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Colgate Palmolive

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COLGATE PALMOLIVE PRECISION TOOTH BRUSH Synopsis :- The analysis of the two different launch strategies 1. Introduction and Company Background. Colgate Palmolive was the global leader in household and personal products, with sales of $6.06 billion and gross profit of $2.76 billion, as in 1991. The company was also the No. 1 in US retail tooth brush market with 23.3% of volume share. The company had 43% of the world’s tooth paste market and 16% of the world tooth brush market. In 1991 there was an increase. There was an increase of 12% in the worldwide sales of CP’s oral care products amounting to $1.3 billion which was 22% of CP’s total sale. The Colgate-Palmolive case involves the Precision toothbrush, which was entered into the …show more content…

In order to meet consumer demand CP could introduce the toothbrush as a niche, super-premium or amainstream, professional product. It could also introduce the product using standard naming conventions or introduce anew labeling system by calling it the “Precision by Colgate.” CP could leverage existing industry relationships and makean effort to form new ones in order to gain a competitive edge. At launch, CP could plan to offer competitive promotions,a popular offering that was slowly becoming standard practice in the oral care industry. The company could also increaseits advertising budget to include educating the public on the dangers of gum disease. Depending on how it chooses tointroduce the Precision toothbrush to the market, 1992 could serve as an important year for CP to establish itself as thedefinitive oral health care company. Situation Analysis Environmental Analysis In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products. It was also the leader inretail toothbrush sales in the United States. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. As therapeutic toothbrush sales rose it became apparent that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. As a result, the toothbrush industry

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