Colgate Precision Case Analysis
Case Analysis: Colgate Precision
Prepared for
Instructor
University
Prepared by
Student
University
October 19, 2011
INTRODUCTION
Colgate-Palmolive has been researching and developing a superior toothbrush, the Colgate Precision, and as the Precision Product Manager I have overseen the development of the Precision from start to finish. We have been developing a technical innovation in the toothbrush industry, and with the product’s launch pending there have been several factors yet to be decided upon. With a tremendous amount of resources pooled into the development of the Precision and the recent competitive market we are launching it in, it is essential the positioning and branding of this toothbrush are executed properly. The Precision, if done successfully, should stand out as a technological breakthrough to consumers and limit cannibalization of current Colgate brand toothbrushes. Another key issue that is at play for the business is whether the Colgate Plus brand will be cannibalized following the introduction of our new toothbrush. Through analysis of the marketing mix for the Precision toothbrush, and weighing the financial benefits and costs relative to the two positioning strategies, I will address the correct course of action for the Precision toothbrush to sustain a competitive advantage in the market.
RECOMMENDATIONS
My recommendation is to introduce the Precision toothbrush into the niche market, as it is a significantly advanced toothbrush and should be tested on a smaller scale before being placed into the mainstream. The toothbrush needs to be positioned as a technological breakthrough in oral care, to young adults and baby boomers, who are concerned about plaque removal and gum disease. If that initial strategy is successful I advise moving towards the mainstream market with additional inventory. Secondly, the correct branding of the product should be “Precision by Colgate”, rather than the “Colgate Precision”, as extensive
Prepared for
Instructor
University
Prepared by
Student
University
October 19, 2011
INTRODUCTION
Colgate-Palmolive has been researching and developing a superior toothbrush, the Colgate Precision, and as the Precision Product Manager I have overseen the development of the Precision from start to finish. We have been developing a technical innovation in the toothbrush industry, and with the product’s launch pending there have been several factors yet to be decided upon. With a tremendous amount of resources pooled into the development of the Precision and the recent competitive market we are launching it in, it is essential the positioning and branding of this toothbrush are executed properly. The Precision, if done successfully, should stand out as a technological breakthrough to consumers and limit cannibalization of current Colgate brand toothbrushes. Another key issue that is at play for the business is whether the Colgate Plus brand will be cannibalized following the introduction of our new toothbrush. Through analysis of the marketing mix for the Precision toothbrush, and weighing the financial benefits and costs relative to the two positioning strategies, I will address the correct course of action for the Precision toothbrush to sustain a competitive advantage in the market.
RECOMMENDATIONS
My recommendation is to introduce the Precision toothbrush into the niche market, as it is a significantly advanced toothbrush and should be tested on a smaller scale before being placed into the mainstream. The toothbrush needs to be positioned as a technological breakthrough in oral care, to young adults and baby boomers, who are concerned about plaque removal and gum disease. If that initial strategy is successful I advise moving towards the mainstream market with additional inventory. Secondly, the correct branding of the product should be “Precision by Colgate”, rather than the “Colgate Precision”, as extensive