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Precision Case Study Solution

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ANALYSIS

Internal Analysis: Considering the fact that CP is quickly gaining up the distribution pattern and is presently holding the first position in tooth Brush market. The company is relatively new to the super-premium segment, so the name which they have selected i.e. "Precision" should rather lay more stress on the brand name to use the present brand value which is considered as trustworthy and credible. The problem perceived in launching of the product as mainstream/line extension product can result in stocking out costs in 1993. Therefore, the precision should initially be launched as the Niche product and then should be shifted to a mainstream product when sufficient quantity of Precision has been built/stocked up.

External analysis: Targeting/Focusing on the Dentist route/Channel : As per Table 'C' entering into a mainstream positioning strategy will mean that 8MM unit supplies through professionals and 3MM with niche category. …show more content…

Therefore, it ideally suits CP to launch Precision as the niche product with higher price. Also, the cosmetic brushers who will be using Cps two product will react positively when it will be launched in mainstream market afterwards with the clear indications of the proposition that it offers. Also, both the therapeutic and cosmetic brushers use super-premium and professional toothbrushes, considering it, CP should ideally go for “Colgate Precision” to reach the super-premium segment.

Competition analysis:
CP precision has the unique technical advantage of having three different length bristles. the company should use this technical differentiation to enter the niche market in the super premium category so that it can overpower the present leader i.e. Oral B

Financial/Profit

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