The document discusses Colgate-Palmolive's development and planned launch of the Precision toothbrush. It summarizes research conducted to design the toothbrush for maximum plaque removal. Precision could be positioned as either a niche premium product targeting gum disease, or a mainstream product appealing as the most effective brush. The marketing plan considers segmentation, pricing, placement, promotion and advertising strategies to launch Precision and capture market share from competitors.

1. The Precision Toothbrush
Colgate-Palmolive

2. PROBLEM STATEMENT
How Precision should be
Positioned , Branded and
Communicated to its
Consumers?

3. HISTOR
Y

5. Marketing Icons of Colgate Precision

6. Division General Manager
Product Manager
Susan Steinberg
Nigel Burton

7. Company’s
Background

9. Income Statement for Colgate-PalmoliveToothbrushes:1989-1992

10. Colgate-Palmolive Five Year Plan
• Launching of new products.
• Entry into new geographic market.
• Improved efficiencies in manufacturing & distribution.
• Continuing focus on core consumer product.
OBJECTIVE

11. MARKETING STRATEGY
for Colgate-Palmolive Company:
The Precision Toothbrush

12. SEGMENTATION
TARGETING
POSITIONING

13. • Value
• Professional
• Super Premium Brushes
SEGMENTATION
Product Segments of Toothbrush Category of Colgate Precision

14. Consumer Segmentation
• Therapeutic Brushers
• Cosmetic Brushers
• Uninvolved Brushers

16. Consumer’s Brand Choice was based on the
following factors:
Features
Comfort
Professional Recommendations

17. Brand
Decision
Factors
for
consumers

18.  Kids
 Family
 Youth

21. Major Competitors of Colgate- Palmolive Company
: The Precision Toothbrush
• Hindustan Unilever Ltd.
• Procter & Gamble
• Church & Dwilight Co., Inc.
• The Chorox Company
• Kimberly- Clark Corporation

22. Principal Toothbrush Brand Unit and Dollar
Market Shares: 1989-1992

23. Major New Product in the Super Premium
Toothbrush Segments

24. POSITONING

25. • Precision was developed with the objective of creating the best brush
possible and as such, becoming a top-of-the range, super-premium
product.
• It could be positioned as a niche product to be targeted at consumers
concerned about gum disease. As such, it could command a 15% price
premium over Oral-B and would be expected to capture 3% of the U.S.
toothbrush market by the end of the first year following its launch.
• Alternatively, Precision could be positioned as a mainstream brush,
with the broader appeal of being the most effective brush available on
the market. It was estimated that, as a mainstream product, Precision
could capture 10% of the market by the end of the first year.

26. How Unit Volumes Reach Consumer.?

28. understanding the various techniques
consumers used when brushing their
teeth.
testing the between-teeth access of
different toothbrush design
Establishing an index to score clinical
plaque removal efficacy at the gum line
and teeth
Creating a bristle configuration and handle
design offering maximum plaque removing
efficacy.
determining through clinical and consumer
research the efficacy and acceptance of the
new toothbrush design.
OBJECTIVE of Product Design
The taskforce had five goal:

29. • CP’s mission to develop a superior, technical and plaque removing
device..
• Producing triple action brushing effect.
• Precision developed two class of toothbrush products:
NICHE Product
MAINSTREAM Product

30. NICHE PRODUCT
Targeted at consumer
concerned about gum disease.
Unique
No CP offering in the super
premium range.
MAINSTREAM PRODUCT
• Broader appeal of being the
most effective brush available on
the market.
Product

31. Product

32. PRICE
Niche Super Premium Product
Mainstream Professional
 Equal to Oral-B indicator
 Premium when compared to Oral –B
regular
 Best value for level of efficency.

33. Toothbrush Brand Prices in 1992

34. U.S. Professional
Dental Market for
Toothbrushes:
Competitor
Market Shares:
19991-92E

35. PLACE
• For Colgate- Palmolive it is less difficult to choose the market for the
sell of precision toothbrush.
• Colgate- Palmolive should not carry an exclusive path of Precision
Toothbrush owner by choosing an exclusive distribution channel.

36. Retail Toothbrush Sales: 1989-1992E

38. Promotion & Advertisement
Steinberg was considering several consumer promotions to back the
launch and gave a free 5 oz. tube of Colgate toothpaste (retail value of
$1.89) with the purchase of a Precision brush in strong competitive
markets
 A 50%-off offer on any size of Colgate toothpaste (up to a value of $1.00)
in conjunction with a 50¢ coupon on the Precision brush in strong Colgate
markets.
The cost of this promotion was estimated at $4 million and Steinberg
believed it should be used as part of the launch program for a mainstream
positioning strategy
the launch of Precision would enable CP to increase its overall share of
trade advertising features and special displays in the toothpaste category.

39. SUMMERY OF CONSUMER CONCEPT TEST RESULTS

40. Advertising & Promotion Expenditures for Colgate-Palmolive Toothbrushes 1989-
1992E

42. At the time consumer concept tests were carried out by the task force,
name tests were also conducted among those consumers positively
disposed towards the concept.
Alternative names tested included Colgate Precision, Colgate System III,
Colgate Advantage, Colgate 1.2.3, Colgate Contour, Colgate Sensation, and
Colgate Probe.
 The Colgate Precision name was consistently viewed more favourably—it
was deemed appropriate by 49% of concept acceptors and appealing by
31%.

43. ADVERTISEMENT

44. Conclusion
Precision was more than a niche product or simple line extension and
that the proven benefits to consumers represented a technological
breakthrough.
She wondered how Precision should be positioned, branded, and
communicated to consumers, as well as what the advertising and
promotion budget should be and how it should be broken down.
Steinberg had to develop a marketing mix and profit-and-loss
proformale that would enable Precision to reach its full potential, yet
also be acceptable to Burton and her colleagues, particularly the
Colgate Plus product manager.

45. Summary Report
• The Colgate- Palmolive case involves the Precision Toothbrush case
when it entered in the market place.
• This marketing plan summarizes that what are the strategies, R&D
works are done to establish this product (toothbrush) in the market
place.

46. DISCLAIMER
Created by Hemanth Macharam , Emerald’s Advanced
Institute of Management Studies , Tirupati ,
During a Marketing Internship under Prof. Sameer
Mathur , IIM Lucknow