Colgate-Palmolive
... the “Super-premium” toothbrush category. Consumers concerns regarding have shifted from “cavity prevention” to “healthier gums.” The baby boomers are more concerned with healthier gums rather than the whiteness of their teeth and are willing to pay more for a superior toothbrush that would protect their gums against disease. Initially there were two sectors of the toothbrush market: value and premium. There is now an opportunity for “super-premium” market to be created. Colgate Palmolive is focusing on the new “super-premium” niche market and is determined to meet the baby boomer desire. Oral-B is Colgate Palmolive’s major competitor followed by Johnson & Johnson. In the early 1990’s two large corporations companies, Proctor & Gamble and Smithkline Beecham entered the Oral Care market. Both new competitors were attempting to enter the “super-premium” toothbrush market. The Marketing Mix below is dependent upon the following external opportunities: • Penetration of foreign market. • Consumers are currently concerned with gum-care. • Food stores have dramatically increased the shelf space for Oral Care products in 1992. The one external threat that CP faces is the entrance of Procter & Gamble and Smithkline Beecham into the Oral Care market. This is the only major threat to CP; however, it should not be taken lightly. In order to select the proper price, place, and positioning for Precision the competition is the most important factor. Marketing Mix A. Product The Precision toothbrush that CP developed is a unique brush with 3 different bristle lengths and angles. This design allows for 35% more plaque removal and also proves to be more effective in reducing gum disease than the leading brushes, specifically Reach and Oral-B. B. Price The price of the Precision when marketed as a “super-premium” toothbrush would be $ 2.02 and $2.89 for manufacturer retail price and suggested retail price, respectively. The price of the Precision when marketed as a premium toothbrush would be $ 1.76 and $2.13. C. Place The Precision toothbrush will be placed on the retail shelves between the Colgate Plus and Oral-B product lines. Retail advertising will consist of in-store displays to increased toothbrush sales. As a “super-premium” toothbrush, Precision would be carried primarily by food and drug stores. As a premium toothbrush, a larger proportion of sales would occur through mass merchandisers and club stores. D. Promotion A forceful advertising campaign that demonstrates the advantage of the new toothbrush will be implemented if Precision is placed in the market as a niche product. Precision positioned as a mainstream product will be promoted through monetary incentives such as coupon or rebates. The Precision will also be promoted to dentist offices. Free toothpaste will be included with the purchase of a Precision brush. III. Alternatives There are two alternatives in which CP can market Precision. They can either market it as a premium toothbrush to the mainstream market or as a “super-premium” toothbrush to a niche market. There are advantages and disadvantages of each market strategy alternative. By weighing the advantages and disadvantages a decision will be made determining these factors. There are a couple disadvantages when marketing Precision as a premium toothbrush to the mainstream market. The drawbacks include: • Cannibalization of the Colgate Plus. • A slow moving Children’s brush line would need to be eliminated There are a couple advantages when marketing Precision as a premium toothbrush to the mainstream market. The advantages include: • The demand could create the consumers to make Precision a hot product. • Increase sales and market share. There are a couple disadvantages when marketing Precision as a “super-premium” toothbrush to a niche market. The disadvantages include: • The target market is much smaller than the mainstream market. • There also will be less contribution to net profit. There are a several advantages when marketing Precision as a “super-premium” too...