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Colgate Palmolive Colgate Palmolive With a continuous expansion in it's product line, Colgate-Palmolive is taking on the look of one of the most stable stocks on
Colgate palmolive-the precision toothbrush 1. What is changing in the toothbrush category? Assess Colgate Palmolive's competitive position. Toothbrush manufacturers
Colgate Palmolive Introduction: The Colgate-Palmolive Company (CP.Co) is poised to launch a new toothbrush in the United States, tentatively called, "Colgate Precision
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Global Adventures of Colgate Palmolive Today there are many firms whose products are widely known and are available in many countries all over the world, but international
Submitted by snugglebunnie00 on October 21, 2005
Category: Business
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Colgate Palmolive Company ¡V The Precision Toothbrush
1. The toothbrush market was divided into three segments: super-premium, professional, and value brushes. The retail prices for each segment by 1992 were as follows:
X Super-premium ¡V between $2.29 and $2.89
X Professional ¡V between $1.59 and $2.09
X Value ¡V averaged at $1.29
By 1992, super-premium brushes accounted for 35% of unit volume and 46% of dollar sales. Professional brushes accounted for 41% and 42%, and value brushes accounted for 24% and 12% respectively. Three companies dominated the U.S. toothbrush market: Colgate-Palmolive, Johnson & Johnson, and Oral-B.
2. Mainstream Positioning
The objective of positioning Precision as a mainstream brush was to broaden the appeal of being the most effective brush available on the market. Precision¡¦s price would be at parity with Oral-B regular and Aquafresh Flex at $1.85 (Exhibit 4). This raised concerns about possible cannibalization of Colgate Plus and inadequate supply of the product. Inadequate supply could create the perception of a ¡§hot¡¨ product but some executives thought shortage should be avoided if possible. CP would plan for an 80% increase in 1993 for advertising and promotion, with 75% of all advertising dollars assigned to Precision and 25% to Plus. This could be costly for profits and may increase cannibalization. Mainly mass merchandisers and club stores would carry the brush (24% retail toothbrush sales). Positioning Precision as a mainstream product with an existing 7 SKUs may result in dropping one or more existing SKUs, such as children¡¦s brush from the Plus line.
Niche Positioning
Precision was developed with the objective of creating the best brush possible ¡V becoming a superior, super-premium product. Precision would be targeted at consumers concerned about gum disease. Precision would...
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