This is a case of Colgate-Palmolive Company: The Precision Toothbrush study done during an internship under professor Sameer Mathew of IIM Lucknow.

1. Colgate-Palmolive Company:
The Precision Toothbrush

2. Defining the Marketing Strategy (Positioning, Branding &
Communication Strategies)
for the new toothbrush --- Colgate Precision.

4. Company Background

5. In 1991
Total sales : $6.06 billion
Gross profit : $2.76 billion
R & D expenses : $114 million
Advertisement expenses : $428 million

6. It emphasized new product launches and entry into new geographic
markets.
91 manufacturing plants & 275 new products were introduced worldwide
Gross margin rise 39% to 45%
Annual volume growth : 5%
International sales accounted 64% of sales

7. US TOOTHBRUSH
MARKET
CONSUMER
BEHAVIOUR
PRODUCT
SEGMENT
Why there is a demand?

9. PRODUCT % Of market acquisition
Toothpaste 46
Mouth resins 24
Toothbrush 15.5
Dental flaws and others 14.5
In 1991 US oral market was $ 2.9 billion with growth of 6.1% annually.
Due to introduction of 47 new brushes and line extension
there was 21% increase in value and 18 % in volume

10. • Buildup of household inventories due to free samples given by dentists
• “Two-for-one” offers of companies doing promotion

11. Toothbrush
Category
Value Professional
Super-
premium
• $2.29 - $2.89
• 35% unit volume
• 46% dollar sale
• $1.59- $2.09
• 41% unit volume
• 42% dollar sale
• Nearly $1.29
• 24% unit volume
• 12% dollar sale

12. Type Market share Market response
Firm-bristles brushes 8% Declining by 13%
Medium bristles brushes 39% Declining by 4%
Soft bristles brushes 48% Growing by 7%
Extra-Soft bristles brushes 5% Growing more than 7%
Market response
On basis of Toothbrush head
adult, full-sized heads 69%
compact heads 17%
child/youth-sized heads 13%
We can see that people are moving towards more sophisticated and softer toothbrush.
They are moving towards more costly toothbrushes.
So, we can say that people are becoming more quality conscious.

13. PRODUCT SEGMENTS
• Three segments: Value,
Professional and Super-Premium
• Different brands for different
segments

14. VALUE
• More economic
• Average price : $1.29
PROFESSIONAL
• Better quality
• Average Price : $1.59 to $2.09
SUPER-PREMIUM
• Improved designs
• Average Price : $2.29 to $2.89

15. Consumer Behaviour

16. CP estimated that 82% of toothbrush purchases
were unplanned, and research showed that
consumers were relatively unfamiliar with
toothbrush prices.

17. CP’s consumer research indicated that consumers of
the baby boom generation were becoming more
concerned about the health of their gums as
opposed to cavity prevention and were willing to
pay a premium for new products addressing this
issue.

18. Brushing Habits
Before
breakfast
45%
After breakfast
57%
After lunch
28%
After dinner
24%
Before Bed
71%

19. Brush changing Behaviour
48% changed brushes at least 3 months
When their toothbrushes became worn – 70%
After seeing dentist – 11%
Switch by impulse – 3%
65% of consumers had more than one toothbrush
24% kept a toothbrush at work.
54% had a special toothbrush for traveling.

20. Reason for using a brand
Main Reasons for Using a Brand Percent of Consumers
• Fits most comfortably in my mouth 63%
• Best for getting at hard-to-reach places 52%
• The bristles are the right softness 46%
• The bristles are the right firmness 36%
• Toothbrush my dentist recommends 35%
• Important part of my oral care regimen 30%

21. INVOLVED ORAL HEALTH
CONSUMERS - THERAPEUTIC
BRUSHERS (46% of adults)
INVOLVED ORAL HEALTH
CONSUMERS - COSMETIC
BRUSHERS (21% of adults)
UNINVOLVED ORAL HEALTH
CONSUMERS (33% of adults)
85% brush at least twice a day,
62% use a professional brush
and 54% floss regularly
85% brush twice a day,
81% use mouthwash,
54% use breath fresheners,
69% floss,
54% use a professional brush
20% brush once a day or less,
28% use only regular
toothbrushes
54% floss
66% use mouthwash
Major toothbrush brands used
are Oral-B Angle and Oral-B
Regular followed by Colgate
Plus
and Reach.
Major toothbrush brands used
are Colgate Classic and Oral-B
Regular followed by Colgate
Plus and Oral-B Angle
Major toothbrush brands used
are
Colgate Classic and Oral-B
Regular
followed by Colgate Plus and
Reach

22. POSITIONING
AS
NICHE
PRODUCT
AS
MAINSTREAM
PRODUCT

23. 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.

24. 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.

25. Investment Cost
• Three types of equipment were required to manufacture the
Precision brush:
tufters; handle molds; and packaging machinery.

26. Price
AS NICHE PRODUCT AS MAINSTREAM PRODUCT

27. 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.

28. Recommendations
1. Since people are becoming more health conscious it needs to
enter into categories such as :
• Anti-Cavity
• Medicinal
• Herbal
• Cleaning
• Taste
• Mouth freshening

29. 2. Short term channels
1. Drug Stores
1. Attract customers with gum diseases
2. Design products for specific gum disease
eg. Special Products for Gingivitis
2. Food Store
1. Comprises 43% of the whole market in US (1992)
2. Make home users gradually accept the products
3. Dentist & Professionals
1. Need to directly compete with Oral-B
Recommendations

30. 3. Long term channels
1. Mass Merchandiser
1. Increase sales in mass merchandises
2. More in-store promotion
2. Food Stores
1. Still biggest share
2. Focus on home users
Recommendations

31. Disclaimer- Created by Nixon Dutta,IEM Kolkata during a
marketing internship by Professor Sameer Mathur, IIM
LUCKNOW.