Colgate-Palmolive was considering launching a new toothbrush called Precision in the United States. It analyzed positioning Precision as either a niche product targeting gum health or a mainstream product. Mainstream positioning would capture more market share but risked cannibalizing other Colgate products. Consumer research found the brush design underwhelming and its gum health message not broadly appealing. The document recommends initially positioning Precision as a niche product and later transitioning to mainstream. It also suggests branding it as "Precision By Colgate" and promoting it heavily through dentist sampling and advertising to help it gain recognition without threatening Colgate's market position.

2. COLGATE-PALMOLIVE
A GLOBAL LEADER IN THE HOUSE HOLD
AND PERSONAL CARE PRODUCTS .

3. Information at Hand
In August 1992,Colgate-Palmolive(CP)was poised
to launch a new toothbrush in the United States,
tentatively named COLGATE PRECISION.
Susan Steinberg, Precision Product Manager has
to recommend Positioning, Branding and
communication Strategies for “The Precision”.

4. Prior to finding solutions to the problem, an
extensive analysis on the Company’s
strength and weakness must be done.
STRENGTHS
• Was a global leader in the
house hold and personal care
products
• Introduced 275 new products
world wide
• Held the number one position
in the U.S retail toothbrush
market with a 23.3% volume
share.
*Data w.r.t 1991 sales statistics
WEAKNESSES
• Was unable to achieve proper
credibility from the dental
association on its products when
compared to its competitor
ORAL-B
• Introduction of new products
may result in cannibalization of
other products like colgate plus.

5. PRODUCT SEGMENTATION
In the 1980’s,Industry executives divided the
Toothbrush category into two segments
• Value
• Professional
The late 1980’s saw the emergence of another category called
super premium brushes

6. ANALYZING CONSUMER
BEHAVIOUR
• 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 chose their brand based
on features, comforts and professional
recommendations

7. MAIN REASON %
Fits comfortably 63
Getting at hard to
Reach places
52
Bristles of Right
softness
46
Bristles of right
firmness
36%
The table gives a broader view on the priority of
choice of Brand based on their effectiveness and
functionality

8. ORAL-B
JOHNSON &
JOHNSON –
REACH BRAND
P&G’S CREST
AQUAFRESH FLEX
MAJOR COMPETITION

9. TAKING NOTES OF CHALLENGES FROM COMPETITORS
• Oral-B has heavy professional endorsement and is known as
‚The dentist’s toothbrush‛ thus giving a tough match in the
competition.
• J&K’s Reach-has excellent innovations like-a beveled handle
to help consumer brush at 45 % angle.
The Brand has scheduled the Launch of ‘Reach Between’
on September 1992.This has to be kept in mind-after few
months- Precision has to launched
• 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

11. • Growing competition increased the featured
and value of consumer promotion event.
• Retail advertising features and in store
displays increased toothbrush sales
• When Colgate toothbrush were combined with
Colgate toothpaste, the toothbrush sales
increased by 170%
• The CP toothbrush line held 25% to 40% of the
category shelf space in most stores.
• 22% of all toothbrushes were expected to be
distributed to consumers by dentist-with
dedicated sales force-Oral B dominated this
Market.

12. PRODUCT DESIGN
The longer outer bristles cleaned around the gum line.
A superior ,technical,
plaque removing device.
The long inner bristles
cleaned between the teeth
The shorter bristles cleaned
the teeth surface
35% increase in Plaque removal
compared to other leading
toothbrushes

13. MAINSTREAM POSITIONING STRATEGY OR
NICHE POSITIONING STRATEGY ?

14. NICHE POSITIONING
STRATEGY
• When positioned as Niche product ,it
would target at consumers concerned
about gum diseases.
• As such, it could command a 15% price
premium over ORAL-B and would be
expected to capture 3% of the U.S
toothbrush market by the end of 1st year
following its launch.
• No SKU’s Needed to be dropped!
• If Precision is positioned as a
Mainstream brush, Precision would
capture 10% of the market share at
the end of 1st year following its
launch.(Very high when compared
with Niche positioning)
• The volume shares when positioned
as mainstream would be 10% in 1
year when compared to 5% when
positioned as Niche product!

15. MAINSTREAM POSITIONING
STRATEGY
• Raised concerns about
‘CANNIBALIZATION’ of Colgate plus
and about pressure on Production
Schedules that had been developed for
Niche positioning.
• Production capacity increases required
10months lead-resulting in inadequate
supply of product.
• Positioning Precision as a mainstream
product with 7 SKU’s would probably
require dropping one or more existing
SKUs.
• Mainstream was more appealing as
it proclaimed larger market share
& volume share at the end of 1
year after launch.
• Greater proportion of sales would
occur through mass merchandisers
and club stores.

16. ‚Colgate Precision‛ or
‚Precision By Colgate‛?

17. • Executives believed that Product
should stand alone and the
PRECISION brand name should
be emphasized.
• Stressing Precision as opposed to
Colgate would-limit the extent of
Cannibalization of Colgate plus.
• It was estimated ,both under
mainstream and niche positioning
scenarios, the cannibalization
figures For Colgate plus would
increase by 20% if the Colgate
brand name was stressed.

18. TEST RESULTS WERE AS FOLLOWS
• The toothbrush’s feature of preventing Gum disease
motivated the greatest purchase intent among test
consumers.
• Additional consumer research revealed that 55% of
test consumers found Precision to be very different
from their current toothbrushes.
• The research also revealed that the more the
consumers were told about Precision and how it
worked, the greater the enthusiasm for the product.

19. • However, the clichéd look of
the brush put the consumers
in dilemma.
• Also it was difficult to
translate the message of
greater plaque removal with
a broad consumer appeal,
since few consumers
acknowledged that they
might have gum disease.

20. • Initially Positioning Precision as Niche Toothbrush and
later broadening to mainstream positioning would help
the product gain sufficient recognition by avoiding
cannibalization and would ensure additional capacity
once it enters the mainstream.
• Broadening into the mainstream positioning would
enhance greater proportion of sales which would now
also occur through mass merchandisers and club stores
apart from the food and drug stores.
POSITIONING

21. • ‚Precision By Colgate "would be more prominent
as it would reduce cannibalization of Colgate Plus-
which is the bread and butter of CP’s toothbrush
line and secure its market position.
• Placing The Precision at the center of the Brushes
in the storage shelves would ensure easy
acceptance due to the prevalence of the Brand at
the same time-give it a unique stand.
BRANDING:

22. COMMUNICATION STRATEGY
.
• Investing a little more on
Advertising and Promotion
would not do much harm as
it shall give a head start to
this potential product
• There must be several Consumer
promotions to back the launch for
the mainstream positioning as this
w attract a lot more potential
buyers.

23. Since sampling would be critical to Precision’s success, it
would be better to use Dentists to sample consumers
since professional endorsements were more credible.

24. Spending 75%of all advertising dollars of CP’s category spending
for Precision was essential because it ensured Precision was able to
Reach its Potential consumers through extensive advertising.
This would not be a threat for CP’s Colgate plus as it has its
market share secured by the Colgate’s Brand name, which is not
the Case with Precision.

25. BY SHARAD KOTHARI, DTU
DURING A SUMMER INTERNSHIP
UNDER PROF.SAMEER MATHUR-
IIM LUCKNOW