Colgate-Palmolive Precision Toothbrush Case Study

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Assignment # 2 MARK 301
Question 1:
The five most important strengths that should be included in a Highlighted SWOT are: * The Colgate Precision Toothbrush is the most efficient in Plaque removing (up to 35% more efficient than any other toothbrush on the market) if used usually. * Thanks to its conception, it is the most efficient of the market to access the spaces between the teeth and the front and back teeth. * There is only one models with bristles of three different length and orientations, so that it fits to everyone. * How advanced the product is, the price is competitive, in the super-premium range. The price is $2.13 for one strategy, 1.85 for the other. * The name of the toothbrush has been well chosen, the name precision let think of efficiency and quality, with the strong brand Colgate. Question 2:

To calculate the break even point, we have divided the total fixed cost by the difference between the retail price and the unit cost.  | As a Niche product | As a mainstream product |
Capacity year 1| 13 000 000 units| 42 000 000 units|
Capacity year 2| 20 000 000 units| 59 000 000 units|
Investment in capacity year 1| $ 3 250 000 | $ 9 100 000 | Investment in capacity year 2| $ 1 300 000 | $ 3 900 000 | Depreciation cost year 1| $ 316 667 | $ 886 667 | Depreciation cost year 2| $ 450 000 | $ 1 270 000 | Per unit cost| $ 0,66 | $ 0,64 | Manufacturer price| $ 2,02 | $ 1,76 | Total unit cost| $...
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