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Essay / Colgate Palmolive Case Report - 1302
Colgate-Palmolive (CP), the leading retail toothbrush manufacturer in the United States, is looking to increase its market share by entering the competitive segment of the toothbrush market. high-end teeth with the introduction of its technologically innovative precision. Although the product's introduction promised highly profitable returns, it also presented Colgate with a number of challenges, including significant financial investment, fierce competition, manufacturing limitations, and potential cannibalization. After evaluating the company's market positioning based on consumer perception of the Colgate brand, the SWOT nature and market share of its competitors, the CP is faced with the decision of how to position, mark and communicate Precision's advantage in the market. This must be done without harming the market or the profit of the already existing product. The proposed strategy will be consistent with CP's stated corporate objectives and mission statement while maximizing long-term profit gains. Industry: Toothbrush marketing evolved in aesthetic features while dividing into two functional segments: value markets and professional markets in the 1980s. Later, in the 1980s, the professional market became further segmented and led to the development of the super-premium niche. In 1992, the super premium niche represented 35% of toothbrush volume and 46% of sales. The three market segments identified are the super premium segment (price range: over $2.00, unit volume: 35% and dollar sales: 46%), the professional segment ($1.59-2.09, 41%, 42% respectively) and the value segment (below $1.29, 24% and 12% respectively). The major players in the toothbrush market are CP and Johnson & Johnson, Oral-B. The impending release of the Colgate Precision toothbrush will be CP's first entry into the super-premium market segment that Oral-B virtually controls. After extensive testing, results show that CP Precision showed a 35% increase in plaque removal and is twice as effective as leading competitors Oral-B and Johnson & Johnson in terms of its ability to clean plaque. gums and between the teeth. With this in mind, the increase in advertising and promotion of toothbrushes has improved the visibility of the category, unlike the results obtained in the case of toothpaste, and essentially fueled consumer demand for competition. There is increasing competition in the toothbrush market, with new market entrants sensing an opportunity to capture market share. Toothbrushes offer its main retailers, mass merchandisers, pharmacies and food outlets an average margin of between 25% and 35%, which has enabled constant growth in shelf space and number of SKUs for toothbrushes. toothbrushes..