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Howtopersuadeconsumerstobuytoothpastetheyhadneverheardof?
Consumersreallyneed?
Peoplewhohadneverheardoftoothpastehadtobetoldthattheyneededit?
Howtochange?
Didmarketingstrategieschangedduringthe20thcentury?
!
Howtoadvertise?
Advertisedandmarketedinthetypicalmannerofotherconsumergoods?
Late19thcenturyadvertisedlargelyontechnicalorphysicalqualitiessoldthroughsmallretailoutletdistributedbywholesalersemphasizethesocialorculturebenefitsfocusonthelifestylesandaspirationsthegrowthoflargedepartmentstoresandmail-ordercompaniesEarlydecadesof20thcentury!
PostwaryearsTheChangeofConsumerproductMarketingslogan:
goodteeth-goodhealthendorsementfromaprofessorsenthygieniststoclassroomsHealthcareIn1910sColgateDentalCreamToothpasteappealforconsumersRomanticrejectionAvoidsocialexclusionFreshbreathSocialbenefitsBy1920sListerineDentalHealthandDentalKnowledgeintheLate19thandEarly20thCenturiesChangesofpeoplesregulardietinthesecondhalfofthe19thcenturyhaveacceleratedtheriseofdentalcaries:
RiseofsugarconsumptionRiseofsugarconsumptionNewtechinflourprocessingNewtechinflourprocessingPricefellPreservatives:
treacle,jam,chocolateInUK,rosefrom20c(1840s)to110pounds/pc(1936)InUS,rosefrom38to100pounds/pcbythemiddleof20thcenturySilkgauzeandrollermillingSofterfoodstuffsNosufficientsalivasecretionSalivacontainsalkalinepropertiesandisthenaturaldeterrenttoplaquebuilding-upDentalHealthandDentalKnowledgeintheLate19thandEarly20thCenturiesAfterdiscussion,thecauseofdentalcariesthatdietandlifestyleratherthanhereditaryfactorsplayedamoreimportantrolewasconfirmedbyaseriesofexperiments.1930sFluorideprotectteethagainstdecaydirectlinkbetweenfoodparticlesandtoothdecay1890sRelationshipbetweencoarsefoodandsalivasecretionearly20thcenturyBytheearly20thcentury,toothdecayhadbecomeaseriouspublichealthissue.Toothpasteproductsaroundtheturnofthe20thcenturycanonlycontributetodentalhygienebyencouragingthepracticeofbrushing.TheTheEEmergenceofaMassMarketforToothpasteinmergenceofaMassMarketforToothpasteintheUnitedStatesandtheUnitedKingdomtheUnitedStatesandtheUnitedKingdomThreemaincharacteristicsofconsumerproductsindustrybyAlfredChandlerPackaginginnovationsHeavyadvertisingSmallamountofcapitalinvestmentPackaginginnovationsThecollapsibletintubeDevelopedinthe1840s,firstusedin1890sLowercostandhygienicHeavyadvertisingToothpastewasoneofthemostheavilyadvertisedconsumerproductsintheearlytwentiethcentury.Smallamountofcapitalinvestmentfirstmovers”Entrybarriers:
highadvertisingcostratherthanthecapitalofinvestmentinmachineryExample:
ColgateColgatedidmorethananyothercompanytopromotetoothpasteasamass-marketproduct:
massdistributionlowpricingheavyadvertisingbecameamarketleaderintheUnitedStatesandtheUnitedKingdom.otherfirmsinterestsinthismarketUnileverP&
GCrestToothpasteSpecialkindofPersonalCareproductItsconsumptioncloselytiedtoincomelevelsButtherateofgrowthwasmuchslowerToothpasteConsumptionintheUSandEuropeUnileverReport(1987)inter-countryvariationsingrossnationalproduct,GNP,explainmorethan80%ofinter-countrydifferencesintoothpasteconsumptionToothpasteConsumptionintheUSandEuropeConcentratedToothpasteConsumptionMainlyintheworldsmostprosperouseconomiesincreasedslowlycomparedtothepersonalcaremarketToothpasteConsumptionintheUSandEuropeIndustryStructureDominatedbypreciselythesameoligopolythatoperatedinsoapandhouseholddetergentsBecauseofthelowmarketgrowth,companiesattheforefrontoftheboomingbeautyindustryhadlittleinterestintoothpaste,suchasLOreal&
AvonUnileverandP&
Gmanagedtobecomeveryimportantplayersinthepersonalcaremarketafterthe1980smaincompetitorswerefirmsspecializinginconsumerchemicalsorhealthcareremedies,suchasBeecham,Blendax,HenkelIndustryStructureintheUSandEuropeInnovation&
TransformationoftheToothpasteMarketUntil1950sCosmeticPerfectionUnilever-PonderedthepotentialoftherapeutictoothpasteP&
G-Committedresourcestodevelopingone(UniversityofIndiana)1956CrestbyP&
G-dentalcariesLongawayfrommarketleader-skepticalofadvertisingclaimsInnovation&
Transformation1960,thefirstbrandoftoothpastetoreceiveanendorsementfromADA(ADA-AmericanDentalAssociation)CategoryB1964,CategoryAWithintwoyears,marketleaderwith30%marketshare1969,Colgateobtainasimilarendorsement14%laggedInUSAFrom1960BreakthroughofCrestFrom1960Rapidgrowthoftherapeutic-dentalcariesInnova