Colgate-Palmolive Company: The Precision Toothbrush

Precision Toothbrush

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TABLE OF CONTENTS

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EXECUTIVE SUMMARY

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SIGNIFICANT FACTORS

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.

English: Palmolive Soap magazine ad from 1915

Colgate

Colgate toothpaste overload

mainstream positioning strategies

CENTRAL ISSUE

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.

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BACKGROUND

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COMPANY BACKGROUND

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);...