Colgate: The Precision Toothbrush Essay

1565 words - 6 pages


Colgate Palmolive's senior management decided to launch a new toothbrush priced in the Super Premium segment. Susan Steinberg, the product manager, has to determinate the best marketing mix to implement and which of the follow options are the best in order to position the product in the market: A) Under a mainstream B) Under a niche strategy. Each strategy has involves different prices and volumes of unit sold.


Customers: More and more customers look for toothbrushes that satisfy their needs. For example Baby boomer's generation, one of our main targets, look for products that help them to have healthy gums. Colgate research identified that 82% of the toothbrush sales were unplanned, as well the average of the consumer replaced their brushes occurred every 7.5 months. Consumers differed in the industry of their involvement in oral hygiene: 1) involved oral health consumers – therapeutic brushers (46%); 2) involved oral health consumers – cosmetic brushers (21%); 3) uninvolved oral health consumers (33%).
Competition: Competition in the Toothbrush market for Colgate Palmolive was tough. Competition by segments. Value segment: Level (7.2% by volume of total market shares in 1991), Pizar and Sunstar. Professional segment: Johnson & Johnson (19.2% by volume of total market shares in 1991). Super-premium segment: Oral-B (23.1% by volume of total market shares in 1991), Procter & Gamble and Smithkline Beecham (0.9 % by volume of total market shares in 1991). Oral B's brushes were positioned in the super premium segment. Where it had no strong competition for the moment since Johnson and Johnson, with its Reach brand focused only on the professional segment.
Company: CP – global leader in household and personal care. The company was profitable and shows annual volume growth. Their plan for 1991-1995 emphasized new product launches and entry into new geographic markets, improved efficiencies in manufacturing and distribution and focus on core consumer products (toothbrush is one of them).
Collaborators: In 1992 22% of all TB will be distributed by dentists. Because of their knowledge they can explain the main advantages of a technological breakthrough product such as the one we're proposing to launch. Food and Drug retailers still account for more than 40% of the product distribution and are interested in selling it since their margins are big. Also Colgate dominated the food stores (25.9 % vol) following by Johnson & Johnson (22.3% vol).
Context: The toothbrush market has been growing steady year by year at an average rate of almost 10%. But In 1992 they increased 21% in value due to the introduction of more than 45 new products and line extension. Therefore, the advertising campaigns and promotion activities increased considerably. Subsequent the consumers are more interested on oral health care and therefore buy more sophisticated health products like toothbrushes.

Scenario one:...

Find Another Essay On COLGATE: The Precision Toothbrush

Colgate-Palmolive Case Study

1234 words - 5 pages Precision toothbrush will be placed on the retail shelves between the Colgate Plus and Oral-B product lines. Retail advertising will consist of in-store displays to increased toothbrush sales. As a "super-premium" toothbrush, Precision would be carried primarily by food and drug stores. As a premium toothbrush, a larger proportion of sales would occur through mass merchandisers and club stores.D. PromotionA forceful advertising campaign that

Colgate Palmolive Essay

929 words - 4 pages Challenges. Retrieved from: Docshare, (2009). Colgate Palmolive Case Analysis of Precision Toothbrush. Retrieved from: Eeun77, (2008). Colgate-Palmolive Company: The Precision Toothbrush case (HBS). Retrieved from:

Colgate-Palmolive Company Is a Global Leader

879 words - 4 pages electronic toothbrushes and water picks are threatening to traditional oral care product’s market share. One of the factors causing buyers’ bargaining power to grow is when the switching costs for buyers are low. Even if Colgate-Palmolive were to state Precision as the most expensive toothbrush on the market, it is still a relatively inexpensive product, compared to many other daily purchases. Therefore, consumers can shift between brands without giving the decision much thought. To withstand this threat, Colgate-Palmolive can position their product as a superior toothbrush that buyers cannot afford to be without.

Cmpetitive advantage of Colgate Palmolive

1015 words - 4 pages WAC for Colgate-Palmolive "The Precision Toothbrush"IntroductionColgate-Palmolive (CP) is a global leader in household and personal care products, with over $6.06 billion in sales and a gross profit of $2.76 billion. CP's five-year plan emphasizes new product launches and entry into new geographic markets and a continuing focus on core consumer products. Although international sales remained CP's strong suit, accounting for 64% of sales and 67

colgate precision

921 words - 4 pages cannibalizationLets Precision emerge as a stand alone brandEmphasizing Colgate name on new precision toothbrush would cause additional cannibalization of existing colgate toothbrush.Recommendation: Precision by coalgateCommunicatingColgate-Palmolive could conduct the campaign to determine the audience to which the promotion will be directed.The emphasis should be placed on getting the customer's attention and quickly moving them through the interest

