Colgate-Palmolive Company: The Precision Toothbrush case (HBS)

Colgate-Palmolive (CP), a global leader in household and private c are products, is poised to launch its new tooth rinse in the United States, Colgate Precision. To enter the super- tribute segment of a highly combative US toothbrush market with its technologically innovative product, the community should decide on aligning, branding and communication strategies. According to clinical tests, Precision offers core advantages compared with other leading toothbrushes. The brush achieved an ordinary 35% increase in plaque removal and is more effective at the gum and between the teeth. Focusing on ginmill of gum disease CP should differentiate Precision by positioning it first as a niche product. aim customers are Therapeutic Brushers who account for 46% of the US cock-a-hoop population. Becoming more concerned about the health consequence this baby boom generation is leaveing to pay premium for innovative products. Precision?s superiority everywhere its competitors will allow CP to charge higher prices (15% price premium over Oral-B). The reasons against mainstream positioning in a short-run period are a chiffoniernibalization effect (Exhibit 2), cost of shortage of inventory and doable displacement of existing SKUs from shelves.



However, in the semipermanent after puzzle out problem with production capacity the company should switch to mainstream positioning as niche strategy can not determination long, profits from mainstream positioning are higher in the long-run period (Exhibit 2) and due to higher sales the company can increase its recognition.

Marketing recommendations: 1. The name ? Precision by Colgate in order to emphasize Precision. 2. Product claims should emphasize gum prevention disease. (Exhibit 17 in the case) 3. Advertising budget should be change magnitude by 80% to 43.38 with 75% going to Precision and 25% to Colgate Plus. 4. Consumer promotion includes leave office sampling provided by dentists, a free 5.oz tube of Colgate toothpaste with a purchase of a Precision brush and a...

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