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

Colgate-Palmolive (CP), a global leader in household and confidential c are products, is poised to launch its new tooth launder in the United States, Colgate clearcutness. 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 chat strategies. According to clinical tests, Precision offers core advantages compared with other leading toothbrushes. The brush achieved an ordinary 35% increase in governance removal and is more effective at the gum and amidst the teeth. Focusing on ginmill of gum disease CP should carve up 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 around the health consequence this baby boom generation is leaveing to salary premium for innovative products. Precision?s superiority everyplace its competito rs will allow CP to charge high prices (15% price premium over Oral-B). The reasons against mainstream positioning in a short-run close are a chiffoniernibalization effect (Exhibit 2), cost of shortage of muniment and doable displacement of existing SKUs from shelves.

However, in the semipermanent afterward puzzle out problem with production capacity the federation should switch to mainstream positioning as niche strategy washbasin not determination long, profits from mainstream positioning are higher in the long-run period (Exhibit 2) and due to higher gross revenue the company can increase its recognition . Marketing recommendations: 1. The name ? P! recision by Colgate in order to underline Precision. 2. Product claims should emphasize gum prevention disease. (Exhibit 17 in the case) 3. Advertising cipher should be change magnitude by 80% to 43.38 with 75% going to Precision and 25% to Colgate Plus. 4. Consumer promotion includes leave subprogram sampling provided by dentists, a free 5.oz tube of Colgate toothpaste with a purchase of a Precision brush and a... If you want to provoke a full essay, order it on our website: BestEssayCheap.com

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