Colgate Palmolive Toothbrush Case Study

1303 Words Jan 8th, 2011 6 Pages
Problem Statement The aim of this report is to analyze the two different launch strategies (as a niche or a mainstream product) for Colgate Palmolive 's new toothbrush, Precision, and choose the one that is the most suitable in the face of the market competition and consumer needs. The report also aims to make recommendations for the positioning, branding, communication and promotion of the product under the chosen strategy. Situation Analysis Company: In 1991, CP held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP 's oral care products increased 12% to $1.3 billion, accounting for 22% of CP 's total sales. …show more content…
The Precision will also be promoted to dentist offices. Free toothpaste will be included with the purchase of a Precision brush. Alternatives & Recommendation CP 's marketing department has two alternatives of positioning "Precision". They can either market it as a premium toothbrush to the mainstream market or as a "super-premium" toothbrush to a niche market. Both alternatives have their strengths and weaknesses as shown in Exhibit 1. From the analysis of this case and by evaluating different sales and costs scenarios (cannibalization factors used in calculations) as shown in Exhibit 2, the recommendation is that CP proceeds with the launching of its "Precision Toothbrush" as a Niche product. The Niche segment proves to have more advantages and has lower risks. Also profits seem to be higher after a "cannibalization cost" is put into consideration. This is due to the fact that through the "Main Stream" market, Precision has a large percentage of cannibalization in the Colgate Plus and Colgate

Classic products. Implementation Plan Precision will be promoted as the most effective toothbrush in fighting plaque build up. It will be targeted towards those conscious of dental health and inclined to reduce possibility of gum diseases. Advertisements will help introduce the product to the consumers and build the brand image whereas promotions will encourage them to use the product and learn about its superior characteristics. Dentists and other oral health professionals

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