Harvard business review Case Study

1. The Precision Toothbrush
Colgate-Palmolive
HARVARD BUISNESS
CASE STUDY

2. PROBLEM STATEMENT
How Precision should be
Positioned , Branded and
Communicated to its
Consumers?

3. H
I
S
T
O
R
Y

4. Marketing Icons of Colgate Precision
Susan Steinberg
• Precision Product Manager
Nigel Burton
• Division General Manager

5. Company’s
Background

7. Income Statement for Colgate-PalmoliveToothbrushes:1989-1992

8. Colgate-Palmolive Five Year Plan(19991-1995)
• Launching of new products.
• Entry into new geographic market.
• Improved efficiencies in manufacturing &
distribution.
• Continuing focus on core consumer product.
OBJECTIVE

9. MARKETING STRATEGY
for Colgate-Palmolive Company:
The Precision Toothbrush

10. SEGMENTATION
TARGETING
POSITIONING

12. Product Segments of Toothbrush Category of Colgate Precisio
• value
• Professional
• Super Premium
Brushes

13. Consumer Segmentation
 Therapeutic Brushers
 Cosmetic Brushers
 Uninvolved Brushers

15. Consumer’s Brand Choice was based on the
following factors:
Features
Comfort
Professional Recommendations

16. Brand
Decision
Factors
for
consumers

17.  Kids
 Family
 Youth

19. Major Competitors of Colgate- Palmolive
Company : The Precision Toothbrush
 Hindustan Unilever Ltd.
 Procter & Gamble
 Church & Dwilight Co., Inc.
 The Chorox Company
 Kimberly- Clark Corporation

20. Principal Toothbrush Brand Unit and Dollar
Market Shares: 1989-1992E

21. Major New Product in the Super Premium
Toothbrush Segments

23. COLGATE - PRECISION
ANALYSIS

24. Strength
Strong Brand Image
Strong marketing strategy
Strong market share

25. Weaknes
s33% of consumer segment, not involved in
oral health results tough to explain the
innovations.
Market share is limited due to the presence
of other
FMCG brands.

26. Opportunitie
s 46% of consumer segment are concerned
about the health of their gum.
 Willingness of customer to pay premium,
to eradicate the gum problem.

27. Threat
 Threat of new entrants of toothbrush
company.
 Offering of incentive programs by
competitor company.

28. The 4 Ps of Marketing Mix
 Product
 Price
 Promotion
 place

29. understanding the various techniques consumers used
when brushing their teeth.
testing the between-teeth access of different toothbrush
design
Establishing an index to score clinical plaque removal
efficacy at the gum line and teeth
Creating a bristle configuration and handle design
offering maximum plaque removing efficacy.
determining through clinical and consumer research the
efficacy and acceptance of the new toothbrush design.
OBJECTIVE of Product Design
The taskforce had five goal:

30. Product
 CP’s mission to develop a superior,
technical and plaque removing device..
 Producing triple action brushing effect.
 Pricision developed two class of
toothbrush products:
1. NICHE Product
2. MAINSTREAM Product

31. PRODUCT
NICHE PRODUCT MAINSTREAM PRODUCT
Targeted at consumer
concerned about gum
disease.
Unique
No CP offering in the
super premium range.
Broader appeal of being the most
effective brush available on the
market.

32. Product

33. PRICE
Niche Super Premium Product Mainstream Professional
 Equal to Oral-B indicator
 Premium when compared to Oral
–B regular
 Best value for level of
efficacy.

34. Toothbrush
Brand Prices:
1992

35. U.S. Professional
Dental Market for
Toothbrushes:
Competitor
Market Shares:
19991-92E

36. PlaceFor Colgate- Palmolive it is less
difficult to choose the market for the
sell of precision toothbrush. Colgate-
Palmolive should not carry an
exclusive path of Precision
Toothbrush owner by choosing an
exclusive distribution channel.

37. Retail Toothbrush Sales: 1989-
1992E

38. Promotion & Advertisement
 For the promotion of product CP established
four concept tests among 400 adults
comprising between the age of 18 to 54
during 1990-91.
 From survey, results shows that the niche
super premium quality 35% more effective
on teeth surface and 100% more effective at
gum line

39. SUMMERY OF CONSUMER CONCEPT TEST RESULTS

40. Advertising & Promotion Expenditures for Colgate-Palmolive Toothbrushes 1989-
1992E

41. BRANDING
 Emphasizing the Colgate name on the
new Precision toothbrush would cause
cannibalization of the existing Colgate
toothbrushes – estimated 20% .
 CP stated corporate strategy to build on
the Colgate brand equity.

42. A
D
V
E
R
T
I
S
E
M
E
N
T

43.  Colgate- Palmolive position the Precision
Toothbrush as a niche product during its
introductory and growth life cycle stages.
 R&D investment suggest that Super Premium
Niche Segment is more consistent than
mainstream market for advanced gum care.

44. SUMMERY REPORT
The Colgate- Palmolive case involves the Precision
Toothbrush case when it entered in the market
place. This marketing plan summarizes that what are
the strategies, R&D works are done to establish this
product (toothbrush) in the market place.

45. DISCLAIMER
PUMPY SARKAR
Indian Institute of Technology, Kanpur
Marketing Management Intern
Summer Internship 2017