Colgate Palmolive Company

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COLGATE PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH INTRODUCTION: In 1991 Colgate Palmolive Company had two lines of toothbrushes in the market: * Colgate Classic: For the Value Segment. * Colgate Plus: For the Professional Segment. In August 1992 Colgate Palmolive wanted to launch a new toothbrush named Colgate Precision, a technologically superior toothbrush and 35% more efficient in plaque removal as compared to toothbrushes of its competitors, Oral B and Reach. In 1991 Colgate Palmolive held 16% of the world toothbrush market and held the number one position in the US retail toothbrush market with a 23.3% in volume share. The company is number one in terms of volume sales but is not a leader in terms of dollar sales and revenue. The niche market has huge potential, and until now Colgate Palmolive had market share only in the areas of Value and Professional toothbrushes. However with the launch of Colgate Precision they will have now entered the Niche segment as well. RECOMMENDATION: The company is contemplating whether to introduce Colgate Precision through the niche channels or through mass merchandising. The company should introduce Colgate Precision through the niche channels, mainly drug stores, and then move toward mass merchandising. The reason being, Colgate Precision is a super premium, technologically advanced toothbrush. Therefore consumers would first have to be educated about the characteristics and attributes of the product. Once this is done, the company would have achieved two things in the short term: * Spread awareness of the product, through product differenciation. * Generated revenues to go mainstream. This way we are creating value by promoting the product through niche channels and in order to sustain value in the long term we must go mainstream and mass merchandise the toothbrush. PRODUCT: Colgate

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