Prospenetration of Super Premium Market

Exhibit 1

Niche (Super-Premium) Main Stream (Premium)

PROSpenetration of super premium market.

Easiness of production (enough capacity)

The niche market could later be broadened to mainstream position. Less cannibalization of the Colgate Plus.

There is less competition in the "super-premium" niche market.

Not high advertisement and promotion costs

Big segment market (10% toothbrush market)

Higher volume sales

The demand could create the consumers to make Precision a hot product. Increase sales and market share.

CONSThe target market is much smaller than the mainstream market. There also will be less contribution to net profit.

Possibility of large cannibalization of Colgate Plus Company's Weaknesses:

*CP has been the laggards in advertising and marketing in the late 1980's.

* Colgate has never placed any toothbrushes in the "Super-premium" toothbrush category.

Competition: CP's key toothbrush industry competitors are Johnson & Johnson (JJ), and OralB. All these have an extensive product (toothbrushes) portfolio offering distinct characteristics (design, bristle type, headsize, etc.) and claiming different

benefits. Out of the competitors OralB was the strongest (second after Colgate). It had 23.1% of market share with 27 SKU in its portfolio. Third came JJ, with a 19.4% of the market share and a product portfolio of 18 SKUs.

Costumers: Toothbrush users were divided in 3 segments: uninvolved oral health consumers with a 33%, involved oral

health consumers interested in cosmetic benefits with a 21% and involved oral health consumers interested in functionally

effective products. Consumers concerns regarding have shifted from "cavity prevention" to "healthier gums." The baby

boomers are more concerned with healthier gums rather than the whiteness of their teeth and are willing to pay more for a superior toothbrush that would protect their gums against disease. The purchasing behavior of this crowd is impulsive and they choose brand on features, comfort, and professional advice. Marketing Mix.

A. Product

The Precision toothbrush that CP developed is a unique brush with 3 different bristle lengths and angles. This design allows

for 35% more plaque removal and also proves to be more effective in reducing gum disease than the leading brushes, specifically Reach and Oral-B.

B. Price

The