Wobbly answer to oligopoly

Virtually all manual toothbrushes sold in the UK are made by Oral B (Procter & Gamble), Colgate (Colgate-Palmolive) or Listerene Reach (Johnson & Johnson). This is a powerful oligopoly.

The manufacturers distribute toothbrushes primarily through large powerful retailers, such as supermarkets and Boots. It is difficult for new entrants to persuade these retailers to stock their product. What is more, with large advertising and marketing budgets, existing toothbrush manufacturers make it difficult for new brands to attract customers.

But one company has successfully entered the children’s section of the market when Boots agreed to stock its product. The Rockabilly Kids toothbrush has a feature likely to appeal to both children and their parents. It wobbles! With a weight in the bottom, the brush rights itself, with a wobble, when dropped or simply placed on the basin or shelf.

This clearly appeals to small kids. It also appeals to their parents who can do away with unhygienic toothbrush holders. What is more, the self-righting wobbly toothbrush, by making the whole process of teeth cleaning fun for young kids, can help them gain good habits of oral hygiene.

So just how did the manufacturer overcome the barriers to entry into this well-established oligopoly? The following article examines how.

Can ‘wobbly’ kids toothbrushes shake the Oral B/Colgate oligopoly? The Telegraph, Rebecca Burn-Callander (10/1/15)

Questions

  1. What barriers to entry exist in the manual toothbrush market?
  2. How did Hamish Khayat overcome these barriers?
  3. Why did he decide against a toothbrush subscription service?
  4. How would you decide whether £6.99 is the right price?
  5. Is it a good idea for him to diversify into electric kids toothbrushes?
  6. How are the big toothbrush manufacturers likely to respond to the expansion of Rockabilly Kids?