Posted at 10.01.2018
The decision on where you can place the new toothbrush on retail racks is another essential requirement of positioning. Colgate-Palmolive chose to place the toothbrush among one of their existing products and a competitor's product. Adding the new toothbrush next to a competitor's product, it may lead to the buyer questioning which product is better, hopefully causing the buyer to try the new product, over its contending product.
The perfection toothbrush should be displayed as an in-store screen near to Colgate toothpaste. Research suggests that typical toothbrush screen more sales by 90% over a normal shelf facing, but when Colgate toothbrushes were coupled with Colgate toothpaste in one display, toothbrush sales increased by 170%. So to be able to increase sales, it might be better for CP. Co to sell the Accuracy Toothbrushes combined with Colgate toothpaste.
The position of the Detail toothbrush could be topic or mainstream. If the position were to be topic, amount would be located on preventing gum disease. If the position were to be mainstream, focus would be placed on "being the most effective brush on the market". The Perfection should be positioned in the mainstream market with a note of high "efficacy" and fantastic "feeling". To converse this position, Colgate should increase its toothbrush advertising spend to $32. 8M.
Customers looked for toothbrush which is effective in getting rid of unwanted plaque and comfort. Since this space is not occupied by other rivals, the business could position the toothbrush as the utmost comfortable and effective toothbrush on the market. To be able to connect this position, the company should increase advertising spend to $32. 8M. This positioning has mainstream appeal which will help Colgate to achieve and its market show and profitability goals in comparison to positioning predicated on preventing gum disease only.
Based on these research, there could be two options to position the product and be top-of-the range.
Position the product under Super-Premium segment
Use protections of "gum disease" as a main idea to position the product since we realize the consumer have become more health conscious.
Use Niche strategy to enter the market and then branch out to Mainstream due the added advantages
1) Niche Placement Strategy
Niche marketing can be achieved by liberating the Colgate Precision Toothbrush in the super-premium market where CP has no product under this segment. This would ensure that CP competes directly with Oral-B's ultra prime product without influencing the Colgate plus market. Steinberg needs to capture 3% of the U. S toothbrush market in that way commanding a 15% high quality over Oral-B. Development of the CP perfection toothbrush could be subcontracted to Anchor Brush Company (who are responsible for developing Colgate plus toothbrushes) including warehousing and travel cost. Under this plan, Steinberg understood that CP would establish a factory list price of $2. 13, which reaches relative parity with Oral-B signal and high grade over Oral-B regular. With market positioning Steinberg assumed that sales would represent 3% volume talk about in year 1 and 5% in time 2.
1) Mainstream Setting Strategy
As a mainstream product, Steinberg presumed that Perfection toothbrush would get a market talk about of 10%, provided the stock price would be $1. 85 on par with Oral-B regular. The downside of mainstream release is the cannibalization of Colgate Plus and pressure on development schedules that were developed for topic positioning.
The toothbrush category is split into two segments: value and professional. Also, the toothbrushes are differed by bristle type (firm, medium, soft and further gentle) and by head size (full/adult, compact and child/young ones). In the beginning the toothbrushes were unveiled based on functional features however in the overdue 1980's this transformed and many new toothbrushes were presented based on aesthetic and undoubtedly this transformed because in 1991 new product release were again focused on technical performance advancements. Generally, different people have various needs for buying toothbrush.
Furthermore, we have three sets of consumers:
- Involved oral health consumers- healing brushers 46%
- Involved teeth's health consumers- beauty brushers 21%
- Uninvolved teeth's health consumers- 33%
So we've consumers who search out functionally effective products in order to avoid oral maintenance systems, consumers who search for products that deliver cosmetics advantage (such as avoiding bad breathing and/or ensuring white teeth) and the previous group who views the merchandise as the same. These kinds of consumers are not determined by oral health care benefits and adjust their behavior only once they confront oral health problems.
