come up with a rival product until August 2002, which
ultimately affected the market share of Colgate and eventually the business they could have
generated from whitening tooth product category of the oral care segment. Since Whitestrips
targeted the Whitening toothpaste of Colgate, at the time of its launch, it would certainly have
impacted the sales of Colgate in that product category.
3. How did Colgates response to P&Gs launch impact P&G? Why?
Launch of Simply white turned the tables around for Colgate by overtaking P&G Whitestrips in
terms of market share within a span of three months. Whitestrips market share dropped from
80% in July 2002 to 37% in October 2002. Colgate advertised simply white as having the same
effectiveness in bleaching teeth as whitestrips and further emphasized on low price and the

comfort and ease of using simply white. Consumer started preferring simply white over
whitestrips because of the major price difference and also because simply white required a
simple application of gel on the teeth using a toothbrush, which the consumers have been used to
of doing.
Since the perception of simple white and whitestrips, in the effectiveness of whitening teeth,
appeared same to the consumers, whitestrips became the second choice and eventually went
down in terms of market share.
4. Could P&G have adopted a different strategy for Whitestrips at the time of original
launch? If so, what launch strategy, and how would that have impacted P&G and
Colgate?
Whitestrips could have adopted a different strategy for Whitestrips by:- Educating the customer about the level of whiteness they would be achieving by using their
product rather than comparing it with the whitening toothpastes present in the market. This
would have helped the customer in comparing the whiteness achieved by using whitestrips
and simple white
- Increasing channel of sales after the launch, rather than limiting it to only dentist shops and
internet portals. This would have led to increased availability of the product along with the
increase in product acceptance
- Comparing whitestrips with conventional methods of teeth whitening rather than with other
whitening toothpastes present in the market.
- Developing different variants of the product with price differential, thereby providing the
consumer a choice of selecting a new variant and therefore increasing their penetration.
If P&G could have educated the customer about the level of whiteness being achieved by using
whitestrips and the purpose of it being applied for 30 minutes, it could have helped P&G in
differentiating its product and justifying the price being charged for the product. Price reduction
and bringing out new variants would also have helped the company in attracting the customers
and retaining its market share.
-