Colgate-Palmolive Case Study: Business Statistics
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Colgate-Palmolive Case Study: Business Statistics

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Questions and Answers

What percentage of U.S. households purchased Total at least twice in the first 10 months of its release?

4.03%

Is age category independent of willingness to try new products?

No

What is the probability that a randomly selected U.S. consumer is either in the 45–64 age category or purchased Total during the initial 10-month period?

43.8%

Study Notes

Colgate-Palmolive's Marketing Strategy for Colgate Total

  • In the mid-1990s, Colgate-Palmolive developed a new toothpaste, Colgate Total, with an antibacterial ingredient successfully sold overseas.
  • However, the term "antibacterial" was not allowed by FDA rules for such products in the US market.
  • Market researchers found that US consumers were overwhelmed by the differences between various toothpaste brands and sought simplicity in their shopping experiences.
  • In response, Colgate-Palmolive named the product "Total" in the US, implying it was the complete package of benefits.
  • Young & Rubicam developed several commercials highlighting Total's benefits, testing them with focus groups.
  • One commercial showcasing Total's long-lasting benefits was particularly successful.
  • Colgate-Palmolive received FDA approval for Total in 1997, five years after applying for it.

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Description

Test your knowledge of business statistics with this case study on Colgate-Palmolive's marketing strategy for their toothpaste, Colgate Total. Explore the statistical methods used and their impact on the U.S. market.

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