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Lite. If Colgate made themselves to mean over-thecounter medicine, nobody would want to buy Colgate toothpaste, contends Mr. Ries. Mr. Chajet agrees. Colgate could save tens of millions of dollars by not having to introduce a new brand name for its new products, he says. But in doing so, it might also kill the goose that laid the golden egg. Other marketing consultants believe that Colgate may be able to break into the market but that it will take a lot of time and money. They just dont bring a lot to the OTC party, one consultant indicates. Although chairman Marks admits that Colgate will continue to try to build share in its traditional cleanser and detergent markets, the company seems to consider personal care as a stronger area. But leveraging a name into new categories can be tricky, requiring patience from skeptical retailers and fickle consumers. It isnt so much a question of where you can put the brand name, says one marketing consultant. Its what products the consumer will let you put the brand name on. QUESTIONS
1. What core product is Colgate selling when it sells toothpaste or the other products in its new line? 2. How would you classify these new products? What implications does this classification have for marketing the new line? 3. What brand decisions has Colgate made? What kinds of product-line decisions? Are these decisions consistent? 4. If you were the marketing manager for the extended Colgate line, how would you package the new products? What risks do you see in these packaging decisions?
Source: Adapted from Joanne Lipman, Colgate Tests Putting Its Name on Overthe-Counter Drug Line, The Wall Street Journal, July 19, 1989. Used with permission. Also see Dan Koeppel, Now Playing in Peoria: Colgate Generics, Adweeks Marketing Week, September 18, 1989, p. 5.