Here is the Harvard Case study of the Colgate Palmolive Precision toothbrush product

1. A CASE STUDY

2. A Presentation Sandra S Kurian (Mar
Athanasius College of Engineering,
Kothamangalam, Kerala)
During the Internship under Prof. Sameer
Mathur ( Marketing Management, IIM
Lucknow)

3. Situation
Colgate – Palmolive’s oral care division
has come up with a technologically
superior tooth brush, primarily named
PRECISION
But…..
There is competition in the market due to
high productivity

4. Susan Steinberg’s ( PRECISION Product
Manager) Tasks :

5. Features of PRECISION
Bristles of three different lengths
and orientation to
facilitate triple action brushing
effect :
1) Longer outside bristles ( to clean
gum lines )

6. Features of PRECISION( Continued)
An average of 35% more plaque
removal than competitors (Reach and
Oral B)
Same Effect in Horizontal and vertical
brushing

7. Competitions : (1) ORAL B
• 23.1% volume market shares and 30.7% value
shares in US retail sales
• Relied Heavily on Professional Endorsements
• In July 1991, Oral-B launched the Indicator
brush, priced at a 15% premium to its other
brushes
• It had a patch of blue bristles that faded to white
when it was time for replacement
• Consumer promotions were expected to cost
$4.5 million (5% of sales) and include $1.00-off
coupons, “buy-one-get-one-free” offers and
$2.00 mail-in refunds. Media expenditures for

8. Competitions : (2) Johnson and Johnson
• The Reach brand, which, in 1991,
comprised 18 SKUs and Prevent, a brush
with a beveled handle to help consumers
brush at a 45% angle—the recommended
brushing technique
• Reach line was positioned as the
toothbrush that enabled consumers to
brush in even the hardest-to-reach places,
thereby increasing the efficiency of
brushing.

9. Competitions : (3) Procter and Gamble
• Crest had long, rippled bristles of different
lengths, designed to reach between the
teeth. Crest had “the ability to reach
between the teeth up to 37% farther than
leading flat brushes.”
• Consumer promotions already announced
included 55 cent coupons and $1.99
refunds on toothbrushes purchased from
floor stands. Media expenditures for the
last quarter of 1992 were estimated at
$6.4 million;

10. Competitions : (4) Smithkline Beecham
• Aquafresh Flex toothbrushes had flexible
handles that allowed for gentle brushing
• The 1992 promotion plan, estimated at
$4.6 million (25% of sales), included $1.99
mail refunds, “buy-two-get-one-free” offers,
toothbrush on-pack with toothpaste, and a
self-liquidating premium offer of towels.
• Other competitors included Lever, Pfizer,
and Sunstar

11. Colgate Palmolive Background
1) CP’s 5 year plan :
• New product launches
• Entry into new geographic markets
• A continuous focus on core consumer
products
2) 243 million dollars to be spent to upgrade 25
of CP’s manufacturing plants; 275 new
products introduced in market
3) In 1991, CP held 43% of the world toothpaste
market and 16% of the world toothbrush market
4) CP’s U.S. toothbrush sales in 1991 reached $77

12. Colgate Palmolive Background (continued)
• Several strategic acquisitions (e.g., of the Mennen
men’s toiletries company) were completed
• Manufacturing began in China and Eastern
Europe
• New products launched in the U.S. market
included Colgate Baking Soda toothpaste and the
Colgate Angle and Wild Ones toothbrushes.
• CP offered two lines of toothbrushes in 1991—the
Colgate Classic and the Colgate Plus.
• Colgate Classic was positioned in the “value”
segment and was CP’s original entry in the
toothbrush market
• Colgate Plus was positioned as a higher-quality

13. CHALLENGES TO
INTRODUCE
PRECISION
ORAL B had
an
upper
hand
to
associate
with the
Possibilit
y of
cannibali
zation

14. Categories of Toothbrushes
• TWO CATEGORIES:
1) Professional brushes (priced between
$1.59 and $2.09; 42-
44% of the brushes)
2) Value Brushes (priced on average at
$1.29 ( 24% of brushes)
• The late 1980s saw the emergence of
SUPER- PREMIUM brushes (priced above
$2.00 ; retail prices between $2.29 and

