Given the decision to launch the Colgate precision toothbrush where would the sales come from? There are really three options increased toothbrush category demand, cannibalization of other Colgate brands, and witching from competitor brands. Make your best argument for when the sales would come from. What you could do as a manager to try best prevent cannibalization.
The sale would come from the younger generation. Young people are willing to pay more for a superior toothbrush. This because they are looking for certain benefits; cavity prevention and healthier gums. The Colgate precision toothbrush is also shown to be more effective in reducing gum disease than the leading brushes, specifically Reach and Oral-B.
Ways to prevent cannibalization;
· Assess the possible market demand for the proposed new product. Specifically, evaluate how much income the product is likely to generate. This means that you need to evaluate the cost incurred verse benefit it will bring (revenue).
· Identify a specific market for each product- this will help you understand which customers the product will serve, and determine what gaps the existing product fills. All this information needs to be analyzed before the launch of a new product.