Case Study
Face-to-Face Consumer Interviews For Havering Council
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Colgate made headlines last month with Smile for Good, its new toothpaste in what it claims was the first-ever recyclable tube. Made from high-density polyethylene, a widely recycled plastic, it followed the brand’s first bamboo toothbrush with plastic-free packaging (unveiled last autumn).
But sustainable innovation isn’t the only thing Colgate has ramped up. It has also increased its number of promotional deals in grocery year on year – with average savings deepening too.
Across the main supermarkets, the oral care giant has upped the number of its offers from 84 to 106 – a 26.2% increase [Promo Dynamic Brands 4 w/e 26 January 2020]. Meanwhile, its average saving has grown from 39.3% to 40.8% – one of only four rises in the top 10 of promoting brands.
The savings on Colgate SKUs “are very much in line with the oral care subcategory, which offers the best savings of the top 15 subcategories, although down very slightly year on year from 39.3% to 38.9%” says Assosia director Kay Staniland.
To provide its deeper savings, Colgate has dropped multibuy mechanics in favour of single price point. This has led to a 35.8% rise in half-price offers, while save deals are up 2.1%.
The reasons for Colgate’s increases in offers and savings “are unclear” Staniland says, but “the high level of competition within this market will be playing a strong role”.
The brand offers the lowest starting price of the top five oral care brands, she adds. “Coupled with its high savings, this makes it a very attractive purchase option for consumers, and therefore will help to drive sales.”
However, she warns that Brits should expect to pay more soon for the UK’s bestselling toothpaste brand (worth around £194m in grocery). The “small decrease” in overall savings across oral care means Colgate shoppers are “likely to see a slight savings reduction over the coming months to bring Colgate’s level of savings further in line with the oral care market”.
Published in The Grocer, 6th February 2020