Consequently, there will be inadequate supply of products to meet purchase demands. Clearly, having a visionary CEO is a strength. A Under a mainstream B Under a niche strategy. To add a touch of flare, and for convenience, the toothbrushes could also be designed with a bright streak of color within the silver background for easy differentiation when multiple household members use Precision toothbrushes.
In these areas, competition is intense, therefore, they are not as attractive when positioning a new product. In spite of this, as a mainstream product, Precision will have a lower list price that may cannibalize Colgate Plus sales.
Therefore Colgate has a great opportunity to compete against them with a high quality, effective and advanced product and use its prestige, power and leadership that Colgate have in the Oral Care industry Byung-Do Kim. Consumers differed in the industry of their involvement in oral hygiene: It refers to a specifically defined group of consumers with a need that is not currently well served.
As competitors start introducing more advanced products into the market, Precision can move into the mainstream market, targeting cosmetics brushers. The annual packing capacity is 40 MM units and Colgate plan production is 42 MM units for the first year, therefore capacity is not enough and it would not support additional demand so market objectives wouldn't be reached.
A niche is created from a subdivision of a market segment. The expense of including these consumers in the target market would not be advisable. This incorporates the products brand name, the products features and style, the packaging, and the quality of the product.
ColgateColgate-Palmolive -Palmolive has a large number of stock keeping units for their toothbrush line. To do so, the toothbrush must be positioned and marketed with regard to the physical or actual product. Their plan for emphasized new product launches and entry into new geographic markets, improved efficiencies in manufacturing and distribution and focus on core consumer products toothbrush is one of them.
This product, tentatively named Colgate Precision will be ready to be released into the market in late Threat of new entrants Along with intense rivalry from existing competitors, Colgate-Palmolive has to deal with new competitors. Going even further into the future, the toothbrush will most likely decrease its market growth rate while maintaining its high market share.
These bright streaks should also be the palate upon which the name Precision should be set to serve as a constant reminder of the brand name.
This alternative poses a few strengths if chosen. If any of these rivals creates a toothbrush which tops or even equals the technology of Precision, specifically if done at a lower production cost, ColgateColgate-Palmolive Colgatemay lose market share. At this point, the research and development phase for Precision has been completed, a thorough analysis has been performed on the current market situation, and a marketing strategy has been recommended.
The final aspects of launching a new product must now be investigated — product, price, place and promotion. CP - global leader in household and personal care. We do not believe the opposite would be true, as a niche market will most likely not accept a product that has been offered to the masses as the best value, and then marketed as a specialty item.
The introduction of the nylon bristled toothbrush in represents one of the latest quantum improvements for the industry, however it was not the last. One 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.
Despite all this, there are weaknesses to this alternative as well.
Colgate-Palmolive was faced with the decision of whether to promote the new product as a high quality niche product marketed mainly towards individuals concerned about gum disease, or as a mainstream toothbrush that would be marketed as the best toothbrush available.
A great advantage of offering any eligible product to a niche market is that it allows for a concentrated, specific advertising campaign, targeted to a specific demographic, psychographic, behavioral or geographic segment through whichever medium is most effective at reaching the specific population.
Neither Oral B, which is Colgate's main competitor, and Aquafresh and Crest have done new product launches or line extensions in the past two years. Less plaque in turn leads to the added benefit of a reduction of the likelihood of gum disease.
For example Baby boomer's generation, one of our main targets, look for products that help them to have healthy gums. The silver trade dress will eventually become known to represent the Precision toothbrush and will signify a high quality item that consumers will know by visual cue.
Additionally, to keep Precision as a specialized product means that the new product is less likely to invade the market share of other Colgate-Palmolive products, like the Colgate Plus.
Importance Distinctiveness Superiority Preemptiveness Affordability Profitability Using these parameters, a company can provide the public with a reason to buy their product.
Working with the estimated figures for the first two years of release generates the following table. This product clearly was created with niche-oriented goals. Further, the word Precision exudes many of the qualities that are desirable in a brand name, such as positive attributes, high quality and a name which is easy to pronounce, recognize, and most importantly, remember.
Exhibit 7 Scenario two:. If the company decided to position the Precision toothbrush as a niche product SKU's would not decrease. 4. In case of failure of Precision, Colgate could reduce the losses if costs were to decrease.
Oral B Braun Replacement Brush Heads - 12 Precision Clean Generic Electric Toothbrush Heads For Superior Plaque Removal- Compatible w/ PRO,,Vitality & More! strategies (as a niche or a mainstream product) for Colgate Palmolive 's new toothbrush, Precision, and choose the one that is the most suitable in the face of the market competition and consumer needs.
Branding • Emphasizing the Colgate name on the new Precision toothbrush would cause additional cannibalization of the existing Colgate toothbrushes - estimated at 20% • Using the Colgate name would be congruent with Colgate’s strategy to build the Colgate Brand Equity. 1. CP company should launch Precision as a niche product for the below 2 reasons.
1) Not all of the customers are willing to pay high price for the best toothbrush for their oral hygiene, which is the main objective of the Precision (refer to Exhibit 1). CrossAction Precision Clean Floss Action Pro White Sensitive Ortho Care Deep Sweep All of our brush heads deliver the oscillating/rotating power that makes Oral-B the #1 dentist-recommended brand, but there are a few key differences that make each one unique.
And, since all of our brush heads fit all of our electric toothbrush handles, it’s easy to find the perfect fit for you.The precision toothbrush