Colgate Precision Toothbrush Marketing Strategy
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This document summarizes information about Colgate-Palmolive's Precision toothbrush product launch. It provides background on Colgate's history and leadership. Research was conducted on brushing techniques, bristle designs, and efficacy. The Precision was positioned as a niche super premium product initially and later repositioned as mainstream. Advertising included coupons, displays, and iconic ads. Distribution expanded across stores. The total marketing budget was estimated at $35.3 million, with advertising costs comprising $24.1 million.
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Colgate Precision Toothbrush Marketing Strategy
- 2. ESTABLISHMENT • FOUNDER : WILLIAM COLGATE IN 1806 • FIRST TOOTHPASTE : COLGATE RIBBON DENTAL CREAM • PRODUCTS: TOOTHPASTE, TOOTHBRUSH, MOUTHWASH,KIDS PRODUCTS,SPECIALITY PRDCUTS,HOUSEHOLD PRODUCTS.
- 3. • CEO – REUBEN MARK • PRECISION PRODUCT MANAGER – SUSAN STEINBERG • DIVISION GENERAL MANAGER- NIGEL BURTON MAJOR DECISION MAKERS
- 5. CHRONOLOGY OF TOOTHBRUSH INNOVATIONS IN THE USA
- 7. • DEVELOPING TECHNOLOGICALLY SUPERIOR TOOTHBRUSH. • HIGH COMPETITIVE MARKET WITH NEW PRODUCT ACTIVITY • DEFINING THE MARKETING STRATEGY FOR COLGATE PRECISION
- 8. QUESTIONS RAISED 1. How to promote the new product as a high quality niche product or as a mainstream toothbrush? (SLIDE 40) 2. How develop budget constraints and generate a marketing mix that would maximize the sales and revenues of the new product? (SLIDE 41)
- 9. STRENGTH 1.unique brush with three different lengths and orientations 2.removes 35% more plaque than other super premium brushes WEAKNESS 1. the availability of production capacity at CP OPPORTUNITIES Also consumers are willing to experiment with new toothbrushes. THREATS 1. Competition from other leading brands J&J,P&G. SWOT
- 16. WHICH ONE TO CHOOSE?
- 18. NICHE POSITIONING • Niche could later be broadened to a mainstream position. • Less cannibalization of Colgate plus Brand. • Entry into new super premium category where CP currently holds no value. • Less competition due to small group. Less contribution to net profit
- 20. RESEARCH AND SURVEYS 1. Varying techniques consumers used when brushing their teeth. 2. Testing the between-teeth access of different toothbrush designs. 3. Establishing an index to score clinical plaque-removal efficacy 4. Creating a bristle configuration and handle design offering maximum plaque- removing efficacy. 5. Determining the efficacy and acceptance of the new toothbrush design
- 21. CUSTOMERSEGMENTATION THERAPEUTIC BRUSHERS(46% OF ADULTS) COSMETIC BRUSHERS(21% OF ADULTS) UNINVOLVED HEALTH CONSUMERS(33% OF ADULTS)
- 28. Analysis
- 30. PRODUCT DESIGN AND TESTING The triple action brushing effect with longer outer bristles, Longer inner bristles resulted in 35% increase in plaque removal compared with Reach and Oral-B
- 33. • Brushes reached the customers either free with paste or with another Tooth brush( BUY ONE GET ONE FREE ). • The number of coupons increased from 10 in 1990 to 33 in 1992. • Extensive retail advertising features. • In store displays. • Point of purchase displays , variety of items, bristle qualities and handle Colours.
- 34. THE ICONIC COLGATE PRECISION ADVERTISEMENT
- 37. • The traditional food stores originally had 75% of oral products . • In 1992: toothbrush = 43% toothpaste = 47% • The SKU’s increased from :31 to 35 mass Merchandisers 27 to 34 for drug stores 30 to 35 for food outlets • Shelf space increased • In 1992 22% of all toothbrushes were expected to be distributed to consumers by dentists.
- 39. NICHE OR MAINSTREAM PRODUCT? Colgate-Palmolive is recommended to position the Precision toothbrush as a niche market product during its introductory and growth life cycle stages. Thereafter, during the products’ maturity, Precision should be repositioned to the mainstream market NICHE OR MAINSTREAM?
- 40. Advertising Costs = $9.6 million Promotion and trade = $14.4 million Total advertising cost = $24.1 million For Colgate precision = $24.1 million + $11.2 million = $35.3 million BUDGET CONSTRAINTS
- 42. Prof Sameer Mathur Marketing professor IIM LUCKNOW Carnegie Mellon University PhD and MS in marketing. Created by: Samikshya Swain IIIT Bhubaneswar during Summer marketing internship Under Prof Sameer Mathur