12. CONCLUSION
The Colgate-Palmolive is a consumer oriented company
which is currently operating in more than 100 countries
Precision was believed to be more than a niche product
or simple line extension.
Developed a marketing mix and profit-and-loss pro
forma that would enable Precision to reach its full
potential.
They provide many employee oriented programs and
managing their international business quite well.
The way they have established in the business and
international market, they still have a higher chance to
remain competitive in the years ahead.
13. DISCLAIMER
Created by Shruti Agrawal , ICG
Jaipur
during a marketing internship
by
Prof. Sameer Mathur, IIM
LUCKNOW
Editor's Notes
NOTE: The Colgate-Palmolive Company developed a tooth brush “Precision” with the objective of creating the best brush and becoming a top-of-the range, super-premium product. It could be positioned as a niche product to be targeted at consumers concerned about gum disease.
NOTE: The company developed technology superior toothbrush “Precision” which lead them face a highly competitive market with innovate product. It’s unique design could remove more plaque from teeth than the other leading toothbrushes on the market
NOTE 1 : Market emerging from value & premium range shifted to third category of “super premium” range .
NOTE 2 : People started demanding products that could lead to healthier gums and cavity prevention.
NOTE 3 : Even young generation is ready to pay more for superior toothbrush
NOTE 1: Precision’s exclusive design could remove more plaque from teeth than the other leading toothbrushes on the market.
NOTE 2: A further problem was that the benefit of reduced gum disease from extra plaque removal was difficult, since few consumers acknowledged that they might have gum disease.
NOTE 3: But this added an advantage as it was supposed to be the best brush for people who cared about what they put in their mouths but was still searching for the right superiority claim.
NOTE 4: Precision created such a unique feel in the mouth when used that consumers often said, “You can really feel it working.” Once tried, consumer intent to purchase rose dramatically
NOTE 5:Lead to one of the biggest innovation in the market.
Three type of equipment were required to manufacture the Precision brush: tufters; handle molds; and packaging machinery
NOTE 1:Established a basic product design with concept tests, indicated a claim that the toothbrush would prevent gum disease which as a result motivated the greatest purchase intent among test consumers.
NOTE 2:Consumer promotions were planned to induce trial. The launch of Precision would enable CP to increase its overall share of trade advertising features and special displays in the toothpaste category.
NOTE 3: Another important tactic was to use dentists to sample consumers since professional endorsements were believed important to establishing the credibility of a new toothbrush
NOTE:The Company has divided its market into two product segments: Oral, Personal, Household Surface and Fabric Care. Colgate is considered to be the global leader in the Oral care Products such as toothpaste, Toothbrushes and many other pharmaceutical products. Colgate also possesses a strong market in the Personal Care segment that includes products like bar, liquid hand soaps, shower gels, shampoos etc.
NOTE 1:In laboratory experiments, researchers used infrared motion analysis to track consumers’ brushing movements and consequent levels of plaque removal.
NOTE 2:CP developed a unique brush with bristles of three different lengths and orientations.
NOTE 3:The longer outer bristles cleaned around the gum line, the long inner bristles cleaned between teeth, and the shorter bristles cleaned the teeth surface. The result was a triple-action brushing effect.
NOTE 1:Brushing usually did a good job of removing plaque but was often ineffective at removing plaque from the gum line and between the teeth.
NOTE 2: The tests revealed that CP’s new design was superior to both Oral-B and Reach in accessing front and back teeth, using either horizontal or vertical brushing.
NOTE 3: a disclosing solution was used to reveal the colorless plaque, and each tooth was divided into nine specific areas. Presence of plaque was measured on each tooth area.
NOTE 4: Three similar designs evolved all incorporating bristles of different lengths that allowed free movement of each individual tuft of bristles which enabled different bristle tufts to target different areas of the mouth helping to reduce the probability of gum disease.
NOTE 5: Extensive consumer research was carried out to test product design and characteristics, marketing concept, and competitive strengths.
NOTE 1 :Gillette had been the market leader with its product “Oral-B” known as “the dentist’s toothbrush which relied heavily on professional endorsements. In 1991, it held a 23.1% volume market share and a 30.7% value share of U.S retail sales. Later, it launched the Indicator brush having a patch of blue bristles that faded to white when it was time for replacement.
NOTE 2:Johnson & johnson (J&J) entered the U.S. market by introducing a brush “Prevent” with a commended brushing technique i.e. brush at a 45% angle Later, in 1991, J&J ranked third in the U.S. retail toothbrush market with a 19.4% volume share and a 21.8% value share
NOTE 1: Procter & Gamble (P&G), launched its product “Crest” in September 1992 which contained long, rippled bristles of different lengths, designed to reach between the teeth. “It has a 2.0% volume share and a 2.6% value share of the U.S. retail market by the end of 1992.
NOTE 2 : Smithkline Beecham entered the U.S. market by introducing Aqua fresh Flex which included flexible handles that allowed gentle brushing. By the end of 1991, Aqua fresh Flex held a 0.9% share by volume and 1.1% by value of the U.S. retail market
