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Colgate Palmolive Marketing Case

Autor:   •  March 8, 2011  •  Case Study  •  638 Words (3 Pages)  •  2,276 Views

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This recommends that the new super-premium Precision toothbrush be launched as a niche product on February 10, 1993. Implementation will take place within 120 days of approval. A niche launch strategy will result in a 17.3% increase in firm-wide profitability by the second year (See pro forma income statement and accompanying assumptions in Exhibits 1).

In 1991, Colgate-Palmolive (CP) was number one in the US toothbrush market. However, CP is not represented in the most profitable market with the greatest growth potential, the super-premium market (See Exhibit 2). Our objective is to ensure that CP becomes the leader in the super-premium segment by recommending a niche marketing strategy that communicates the revolutionary nature of the Precision to therapeutic brushers and ageing baby boomers.

The reasons for my recommendation are as follows:

1. The therapeutic brushers and ageing baby boomers will greatly increase demand for super-premium toothbrushes. This segment will grow steadily as the baby boom generation becomes concerned about gum health and willing to pay a premium for products to address that concern.

2. Our competitors, Oral-B, Procter & Gamble, and Smithkline Beecham, have already entered the super-premium market and are gaining a foothold. Super-premium toothbrushes comprise 35% of unit volume and 46% of dollar sales. This segment caters to the 46% of adults who are already therapeutic brushers and actively seek out the most effective products (See Exhibit 3).

3. The Colgate-Palmolive Company has created a superior toothbrush that will revolutionize the market and ensure CP's continued leadership in oral health care. The CP task force that has been working for the past two years to "develop a superior, technical, plaque-removing device" has succeeded admirably and created a toothbrush that removes 35% more plaque than the leading brushes, and reduces the probability of gum disease.

The marketing strategy has already started with the product itself - a breakthrough

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