Colgate expands roster with two new products

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Colgate-Palmolive Co. will continue to build its oral-care brand this fall with two new products: a mouthwash and toothpaste combo and an extension of its toothpaste for sensitive teeth.

Colgate will launch 2in1 Toothpaste & Mouthwash in August and a whitening version of its Colgate Sensitive toothpaste. Both launches will be backed by advertising from Colgate's global agency, Y&R Advertising, New York.

Y&R will back 2in1 with $30 million in advertising breaking in November, as well as public relations efforts and a marketing campaign targeting dental professionals. Advertising will include TV, print, sampling and couponing starting in November.

Marketing materials presented to retailers position 2in1 as a one-stop product to fight both bad breath and cavities with the tagline "Toothpaste clean, mouthwash fresh . . . all in one step." A marketing tie-in with Colgate's Total toothpaste is in the plans.

Colgate also will launch a whitening extension of Colgate Sensitive toothpaste, which reached stores in February. The new whitening paste will hit stores with 2in1.


The launch of Total in December 1997 revitalized Colgate's oralcare sales and helped the company capture leadership in the U.S. market, where it had been No. 2 to Procter & Gamble Co.'s Crest, the leading brand in the $1.72 billion toothpaste segment, for the last three decades. According to ACNielsen Corp. figures compiled by J.P. Morgan & Co., Colgate held 29.7% of U.S. toothpaste sales for the 52 weeks ended April 15, followed by P&G with 27.5%.

Colgate plans to push growth this year through more new products, more marketing and a focus on its top brands, such as the Colgate oral-care line. Management has vowed to reduce costs and use the funds for additional advertising and sampling as part of a five-year plan (AA, May 15).

So far this year, Colgate's oral-care division introduced the Sensitive toothpaste and toothbrushes, the battery-operated Actibrush toothbrush and Sparkling White whitening toothpaste.

While addressing the company's annual shareholders meeting in May, Chairman-CEO Reuben Mark said Colgate will place particular interest on its global brands, especially its oral-care business. He noted the company's percentage of worldwide sales from new products increased to 35% in 1999 from 26% in 1994, and U.S. sales figures show the new-product share of the business has increased even more sharply, to 58% from 27%.

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