In addition, in 1992, Gillette announced that it would restage its dental floss, roll out a new mouthwash, and possibly introduce specialty toothpaste in efforts to be the leader in the oral care category. Its clinically proven active ingredient protects against gingivitis, sensitivity, cavities, and plaque. The recommendations are to help the company continue growing in terms of sales and maintain the competitive advantage it has in the market over its competitors. Based on the research presented in the case, consumers of the baby boom generation have become increasingly concerned about oral hygiene. In order to turn its weaknesses into strengths, the company should come up with a mechanism that will ensure that the global leaders are more accountable for any profits or loses made. I have evaluated three options for reducing costs and increasing sales and have determined that the Chinese marketers decided to change the marketing mix too quickly. This enables them to tailor their marketing plans so that the identified needs are emphasized.
This would be an easy transition in product life cycle. Colgate Max Fresh proved popular in Mexico and profits were seen in the first two years. Implementation An attitude change would need to be addressed first. However, there is another split by category — there is one group responsible for oral care product strategy, resource allocation, and best-practices transfer between regions. Although freshness is a growing market in China, breath strips never caught on and therapeutic toothpastes are big sellers.
After all of these changes and additional costs, Colgate Max Fresh was not profitable in its first two years. Often readers scan through the business case study without having a clear map in mind. Along the way, they have built the U. Benefit Crest Colgate Rank 1. Advertisements will help introduce the product to the consumers and build the brand image whereas promotions will encourage them to use the product and learn about its superior characteristics.
Step 9 - Take a Break Once you finished the case study implementation framework. Current Situation Colgate-Palmolive is a worldwide company that specializes in oral, personal, and home care, as well as pet nutrition. Free toothpaste will be included with the purchase of a Precision brush. Less contribution to net profit in future years. Apart from being more costly, the overall president of the company wondered if they met the requirements of a good marketing strategy and what their impact would be to the company. Through this it targeted both youth segment through Close up and children segment through Pepsodent and has a total market share of 39% 13. Emphasize the therapeutic benefits of the Colgate Max Fresh toothpaste.
It requires transport to be organized and recruitment of people who will do it. This paper will discuss the current promotional strategies of Colgate-Palmolive. The company could try the push strategy where the new product is literally taken to the customers Yeshin, 2006. However, maybe because of the dominance of Colgate in India, this category has a fewer number of brands than, say, soaps. The next step is organizing the solution based on the requirement of the case.
The toothpaste market in India is estimated at Rs 6,000 crore, growing at 19 per cent y-o-y. Most of these strengths are unique to Colgate and can not be easily copied by its competitors as it would take them a long time to be at this level. Instead, the expenses heavily outweighed the revenues. It is not only the older generation which grew up with Colgate, it is a first brand, even for the young, when it comes to oral care. You can use the following strategy to organize the findings and suggestions. From the results of that testing, decide what areas need to be altered for the Chinese market.
When we are writing case study solution we often have details on our screen as well as in our head. This means Colgate needs to drive new customers to try. Business performance through lean six sigma: linking the knowledge worker, the twelve pillars, and Baldrige. The brand has faced bursts of competition from time to time and has fought back effectively to regain market share. Growth Patterns Consumers first purchased toothbrushes without much knowledge or information concerning the product. Suggest guidelines for optimizing new product introductions for Colgate Palmolive worldwide… 1303 Words 6 Pages Problem Statement The aim of this report is to analyze the two different launch 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.
Write to in not more than 700 words. That said, the Colgate Precision has the potential to become a star product. This is evident from the high sales and high profit margins. For instance, when evaluating the advertisements, they should first determine the effectiveness of the United States commercials. Arguments for launching Precision as a a Niche Product and b Mainstream Brand Launching Precision into the market mix would give Colgate-Palmolive sufficient supply to meet the demand for a niche product. The core benefit the product will provide to consumers is total health care. Possible pressure on production schedules resulting in inadequate supply of product.