Case Study: Colgate-Palmolive Company: the Precision Toothbrush

1. Executive Summary

The most important goal for Colgate-Palmolive is to increase market share to 30% by making the Precision a mainstream product. In addition, it should target involved oral health consumers – both therapeutic and cosmetic. The key impediment is the strong presence of Oral-B in the health-conscious sector as well as in the dentist industry. The best solution to overcome this impediment is to advertise directly to the target consumers through hospitals, beauty shops, and drugstores, and emphasizing the Precision as having both health and beauty benefits.

2. Problem Analysis

A) Goal

The bottom-line marketing goal is to increase the market share of Precision in the toothbrush industry up to 30% and thus establish its position as a mainstream product
Increasing profit margins is difficult with cheap products like toothbrushes as there is relatively little leeway in setting prices or cutting costs. Total sales are hard to define, as it is uncertain just how well this innovative product will do. Thus, market share is the best goal for Precision. Because the size of the toothbrush industry is somewhat limited by the relatively stable demand, an increase in sales is usually from stealing sales from other brands instead of being newly generated. Thus, it is important to be able to steal market share from competitors. The Precision must aim towards becoming a mainstream product and seek to capture 30% of the toothbrush market.

The consumer marketing goal is to target the health and beauty-conscious consumers, those who actively seek out the best product for their needs.
An innovative toothbrush is not big news for the passive consumer, as they are more likely to seek cheap toothbrushes. However, the active health and beauty-conscious consumers are easy targets for Precision, as they will be won over by its benefits. These are the ones who are willing to pay higher prices for a better brush. Also, health and beauty are two factors that are...