Case study of Colgate Precision toothbrush. The situations and corresponding strategies.

2. 
 By 1991, a global leader in household products.
 Emphasis on new product launches.
 To enter new geographic markets.
WHY LAUNCH A NEW
PRODUCT?

3. 
 Strategic acquisitions.
 Manufacturing in China and East Europe to avail
low production cost.
 Investment in R&D for new technologies.
TOWARDS AN EFFICIENT
LEADERSHIP

4. 
 Colgate Classic: positioned in value segment.
 Colgate Plus: higher quality product for professional
segment.
PRODUCT SEGMENTATION

5. 
POSITIONING

6. 
 Launched with the
objective of being the
best brush .
A SUPER PREMIUM
PRODUCT……
 Mainstream positioning
would result in 10%
volume share in a year
as compared to 33% in
case of niche positioning.

7. 
 Somewhere in between
Colgate Plus and Oral B
products.
 Initial discounts and
mainstream price.
 But mainstream product
implies more supply.
 However can lead to
cannibalization.
PRICING AND SITUATION

8. 
VIEWS RELATING TO
POSITIONING
 I consider , already well established market is meant
to bring newer and modified products with
enhanced versions.
 Precision , since targeted towards gum disease , it
had a message.
 Lethargic projects to be shut and greater focus over
premium products with increment in investment.
 So initial launch with high price as a brand would be
somewhat lucrative.

9. 
 Surveys revealed that the
primary utilization of
toothbrush is to remove the
food particles.
 Plaque removal and gum
stimulation comes secondary.
 Consumers’ shifting concern
towards health of gum.
 Willing to pay attention
towards secondary issues.
RESEARCH AND
SURVEYS

10. 
 Oral-B: The dentist’s
toothbrush.
 Its product lines comprises of
oral-b indicator product.
COMPETITION

11. 
 JOHNSON AND
JOHNSON:
JOHNEEN
 Prevent: Brush at
45 degree angle.
 Consumer
promotions an
offers buy-two-
get-one-free.

12. 
Procter and Gamble.
Smithkline: Aqua fresh in US market.

13. 
 In store promotional activities.
 Adequate media expenditure.
 Incentives and offers using the established platform
of Colgate toothpaste to create and introduce the
new brush via coupons and discounts on paste.
PROMOTION

14. 
WHY SHOULD CUSTOMERS
PREFER IT OVER OTHERS?

15. 
MESSAGE……
Serve its need?
Will a well sorted
demonstration and

16. 
REASON…….
Provide , the consumers a

17. 
BEGINS THE CAMPAIGN..

18. 
 Greater the
knowledge of the
product, greater the
enthusiasm to use
it.
 A comparative
exposure to claims
by competitors.
CONSUMER INSIGHT:

19. 
Advertising budget and its impact on sales of
auxiliary and mainstream products.

20. 
 Precision: Launch program for a main stream
positioning strategy or niche positioning.
 Segmentation of promotional budget.
 A greater % for precision or allocation as per sale of
each product i.e. Classic, Plus, Precision.
The Challenges….

21. 
UNCERTAINTY AND AMBIGUITY.

22. 
 ‘Plus’ a mainstream brand
and pioneer of its
toothbrush line i.e. of
company.
 Less for Precision and
more for Plus to defend its
market position.
 So is niche positioning a
considerable solution for
Precision.
 Will 2 toothbrush category
simultaneously be
supported?
ARGUMENTS AND POINTS TO
PONDER.

23. 
 Precision should reach
its full sales potential.
 Increased budget for
Precision promotion
compared to Plus.
 Providing incentives and
offers based on
established categories.
 A mainstream launch for
precision.
STEINBERG’S IDEOLOGY.

24. 
CANNIBALIZATION?..
BUT WILL A NEW PRODUCT LEAD
TO

25. 
Focus on
“PRECISION”
TO BE PRECISE

26. 
 A technological breakthrough
( Paved the way for its success).
 Success= strategic budget plan + positioning +
promotion.
INFERENCE

27. 
THANK YOU

28. 
DISCLAIMER
Created by Shilpa Rani, NIT Agartala(Tripura),
during an internship under Prof. Sameer Mathur ,
IIM Lucknow.