2.
By 1991, a global leader in household products.
Emphasis on new product launches.
To enter new geographic markets.
WHY LAUNCH A NEW
PRODUCT?
3.
Strategic acquisitions.
Manufacturing in China and East Europe to avail
low production cost.
Investment in R&D for new technologies.
TOWARDS AN EFFICIENT
LEADERSHIP
4.
Colgate Classic: positioned in value segment.
Colgate Plus: higher quality product for professional
segment.
PRODUCT SEGMENTATION
6.
Launched with the
objective of being the
best brush .
A SUPER PREMIUM
PRODUCT……
Mainstream positioning
would result in 10%
volume share in a year
as compared to 33% in
case of niche positioning.
7.
Somewhere in between
Colgate Plus and Oral B
products.
Initial discounts and
mainstream price.
But mainstream product
implies more supply.
However can lead to
cannibalization.
PRICING AND SITUATION
8.
VIEWS RELATING TO
POSITIONING
I consider , already well established market is meant
to bring newer and modified products with
enhanced versions.
Precision , since targeted towards gum disease , it
had a message.
Lethargic projects to be shut and greater focus over
premium products with increment in investment.
So initial launch with high price as a brand would be
somewhat lucrative.
9.
Surveys revealed that the
primary utilization of
toothbrush is to remove the
food particles.
Plaque removal and gum
stimulation comes secondary.
Consumers’ shifting concern
towards health of gum.
Willing to pay attention
towards secondary issues.
RESEARCH AND
SURVEYS
10.
Oral-B: The dentist’s
toothbrush.
Its product lines comprises of
oral-b indicator product.
COMPETITION
13.
In store promotional activities.
Adequate media expenditure.
Incentives and offers using the established platform
of Colgate toothpaste to create and introduce the
new brush via coupons and discounts on paste.
PROMOTION
20.
Precision: Launch program for a main stream
positioning strategy or niche positioning.
Segmentation of promotional budget.
A greater % for precision or allocation as per sale of
each product i.e. Classic, Plus, Precision.
The Challenges….
22.
‘Plus’ a mainstream brand
and pioneer of its
toothbrush line i.e. of
company.
Less for Precision and
more for Plus to defend its
market position.
So is niche positioning a
considerable solution for
Precision.
Will 2 toothbrush category
simultaneously be
supported?
ARGUMENTS AND POINTS TO
PONDER.
23.
Precision should reach
its full sales potential.
Increased budget for
Precision promotion
compared to Plus.
Providing incentives and
offers based on
established categories.
A mainstream launch for
precision.
STEINBERG’S IDEOLOGY.