15. CONSUMER BEHAVIOUR
• Baby Boom generation had concerns for
gum health when compared to cavity
protection and would pay a premium price
to solve it
• Purchase frequency was low due to 2 for 1
offers
• Brand choice was based on features ,
comfort and professional recommendation
• Factors mainly affecting brand choice :
Size and shape of mouth; Sensitivity of
gums; Personal brushing styles and

17. Types of Brushers
• Therapeutic Brushers ( Avoid oral Care
Problems)
• Cosmetic Brushers ( Try to prevent bad
breath and ensure white teeth)
• Uninvolved Brushers (Not really motivates
by oral care benefits ; adjust their
behaviour only when confronted on oral
hygiene terms)

18. Advertising and Promotion ( progressing
trends)
• Advertising media expenditures ,neededto launch new tooth
brushes , rose
• Total media spending on television advertising grewfroma
total of 55 million dollars in 1992 to 70 million dollars in 1993
• Growingcompetition also increased frequency and value of
consumer promotion events
• Retail advertising features and in store displays increased
toothbrush sales

19. Colgate Palmolive Statistics
• CP toothbrush line held 25% to 40% of
category shelfspace in most stores
• 22% of all toothbrushes were expected
to be distributed to consumers by
dentists with dedicated sales force
• When Colgate brushes were sold with
toothpastes, sales increased to 170%

20. SOPHIE’S CHOICE :
POSITIONING STRATEGY
Mainstream
Positioning
strategy
Niche
Positionin
g Strategy

21. MAINSTREAM POSITINING STRATEGY
• Resulted in larger market
and volume shares within
a year of launch
• Massive proportion of
sales wouldoccur through
mass merchandisingand
club stores
• Highest possibility of Cannibalization
of ColgatePlus
•Rescheduling of production,
designatedfor Niche positioning
•Possibility of inadequate supplyof
product
•Mainsteaming with 7 SKUs will result
in dropping of atleast 1 SKU

22. NICHE POSITIONING STRATEGY
• Targeting
consumers
concerned about
gum diseases
• Captures 3% of US
Toothbrush market
by 1st year of launch
• Gain command of
• If Mainstream
positioned, precision
would capture 10%
of market share in 1st
year
• Volume shares
would be equal to

23. Another Sophie’s Choice : BRANDING
Precision
by
Colgate
Colgate
Precisio
n

24. Branding preference
• Stressing Precision as opposed to Colgate
would limit the extent of cannibalization of
Colgate Plus
• Whether mianstream or niche positioned,
cannibalization of Colgate Plus would
increase by 20%, if Colgate brand name
was stressed but would remain unchanged
if Precision brand name was stressed first
• Thus, Precision brand name was alone

25. Test Consumers’ responses
• Prevention of Gum diseases motivated
greatest purchase intent
• 55% test consumers found precision to be
very different; 77% claimed that it was more
effective
• However, the brush looked unusual and test
participants had initially mixed responses
• There was a difficulty to convey the benefit of
reduced gum disease from extra plaque
removal as few consumers only
acknowledged that they had gum disease
• But the more they were enlightened on the
features, the higher rose their enthusiasm.

26. What would you do , if the shoes of SUSAN
STEINBERG ?

27. Brand it as
“Precision by
Colagte” to
reduce
Cannibalisation
As Colgate
Plus
is the
bread and

28. Positioning
• Niche position it initially, and later
mainstream it, to avoid cannibalization
possibilities at start itself
• In the short niche timeline, improve a
feature or two of the Colgate Plus as a
safety check against cannibalization
• See for more outlet options beyond club
stores tec.

29. Advertising Strategy and Distribution
• Advertise it, stressing on the issues
overcome, more informatively
• Increase consumer promotions among
kids and maybe provide special discounts
on festive seasons and also for disabled
kids, as rain checks for mainstream
positioning
• Ensure active feedback and most widened
sampling through dentists, schools and
fast food joints
• Mainly dentists, as Professional

30. • Reach out through social initiatives and
make it affordable for the same
• Endorse more to appeal to the sentiments
of therapeutic brushers
• Associate a super premium toothpaste,
dental floss and mouth wash with
precision