Colgate-Palmolive Case Study

Colgate- Palmolive Corp

Protagonists

Inditex and how its largest retail chain Zara has been so successful through its simple business model of speed, flexibility, and high fashion

1. Problem

Colgate-Palmolive (CP) needs to determine how Precision should be positioned in the tooth brush market. Colgate must decide what segment of the market to target and how Precision should be marketed to its target market. Colgate's objective is to position and market Precision to fully utilize the products potential.   To accomplish this objective, Colgate must determine what segment Precision should target, the super premium niche or the broader professional brush market, and the marketing mix that would be most effective for that position.

2. II. Solution PossibilitiesIssues

a. Strengths:

* Colgate is a well-known brand name in the Oral Care industry.

* CP is creating a new and innovative product, Precision.

* CP has up-graded 25 of 91 manufacturing plants.

* CP acquired Mennen, a men's toiletry company.

b. Weaknesses

* CP has been the laggards in advertising and marketing in the late 1980's.

* Colgate has never placed any toothbrushes in the "Super-premium" toothbrush category.

* Colgate does not have a tooth brush currently positioned in the super premium niche.

* Oral B, Johnson & Johnson, Procter & Gamble and Smithkline Beecham currently compete in this product segment.

c. Opportunities

* The baby boomers are more concerned with healthier gums rather than the whiteness of their teeth and are willing to pay more for a superior toothbrush that would protect their gums against disease.

* The super-premium niche is growing. It accounts for 35% of unit volume and 46% of dollar sales.

d. Threats

-All three of CP’s top competitors (Johnson & Johnson, OralB) have an extensive...