Colgate Case Analysis
Defining the Problem
The focal issue of this case is to determine the best marketing strategy for the launch of the new Colgate Precision. The issue can be divided into the following four major areas:
1. Positioning: Which market should be targeted?
2. Branding: Should Colgate make the most of the company’s brand?
3. Communication & Promotion: How does Colgate distribute its advisement expenditures among products? How much should Colgate invest in advertising Colgate Precision?
4. Channel: Which distribution channel should Colgate use?
Our team must analyze the two differing launch strategies – niche and mainstream – and select the path that is the best fit given consumer need and competition in the marketplace. We will be using thorough analysis to calculate the revenues and costs of each strategy, as well as analyzing the various marketing components of the launch, in order to make an informed decision for Colgate-Palmolive.
3C Analysis
While Colgate has not previously competed in the super-premium segment, it offers a high-quality product – Colgate Plus – that can compete with super-premium brushes such as Oral-B’s products. As a result of its popularity, Colgate Plus’ dollar market share has grown from 12.6% in1989 to 18.5% in 1992. One of Colgate’s competitive advantages is its toothpaste brand, which held 43% of the world market share in 1991. Although Colgate’s products are described as “oddly-shaped”, by combining its toothbrush with Colgate-branded toothpaste in a single display, toothbrush sales grew by 170%. Additionally, Colgate’s facility is aligned with mass production, it adopts streamlined manufacturing, and it also has a strong distribution channel in “Food and Mass” trade classes.
Customers can be classified into three segments: Therapeutic, Cosmetic, and Uninvolved. As competitors have been launching a variety of new products, customers have increasingly emphasized a preference for toothbrushes with performance benefits. Specifically,
The focal issue of this case is to determine the best marketing strategy for the launch of the new Colgate Precision. The issue can be divided into the following four major areas:
1. Positioning: Which market should be targeted?
2. Branding: Should Colgate make the most of the company’s brand?
3. Communication & Promotion: How does Colgate distribute its advisement expenditures among products? How much should Colgate invest in advertising Colgate Precision?
4. Channel: Which distribution channel should Colgate use?
Our team must analyze the two differing launch strategies – niche and mainstream – and select the path that is the best fit given consumer need and competition in the marketplace. We will be using thorough analysis to calculate the revenues and costs of each strategy, as well as analyzing the various marketing components of the launch, in order to make an informed decision for Colgate-Palmolive.
3C Analysis
While Colgate has not previously competed in the super-premium segment, it offers a high-quality product – Colgate Plus – that can compete with super-premium brushes such as Oral-B’s products. As a result of its popularity, Colgate Plus’ dollar market share has grown from 12.6% in1989 to 18.5% in 1992. One of Colgate’s competitive advantages is its toothpaste brand, which held 43% of the world market share in 1991. Although Colgate’s products are described as “oddly-shaped”, by combining its toothbrush with Colgate-branded toothpaste in a single display, toothbrush sales grew by 170%. Additionally, Colgate’s facility is aligned with mass production, it adopts streamlined manufacturing, and it also has a strong distribution channel in “Food and Mass” trade classes.
Customers can be classified into three segments: Therapeutic, Cosmetic, and Uninvolved. As competitors have been launching a variety of new products, customers have increasingly emphasized a preference for toothbrushes with performance benefits. Specifically,