Colgate palmolive-precision toothbrush case in 1992, colgate-palmolive (cp) was the global leader in household and personal care products like toothbrushes and toothpastes in 1991, its sales topped at $6 billion and profits at $276 billion and it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. colgate palmolive case analysis “position niche vs mainstream: in respect to sales cannibalization” analysis of the marketing strategic for colgate-palmolive's (cp) new product launch of “precision by colgate” toothbrush. There would be the cannibalization because precision would be distributed through the same channels as colgate plus and cp will suffer the loss of its revenue from the competition between colgate plus (majority market share in cp's toothbrush market) and precision. Colgate-palmolive case study colgate-palmolive case study colgate-palmolive case study placing precision into the mainstream market will increase the percentage of cannibalization of the colgate plus toothbrush this is due to compete in the same market segment, consumers will likely buy more accurate if it was in the same price range as. Colgate-palmolive (cp), the leading retail toothbrush manufacturer in the united-states is looking to expand its market share by entering into the competitive high-end toothbrush market segment with the introduction of its technologically innovative precision.
Harvard business review:case study-colgate palmolive company:the precision toothbrush colgate case study- harvard business review 1 the precision toothbrush 2 define positioning, branding and communication strategies for the new toothbrush-colgate precision pre-forma income statement-cannibalization analysis 16. This raised concerns about possible cannibalization of colgate plus and inadequate supply of the product inadequate supply could create the perception of a ðž§hotðžð product but some executives thought shortage should be avoided if possible. Assumption 1: cannibalization at food stores and drug stores would be almost negligible but there may be 100% cannibalization in units sold through professionals for colgate total units of precision expected to sell by professionals ( dentists) : 3 mm revenue loss : (3mm 1.
Colgate max fresh will need to compete with its own joint venture brand darlie(high end) due to new product introduction at the super premium toothpaste market competitor crest has 3% growth year to year, colgate equity brands have been stagnant for 3 years. The µsuper-premium¶ segment is fundamental to colgate-palmolive¶s strategy in the u cannibalization of the existing colgate plus and classic lines is most likely and even under the most conservative cannibalization estimates the figures are unattractive (see exhibit 3. Read this business case study and over 88,000 other research documents colgate palmolive company - the precision toothbrush colgate palmolive company ўv the precision toothbrush 1 the toothbrush market was divided into three segments: super-premium, professional, and value. Though the productðž¦s introduction promised highly profitable returns, it also presented colgate with a number of challenges including a significant financial investment, fierce competition, manufacturing limitations, and potential cannibalization.
Procter and gamble company (a) case solution the light duty liquid detergent market is a mature industry and the company normally introduces a new product every two and half years and the company introduces two price brands each year and discontinues them per year. Ps&d volume after cannibalization equals 25596172 8 which is the sum of cases sold for the 3 p&g brands, less the cannibalized volume from ps&d total volume for p&g with the inclusion of the new performance brand is ps&d volume after cannibalization of 25596172 8 which includes 612057 6 of new product total volume earned. Colgate-palmolive case study essay sample decrease the risk of cannibalization of the colgate plus market expand into new geographic markets ii situation colgate palmolive is a global leader in household and personal care products the strengths of cp include the following. Analysis of colgate palmolive precision toothbrush by group 4 synopsis introduction 1 the paper discusses the state of oral health care market in us in early 90s and analysis of various market factors affecting positioning, branding and communication strategy of a new product to be launched by colgate palmolive.
Colgate palmolive case report length: 1302 words (37 double-spaced pages) rating: excellent the cannibalization of colgate-palmolive's other super-premium toothbrush, the colgate plus the mainstream position would probably lead to the reduction and removal of one or more sku's. In august 1992, colgate-palmolive (cp) was poised to launch a new toothbrush in the united states at that time, cp offered two lines of toothbrushes '' colgate classic and colgate plus as well as to reduce cannibalization on colgate plus and classic colgate palmolive case analysis colgate. Proctor & gamble scope case analysis essay industry this mouthwash market was initially developed by warner-lambert being pioneered by brand listerine - proctor & gamble scope case analysis essay introduction in 1977 warmer-lambert launched listermint mouthwash as a direct competitor to scope. This raised concerns about possible cannibalization of colgate plus and inadequate supply of the product inadequate supply could create the perception of a ¡§hot¡¨ product but some executives thought shortage should be avoided if possible.
Colgate palmolive was incorporated 1806 in new york city by soap and candle maker william colgate colgate now is a leading multinational firm, operating in 200 countries and territories, within the personal, oral & home care and pet nutrition industry it is headquartered in midtown manhattan and. A solely market oriented strategy would lead to consequences such as colgate suing p&g, in case of ‘mumbles’ advertisements, and erosion of the perceived value of the product, in case. Colgate cannibalization case as with most firms, cap aims to increase market share through the launch of a new product while minimizing the centralization of the existing colgate plus product what segment should cap target and why.
Exhibit 1 shows the amazing impact of the super-premium statement analysis supports the decision as does the cannibalization analysis further supporting this from the case shows colgate has significantly more sku’s than their competition colgate should evaluate. Colgate palmolive-precision toothbrush case colgate – palmolive company: the precision toothbrush i-synopsis in 1992, colgate-palmolive (cp) was the global leader in household and personal care products like toothbrushes and toothpastes. The case talks about the takeover of tom’s of maine, the leading player in the natural personal care market in the us, by colgate palmolive in early 2006 colgate is the market leader in oral and personal care markets the world over.