Problem Statement The aim of this report is to analyze the two different launch strategies (as a niche or a mainstream product) for Colgate Palmolive 's new toothbrush, Precision, and choose the one that is the most suitable in the face of the market competition and consumer needs. The report also aims to make recommendations for the positioning, branding, communication and promotion of the product under the chosen strategy. Situation Analysis Company: In 1991, CP held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP 's oral care products increased 12% to $1.3 billion, accounting for 22% of CP 's total sales. …show more content…
The Precision will also be promoted to dentist offices. Free toothpaste will be included with the purchase of a Precision brush. Alternatives & Recommendation CP 's marketing department has two alternatives of positioning "Precision". They can either market it as a premium toothbrush to the mainstream market or as a "super-premium" toothbrush to a niche market. Both alternatives have their strengths and weaknesses as shown in Exhibit 1. From the analysis of this case and by evaluating different sales and costs scenarios (cannibalization factors used in calculations) as shown in Exhibit 2, the recommendation is that CP proceeds with the launching of its "Precision Toothbrush" as a Niche product. The Niche segment proves to have more advantages and has lower risks. Also profits seem to be higher after a "cannibalization cost" is put into consideration. This is due to the fact that through the "Main Stream" market, Precision has a large percentage of cannibalization in the Colgate Plus and Colgate
Classic products. Implementation Plan Precision will be promoted as the most effective toothbrush in fighting plaque build up. It will be targeted towards those conscious of dental health and inclined to reduce possibility of gum diseases. Advertisements will help introduce the product to the consumers and build the brand image whereas promotions will encourage them to use the product and learn about its superior characteristics. Dentists and other oral health professionals
The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40.5% of the overall toothpaste market, we decided to increase three sales people into traditional sales channels in the next year. Due to the selling of whole market Economy toothpaste are great, we add advertising investment. At the same time, the poor sell of children's toothpaste prompted us to reduce 5 million budgets on its advertising fee. According to the results of marketing, and sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to stimulate the sales.
Travel is often used as a form of escapism: One leaves the stresses of everyday life to enjoy idyllic moments in a picturesque location. In Ernest Hemingway's The Sun Also Rises, a group of expatriates aim to escape their dissolute life in Paris by traveling to Pamplona for the bullfight fiestas. Hemingway closely connects the scenery and settings of the novel with the emotional well-being of the characters. The desolate city of Paris conveys the aimlessness and emptiness of the expatriates, the sunlit countryside of Bayonne are a flash of meaning and satisfaction for Jake and Bill, while the hectic Pamplona bull fights reflect the unstable relationship among the expatriates. These settings reflect the rapidly shifting psychological state of the characters: They live in dark cycles of aimlessness and immorality marked by overindulgence and alcoholism, with a brief sunrise in periods of self-consciousness and meaning when living moderately. Hemingway comments on the self-destructive nature of excessively hedonistic lifestyles. Rather than
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
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
The United States, Mexican and Chinese markets all took very different approaches to the release of Colgate-Palmolive’s (CP) newest oral care product in 2004-2005. The new toothpaste is called Colgate Max Fresh (CMF). It is a cavity preventing gel with breath-freshening strips suspended in it that dissolve while consumers brush their teeth. The technology behind the breath strips is patented, and Colgate was hoping the product would be a big success by providing unique freshness.
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by
Hearst and the business team have three options, on one hand a line extension or new product positioned against Plax could be introduced into the market and in the other hand doing nothing and just looking at claims other than “breath” instead of adding a new product. Launching a new product “new pre-brushing rinse,” for example would cannibalize a part of Scope sales, also the delivery, marketing and capital costs of P&G will increase if a new rinse was launched and the user of Scope would be confused since he/she saw in the old scope a breath refreshment, taking into consideration that the new rinse is not any better than Plax in reducing plaque, but at the same time it may increase the market share of P&G and increase its profit. Whereas adding a new claim for Scope would not increase the volume of sales, but it could prevent current users of Scope to switch and it would stabilize the
Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?
Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
Present sales of the Paramount in razor industry come to $170 million and Paramount Pro contributes to this significantly. By introducing Clean Edge in the mainstream sector a 60% fall in the sales of Pro is predicted and the revenue generated by it will come down to $68 million. But it is expected that clean edge will generate a revenue of $147.8 million* and in turn Paramount can achieve a net sales of $215.8 million. Marketing cost is approximated to $42 million and Paramount will be able to generate a profit of $173.8 million. If they had positioned it in the niche segment they would lose only 35% sales of Pro. But at the same time, due to the constraints in the market clean edge can raise sales of only $52.8 million and the net sales will total to $163.3 million. Here the marketing cost is approximated to $15 million and the revenue generated will amount to $148.3 million. Thus the figures clearly indicate that concentrating the mainstream would be more beneficial. Also Paramount will be able to achieve a profit margin of $3.09 per unit even after providing distributors a margin of $3.36 per unit.
To assess the factors affecting the demand for toothbrushes in India, a situation analysis has been performed using the 5Cs framework:
The report is about the market segmentation, targeting and positioning of the tooth paste industry in the local market of Mauritius. For a total population size of approximately 1, 2 million, toothpaste represents 80% of the market. This market is being shares which Colgate Palmolive which represents Colgate has 45% of the market share and the rest is being played among Aquafresh 20% and Blendax occupies 14% of the market share. 21 % of the toothpaste market shares are occupied by Signal, Close up, Casino and other make of toothpaste. Nowadays to be able to survive in this fierce competition world, firms need to satisfy the needs of its potential customers, hence keeping the existing and gaining new ones. For this to be
Seeing the company records of Canadian Mouthwash Market Shares for past three years, I feel that the performance of scope in market was consistent despite the arrival of new products in market.