Colgate Product life cycle and Bcg Matrix
- 1. Product Life Cycle & BCG Matrix By, Praveen Choudhary.
- 2. History In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son. In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
- 3. His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company. In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name. Today Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India.
- 4. COLGATE ORAL CARE PROFESSIONAL ORALCARE HOME CARE Products
- 5. Oral Care 1. Tooth paste 2. Tooth brush 3. Tooth powder 4. Whitening products 5. Kid’s products
- 6. Products
- 7. Product Life Cycle Sales Introduction Growth Maturity Decline Time
- 8. Description on PLC Curve INTRODUCTION: Colgate has introduced first product as Colgate’s Ribbon Dental Cream in the year 1896. Years later this dental cream was disappeared by replacing other formulas in introduction of new creams in Colgate. GROWTH: In 1997 Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems and quickly becomes the market leader.
- 9. MATURITY: The maturity stage is divided into three stages : a) In the beginning sales increases but at declining rate. b) In second stage sales rate remain stable. c) In third stage sales begin to decline DECLINE: Today Colgate’s Toothpowder is not much popular. People have stopped using toothpowders and shifted themselves by dental creams and mouthwash.
- 10. BCG Matrix The BCG matrix, invented by the Boston Consulting Group, is a tool that allows to classify and evaluate the products and services of a business. It is a decision making tool in order to balance the activities of a company among those which make profits, those who ensure growth, those which constitute the future of the firm or those who are its heritage. With this tool one is able to define the development policy of the company. The matrix will position the products/services in two ways: 1. The rate of growth of the market ; 2. The market share of a product offered facing the competitors.
- 11. BCG MATRIX FOR COLGATE
- 12. Cash Cows These are products or services which are mature and generate profits and cash, but need to be replaced because the future growth will be lower. Dogs These products are positioned in a declining market and highly competitive. The company wants to get rid of soon as they become to expensive to maintain. The company must minimize the « dogs ».
- 13. Question marks They do not generate profits unless the company decides to invest resources to maintain and even increase the market share (become potential stars). They have a high demand for liquidity and the company must ask the question: Invest or give up the product? Stars These are promising products for the company, they even can be considered as leaders of the industry. The strategy is to boost these products by appropriate investments to monitor the growth and maintain a position of strength. These products require a large amount of cash but also contribute to the company's profitability.
- 14. Life is short. Smile while you still have teeth. ~Mallory Hopkins
- 15. If a patient cannot clean his teeth, no dentist can clean them for him. ~Martin H. Fischer