Preview

Colgate Palmolive Case Study

Good Essays
Open Document
Open Document
414 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Colgate Palmolive Case Study
Colgate Palmolive
Precision Toothbrush Case Study
Basil Faruqui

After developing a new the Precision toothbrush Colgate Palmolive is evaluating how to position it. The two options being considered for Precision’s positioning are a mainstream toothbrush, where they already have another toothbrush, or a super premium niche position where they don’t have any offerings. Other decisions that will follow the positioning decision would be price, distribution channels, advertising and promotion planning.

The product has been developed using an empirical approach and is a technical innovation. Clinical tests have shown that it removes plaque 35 percent more than Oral-B the leading toothbrush in market share in the super premium category. CP has designed Precision to be the best toothbrush in the market.

Research shows that people are becoming more conscious about oral hygiene and consider toothbrush as an important element of maintaining good oral health. People who are categorized as therapeutic brushers account for 46% percent of the market, making up the largest consumer segment.
Recommendations
Position
Precision should be positioned as niche category initially for the short term and then later on repositioned into mainstream market once the product has reached the maturation stage of its first cycle. If it is positioned as mainstream right away then not only will it cannibalize Colgate Plus, which is one tier below the super premium category, but will have leave CP without a product in the super premium category which is the largest customer segment and Oral-B is virtually unrivaled in that space. Long term it can be expected that competitors will react with similar products so maintaining niche position may not be a good strategy in the long run.
Pricing
Considering that in terms of quality Precision would be a leader it should use a price skimming approach and charge a premium over Oral-B. As competition moves in and challenges Precision, pricing

You May Also Find These Documents Helpful

  • Good Essays

    Colgate is a player in the $7.5 billion market of oral hygiene in the United States. This market includes products that cleanse, disinfect, freshens breath and whitens teeth and Colgate has a share of that market for all these products. The competition in this market makes being innovative practically a requirement since it is difficult to encroach upon your competitors. Knowing this information, companies must also ensure that they maintain a good balance of products in this industry.…

    • 378 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Burt's Bees Case Study

    • 563 Words
    • 3 Pages

    2. Burt’s Bees ignores the competition’s pricing and charges 80% more than necessary, so clearly they have executed a value-based pricing strategy (A16). Customer value-based pricing sets price by calculating the buyer’s perception of value instead of attempting to cover the costs of the company (pg. 258). Green shoppers expect to pay more for truly natural products and Burt’s Bees took that into consideration before setting their marketing program. Originating in boutiques, they targeted a segment of the market that was accustomed to paying for quality and environmental responsibility. By reflecting the way the consumer perceives value, Burt’s Bees was able to establish a higher price bracket.…

    • 563 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Scope Case

    • 435 Words
    • 2 Pages

    Proctor & Gamble states in their statement of purpose and strategy, “We will continuously stay ahead of competition while aggressively defending our established profitable business against major competitive challenges despite short term profit consequences.” Therefore doing nothing is simple not an option. The market had an increase of 5 percent last year, while Scope suffered from a .7 percent loss. Plax as a new competitor to the marked was able to achieve a 10 percent market share in over only three years, and will continue to grow and could take from our share if nothing is done. If we created a ‘better tasking pre-brush rinse’ we can also compare this to Scope when entered the market. Scope had all the same attributes of Listerine but offered a better taste, and was able to penetrate the market and be successful with a 12 percent market share in one…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Colgate Palmolive Case

    • 1682 Words
    • 6 Pages

    Consumers awareness of oral health is increasing which can translate into more future sales - the oral hygiene market had an compound annual growth rate of 4.2% in 4 years…

    • 1682 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to capitalize on the emerging market segment within the rinse category that focused more on “health-related benefits” than the traditional breath strategy of Scope. If the company does pursue this there are several concerns that they have.…

    • 1242 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Proctor & Gamble Scope Case

    • 5134 Words
    • 21 Pages

    Procter and Gamble’s mouthwash product, Scope, had a 32% share of the Canadian mouthwash market in 1990. However, Plax, a new category pre-brushing mouthwash launched in 1998, poses a continuing threat to Scope market share. In early 1991, Procter and Gamble’s brand manager for Scope, Gwen Hearst, must decide on a course of action for maintaining the profitability of Scope. She is tasked with developing a three-year marketing plan for Procter and Gamble’s mouthwash business. Decisions include how to respond to the emergence of mouthwashes, such as Plax, that focus more on “health-related benefits” and whether a line extension or brand extension would be most advantageous to the company in profiting from this emerging market segment. Hearst can also recommend that Procter and Gamble (P&G) not pursue a line or brand extension.…

