2. CONTENT
• Company Background
• Problem Statement
• Why there is Demand ?
• Colgate Precision Design
• Features
• Positining
• Investment Cost
• Price
• Branding
• Promotion
• Pros and cons of Positioning
3.
4. COMPANY BACKGROUND in 1991
Global leader in household and personal care products.
•Total Sales - $6.06 billion
•Gross Profit - $2.76 billion
•Research and development expenditures - $114 million
•Media advertising expenditures - $428 million
Faced tough competition in international market from Procter & Gamble, Unilever,
Henkel of Germany, Kao of Japan.
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6. PROBLEM STATEMENT
Defining the marketing strategy
Positioning, Branding & Communication
Strategies for new toothbrush.
COLGATE PRECISION
7.
8. US TOOTHBRUSH MARKET
• US Oral Care Market is $2.9 billion in retail
sales.
• Annual growth rate is 6.1 %.
• Toothbrushes had grown at average rate of
9.3% per annum which is increased by 21% in
value and 18% in volume.
• Dollar growth exceeded volume growth due to
emergence of “super premium” sub-category
of toothbrushes.
IN 1991
9.
10. PRODUCT SEGMENTS
• Industry executives divided the toothbrush
category into – value, professional & super
premium brushes.
• Toothbrushes differed by bristle type and by
head size.
Firm bristle brushes - 8%
Medium bristle brushes - 39%
Soft bristle brushes - 48%
(Sold per year)
11. New products introductions are focused on
technical performance improvements, i.e.
Plaque removal and ease of use
• Many new toothbrushes are introduced on
the basis of aesthetic rather than functional
features.
• The children’s segment has seen a variety of
new products targeting children featured
sparkling handles, Bugs Bunny and other
characters.
12. CONSUMER BEHAVIOUR
• Consumers of baby boom generation were
becoming more concerned about the health
of their gums as opposed to cavity prevention.
• Most consumers agreed that the primary role
of a toothbrush is to remove food particles;
plaque removal and gum stimulation are
considered secondary.
• Choices are based on features, comfort, and
professional.
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15.
16. PRODUCT design
• The Precision toothbrush is a technical
innovation.
• Researchers used infrared motion analysis to
track consumers’ brushing movements and
consequent levels of plaque removal.
• CP developed a unique brush with bristles of
three different length and orientation.
17. It has triple-action brushing effect
1. The longer outer bristles cleans around the
gum line.
2. The long inner bristles cleans between teeth.
3. The shorter bristles cleans the teeth surface.
18.
19. • Brushing usually did a good job of removing plaque from teeth
surfaces but was often ineffective at removing plaque from the
gum line and between the teeth.
• The tests revealed that CP’s new design was superior to both
Oral-B and Reach in accessing front and back teeth, using either
horizontal or vertical brushing.
• Creating a bristle configuration and handle design offering
maximum plaque- removing efficacy.
21. NICHE Product
• It could be positioned as a niche product to be
targeted at consumers concerned about gum disease.
• 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.
• With a niche positioning, Precision retail sales would
represent 3% volume share of the toothbrush market
in year 1 and 5% in year 2.
22. MAINSTREAM Product
• Precision could be positioned as a mainstream
brush, with the broader appeal of being the most
effective brush available on the market.
• As a mainstream product, Precision could capture
10% of the market by the end of the
first year.
• With a mainstream positioning, these volume shares
would be 10% in year 1 and 14.7% in year 2.
23. Investment Cost
• Three types of equipment were required to
manufacture the Precision brush:
tufters; handle molds; and packaging
machinery.
25. BRANDING
• The Colgate Precision name was consistently viewed
more favorably—it was deemed appropriate by 49% of
concept acceptors and appealing by 31%.
• It was estimated, both under the mainstream and
niche positioning scenarios, cannibalization figures for
Colgate Plus would increase by 20% if the
Colgate brand name was stressed but remain
unchanged if the Precision brand name was stressed.
26.
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28.
29. • Consumers were exposed to various product claims in prototype
print advertisements and then asked about the likelihood that they
would purchase the product
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31.
32. DISCLAIMER
Created by Jaspreet Singh, NIT Jalandhar,
Jalandhar, during a marketing internship
Under Professor Sameer Mathur, IIM Lucknow
