The No. 1 toothpaste company on the Russian market, Colgate, has existed for more than two centuries. Now its net income for the quarter exceeds billions of dollars (Colgate-Palmolive, n.d.). The appearance of toothpaste on the market in history contributed to the first step toward the company’s global success. The product was a dental cream in small glass jars; it was very convenient to use, and the paste did not damage the tooth enamel, unlike the powder used at that time containing porcelain, brick dust, and clay. In 1896, Colgate again amazed its customers by offering them a new toothpaste package of its production (Colgate-Palmolive, n.d.). It was the current tube, which turned out to be many times more convenient than glass jars. Convenience is the number one reason for Colgate’s success. The second reason lies in ingenious marketing and production secrets. For example, increasing the neck of the tube helped increase sales, as customers squeezed out more paste at a time.
Acquisitions and timely adaptation to the most critical technologies in the market are the third reason for the company’s long-term success. In 1928, Colgate merged with the Palmolive soap maker (Colgate-Palmolive, n.d.). As a result of this transaction, the company, which changed its name to Colgate-Palmolive-Peet Company, became one of the largest in the industry. This merger helped the company expand into the international market. After the merger, Colgate was left with only one competitor – Crest, the first company to develop fluoride toothpaste. When research showed that fluoride was an anti-plaque barrier, Colgate began adding it to its toothpaste, resulting in a new product called Colgate Total (Colgate-Palmolive, n.d.). The paste solved three essential tasks: it fought against caries, saved teeth from the appearance of cavities, and prevented plaque formation on them. As a result, despite various tricks, customer care is another reason for the company’s success.
Reference
Colgate-Palmolive. (n.d.) Our History. Web.