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The Precision Toothpaste
ABOUT
MARKET SHARES
Competitors in Super-Premium Segment
New Product Introduction by Competing Brands
Advertising and Promotion Expenditures for C-P Toothbrushes
STRENGHTS WEAKNESS
• Strong financial performance
• Focus on innovation and new
launches
• Colgate business planning
initiative
• Product research
• Highly leveraged
THREATS
Product Design and Testing
The Precision Toothbrush was a technical innovation. Infrared movements
was used to track consumers’ movements and levels of plaque removal.
Niche: Pros & Cons
Pros:
 3% and 5% volume share in first and second year respectively
 Less Cannibalization of Colgate Plus and Classic.
 Entry in super-premium segment.
 Promotion of brand-equity
Cons:
• Less profit incurred.
• More potential competitors in the segment.
Mainstream: Pros and Cons
Pros:
• 10% and 14% volume share in the first and second year respectively.
• Increased profit.
• No need of specialized market.
Cons:
• Inadequate supply due to huge demand.
• Cannibalization of Colgate Plus and Classic.
Promotions
For Niche segments:
Aggressive advertisement campaigns.
Sampling done to attract customers.
Market through dentists , drug stores and food stores.
People made aware of the technical superiority of the toothbrush.
Promotions
For Mainstream segments:
Consumers’ incentives:
A free 5 oz. tube of Colgate toothpaste with purchase of precision
brush.
50%-off offer on any size of toothpaste ( up to value of $1.00).
Channelling and distributing through merchandisers, club store and
and food stores.
Analysis from surveys
77% claimed that Precision toothbrush was more effective than
current toothbrush.
55% of the test consumers found Precision toothbrush different
from their current toothbrush.
Greater demand for toothbrushes removing gum diseases.
Customers had mixed first impressions.
As customers came to know more of the product, their enthusiasm
increased.
DISCLAIMER
This presentation has been created by Yash Bathe, VNIT
Nagpur during a marketing internship under the guidance of
Prof. Sameer Mathur, IIM Lucknow.

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Colgate-Palmolive Case Study

  • 3.
  • 4.
  • 6.
  • 7.
  • 9. New Product Introduction by Competing Brands
  • 10. Advertising and Promotion Expenditures for C-P Toothbrushes
  • 11. STRENGHTS WEAKNESS • Strong financial performance • Focus on innovation and new launches • Colgate business planning initiative • Product research • Highly leveraged
  • 12.
  • 14.
  • 15.
  • 16. Product Design and Testing The Precision Toothbrush was a technical innovation. Infrared movements was used to track consumers’ movements and levels of plaque removal.
  • 17. Niche: Pros & Cons Pros:  3% and 5% volume share in first and second year respectively  Less Cannibalization of Colgate Plus and Classic.  Entry in super-premium segment.  Promotion of brand-equity Cons: • Less profit incurred. • More potential competitors in the segment.
  • 18. Mainstream: Pros and Cons Pros: • 10% and 14% volume share in the first and second year respectively. • Increased profit. • No need of specialized market. Cons: • Inadequate supply due to huge demand. • Cannibalization of Colgate Plus and Classic.
  • 19. Promotions For Niche segments: Aggressive advertisement campaigns. Sampling done to attract customers. Market through dentists , drug stores and food stores. People made aware of the technical superiority of the toothbrush.
  • 20. Promotions For Mainstream segments: Consumers’ incentives: A free 5 oz. tube of Colgate toothpaste with purchase of precision brush. 50%-off offer on any size of toothpaste ( up to value of $1.00). Channelling and distributing through merchandisers, club store and and food stores.
  • 21. Analysis from surveys 77% claimed that Precision toothbrush was more effective than current toothbrush. 55% of the test consumers found Precision toothbrush different from their current toothbrush. Greater demand for toothbrushes removing gum diseases. Customers had mixed first impressions. As customers came to know more of the product, their enthusiasm increased.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31. DISCLAIMER This presentation has been created by Yash Bathe, VNIT Nagpur during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.