Colgate-Palmolive is launching a new precision toothbrush to compete in the highly competitive toothbrush market. They developed a unique brush with three different length bristles shown to remove 35% more plaque. Susan Steinberg must determine positioning, branding, and communications strategies. Key issues are how to position precision, set the advertising budget, and develop a profit plan. Research showed claims of preventing gum disease drove purchase intent. Competition from Oral-B, Reach and others will be tough given their innovation, endorsements, and claims.

1. Colgate-Palmolive Company:
The Precision Toothbrush
Harvard Business School Case

2. Colgate-Palmolive is a global leader in
household and personal products.

3. Susan Steinberg
(Precision Product Manager)
Reuhen Mark
(Colgate Palmolive CEO)
Nigel Burton
(Division General Manager)
John Phillips
(Colgate Plus Manager)
Who are the players?

4. Company’s Background
• Colgate Precision- A niche product or simple line extension and that
the proven benefits to consumers represented a technological breakthrough.
• Launched in August,1992.
• A global leader in households and personal care products.
• Faced a highly competitive market with substantial new product activity.
• Total worldwide research and development expenditures for 1991 were $114
million, and media advertising expenditures totaled $428 million.

5. The Situation
• Colgate-Palmolive (CP) was poised to launch a new toothbrush in the United States,
tentatively named Colgate Precision.
• Susan Steinberg had to recommend positioning, branding, and communication strategies
to division general manager Nigel Burton.

6. Situation analysis
CP launched a precision toothbrush as a line
extension.
Faced a highly competitive market with a substantial
new product activity.
Struggling to manage the entire new product development
process.
Developing strategies for positioning,branding and communication .

7. The US Toothbrush Market & History

8. HISTORY
YEAR MADE FROM
• 3000 B.C.
• 15th Century
• 1938
• 1958
• 2007
• 2014
• Fashioned Twigs
• Bamboo
• Nylon-Bristle Brush
• Electric Tooth Brush
• Oscillating Brush
• Smart Brush

9. Objectives of this Case
Understand the entry of Precision toothbrush
into new geographic markets and
How it transformed from a “Sleepy &
inefficient ” company into a lean and
profitable one.

10. Analysis of
Product Segmentation
Consumer Segmentation
• Value and Profession
• Age
• Replacement frequency
• Personal brushing style
Objectives of this Case (Contd.)

11. Competition
• Number & type of Stock keeping
Units(SKUs)
• Market shares in terms of volume
and value in US retail markets.
Objectives of this Case (Contd.)

12. Evaluate the impact of Precision marketing mix
on sales.
Objectives of this Case (Contd.)

13. Three Issues
How Precision should be
positioned,branded and communicated to
consumers?

14. What the advertising and promotion budget
should be and how it should be broken
down?
Three Issues

15. How to develop a profit and loss pro forma that
would enable Precision toothbrush to reach its
full potential?
Three Issues

16. The Situation
Consumers
• Consumers were willing to pay a premium for the new products
addressing issues regarding the health of their gums.
• 48% consumers claimed to change their brushes at least every
three months.
• Consumers choose their brand based on features, comforts
and professional recommendations.

17. Brand Decision Factors for Consumers

18. The Precision Marketing Mix
Product Design and Testing

19. Product
• The Precision toothbrush is a technical innovation.
• Using infrared motion analysis developed a unique brush with bristles of
3 different lengths and orientations.
• Three brush design evolved with 35% more plaque removing efficiency
• The brush is also shown to be more effective in reducing gum disease than the
leading brushes, specifically Reach and Oral B

20. Volumes

21. Capacity and Investment costs:

22. Production cost and Pricing :

23. Branding
Alternative names tested included Colgate Precision, Colgate System III, Colgate Advantage,
Colgate 1.2.3, Colgate Contour, Colgate Sensation, and Colgate Probe.
Debated whether the brush should be known as “Colgate Precision” or as “Precision by
Colgate.”
It was estimated, both under the mainstream and niche positioning scenarios, that
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.
CP’s stated corporate strategy was to build on the Colgate brand equity

24. Communication and Promotions
Survey :
Consumers were exposed to various product claims in prototype print advertisements and then asked about
the likelihood that they would purchase the product.

25. Result analysis :
A claim that the toothbrush would prevent gum disease motivated the greatest
purchase intent among test consumers.

27. Competition

28. Competition
Crest AquaFresh Flex Oral B Reach

29. Competitor Advertising Strategies

30. Competition

31. Competition

32. Competition

33. Competition

34. Oral-B has heavy
professional endorsement
and is known as “The
dentist’s toothbrush” thus
giving a tough match in the
competition.
J&J’s Reach-has excellent
innovations like-a beveled
handle to help consumer
brush at 45 % angle.
P&G ‘s Product claims to
have the ability to reach
between the teeth up to
37% farther than leading
brands.
Smithkline Beechman’s
AquaFresh Flex had flexible
handles and allowed gentle
brushing. The Brand has
good promotional plans to
come up
Competition (Contd.)

35. High Effective Bristles
High
Comfort
Less Effective Bristles
Less
Comfort
Customer Perception

36. Hypothesis

37. Team Steinberg had 5 major goals set

38. 1. Understanding Consumer Techniques
Concluded that brushing removed plaque from teeth surface but
ineffective in removing from gum line and between teeth

39. 2. Testing between teeth access of different toothbrush design
Concluded that the new design was more efficient than Oral-B
and Reach in accessing front and back teeth

40. 3. Index to score clinical plaque-removal efficacy
Here Presence of Plaque on each tooth area was calculated - pre and post
usage of toothbrush

41. 4. Creating an efficient bristle configuration and
handle design
An average 35% more plaque was found to be removed than other leading brands

42. 5. Efficacy and Acceptance of new toothbrush
design
Extensive consumer research was carried to test product design and
characteristics, marketing concept and strengths

43. Advertising
& Promotion

44. Advertising and Promotion

45. Media expenditures and shares of Voice

46. Television and Advertising Copy Strategies

47. Colgate Plus Television Advertising

48. Advertising and Promotion Expenditures

49. The budget should be broken down by following ways :-
• Department or Category Budget
• Media selection
• Proper planning
• Monitoring

50. Income Statements for Colgate-Palmolive

51. Breakeven Analysis

52. Breakeven Analysis
Breakeven Point (units)= Fixed Costs/(S.P-VariableCosts)
Breakeven analysis for 1992E,
Fixed costs= $11,423
Selling Price of toothbrushes= $44,846

53. Variable Costs= Total Advertising Costs
Total Advertising Costs = Media + Consumer Promotions + Trade Promotions
Total Advertising Costs = $(9,623 + 6,978 + 7,457)
Total Advertising Costs = $ 24,058

54. DISCLAIMER
Sameer Mathur
IIM Lucknow,
Marketing Professor 2013 –
McGill University Marketing Professor 2009 – 2013
Carnegie Mellon Ph.D and M.S (Marketing) 2003 - 2009
Yashwant Bezawada
K L University,
Marketing Management Intern - 2017