    • 5134 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Clean Edge Analysis

    • 1758 Words
    • 8 Pages

    Paramount Health and Beauty wants to launch a new razor into the market currently referred to as “Clean Edge.” The project team recommends that the company should position the product as a distinct mainstream product, dubbing it “Clean Edge by Paramount” in order to produce growth in sales from new product innovation. The importance of placing the product in a mainstream position is to successfully launch an innovative product creating more market share for Paramount and for Clean Edge to become the most sought out razor in the industry. Failing to take this route and deciding to position the product in a niche would only give the new product a limited amount of consumers, preventing Clean Edge from reaching its full potential in sales and market share.…

    • 1758 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Clean Edge

    • 318 Words
    • 2 Pages

    Randall should use the “niche market” positioning concept. As the case points out, both “niche” and “mainstream” strategy will help Paramount to raise its market share in super-premium non disposable razor segment. But the “niche” strategy will enables Clean Edge Razor to contribute profit and at the same time, limit the effect of cannibalizing Paramount’s existing products. Two reasons Randall should use the strategy are presented below:…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Manging Project

    • 1170 Words
    • 5 Pages

    Choose an individual brand or product line from either the producer and/or brand owner, who are involved in the marketing of an oral hygiene product or products. Investigate and evaluate their marketing strategy using contemporary marketing tools and techniques however this may be illuminated using examples from other companies/ organizations.…

    • 1170 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Colgate Wisp

    • 360 Words
    • 1 Page

    Colgate trying to once again be ahead of the competition and inventive decided to develop a new product, a one of a kind in the disposable toothbrush market, the Wisp. This new Wisp would make cleaning teeth and freshening breath while on the go a simple as 1-2-3. The Wisp is a toothbrush that is small and contains bead that is a breath freshener that dissolves while brushing and no need for rinsing. In Colgate’s opinion it could not fail and would be an easy hit, no need for water, rinsing or even toothpaste. Plus marketing for this new product in thought should be very simple. However this product needs to gross sales over $62 million in the beginning this is the major problem facing Colgate.…

    • 360 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Cottle Taylor Analysis

    • 1268 Words
    • 4 Pages

    In 2009, the director of the oral-care marketing for the India division of Cottle- Taylor, Brinda Patel, thought of the brilliant idea to expand the oral care system in India. At this time 50% of the Indian population was very uninterested in curing their dental problems and did not see the need to obtain dental hygiene like toothbrushes and toothpaste. However, this did not stop Patel. She still believed that her plan would have a 20% increase in toothbrush unit sales. Her plan was to reward regions that met or exceed sales objectives and to reorganize those that underperformed. Patel’s boss gave her two days to revise a marketing plan that came close to 30% unit sales growth. Patel was determined and confident in doing so.…

    • 1268 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    colgate palmolive

    • 894 Words
    • 3 Pages

    1. List and briefly discuss the changes occurring in the toothbrush category and Colgate Palmolive’s competitive position.…

    • 894 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Cottle Taylor Case Study

    • 434 Words
    • 2 Pages

    In our view Patel should target the low-end manual and mid-range manual toothbrushes rather than targeting battery operated because the sales of battery operated toothbrushes are low considering its high price. Considering the huge semi urban and rural market which can be the potential target , low-end manual and mid-range manual would be ideal for such markets considering their less costs.…

    • 434 Words
    • 2 Pages
    Good Essays
  • Better Essays

    -The Malaysian oral hygiene market consists an estimated 2million users with an estimated market size of RM30, 500, 000.00…

    • 406 Words
    • 9 Pages
    Better Essays
  • Better Essays

    When asked about the awareness level of different brands of oral care products the Colgate and Close-up are the ones that have highest recall value and come instantaneously and it is followed by Pepsodent, Oral B and Vicco…

    • 2313 Words
    • 10 Pages
    Better Essays

Related Topics