Colgate's Genius Move: How a Small Change in Toothpaste Tube Size Brought Big Surges in Revenues—And What We Can Learn From It

In this fast-paced, hyper-competitive world, companies are always on the lookout for new and inventive ways to increase sales without deterring customers. Take Colgate, for example, one of the most iconic oral care brands in the world. In 2022, they made a very subtle but brilliant change to their product that largely impacted their revenues: increasing the diameter of their toothpaste tubes.

What appeared to be a minor change had powerful ripple effects, resulting in a noticeable boost in sales across not only the U.S. and Europe but also in high-growth countries like India.

The Human Side of the Big Idea Behind a Small Change: Bigger Tube, Bigger Revenues

Maybe you're thinking, how could a small packaging change like this one actually deliver a significant profit increase? By slightly increasing the tube diameter, Colgate allowed customers to squeeze out just a little bit more toothpaste with each use, all without their knowledge.

That simple change in design had customers using up their toothpaste quicker and buying more often. And here’s where it’s really brilliant: Colgate didn’t have to change the product formula, increase prices, or start a new marketing campaign. It simply lets consumer habits drive the higher usage.

Research shows that consumers typically use 10-15% more toothpaste with a wider opening, and this adds up over time. Customers end up buying toothpaste more frequently, but they’re largely unaware of this change, maintaining the same perception of product value.

How Colgate's Sales in India Zoomed

Though this strategy boosted revenues globally, it was particularly effective in India. In a country where Colgate enjoys over 50% market share in the toothpaste market, the company saw sales surge by nearly 7% in 2023—a significant feat in such a price-sensitive market.

India’s rapid market growth, coupled with frequent oral care purchases, made it the perfect place to implement this strategy. In a market where consumers are becoming more brand-conscious but remain sensitive to price increases, Colgate’s move allowed them to increase product usage without triggering resistance to price hikes.

Why It Worked: The Science Behind Consumer Behavior

Colgate owes much of this success to consumer psychology. Most people don’t carefully measure how much toothpaste they squeeze out each morning. The moment you widen the tube opening, people naturally use more without thinking twice. This taps into behavioral economics: when consumers are given more of something, they tend to use more of it.

Think of it like this: the slightly larger opening means every squeeze releases more toothpaste by default. It’s a small, almost unnoticed change, but it leads to higher consumption. And higher consumption means quicker product depletion, driving more sales for Colgate.

Colgate’s Actual Results: Revenue Growth

Globally, Colgate’s net sales increased by 6% in 2023, and a substantial portion of this growth came from its toothpaste category. In India alone, sales rose by 7%, thanks to increased product consumption. As consumers reached for a new tube sooner than expected, this strategy resulted in increased sales without raising prices.

These results are a clear testament to the power of subtle product tweaks. Not only did Colgate increase its bottom line, but it also avoided the risk of alienating customers through price hikes or unnecessary product changes.

What Marketers Can Learn from Colgate's Strategy

Colgate’s packaging tweak provides valuable lessons for companies across industries: sometimes, the simplest strategies are the most effective.

Key Takeaways:

• Leverage Consumer Behavior: Understand how your customers use your product and find ways to subtly influence consumption. A small change in packaging, design, or product delivery can lead to higher usage without altering perceived value.
• Small Changes, Big Results: Colgate’s approach shows that you don’t need to overhaul your product or launch a new line to increase sales. Even minor adjustments in product design can have a significant impact on consumer habits—and, ultimately, revenue.
• Stay Cost-Efficient: Unlike launching a new product, packaging tweaks like this are low-cost but high-reward. Colgate didn’t need new formulas or big marketing campaigns—just a small redesign that encouraged more frequent use.
• Adapt to Local Markets: The success of Colgate’s strategy in India proves the importance of tailoring approaches to specific markets. Packaging innovations can drive sales growth in price-sensitive regions without raising prices, keeping both customers and shareholders happy.

Final Thought: Why Colgate's Move is a Masterclass in Subtlety

In a time when companies are always looking to maximize profits, Colgate’s strategy shows that sometimes the simplest changes work best. By widening the diameter of their toothpaste tubes in 2022, Colgate achieved greater product usage, increased sales, and expanded market share—all without changing prices or the product itself.

For businesses, Colgate’s success is a reminder that the smallest changes can yield the biggest results. The next time you think about how to grow your business, don’t overlook the power of subtle design tweaks that tap into your customers’ everyday habits.