Tom's of Maine case study: the growing appeal of natural personal care products to big business

Tom's of Maine case study: the growing appeal of natural personal care products to big business

Introduction

This report on Tom's of Maine forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the company is striving to retain its core ethical business practices under the leadership of a global conglomerate.

Scope

Highlights

Reasons to Purchase

Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Colgate Palmolive exploits the growing consumer interest in natural personal care with the purchase of Tom's of Maine 2
Strong growth opportunities, driven by communal natural, ethical and healthy interests, attracts Colgate-Palmolive to Tom's of Maine 2
The natural personal care category offers high profit margins, due to consumers being willing to pay more for these types of goods 2
Tom's of Maine is a well established producer of natural personal care products, whose environmental and ethical concerns govern its way of business 4
The company is well known for its kid-friendly toothpaste, but it offers a variety of other personal care products 4
Tom's of Maine has received criticism for the sell-off, but it could offer strong opportunities for growth 6
The company is criticized for selling out to big business, amid concerns that its set of values will diminish 6
However, becoming a division of Colgate Palmolive offers larger distribution networks and marketing budgets 6
The company is given the opportunity to continue to work independently, with the founders remaining at the helm 6
Tom's of Maine shows growth potential by adding a slight increase to Colgate's North American 2006 sales 7
APPENDIX 8
Case study series 8
Methodology 8
Secondary sources 8
Further reading 8
Ask the analyst 8
List of Tables
Table 1: Motivators for the use of natural personal care products (% survey respondents citing) 3
Table 2: Tom's of Maine's products encompass a range of personal care categories 5
List of Figures
Figure 1: Natural seekers in the US are far more concerned about sensitive skin than their average populations 3