Colgate Case Study
Colgate-Palmolive Case Study
Executive Summary
Colgate-Palmolive (CP) plans to launch a new toothbrush in the US tentatively named The Precision Toothbrush. The Precision is expected to develop the super-premium market for CP as well as to reinforce and enhance CP’s brand image. Key recommendations conclude in this case study are as follow
• Target therapeutic and cosmetic consumers
• Position Precision in the super-premium segment and reposition to the mainstream market during its maturity
• Emphasize on professional endorsement
Environmental Analysis
SWOT Analysis
• Strengths o Colgate-Palmolive (CP) is the global leader in oral care products and its great reputation among the household and personal care products arena. o Based on the statistics in the case study, CP has successfully reached its international markets and set up manufacturing facilities overseas which contributed direct sales and profits to the company. o The Precision toothbrush was a technical innovation supported by CP’s extensive R&D department, Marketing department, dental professionals and outside consultants (John Quelch, 1993). o CP’s developed worldwide manufacturing facilities and established a good relationship with its partners. o CP’s commitment in R&D also provides the Precision toothbrush with a strong innovative design suit. The product is also proven to be more effective in removing plaque than existing brands specially Reach and Oral-B. (John Quelch, 1993) CP could use the design aspects as strength to improve the existing “professional” toothbrush lines. o CP’s current retail advertising features and in-store displays have been attributed to the increase in toothbrush sales. o CP has a large number of product lines and is targeting a broad spectrum of market segments.
• Weaknesses o Previously, CP’s media expenditure has been limited compared to its key rivals such as Reach and Oral-B. o There is quite a fierce competition in super-premium segment.
Executive Summary
Colgate-Palmolive (CP) plans to launch a new toothbrush in the US tentatively named The Precision Toothbrush. The Precision is expected to develop the super-premium market for CP as well as to reinforce and enhance CP’s brand image. Key recommendations conclude in this case study are as follow
• Target therapeutic and cosmetic consumers
• Position Precision in the super-premium segment and reposition to the mainstream market during its maturity
• Emphasize on professional endorsement
Environmental Analysis
SWOT Analysis
• Strengths o Colgate-Palmolive (CP) is the global leader in oral care products and its great reputation among the household and personal care products arena. o Based on the statistics in the case study, CP has successfully reached its international markets and set up manufacturing facilities overseas which contributed direct sales and profits to the company. o The Precision toothbrush was a technical innovation supported by CP’s extensive R&D department, Marketing department, dental professionals and outside consultants (John Quelch, 1993). o CP’s developed worldwide manufacturing facilities and established a good relationship with its partners. o CP’s commitment in R&D also provides the Precision toothbrush with a strong innovative design suit. The product is also proven to be more effective in removing plaque than existing brands specially Reach and Oral-B. (John Quelch, 1993) CP could use the design aspects as strength to improve the existing “professional” toothbrush lines. o CP’s current retail advertising features and in-store displays have been attributed to the increase in toothbrush sales. o CP has a large number of product lines and is targeting a broad spectrum of market segments.
• Weaknesses o Previously, CP’s media expenditure has been limited compared to its key rivals such as Reach and Oral-B. o There is quite a fierce competition in super-premium segment.
Cited: John Quelch, N. L. (1993). Colgate-Palmolive Company: The Precision Toothbrush. Harvard Business School Case Study .