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Colgate-Palmolive (CP) operates in a highly competitive market with substantial new product activity. After three years of development, CP has a new toothbrush that is ready to be delivered to consumers. Their main challenge is deciding how to position this product, which they have tentatively named Colgate Precision. One major business issue is that CP developed this product before identifying the target consumer segment it will benefit. According to CP’s research, consumers fall into one of three segments: Therapeutic Brushers, Cosmetic Brushers and Uninvolved Oral Health Consumers. CP needs to decide which segment will value the product benefits most while maximizing profits before they can determine how to price and market the product.
The second business issue is deciding how to position this new product. Precision was developed with the goal of creating the best brush on the market, which makes it a super-premium product. The major benefit it provides is a 35% increase in plaque removal when compared with other leading toothbrushes, including Oral-B and Reach. Given this, CP has the option to position Precision as a niche product targeted toward consumers concerned with gum disease or as a mainstream brush with broad appeal of being the best product available. CP’s objective is to maximize their ROI of the Precision line through effecting branding and communication to consumers.
To successfully introduce the Colgate Precision, we suggest that the company introduces the product to a limited customer segment that is concerned with their oral health and is relatively well informed about the subject. There is evidence (Exhibit 17) to suggest that the product has a broader appeal, but most of those same people do not plan their toothbrush purchases and will grab anything off of a shelf that looks interesting and high quality. The segment of consumers that is

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