Company Introduction Colgate-Palmolive is one of the largest Fast-moving Consumer Goods (FMCG) producers in the world. The company markets its products in over 200 countries and territories which consist of four core global businesses: Oral Care, Personal Care, Home Care and Pet Nutrition. In 2011, the company has hit net sales of US$ 16. 7b in worldwide which consistently rose at 7. 5% to an all-time record level. (source: Colgate 2011 financial report) By focusing in Oral Care, the world’s largest toothpaste maker has always been the popular brand among the competitors. This year, 2012, The Company is ranked No. as the admired company in the soap and cosmetics industry by Fortune. (source: http://money. cnn. com/magazines/fortune/most-admired/2012/industries/47. html ) Apparently Colgate-Palmolive is always one of the global top brands. The brand name ever ranked No. 1 as Singapore consumer’s most favourite brands by Superbrands in 2009. (source: http://www. rankingthebrands. com/The-Brand-Rankings. aspx? rankingID=167&year=246 ) Interestingly, in India, the brand is rated No. 1 the most trusted brand in 2011 by Economic Times, after 4 years losing its place from the very top of chart. (source: http://economictimes. ndiatimes. com/topbrandlisting. cms ) Subsequently how is the company doing to sharpen the brand name in oral care market, but not only in India, as well as world-wide, especially the emerging markets? Nevertheless, the 200 over years old well-known brand is always seeking for opportunities to gain more market share, as well as the target audiences by excelling in areas where the Company does well. Therefore taking oral care beyond just cavities and expanding it with a product portfolio that now addresses a wide range of consumer oral health needs is one of the Company’s strategies.
Accented to Dennis A. Pitta and Lea Prevel Katsanis (1995) (source: http://www. niazmandieiran. com/pdffile/be. pdf ), with the appropriate Brand Extension strategies, it able to leverage the master brand, reduce financial risk meanwhile improving the consumers’ loyalty due to the core brand equity. Colgate Plax is one of the successful brand extension products in the oral care brand extension category. Initially the company acquired Pfizer’s Plax 1991 and tended to position the mouthwash to leverage both the toothpaste and toothbrush markets. Hence it has been