Strategic Marketing Paper on Colgate Palmolive Company

2013 words - 8 pages associated with multiple products through brand extensions. For instance, Colgate Palmolive Company first started manufacturing toothpaste, then toothbrushes, dental floss, and mouth rinse through brand extensions. The toothpaste grew brand extensions into liquid or gel toothpastes, kids' toothpastes. The toothbrush category also has new multiple extensions like the Classic, Plus, Precision, Diamond and wild heads. This type of multiple brand

The Rise of Battery-Powered Toothbrushes

6189 words - 25 pages The Rise of Battery-Powered Toothbrushes Executive Summary ================= The oral care category has been witnessing increasing sales over the past few years, especially in the battery-powered toothbrush segment. Between August 2001 and 2002, sales of power dental accessories in U.S. food, drug and mass outlets grew by 21.8% (Neff, 2002). There are many competitors in this industry including Colgate-Palmolive

Colgate-Palmolive Company is a truly global company doing business in over 200 countries over the world

2718 words - 11 pages awareness is 99% heading Darlie by 4% and Braun/Oral-B by 6%. Apart from oral chemical products, Colgate is also a well-known brand name for manual toothbrush segment; Colgate is in the 2nd place next to the market leader Braun/Oral-B in the toothbrush market holding 10% of global toothbrush market share.3.Market OverviewColgate identified that there is a big price gap between the manual toothbrush and the electrical rechargeable toothbrush in Hong


1446 words - 6 pages (smaller packs of toothpastes at affordable prices).Did the same as HLL.*Pepsodent - child-centric campaign* *Colgate Blue Gel- Fresh Energy Gel-youth centric campaign.What makes Colgate the market leader?32 percent - Rural Areas68 percent - Urban AreasRs 500-crore - Depends on RuralHLL has a presence mainly in the toothpaste and toothbrush markets, Colgate has a significant presence in toothpowders as well. Therefore, it has a larger exposure to the

Investigating the Effect ofTeeth Cleaning Agents on the Growth of Bacteria

1941 words - 8 pages Investigating the Effect of Different Teeth Cleaning Agents on the Growth of Bacteria On account of the price and variety of tooth cleaning agents available on the market, an investigation was conducted into the effect of different tooth cleaning agents containing different ingredients on the growth of teeth bacteria. The tooth cleaning agents tested were Colgate total antibacterial toothpaste with Triclosan (3 pence/ml), Boots non fluoride

Marketing research

1946 words - 8 pages all those upon strategies to sell many products for one need or procedure. They perform mostly the length dimension. For example Colgate sells toothpaste along with toothbrush and mouthwash. L’Oreal instead sells shampoos along with mineral hair oil and conditioner. 3. Conclusion In conclusion, as we revealed in those cases, marketing is a science which offers exceptional tools to companies and marketers, to small businesses or NGO’s

Similar Essays

Colgate Palmolive Company: The Precision Toothbrush Essay

930 words - 4 pages potential problems besides the much lower long-run profit. The market share of is still threatened by other competitors.TacticsCP's primary goal is to enhance its market share in U.S. professional dental market and remain the leader in U.S. toothbrush unit share in 1993 and beyond. It is believed that the long-term strength of Colgate-Palmolive's toothbrush business depends upon the success of Precision. The following tactical plan has been devised to

Colgate Palmolive Company: The Precision Toothbrush Case (Hbs)

831 words - 3 pages Colgate-Palmolive (CP), a global leader in household and personal care products, is poised to launch its new toothbrush in the United States, Colgate Precision. To enter the super-premium segment of a highly competitive US toothbrush market with its technologically innovative product, the company should decide on positioning, branding and communication strategies. According to clinical tests, Precision offers core advantages compared with other

Colgate Palmolive Case Analysis Of "Precision" Toothbrush

1243 words - 5 pages Problem StatementThe 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

Precision By Colgate Essay

630 words - 3 pages COLGATE -positioning -branding -communication -budget(advetr)-- break-up & what method -marketing mix- 4P -profit n loss proformaPositioningCompany had to decide whether to position "Precision Toothbrush" as Niche Product or as a Mainstream Product. So we would like to suggest that they should initially launch it as a niche product because Owing to capacity constraints, market demand won't be satisfied for the initial years but later on they
Deadwood (2004-2008) | Bendita ignorancia (2017) | UPLOADED