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Sec D - Equity Measurement
Sec D - Equity Measurement
Sec D - Equity Measurement
COLGATE
Measuring Brand Loyalty (Colombo Morrison Model)
Measuring Brand Elasticity
Based of the survey responses, the data captured is mentioned above. With the help of this data we tabulated the Colombo Dabur Red
Colgate MaxFresh
43.8%
21.9%
Morrison Model as shown. Colgate MaxFresh
50%
Brand Loyalty: Colgate MaxFresh has the highest brand loyalty (28.125%), followed by Oral B (15.625%), Dabur Red
(9.375%), and Sensodyne (3.125%). This means that Colgate MaxFresh customers are more likely to repurchase and less
Oral B
likely to switch. 25% Oral B
21.9%
Focus Ratio: The focus ratio measures how much customers prefer a particular brand over other brands. Colgate Market Share Share of Preference
MaxFresh has the highest focus ratio (56.25%), followed by Oral B (62.50%), Dabur Red (50.00%), and Sensodyne
(50.00%). Based on the results of the Colombo Morrison Model, Colgate MaxFresh
Gravity Ratio: The gravity ratio measures how strongly customers are attracted to a particular brand. Colgate MaxFresh has the highest overall brand equity among the four brands listed. This
has the highest gravity ratio (64.29%), followed by Oral B (71.43%), Dabur Red (42.86%), and Sensodyne (25.00%). is due to its high brand loyalty, focus ratio, and gravity ratio.
BRAND ELASTICITY ANALYSIS
Based on the survey responses, above mentioned table shows Category elasticity refers to the receptiveness of a
the preference score for various products that the brand can specific product category to new entrants and
introduced. additional products. It indicates:
OBSERVATION & INSIGHTS
Colombo - Morrison Model is a method of categorizing customers Colgate has a high brand elasticity ratio of 1.625, which means
as either hard-core loyal (HCL) or potential switchers (PS). As a that it can successfully introduce new products in different
result, following any given purchase, a consumer will either be categories. This is because Colgate has a strong brand image and
sufficiently satisfied that he will evaluate no other brands and will loyal customer base. For example, Colgate has successfully
automatically repurchase the last brand purchased (HCL), or he diversified into toothpaste, toothbrushes, mouthwash, and floss.
will consider alternatives and will have a chance of purchasing
each (PS). Dabur Red has a moderate brand elasticity ratio of 1.438, which
means that it can also introduce new products in different
The combination of a high focus ratio and a high gravity ratio categories, but with less success than Colgate.
indicates that Colgate has a very strong brand loyalty. This is
because Colgate is a popular choice for toothpaste consumers and Chewing gum and Mouth Freshener have high category elasticity
has a strong pull on consumers. The Colombo Morrison model ratios of 1.578 and 1.625, respectively, which means that these
shows that Colgate has a very strong brand loyalty. This can due to categories are receptive to new entrants and additional products.
the fact that Colgate is a popular choice for toothpaste consumers Both brands can benefit from the high category elasticity of mouth
and has a strong pull on consumers. fresheners. This presents an immediate opportunity for both
companies to introduce new products and expand their market
The overall interpretation of the data is that Colgate is a very share within this category.
strong brand with high levels of brand loyalty. Customers are
strongly attracted to the Colgate brand and believe that it meets
their needs.
FIN.