TABLE OF CONTENTS
PRODUCT DESIGN & TESTING
CAPACITY COST ANALYSIS
NICHE & MAINSTREAM FORECAST
Branding: Should the name of the product on the package and in advertising be "Colgate Precision" or as "Precision by Colgate"
Communication and promotion: This is an effective way to pull a market share because it is hard to increase primary demand unless stealing sales from existing products
Major competitors in the super-premium segment: Oral-B, Reach Advance Design, Crest Complete, and Aquafresh Flex
Differential pricing structure: Niche market vs. Mainstream market
Different advantages/ disadvantages: Niche market vs. Mainstream market
Dramatically change in technology advances: new toothbrushes come out very quickly and frequently
Cannibalization: New Precision toothbrush might taken away positioning of Colgate Plus and Colgate Classic
Consumer purchasing power: Personal preferences, behavior, product evaluation, and reasons in buying toothbrushes
Factors impact consumers' decision: Great influence from dental professional for people who concern about gum disease
Designing a pro-forma income statement to compare the profit implications of the niche vs.
mainstream positioning strategies
How can Colgate-Palmolive manage its new Precision toothbrush's position, brand, and communication strategies and achieve the market leader position in the toothbrush market.
As a global leader with 1991 sales of $6.06 billion and a gross profit of $2.76 billion, Colgate had spent about five hundred millions in its R&D and advertising.
CP's five-year plan had three strategies which are:
Launch new product (275 worldwide new products) and entry into new geographic markets (acquisition of Mennen men's toiletries company, manufacturing in China and Eastern Europe);...