Preview

Colgate-Palmolive Company: the Precision Toothbrush Essay Example

Better Essays
Open Document
Open Document
1739 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Colgate-Palmolive Company: the Precision Toothbrush Essay Example
I. Problem Definition

Colgate-Palmolive (Colgate) needs to determine how Precision should be positioned in the tooth brush market. Colgate must decide what segment of the market to target and how Precision should be marketed to its target market.
II. Solution Possibilities
Colgate's objective is to position and market Precision to fully utilize the products potential. To accomplish this objective, Colgate must determine what segment Precision should target, the super premium niche or the broader professional brush market, and the marketing mix that would be most effective for that position.
Colgate can position Precision as a niche product. Colgate does not have a tooth brush currently positioned in the super premium niche. Oral B, Johnson & Johnson, Procter & Gamble and Smithkline Beecham currently compete in this product segment. Due to the number of quality competitors in the tooth brush market, product innovation is an important factor to be able to differentiate the product and to succeed. Precision was developed to compete in the super premium segment focused at consumers who are concerned about gum disease. As a niche product, Precision is expected to extract a 15% price premium above Oral-B and to gain a 3% market share in its first year and 5% in year two. Precision's factory list price would be priced at $2.13.
The super premium niche is growing. It accounts for 35% of unit volume and 46% of dollar sales. Baby boomers are more concerned about the health of their gums as compared to cavity prevention. Baby boomers are also willing to pay a premium for toothbrushes that address this issue. The target customer segment for Precision in the super premium niche is therapeutic brushers, who make up 46% of adults. (Table B) Therapeutic brushers are high involvement users and differentiate among products to search out functionally effective oral health products.
Precision can be marketed to these consumers using a niche positioning
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    What Is the Dilemma Facing Colgate-Palmolive?
    • 378 Words
    • 2 Pages

    What Is the Dilemma Facing Colgate-Palmolive?

    Colgate is a player in the $7.5 billion market of oral hygiene in the United States. This market includes products that cleanse, disinfect, freshens breath and whitens teeth and Colgate has a share of that market for all these products. The competition in this market makes being innovative practically a requirement since it is difficult to encroach upon your competitors. Knowing this information, companies must also ensure that they maintain a good balance of products in this industry.…

    • 378 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Rhetorical Analysis of Hit the Line Hard
    • 734 Words
    • 3 Pages

    Rhetorical Analysis of Hit the Line Hard

    Do you desire the elimination of bad breath, cavities and diseases? Possessing the right toothpaste can help an individual obtain the confidence they need to smile and associate with others. Hygiene has become an important aspect in one’s health especially when the mouth is the main focus. People gain the feeling of shyness and rudeness around others when they show their rotten teeth and/or the odor of their breath. Nobody wants to be treated in a harmful way for reasons that can easily be fixed. Get Colgate, a type of paste or gel that helps prevent bacteria, plaque and unhealthy gums from occurring. The 1924 Colgate ad, “Hit The Line Hard,” formulates a convincing advertisement that can be assessed using three rhetorical strategies which include appeal to appeal to logic, appeal to credibility and appeal to emotions.…

    • 734 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Logos Pathos Ethos
    • 339 Words
    • 2 Pages

    Logos Pathos Ethos

    I will be analyzing a commercial about Colgate total where dental patients tell how and why their dentist advised them to switch to Colgate Total toothpaste.…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Colgate Palmolive Case
    • 1682 Words
    • 6 Pages

    Colgate Palmolive Case

    Consumers awareness of oral health is increasing which can translate into more future sales - the oral hygiene market had an compound annual growth rate of 4.2% in 4 years…

    • 1682 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Manging Project
    • 1170 Words
    • 5 Pages

    Manging Project

    Choose an individual brand or product line from either the producer and/or brand owner, who are involved in the marketing of an oral hygiene product or products. Investigate and evaluate their marketing strategy using contemporary marketing tools and techniques however this may be illuminated using examples from other companies/ organizations.…

    • 1170 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Proctor & Gamble Scope Case
    • 5134 Words
    • 21 Pages

    Proctor & Gamble Scope Case

    Procter and Gamble’s mouthwash product, Scope, had a 32% share of the Canadian mouthwash market in 1990. However, Plax, a new category pre-brushing mouthwash launched in 1998, poses a continuing threat to Scope market share. In early 1991, Procter and Gamble’s brand manager for Scope, Gwen Hearst, must decide on a course of action for maintaining the profitability of Scope. She is tasked with developing a three-year marketing plan for Procter and Gamble’s mouthwash business. Decisions include how to respond to the emergence of mouthwashes, such as Plax, that focus more on “health-related benefits” and whether a line extension or brand extension would be most advantageous to the company in profiting from this emerging market segment. Hearst can also recommend that Procter and Gamble (P&G) not pursue a line or brand extension.…

    • 5134 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Scope Case Analysis
    • 5127 Words
    • 21 Pages

    Scope Case Analysis

    The current strategic efforts for the Scope brand are successful, but a competitive threat has brought about concerns as to whether Scope can continue to be profitable in the marketplace. An emerging segment of prebrush rinse users has created questions as to whether the Scope brand should consider this segment as a viable target. The Scope brand has consistently focused its efforts on the benefits of great taste and fresh breath, while the competition in the emerging segment currently is focused on a plaque-reducing benefit that has not been previously seen in the marketplace.…

