COLGATE-PALMOLIVE Precision Toothbrush

Embed Size (px)

Citation preview

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    1/12

    COLGATE-PALMOL The Preci

     Toothb

    Section A G

    Stuti Relan Tanushree SararSi!!hartha "anoi

    Pi#ush Vats

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    2/12

    Proble& State&ent

    $e)nin* a &aretin* strate*# +Pos'ran!in* an! Co&&unication strate*iesne/ pro!uct: The Precision Toothbrush

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    3/12

    Maret Situation

    • 0S Toothbrush &aret+In 11 2 0S 3 456 M7

    • CP8s share 2 0S 3 99 M7

    • Maret *ro/th 2 6; per annu& since 1 2 Maret *ro/th 2 1

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    4/12

    Consu&er 'eha(iour

    •  Tooth brush &aret is close to a centur# ol!, !eca!es ha(e /itnesse! &an# chan*es

    • $e&an!e! bene)ts

    • Ca(it# Pre(ention

    • ?ealthier Gu&s

    • =oun* *eneration rea!# to pa# .or superior toothbr

    • Maret is e&er*in* .ro& (alue an! pre&iu& rancate*or# o. @Super Pre&iu& ran*e 2 Enhance! O

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    5/12

    Co&petitors

     Super Pre&iu& Pro.essional Value

    Oral ' Oral ' In!icator, Oral' re*ular

     

     onhson D ohnson Reach A!(ance! Reach Re*ular

    PDG Crest Co&plete

    S&ithline'eecha&

    Aua.resh Fe%

    Col*ate  Col*ate Precision Col*ate Plus Col*ate Classic

    Pepso!ent Pepso!entPro.essional

    Pepso!entRe*ular

    Col*ate !oesn8t ha(e a Super Pre&iu& cate*or# entr#Col*ate precision can be a ne/ entr# in that cate*or#

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    6/12

     The Pro!uct: Precision Toothbr

    •  The Precision toothbrush is a technical inno(ati

    • 0sin* in.rare! &otion anal#sis, CP !e(elope! a /ith bristles o. 6 !ierent len*ths an! orientatio

    •  Three brush !esi*ns e(ol(e! /ith 65; &re&o(in* eHcienc#

    •  The brush is also sho/n to be &ore eecti(e

    *u& !isease than the lea!in* brushes, specan! Oral-'

    • Retail Price .or Mainstrea& &aret: 3>4

      Retail Price .or 7iche &aret: 3>

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    7/12

    'ran!in*

    Reco&&en!ation

    ColPrec

    7a&in*Su**estions

    • Col*atePrecision

    • Col*ates#ste& III

    • Col*atea!(anta*e

    •Col*ate 1>6

    • Col*ateContour

    • Col*atesensation

    • Col*ate Probe

    In or!er to &aintaino. Col*ate8 an! Pre Precision shoul! bethe cannibalis&

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    8/12

    Pro&otion

    • 0n!er the niche &aret

    • A**ressi(e a!(ertisin* ca&pai*n - !e&onstrate techno. the toothbrush

    • 0n!er the &ainstrea& position

    •  Throu*h )nancial incenti(es lie Coupons , bu# one *e

    •  Throu*h pro.essional channels 2 $entists

    • Consu&er pro&otions in stron* CP &aret• a .ree 5 oJ Tube o. Col*ate toothpaste /ith a Precisio

    • a 5K;-o oer on Col*ate toothpaste

    • a 5K cent coupon

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    9/12

    Positionin* Strate*# : Pros an! Cons

    Main Stream Strategy

    Pros Cons

    0nsatis)e! !e&an! coul! createthe perception o. a ?ot pro!uct,/hich &a# increase sale

    Greater erosion o. Col*ate Plus

    Possible increase in salesMa# reuire !roppin* one o. theslo/ &o(in* Chil!ren8s brush .ro&the Plus line

     Possible pressure on pro!uctionsche!ules resultin* in ina!euatesuppl# o. pro!uct

      More co&petition

    Niche Market Str

    Pros

     7iche coul! later be broa!ene! to a&ainstrea& position as a!!itionalcapacit# ca&e on line This /oul! be aneas# transition in the pro!uct li.e c#cle

    Le.u

    Less erosion o. Col*ate Plus Thepro!ucts are &ore isolate!

    Entr# into ne/ superior toothbrush&aret /hich CP currentl# hol!s noposition

    CP /oul! .ace less co&petition

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    10/12

    Cost Anal#sis

      7iche Se*&ent Mainstrea&

    E%pecte! $e&an! In t/o #ears in units >1

     Total E%penses in &illion !ollar 49 161

    Sellin* Price per unit >K> 1

     Total inco&e in &illion !ollar 55 151

     Total E%penses in &illion !ollar 1K5>99 >; 145

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    11/12

    Reco&&en!ation

    • Tar*et the therapeutic an! cos&etic brushers

    •Enter the Super-pre&iu& niche &aret in short ter&

    • h#N

    • ?i*her percenta*e o. pro)t +>11>;,earl# breae(en

    •  1K Month lea! ti&e .or &ainstrea& Enterin* niche /ill sa(e co. in(entor#

    • Mo(e to Mainstrea& &aret in lon* ter&

    •h#N•   7iche strate*# cannot hol! lon* !ue to potential co&petito

    pro!ucttechnolo*#

    • Relati(e easier &o(e .ro& hi*h en! to lo/ en! since &aret o. broa!er

    • Pro)t nu&bers .ro& CannibaliJation calculation since /hen hi*her enou*h, pro)t .ro& Precision /ill e%cee! loss sue to cann

  • 8/19/2019 COLGATE-PALMOLIVE Precision Toothbrush

    12/12

     Than =ou