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It is apparent that the main problem facing Colgate Palmolive (CP) with regard to their new toothbrush is positioning. Once the positioning is identified and adopted the other sub problems of developing a marketing mix, branding and communication to consumers will become somewhat easier to address.

With the correct positioning CP will be able to maximize revenue from the Precision toothbrush with little impact on Colgate Plus.

The Situation:

The new toothbrush (Precision) is clearly more superior to the toothbrushes in the 'professional' category therefore making it more likely to come under the 'super premium' category of toothbrushes. This said CP are also considering marketing the toothbrush under the same category as their best seller Colgate plus.

Alternatives:

The alternatives available to CP are two fold. The first is to market the product as a niche product under the super premium category, which will have implications on the advertising and promotional budgets as well as the shelf location.

The second alternative is to market Precision as a mainstream toothbrush. This alternative will have greater market share and revenue but at what cost to the other products that CP are already successful with? If we look at the positioning map (annex 1) we can see that if Precision becomes a player in the same segment as Colgate Plus we will surely have canabalisation.

Recommendations:

Based on the profit and loss statement (annex 3) CP will be able to generate far more revenue by going mainstream than if they followed the idea of marketing the toothbrush as a niche product. By going mainstream Colgate plus will suffer a downfall in turnover and perhaps face extinction. According to the positioning map (annex1), Precision is in an area that has little competition making it easier to capture that market and attract customers away from Oral-B.

In terms of branding the evidence presented would suggest that the toothbrush should have a name that can be associated with the CP name yet differentiate itself from the other ranges that they are currently successful with, therefore we recommend the name 'Precision'

They should set themselves apart from the super premium by using the toothbrushes superiority over its rivals as a plaque remover which promotes healthy gums. This can be achieved by placing the product on the same shelf as the super premium yet away from there own brands such as Colgate Plus.

Implementation:

CP should use a moderate budget for the purpose of promoting the 'Precision' toothbrush. We believe that CP advertising budget should increase slightly in favour of the new product launch. This will avoid