    • 5127 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Proctor & Gamble Scope Case Analysis
    • 1242 Words
    • 5 Pages

    Proctor & Gamble Scope Case Analysis

    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 capitalize on the emerging market segment within the rinse category that focused more on “health-related benefits” than the traditional breath strategy of Scope. If the company does pursue this there are several concerns that they have.…

    • 1242 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Colgate Wisp
    • 360 Words
    • 1 Page

    Colgate Wisp

    Colgate trying to once again be ahead of the competition and inventive decided to develop a new product, a one of a kind in the disposable toothbrush market, the Wisp. This new Wisp would make cleaning teeth and freshening breath while on the go a simple as 1-2-3. The Wisp is a toothbrush that is small and contains bead that is a breath freshener that dissolves while brushing and no need for rinsing. In Colgate’s opinion it could not fail and would be an easy hit, no need for water, rinsing or even toothpaste. Plus marketing for this new product in thought should be very simple. However this product needs to gross sales over $62 million in the beginning this is the major problem facing Colgate.…

    • 360 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Economic Look at Toothpaste Industry
    • 538 Words
    • 3 Pages

    Economic Look at Toothpaste Industry

    There are many good acceptable toothpaste substitutes available to the consumer in today's market. Whether they desire, whiter teeth, fresher breath, more fluoride, or help for sensitive teeth. Because there are so many brands and varieties to choose from it is especially important that pricing strategies are contemplated heavily.…

    • 538 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Cleopatra Marketing Strategy Changes.
    • 1654 Words
    • 7 Pages

    Cleopatra Marketing Strategy Changes.

    Secondly, Colgate-Palmolive must cater to retailers. They tried to shift the balance of power from retailers to manufacturers by creating a unique product in Cleopatra for the Canadian market. This is the largest and most important…

    • 1654 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Individual Case Analysis Colgate vs. P&G
    • 796 Words
    • 4 Pages

    Individual Case Analysis Colgate vs. P&G

    Colgate is the second to the market. Sometimes second-to-market could be a good strategy cause the fisrt one has already opened the market and you don’t need to do much marketing to help the consumers understand the new product. You just get in and share the market. But if you want to be dominant of the market, an efficient marketing strategy is needed. Actually, the strategy of Simply White is quite simple, convience and a lower price. Meanwhile, Colgate emphasize that Simply White bleach teeth as effectively as Whitestrips. So from te…

    • 796 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Toothpaste and Colgate Palmolive
    • 1232 Words
    • 5 Pages

    Toothpaste and Colgate Palmolive

    Colgate reorganised its portfolio Introduced a wide range of products but with very clear positioning . In oral care, Colgate identified four categories – premium, freshness, popular and economy . Focused on only those products within this category which could give results. Introduced new products in…

    • 1232 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Marketing and Colgate
    • 7310 Words
    • 30 Pages

    Marketing and Colgate

    TABEL OF CONTENT 1. 2. 3. Executive Summary .....................................................................................................- 1 Introduction ..................................................................................................................- 1 Situational analysis.......................................................................................................- 1 3.1 Company analysis ..................................................................................................- 2 Company profile.............................................................................................- 2 Growth and profitability.................................................................................- 2 Culture............................................................................................................- 2 Goals...............................................................................................................- 2 Collaborators ..................................................................................................- 3 Customer ........................................................................................................- 3 Competitors ....................................................................................................- 3 Swot-analysis of the company........................................................................- 4 Climate ...........................................................................................................- 5 -…

    • 7310 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    colgate investment
    • 3571 Words
    • 15 Pages

    colgate investment

    Colgate was founded as a small business which mainly in New York in 1806, Colgate Palmolive (CL) never stops its step on developing and improving its business, at the same time, the exploration of Colgate has ever never stopped as well. Through acquisition and expansion strategies, according to Forbes, Colgate has become the 65th largest company in the world. As a strong multinational company in FMCG (fast moving consuming goods) sector, Colgate offers four main product ranges including oral care, personal care, home care and pet nutrition. Its products are on almost every distributor’s shelves under the recognizable household names like Colgate, Mennen, Palmolive, Speedstick, Ajax, Softlan, Hill’s Pet nutrition. For driving growth in a high rivalry of the personal consume products industry, Colgate Co. focuses on Research & Develop and marketing areas. Not only Colgate is trying to refresh the brand image of itself, but also aims to make the customers to build the behavior to use different series of products which invented by Colgate. As a result, Colgate.Co has achieved the goal to launch business all over the world, until now, in more than 200 countries are using Colgate’s product and Colgate has become the consumer product brand which is trusted by more and more consumers. Regarding financial information, as of December 31 2013, Colgate’s market capitalization is $58.27 billion and the stock current trades for about $63.60 (Google finance, 2013). Meanwhile, in the market, CL has since grown to have sales today surpassing $17 billion worldwide which is mostly derived from the oral care segment. Based the value which shared by ACNielsen (CL 2012, 10-K), Colgate has become one of the top leaders in the world in the oral care industry with having the most well-known toothpaste brands. This reputation will be a “halo”…

    • 3571 Words
    • 15 Pages
    Powerful Essays
    Read More