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Essay / COLGATE: The Precision Toothbrush - 1562
PROBLEM STATEMENT The senior management of Colgate Palmolive has decided to launch a new toothbrush priced in the Super Premium segment. Susan Steinberg, the product manager, must determine the best marketing mix to implement and which of the following options are best in order to position the product in the market: A) As part of a consumer strategy B) In the framework of a niche strategy. Each strategy involves different prices and volumes of units sold. SITUATION ANALYSIS Customers: More and more customers are looking for toothbrushes that satisfy their needs. For example, the baby boomer generation, one of our main targets, is looking for products that help them have healthy gums. A Colgate study found that 82% of toothbrush sales were unplanned and the average consumer replaced their toothbrushes every 7.5 months. Consumers differed by sector of their involvement in oral hygiene: 1) involved oral health consumers – therapeutic brushers (46%); 2) involved oral care consumers – cosmetic brushes (21%); 3) uninvolved oral care consumers (33%). Competition: Competition in the toothbrush market for Colgate Palmolive was tough. Competition by segments. Value segment: Level (7.2% by volume of total market shares in 1991), Pizar and Sunstar. Professional segment: Johnson & Johnson (19.2% by volume of total market share in 1991). Super premium segment: Oral-B (23.1% by volume of total market shares in 1991), Procter & Gamble and Smithkline Beecham (0.9% by volume of total market shares in 1991). Oral B brushes are positioned in the super premium segment. Where it did not have strong competition for the moment from Johnson and Johnson, with its Reach brand focused solely on the professional segment. Company: CP – global leader ...... middle of paper ...... igate and develop new products in order to be the category leader. Children are a potential market for Colgate, which is why we recommend developing a super premium Colgate Precision toothbrush for children. - Implement an aggressive on-shelf display strategy, the recommendation is to place Colgate Precision between the Colgate Plus product and Oral-B. Designed a display that proved very effective (Exhibit 10). Note that the Colgate brand is highlighted with large white letters. Another recommendation is to use other types of displays like a Floor Stand, Top Shelf and Sidekick for grocery stores, as well as countertop units and top shelves in pharmacies with limited space. The Colgate Precision exhibit is expected to be featured with Colgate toothpaste, as brand awareness and recognition of this product is a priority for most customers..