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COLGATE-PALMOL The Preci
Toothb
Section A G
Stuti Relan Tanushree SararSi!!hartha "anoi
Pi#ush Vats
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Proble& State&ent
$e)nin* a &aretin* strate*# +Pos'ran!in* an! Co&&unication strate*iesne/ pro!uct: The Precision Toothbrush
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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
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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
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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#
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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>
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'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&
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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
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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
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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
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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
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Than =ou