Colgate-Palmolive Company: The Precision Toothbrush

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Colgate-Palmolive Company: The Precision Toothbrush Recommendation: Positioning the brush in the super premium niche segment. Continuing to develop the new superior product by adding tongue pellicle removing rubber cover on the head and semi water resistant bristle! Developing a new specialty toothpaste with portion feeding! Problem statement: Colgate Palmolive (CP) was a global leader in the household and personal care products market (they have secured a considerable percentage of the toothbrush market and almost half of the toothpaste market in 1992) but they faced a highly competitive market with new product activity. CP’s brushes were positioned in the value segment (Colgate Classic) and in the professional segment (Colgate Plus) but there was nothing in the super-premium toothbrush segment. It was the time to make a step opposite the competitors. Objectives: CP’s five year plan for 1991-1995 is to emphasize and launch new products and expand into new geographic markets. CP plans to launch a new toothbrush tentatively named Colgate Precision. This launch would involve intensive growth and market development, and increase overall market share in the oral care products. It will also allow CP entry into a new superior product market. Assumptions: The economic climate is significant. New entrants appeared in the super-premium segment in the early 1990s: Procter&Gamble, Smithkline Beecham. An additional social development is the concern for gum health demonstrated by the baby boom population. Cavity prevention was the previous concern. Discussion and analysis: The company prides itself on innovative new products and supplying these products with superior quality and performance consumer’s demand. Susan Steinberg should concentrate the premium niche segment with Colgate Precision, which is more consistent than mainstream market for the advanced gum

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