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Colgate: Evaluating New Product Potential

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Colgate-Palmolive: Evaluating New Product Potential
Colgate-Palmolive, a leading dental product company, must compete in an expanding market to design the next best product in a fast developing dental field. New products, such as the Colgate Precision must not only be designed efficiently but must also be compared to similar products on the market to see if it will outsell their opponent’s newest products. Positioning, branding, and communication strategies must be considered when evaluating the potential of a new product.
CP’s main strength is being a global leader in household and personal care products. The Colgate-Palmolive company also holds number one position in U.S. retail toothbrush market with a 23.3% volume share. Next, the company is concentrating on core consumer products. They also focus on innovation and new product launches. The company’s strong financials helps them in researching and introducing new products. One of the CP’s weaknesses is increased frequency of promotion by competitors. Due to promotions, purchase frequency was lagging the toothbrush replacement frequency. The consumers were often offered a “two for one” or a free sample, and most of the people were replacing their toothbrushes only when the bristles became visibly worn. This behavior was lagging the purchase frequency. In the 90’s there has been a substantial growth of the global oral hygiene market. There was also an increasing consumer interest and purchase frequency, which gave the company the prospect to expand its market. Second, the consumers were becoming more concerned about the health of their gums, which gave them the opportunity to introduce the highly innovative product in the super-premium segment. Next, the main opportunity arose with increased advertising and promotion, which was fueling the consumer demand. The in-store displays and increased shelf space...

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