For most consumers toothbrushes were as important as toothpaste to effective dental hygiene and that the primary role of a toothbrush was to remove food contaminants; plaque removal and gum arousal were considered secondary. CP predicted that 82% of toothbrushes purchases were unplanned. The common or substitutes of the toothbrushes were only one time every 8. 6 weeks in 1990, 7. 5 in 1991 and due to the prevalence of "two-for-one" the average was 12. 4 a few months in 1990 and 9. 7 calendar months in 1991.
Consumer tendencies for toothbrushes and toothpastes is different. The toothpaste is distributed by customers of the same household. Consumers are more careful in choosing the right toothbrush rather than toothpaste. Folks are choosing the toothbrush based on their specific needs about size, the deal with, the bristles and mind shape of the toothbrush and everything that based on the condition of the mouth area.
2) Under product segments, the Perfection toothbrush must give attention to the soft-bristle brush (that includes a 48% market share and growing at the pace of 7% per calendar year) and on Extra-soft-bristle (market talk about of 5% and keeps growing swiftly).
3) CP must develop process for consumers of the baby boom technology as research shows that they were becoming more concerned about the fitness of their gums, in addition these individuals are prepared to pay reduced for the product.
My advice are based after a market segmentation of seniors that have a concern with their teeth's health and hygiene. So the primary emphasis market has to be the therapeutic brusher (46% consumers opt from it!). The consumers must be convinced in the product, with the test trials showing the average 35% advancements in plaque removing functions. Further, support from oral professionals will reinforce the idea of improved oral hygiene.
Subsequently, the restorative users would become more willing to hear promotional campaigns related to Accuracy toothbrush. Even the dental professional provides the most effective means with which to communicate the effectiveness of the Detail Toothbrush. So it is very very important to CP Co to determine a communication channel to tap this strategy for promotion, thus helping Precision shoot market share from Oral-B
With the increase of the baby-boom generation now at a point where they control almost all of the nations disposable income, enough time has come for them to pay more focus on their tooth and demand or better boost the demand for toothbrushes and other oral care products that will assist them. This increased demand for better more effective oral care products is exactly what developed this specific niche market in the first 1990's in the dental health care industry.
Therapeutic Brushers: This portion of the market is the hottest growing market and CP's latest endeavor with Accuracy. These consumers use a toothbrush as an instrument that helps protects gum disease, teeth decay and gingivitis. The principal shoot for these brushers is to avoid oral care problems. They'll most likely go to the dental practitioner at least two times in a time for routine check-up and follow tips of the dental treatment professional more religiously than others. The leading brand of preference in this group is Oral-B Viewpoint and Oral-B Regular.
Cosmetic Brushers: This section of customers give attention to the cosmetic gain that toothbrushes give them. This portion can fall victim to the statements of a toothbrush to provide cleaner, whiter pearly whites and long lasting fresh breath than the other toothbrushes. They are not as spiritual with following oral good care professional's advice, but will observe it because of plastic benefits. In case the classical or Plus offering can manage their needs they might not bother with the super superior class toothbrush. Right now, CP's Plus and Classic hold an enormous market show in this section.
Uninvolved Brushers: Consumers in this category are essentially indifferent to the advantages of one brand or class within the other. Their primary decision machine for a toothbrush is the convenience to obtain one. Both decision producers that determine their purchase will be the ease of availability and most attractive price. The plus will be the apparent choice for most of the brushers in this market segment, but in time, Precision will catch the attention of them, with special deals and stock-outs of other brands and sections.
The first portion market that the Perfection toothbrush will focus on will be consumers who are concerned about teeth's health issues, such as struggling with plaque and gum disease. These individuals are known as "therapeutic consumers, " because they purchase products, toothbrushes that'll be the most effective when it comes to teeth's health treatment. These consumers "buy and use products for themselves, " (Harvard). Consumers in this target market usually do not care about the price, so long as they are receiving the highest quality products. Most consumers in this segment are men and women, especially ones who have oral health problems.
The second section market that we would concentrate on the new Perfection toothbrush would be consumers worried about their oral cleanliness, such as bad breath, and personal appearance. Many, but not all, consumers in this group are feminine adults who be concerned in what they look like. These consumers purchase products that will "effectively deliver cosmetic benefits, "