Colgate-Palmolive Case Study.

I. Problem. In 1991 and 1992 Colgate-Palmolive (CP) been a dominant force in the Oral Care industry, mainly in the toothbrush segment. CP has been an successful company since the introduction of Colgate Plus, a toothbrush with a diamond-shaped head, in 1985. CP has consistently continued with research and development since the Colgate Plus breakthrough. However, when Aim entered the market in 1987, they focused on comfort, which made Colgate's market share suffer. CP has a unique toothbrush that …

…Justification. The recommendation is for Colgate Palmolive launch the Precision into the "super-premium" niche market. CP can lower price of the toothbrush once the sales of the Precision plateau or decline, which will allow for premium toothbrush market penetration. This will allow for maximum penetration and growth in both markets. On the following page is a Marketing Mix profit-and loss pro forma that displays the profits after year 1 and year 2. Table 1. Marketing Mix Pro Forma