On the X-axis we have the therapeutic consumer. Our focus on loyalty eliminates the possibility of targeting uninvolved brusher who are motivated solely by price rather than additional features. CP places the product firmly in the super-premium bracket. Thus we should emphasize the triple-action-brushing feature that differentiates the product by providing a superior clean.
A long term strategy could be to closely monitor sales data of the two products and the cannibalization effect. We know that customers are not heading to the store with a specific product or need in mind.
Also, from exhibit 8the shares of voice is bigger when the expenditure on media is higher. The middle ground between the two extremes are customers who are uninvolved and simply Colgate cannibalization case the product to prevent oral problems.
The product should be priced at 2. On the other hand we have Colgate cannibalization case costumers, who are more concerned with cosmetic factors such as bad breath. Raise the total communication and promotion budget and how to distribute this raise among Classic, Plus, and Precision.
How will the proposed solution be implemented — ups? In a niche market, the disadvantages are that the product reaches a smaller audience as it is only sold at food and drug stores. We want to position our product with the strongest value proposition for mainstream customers, entailing a range of oral benefits.
This refers to consumers who use the product due to health concerns e. It is being positioned to target consumers who are concerned about gum disease. What segment should CAP target and why?
The Super Premium category shows the strongest growth whilst the other two categories are stagnating and declining respectively, as we know from the case Appendix 1. According to Exhibit 11, the weight of media advertising is increasing and as we know from the report the more test consumers were told about Precision and how it worked, the greater their enthusiasm for the product was.
While we believe that CAP should minimize centralization of its existing professional tier offering Colgate Plus, we do not believe that centralization should be a major concern. Colgate Cannibalization 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.
Value, Professional, and Super Premium. Thus, positioning Precision as niche would assume that customers are specifically shopping for gum disease relief, which we know is untrue.
Of the brand names tested, Colgate Precision was consistently viewed more favorably and for this reason, we therefore advise using this name for the product. Promotion should focus on educating consumers, thus increasing the perceived benefits because customers are more aware of the variety of health benefits associated with the product; we also believe that education can induce consumers to purchase more regularly as recommended by dentists.
Whether the product is launched as niche or mainstream, one of our main considerations is to avoid cannibalization of Colgate Plus. Centralization at higher sales price results in the increased revenues Given the financial, we see that both strategies will result in positive NIP projects but the mainstream route will result in a higher NIP due to sheer volume of sales.
The advantage of placing Colgate precision in the mainstream market is that it would be distributed through many mass merchandise and clubs stores, reaching a larger market. The advantages of positioning Colgate Precision as a niche product are that, despite lower profits see Appendix 2profits are still obtained and cannibalization of the mainstream product is kept to a minimum.
In terms of communication and promotion budget, CP is faced with two budget decisions: This is demonstrated in the 4th concept test in Exhibit Furthermore, on the Y-axis, we can see the price segments:From the analysis of this case and by evaluating different sales and costs scenarios (cannibalization factors used in calculations) as shown in Exhibit 2, the recommendation is that CP proceeds with the launching of its "Precision Toothbrush" as a Niche product.
Colgate palmolive mba case study 1. Colgate-Palmolive Case Study Charles Laffiteau 2.
1 Colgate Palmolive (CP), a market leader in the development and delivery of oral care products, finds itself in a promising yet challenging position in as it attempts to launch a revolutionary new product for the discriminating, “orally aware” consumer.
CP. Colgate Palmolive Case Analysis “Position Niche vs - Colgate PalmOlive Case Study introduction. Mainstream: In Respect to Sales Cannibalization” Analysis of the marketing strategic for Colgate-Palmolive’s (CP) new product launch of. Colgate-Palmolive Case study Analysis 1.
COLGATE-PALMOLIVE A GLOBAL LEADER IN THE HOUSE HOLD AND PERSONAL CARE PRODUCTS. 2. • It was estimated,both under mainstream and niche positioning scenarios, the cannibalization figures For Colgate plus would increase by 20% if the Colgate brand name was stressed. 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. Colgate Palmolive Case Report.
Length: words ( 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.Download