Created by - Akshat Srivastava, BITS Pilani Goa Campus during a marketing internship under Prof. Sameer Mathur

1. COLGATE-PALMOLIVE:
THE PRECISION TOOTHBRUSH
CASE STUDY ANALYSIS

2. ABOUT COLGATE
In 1991, Colgate Palmolive was a
global leader in household and
personal care products.
Colgate heavily emphasized on new
product launches and entry into new
geographic markets.

3. CASE SITUATION
Susan Steinberg, product manager of the yet to launch
‘precision toothbrush’ division, had to recommend
positioning, branding and communication strategies to
General Manager Nigel Burton, taking into account
various factors that would affect the performance of the
new product launch.

4. BUT FIRST…..
LET’S GET TO KNOW SOMETHING ABOUT THIS NEW
PRODUCT
The Precision Toothbrush was a technologically superior
toothbrush which allowed a triple-action brushing effect with its
multiple length bristles. It was about to be launched in a highly
competitive market with substantial new product activity, in the
United States.

5. OBJECTIVES OF THIS
CASE STUDY

6. Designing a marketing mix and profit-and-
loss pro forma that would enable Precision
to reach its full potential in the U.S. Oral
Market, keeping in mind various factors like
competition, consumer behavior, market
situation, product segments, positioning and
pricing challenges etc.

7. THE
U.S. TOOTHBRUSH
MARKET

8. IN AND DURING 1991 – 1992,
• Toothbrushes accounted for 15.5% of the U.S. Oral Market. ($453 mil. In
retail sales).
• Sales of toothbrushes increased by 21% in value and 18% in volume, due
to the introduction of 47 new products and line extensions during this
year.
• Media support increased by 49% and consumer coupon circulation by
48%.
• Consumers were more interested in this category and their purchase
frequency was rising.
• In-Store promotions and advertising stunts were increasing.

9. LET’S
DISCUSS…
PRODUCT SEGMENTS
CONSUMER
BEHAVIOR
COMPETITION

10. Product segments

11. In 1980s, the toothbrush category was divided into two
segments:
• Value ( 12% of sales, priced at approx. $1.29)
• Professional (42% of sales, priced at approx. $1.84)
Later In the decade, a new segment named ‘super –
premium’ emerged. By 1992, they accounted for 46%
of the sales, and were priced around $2.6.

13. Apart from price, toothbrushes were also segmented based
on bristle type (firm (8%), medium (39%), soft (48%), and extra
soft (5%)) and by head size (full/adult (69%), compact (17%),
and child/youth (13%)).
The soft and extra soft bristle brushes were rapidly growing
every year, while the firm and medium bristle brushes were
taking a dip each year.
Some companies started focusing on aesthetic features of
toothbrush rather than functional features which created yet
another segmentation where some products were focused
on how they looked, whereas others on how they would
perform.

14. CONSUMER
BEHAVIOUR

15. • The baby boom generation was more concerned
about the health of their gums as opposed to cavity
prevention.
• 82% of the toothbrush purchases were unplanned.
• Due to the prevalence of ‘two-for-one’ offers,
consumers purchase frequency was dropped to once
every 11.6 months in 1991 as opposed to the previous
once every 7.5 months.

16. • 45% consumers brushed before breakfast, 57% after
breakfast, 28% after lunch, 24% after dinner and 71%
before going to bed
• 70% of the consumers were triggered to changed
their toothbrush when their toothbrush bristles
became visibly worn.
• Brand choices was based on features, comfort and
professional recommendations.

17. CONSUMER SEGMENTATION
THERAPEUTIC
BRUSHERS
UNINVOLVED
BRUSHERS
COSMETIC
BRUSHERS

18. Table B: Consumer Segmentation of Toothbrush Users

20. Oral B dominated the super premium category. It relied heavily
on professional endorsements and was known as ‘the dentist’s
toothbrush’.
Johnson & Johnson, provided its consumers technically superior
brushes, with beveled handle, tapered heads, angled necks
and unique non-slip handles.
Procter & Gamble’s ‘Crest’ brand extension, had long, rippled
bristles to reach between the teeth.
Smithkline Beecham entered the market with Aquafresh Fex,
having flexible handles for gentle brushing.

21. Exhibit (a) : U.S. Professional Dental Market for Toothbrushes: Competitor Market Shares: 1991-1992E

24. The Precision toothbrush was a technically
superior plaque removing device. It’s multiple
sized bristles allowed a triple action brushing
effect.
In initial clinical tests, the brush achieved an
average 35% increase in plaque removal,
compared with other leading toothbrushes.

26. MAINSTREAM
OR

27. PROS
• Precision’s superior product design and quality would help strengthen positioning in
this segment.
• It could specifically be targeted at consumers concerned with gum diseases.
• It could command a 15% premium over Oral-B, the global leader in super-premium
toothbrushes.
CONS
• Consumers may become segmented and could end up targeting only a limited
consumer base.
• Would gain only 3% volume share in the first year and 5% in the second.
NICHE POSITIONING STRATEGY

28. MAINSTREAM POSITIONING STRATEGY
PROS
• Wider consumer base available to cater to.
• 10% market share could be achieved in the first year and 14.7% in the second.
• May give better returns and profits
CONS
• Possible cannibalism of Colgate Plus, which was already a mainstream product in the
toothbrush market.
• Shortage of supply.

29. Table C : Alternative Positioning Scenarios for Precision

30. BRANDING

31. COLGATE PRECISION
OR
PRECISION BY COLGATE
???

32. Some executives believed that ‘Precision’ could stand
alone and the Precision brand name should be
emphasized.
This would also limit the extent of cannibalization of
Colgate Plus by 20%.
However, Colgate name could not be dropped as it
would enable them to build on the Colgate brand
equity.

34. Since, greater product familiarity made people more enthusiastic
about Precision, sampling would be very critical to Precision’s
success. People were appreciating the ‘unique feel’ after using
the product.
Initially, lot of investments must be made for advertising Precision.
This is because it would make people familiar with the product
functioning and performance, since these were the triggers to
encourage sale. It would also enable clear positioning of the
product in the market.
Consumer promotions like trials, offers, coupons etc should be
stressed a lot in the initial phase of launch.

35. CONCLUSION AND
RECOMMENDATIONS

36. • Precision should be positioned as a niche product. It would stand out and will be a unique
product.
• It should be priced higher or at par with the Oral-B toothbrushes. It’s quality and
performance would back this price.
• Due to its superior quality and performance as opposed to competitors, it could very easily
dominate the super-premium segment. This would also build brand loyalty with consumers
and also brand equity.
• It could later be broadened into the mainstream category for long term expansion and
profits.
• The brand name ‘Precision’ should be emphasized for a unique and stand alone image.
However, Colgate should also not be dropped.
• Emphasizing ‘precision’ would also reduce the cannibalization chances of Colgate Plus.
• Sampling of Precision toothbrush, high investments in advertising, and other offers would
be critical for Precision’s success.

37. THANK YOU

38. DISCLAIMER
Created by Akshat Srivastava, BITS Pilani Goa Campus,
during a marketing internship by Prof. Sameer Mathur,
IIM Lucknow

39. SOURCES
Table A : pg3, Colgate-Palmolive Company: The Precision Toothbrush, Harvard Business Case
Table B : pg5, Colgate-Palmolive Company: The Precision Toothbrush, Harvard Business Case
Table C : pg11, Colgate-Palmolive Company: The Precision Toothbrush, Harvard Business Case
Exhibit (a) : Exhibit 6, Colgate-Palmolive Company: The Precision Toothbrush, Harvard Business Case