Positioning
There are three options with Coalgate for positioning the Precision thoothbrush.
#1 Launch as Niche Product
#2 Launch as Mainstream Product
#3 Launch as Niche Product for 2 years and switch to Mainstream after 2 years
Recommended
Option #3 i.e. Launch as Niche product for 2 years and then shift to Mainstream
High Effectiveness should be capitalized
Owing to capacity constraints, market demand won’t be satisfied for first 2 years as mainstream product
Minimization of cannibalization
Higher profit as mainstream product post 2nd year
BRANDING
There are two options with the coalgate either to Brand precision as “Coalgate Precision” or “Precision by coalgate”. Analysis of each one are given below.
Coalgate Precision
Strengthens Colgate Brand
Increased risk of cannibalization
May create a perception of sub-premium
brand for Precision
Precision by coalgate
Emphasis on ‘Precision’ as a brand
Limits cannibalization
Lets Precision emerge as a stand alone brand
Emphasizing Colgate name on new precision toothbrush would cause additional cannibalization of existing colgate toothbrush.
Recommendation: Precision by coalgate
Communicating
Colgate-Palmolive could conduct the campaign to determine the audience to which the promotion will be directed.
The emphasis should be placed on getting the customer’s attention and quickly moving them through the interest and desire stages, straight to action: purchasing the toothbrush.
The communication objective for the new product becomes to convince therapeutic and cosmetic brushers that they should purchase and use Colgate Precision because Precision is designed to be the best toothbrush for removing plaque and preventing gum disease.
The advertisements allow consumers to know about gum disease problems.
Personal communication channels, center around people communicating face-to-face, or by word-of-mouth can be used to promote Precision....