3. • 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.
• 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.
4. NATURE OF DEMAND
• Shift in demanded benefits:
• Cavity prevention
• Healthier gums
• Ready to pay for superior toothbrush
Market is emerging from value and premium to Super premium-
Enhanced Oral Care
5. US Oral care market: -$2.9
billion in retail sales -growing
at a rate of 6.1% annually
Toothbrush Market growth:
average 9.3% per annum
since 1987
15. •Emphasizing the Colgate name on the new
Precision toothbrush would cause additional
cannibalization of the existing Colgate
toothbrushes - estimated at 20%.
•Using the Colgate name would be congruent
with Colgate’s strategy to build the Colgate
brand equity.
16.
17. • Under the niche market -Aggressive advertising campaign -
Demonstrate technical superiority of the toothbrush.
Under mainstream position -through financial incentives - Coupon,
buy one get one free
• Through professional channels- Dentists
• Consumer promotions in CP market
• A free 5 oz. tube of Colgate toothpaste with a Precision brush
• A 50% off offer on Colgate toothpaste
• A 50 cent coupon
18. Satisfaction Guarantee if an unsatisfactory check up has
occurred, the consumer can send in the certificate for a
full refund of the cost of the toothbrush
Emphasizing the Colgate name on the new Precision
toothbrush would cause additional cannibalization of
the existing Colgate toothbrushes - estimated at 20%.
Using the Colgate name would be congruent with
Colgate’s strategy to build the Colgate brand equity.
19.
20.
21. • 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!
as Niche product!
• 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
comparedto5% when positioned
22.
23.
24.
25. DISCLAIMER
• Made by Prarit Agarwal , PDPU Gandhinagar ,
• During a Marketing Internship under
• Prof. Sameer Mathur, IIM LUCKNOW