In recent years, with the increasing awareness of oral health care among Chinese people, the domestic toothpaste market has grown rapidly. In 2015, the total profit of 46 toothpaste manufacturers above designated size increased by 20.22% year-on-year, the industry profit growth rate was faster than the market size growth rate, and the industry development prospect was promising. As a result, foreign toothpaste companies have aggressively attacked with their capital, brand and marketing advantages, domestic toothpaste leading companies have seized the segmented market with high pricing and high investment, and potential entrants such as domestic and foreign pharmaceutical companies have poured in across borders, and market competition has become increasingly fierce. Although the overall sales of domestic toothpaste has maintained a year-on-year growth trend, it has not kept up with the growth rate of the international industry, facing development bottlenecks, and the marketing strategy needs to be optimized urgently. This article relies on the relevant theories of marketing to study its market positioning. During the research process, the internal and external environment and competition environment of the market faced by toothpaste were analyzed. "Prescribe the right medicine" to formulate an optimization strategy for the domestic market of toothpaste, and propose supporting measures for the implementation of the strategy optimization. The research results of this paper not only provide practical guidance for toothpaste product development and market positioning , but also have certain reference significance for the development of the entire domestic toothpaste industry.