Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Colgate Palmolive case study HBS
Similar to Colgate Palmolive case study HBS (20)
Recently uploaded
Recently uploaded (20)
Colgate Palmolive case study HBS
- 1. Colgate-Palmolive Company- The Precision toothbrush
- 2. Situation: Colgate-Palmolive (CP) was poised to launch a new toothbrush in the United States, tentatively named Colgate Precision but now faced a highly competitive market with substantial new product activity. Decisions to be made: Product segment Branding Advertising Promotion
- 4. Product features the long inner bristles cleaned between teeth, The longer outer bristles cleaned around the gum line, The shorter bristles cleaned the teeth surface An average 35% increase in plaque removal
- 5. Competition 23% 19% 23% 35% Volume Share oral B johnson &johnson colgate others oral B 31% johnson &johnson 20% colgate 23% others 26% VALUE SHARE
- 6. 1991/92 Product launches by competitors Oral-B Indicator bristles Tells you when to change toothbrush Johnson & Johnson Angled neck; raised rubber; ridges on handle Cleans in even the hardest to reach places Procter & Gamble Ripped bristle design.Handle with rubber grip Reaches between teeth like a dental tool Smithkline Beecham Pressure sensitive, flexible neck linking brush and handle Prevents gum irritation
- 7. Consumer Research Analysis • Therapeutic Brushers • Cosmetic Brushers • Uninvolved Brushers
- 8. Consumer behaviour 63 52 46 36 35 30 0 10 20 30 40 50 60 70 Percentofconsumers Main reason for using a brand Consumer Behavior Fits most comfortably in my mouth Best for getting at hard-to-reach places The bristles are the right softness The bristles are the right firmness Toothbrush my dentist recommends Important part of my oral care regimen
- 9. Distribution 19% 10% 29% 42% Colgate plus Volume share food stores drug stores mass merchandisers others • Food Stores • Drug Stores • Mass Merchandisers 7% 4% 4% 85% Colgate Classic Volume share food stores drug stores mass merchandisers others
- 10. Positioning Where exactly to position Colgate Precision in the market place ?
- 11. Mainstream Positioning Strategy Niche Positioning Strategy Targeted at consumers concerned about gum disease Appeal of being the most effective brush available in the market
- 12. Niche positioning Advantages • Lower advertisement & production cost • Less cannibalization • No compromise on Colgate plus production Disadvantages • Smaller target audience • Less sales Mainstream positioning Advantages • More sales expected • Larger market Disadvantages • Cannibalization of Colgate plus • Higher promotion cost • More production required
- 14. Colgate Precision or Precision by Colgate ??
- 15. Colgate Precision • Estimated 20% cannibalization of Colgate plus • Will have the support of well established Colgate • Build brand equity of Colgate Precision by Colgate • Unchanged effect on Colgate plus sales. • Product could sustain on its own.
- 17. POSITIONING Niche positioning at launch Advantages: • Can be launched at higher cost than the competitors • Reduce cannibalization of Colgate plus • No SKU drops. • Demand can be met through the current capacity of firm After a year, Mainstream position Advantages: • Provide time for increasing production • Bringing more revenue and profit to the firm. • Product will gain recognition and loyalty
- 18. PROMOTIONS • Toothpaste free with every brush • Discount on products • Higher saving coupons than competitors • Professional endorsement through Dentists
- 19. DISTRIBUTION • Initially because of niche positioning, primarily sales by food and drug stores. • Under a mainstream launch scenario, a relatively large proportion of sales would occur through mass merchandisers and club stores
- 20. COMMUNICATION STRATEGY Investing a little more on advertising and promotion There must be several consumer promotions to back the launch of mainstream positioning of Colgate precision
- 22. DISCLAIMER • Created by Ashish kapoor, IIT Bombay, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow.