Colgate-Palmolive Co.: The Precision Toothbrush. Colgate-Palmolive Co.: The Precision Toothbrush. case study. John A. Quelch · Nathalie. Colgate-Palmolive Company: The Precision Toothbrush. Anthony Garver. Issue: In , Colgate-Palmolive (CP) faced a dilemma regarding the release and. Colgate-Palmolive (CP), a global leader in household and personal care products, is poised to launch its new toothbrush in the United States, Colgate Precision.
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They currently precisiln 2 toothbrush products in the market, but have been working on a three-year project in developing a technologically superior toothbrush into the market.
Colgate-Palmolive Company: the Precision Toothbrush
This product, tentatively named Colgate Precision will be ready to be released cco.the the market in late However, the toothbrush market has been evolving quickly and Precision product manager Susan Steinberg needed to establish the appropriate positioning, branding and communication strategy in light of all internal and external factors that will potentially affect the business. One of the big questions Susan had to answer was: Should Precision be positioned as a niche product or mainstream product?
This alternative poses a few strengths colgate-palmmolive chosen. Despite all this, there are weaknesses to this alternative as well.
Lower sales and market share is expected if Precision is positioned as a niche product. Alternative B – Precision as mainstream product. An alternative direction CP can pursue with Precision is to market it as a mainstream product. This positioning will have a broader appeal of being the most effective brush available on the market. In spite of this, as a mainstream product, Precision will have a lower list price that may cannibalize Colgate Plus sales.
Existing SKUs will have to be dropped from the Colgate Plus line as additional production demands are needed for the Precision. Consequently, there will be inadequate supply of products to meet purchase demands. As demand and sales start dropping off later on the product life cycle, Precision can move into the mainstream market.
Peecision critical advantage of this option is that all production pressures will be lifted and there will be sufficient time to arrange and prepare for mainstream productions. In addition, initially positioning Precision as a niche product can allow CP to conquer all the therapeutic brushers first.
Colgate-Palmolive Co.: The Precision Toothbrush
As competitors start introducing more advanced products into the market, Precision can move into the mainstream market, targeting cosmetics brushers. Critical Issues Currently a few issues are at hand and CP needs to consider these issues before going ahead with any one of the three alternatives.
In choosing the appropriate positioning for Precision, CP must consider product cannibalization factors. Another issue is the feasibility of production schedule.
Colgate Palmolive Company: The Precision Toothbrush Essay
Current production schedules are initially planned for niche productions, and mainstream production requires at least a 10 month lead time, therefore, production plans must be considered.
Lastly, CP has colgate-palmoive working over three years on the orecision of Precision, and this product represents a technological breakthrough in the toothbrush market. Any decisions made should take into account that the product at hand is highly superior in design and has a great deal of potential to overpower all competitive products in the industry. All points regarding the alternatives against each critical issue are discussed in Exhibit 2.
Recommendations From the conclusions of the table from Exhibit 2, we can see that the optimal alternative is split between either alternative A or C. Either alternative is able to fulfill the restraints of each critical issue.
However, co.thw C is a better choice than alternative A because it takes into account both the short term and long term objectives that the company should pursue. By introducing Precision into the niche market first, CP can reposition itself as the leading innovative company in the industry. Further, it is intuitive that Precision be slowly repositioned into the mainstream market as emerging competition and innovation against Precision is being introduced into the market.
Ultimately, CP should pursue alternative C in the short run.
In the long run, CP must continually invest in research and development to create innovative products in order to maintain its leading market position. Niche Market Mainstream Market.
Alternative B – Precision as mainstream product An alternative direction CP can pursue with Precision is to market it as a mainstream product. Hi there, would you like to get such a paper? How about receiving a customized one?