Colgate Palmolive Case Study
Colgate Palmolive
Precision Toothbrush Case Study
Basil Faruqui
After developing a new the Precision toothbrush Colgate Palmolive is evaluating how to position it. The two options being considered for Precision’s positioning are a mainstream toothbrush, where they already have another toothbrush, or a super premium niche position where they don’t have any offerings. Other decisions that will follow the positioning decision would be price, distribution channels, advertising and promotion planning.
The product has been developed using an empirical approach and is a technical innovation. Clinical tests have shown that it removes plaque 35 percent more than Oral-B the leading toothbrush in market share in the super premium category. CP has designed Precision to be the best toothbrush in the market.
Research shows that people are becoming more conscious about oral hygiene and consider toothbrush as an important element of maintaining good oral health. People who are categorized as therapeutic brushers account for 46% percent of the market, making up the largest consumer segment.
Recommendations
Position
Precision should be positioned as niche category initially for the short term and then later on repositioned into mainstream market once the product has reached the maturation stage of its first cycle. If it is positioned as mainstream right away then not only will it cannibalize Colgate Plus, which is one tier below the super premium category, but will have leave CP without a product in the super premium category which is the largest customer segment and Oral-B is virtually unrivaled in that space. Long term it can be expected that competitors will react with similar products so maintaining niche position may not be a good strategy in the long run.
Pricing
Considering that in terms of quality Precision would be a leader it should use a price skimming approach and charge a premium over Oral-B. As competition moves in and challenges Precision, pricing
Precision Toothbrush Case Study
Basil Faruqui
After developing a new the Precision toothbrush Colgate Palmolive is evaluating how to position it. The two options being considered for Precision’s positioning are a mainstream toothbrush, where they already have another toothbrush, or a super premium niche position where they don’t have any offerings. Other decisions that will follow the positioning decision would be price, distribution channels, advertising and promotion planning.
The product has been developed using an empirical approach and is a technical innovation. Clinical tests have shown that it removes plaque 35 percent more than Oral-B the leading toothbrush in market share in the super premium category. CP has designed Precision to be the best toothbrush in the market.
Research shows that people are becoming more conscious about oral hygiene and consider toothbrush as an important element of maintaining good oral health. People who are categorized as therapeutic brushers account for 46% percent of the market, making up the largest consumer segment.
Recommendations
Position
Precision should be positioned as niche category initially for the short term and then later on repositioned into mainstream market once the product has reached the maturation stage of its first cycle. If it is positioned as mainstream right away then not only will it cannibalize Colgate Plus, which is one tier below the super premium category, but will have leave CP without a product in the super premium category which is the largest customer segment and Oral-B is virtually unrivaled in that space. Long term it can be expected that competitors will react with similar products so maintaining niche position may not be a good strategy in the long run.
Pricing
Considering that in terms of quality Precision would be a leader it should use a price skimming approach and charge a premium over Oral-B. As competition moves in and challenges Precision, pricing