Scribd Logo
Upload

Welcome to Scribd!

  • Brief Background:: 1991 Colgate Palmolive 16% of World Toothbrush Market 23.3% of US Market $9.8 MN Profit

    Uploaded by

    Dibya
    3 views7 pages
    Colgate held 16% of the global toothbrush market and 23.3% of the US market in 1991, generating $9.8 million in profits. The toothbrush category was changing with new product launches like Oral B's soft bristle brush and electric toothbrushes. By the late 1980s, toothbrushes were viewed as a commodity product. Colgate's Precision toothbrush targeted the premium segment but entering the mainstream market could cannibalize sales of its Classic and Plus brush lines. Remaining in a niche market avoided this risk while still achieving $20 million in projected sales.

    Original Description:

    Colagte palmolive

    Original Title

    CP (2)

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Colgate held 16% of the global toothbrush market and 23.3% of the US market in 1991, generating $9.8 million in profits. The toothbrush category was changing with new product launches like Oral B's soft bristle brush and electric toothbrushes. By the late 1980s, toothbrushes were viewed as a commodity product. Colgate's Precision toothbrush targeted the premium segment but entering the mainstream market could cannibalize sales of its Classic and Plus brush lines. Remaining in a niche market avoided this risk while still achieving $20 million in projected sales.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views7 pages

    Brief Background:: 1991 Colgate Palmolive 16% of World Toothbrush Market 23.3% of US Market $9.8 MN Profit

    Uploaded by

    Dibya
    Colgate held 16% of the global toothbrush market and 23.3% of the US market in 1991, generating $9.8 million in profits. The toothbrush category was changing with new product launches like Oral B's soft bristle brush and electric toothbrushes. By the late 1980s, toothbrushes were viewed as a commodity product. Colgate's Precision toothbrush targeted the premium segment but entering the mainstream market could cannibalize sales of its Classic and Plus brush lines. Remaining in a niche market avoided this risk while still achieving $20 million in projected sales.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Brief

    Background:
    1991
    Colgate
    Palmolive

    16% of world toothbrush market


    23.3% of US market
    $9.8 Mn profit

    Changes occurring in toothbrush


    category:
    19 Launch of tooth
    38 brush by Dr.
    West
    19 Oral B soft
    40 bristle brush
    19 Broxodent
    61 electric
    toothbrush
    19 Viewed as a
    70 commodity
    product
    19 Toothbrush
    87 sales increased

    Positioning:

    Prof Super
    essi Premi
    Value onal um
    Col
    gate 4.9
    Oral
    -B
    0
    J&J
    0
    Lev
    er
    4
    Oth
    ers 11.1
    Total 12

    18.5

    0
    0

    30.7
    20.9

    23.5
    42

    46
    46

    Math of Niche vs
    Mainstream:
    Nic
    Main Main

    he
    strea strea
    Ye Nich m
    m
    ar e Year Year
    1 Year 1
    2
    (3 2 (10% (14.7
    %) (5%) )
    %)

    Total
    Mark
    et
    Size
    (Unit
    s)
    Expe
    cted
    Mark
    et
    Shar
    e
    Manf

    26
    80
    00 300 2680 3000
    00 000 0000 0000
    0 000 0
    0
    80
    40 150
    00 000 2680 4410
    0 00 0000 0000
    2.0

    Impact of cannibalization on going


    mainstream:
    Precision in Main
    stream + No adv.
    budget cuts for
    Classic and Plus
    20.4 12 = 8
    Mn

    Precision in
    Mainstream + adv.
    budget cuts for
    Classic and Plus
    in proportion of
    sales
    20.4 0.7 =
    cannibalization
    19.7 Mn

    Precision in Niche
    with no
    cannibalization of
    Classic and Plus
    8.7 + 11.3 = 20
    Mn

    Marketing Recommendations:

    You might also like