Colgate-
Palmolive
Company
.
In August 1992, the company decided to launch a new
toothbrush in the United States, named Colgate
Precision.
Susan Steinberg, product manager of
Precision. Now had to decide
positioning, branding, and
communication strategies.
• In 1991, it held 43% of the world toothpaste
market and 16% of the toothbrush market.
• Worldwide sales of CP’s oral care products
increased 12% to $1.3 billion.
• Later, it offered two line toothbrushes – the
Colgate Classic and the Colgate Plus.
NEW PRODUCTS
INTRODUCTIONS.
• Oral- B Classic
• Johnson & Johnson Reach
• Lever Bros. Aim
• Pepsodent
• Oral- B Ultra
• Aquafresh Flex
• Pfizer Plax
• And many more.
Product Segment
Toothbrushes were categorised into two
segment: VALUE and PROFESSIONAL.
Colgate- Palmolive and Johnson & Johnson were
positioned in professional segment. While Oral-
B, Procter & Gamble was positioned in super
premium segment.
Advertising and
promotion.
Advertising and promotion expenditure for colgate Palmolive
toothbrushes.
1989 1990 1991 1992E
media $3667 $6988 $8761 $9623
Consumer
promotion
s
4541 5893 5286 6978
Trade
promotion
s
3485 4134 6287 7457
Total
advertising
and
promotion
$11693 $17015 $20334 $24058
Summary of
consumer concept
test results.
Concept Test 1
Plaque remover Healthier gums Trouble spots
Probably would buy 69% 68% 66%
Definitely would
buy
15% 15% 10%
Concept Test 2
35% more
plaque
remover
prevent gum
disease
35% more
plaque
remover
Prevent gum
disease
Feel the
difference
Probably would
buy
63% 72% 62% 66%
Definitely
would buy
13% 16% 11% 14%
Concept Test 3
Gun
disease/replac
ement
Gum disease
only
Replacement
message
Trouble spots
Probably will
buy
63% 72% 62% 66%
Definitely will
buy
13% 16% 11% 14%
Concept Test 4
No price given prevent
gum disease
20% price premium to
oral-B prevent gum
disease
Probably will buy 87% 61%
Definitely will buy 29% 19%

Case ii ppt slides by nalini bhattar

  • 1.
  • 2.
    In August 1992,the company decided to launch a new toothbrush in the United States, named Colgate Precision.
  • 3.
    Susan Steinberg, productmanager of Precision. Now had to decide positioning, branding, and communication strategies.
  • 4.
    • In 1991,it held 43% of the world toothpaste market and 16% of the toothbrush market. • Worldwide sales of CP’s oral care products increased 12% to $1.3 billion. • Later, it offered two line toothbrushes – the Colgate Classic and the Colgate Plus.
  • 5.
    NEW PRODUCTS INTRODUCTIONS. • Oral-B Classic • Johnson & Johnson Reach • Lever Bros. Aim • Pepsodent • Oral- B Ultra • Aquafresh Flex • Pfizer Plax • And many more.
  • 6.
    Product Segment Toothbrushes werecategorised into two segment: VALUE and PROFESSIONAL. Colgate- Palmolive and Johnson & Johnson were positioned in professional segment. While Oral- B, Procter & Gamble was positioned in super premium segment.
  • 7.
  • 8.
    Advertising and promotionexpenditure for colgate Palmolive toothbrushes. 1989 1990 1991 1992E media $3667 $6988 $8761 $9623 Consumer promotion s 4541 5893 5286 6978 Trade promotion s 3485 4134 6287 7457 Total advertising and promotion $11693 $17015 $20334 $24058
  • 9.
  • 10.
    Concept Test 1 Plaqueremover Healthier gums Trouble spots Probably would buy 69% 68% 66% Definitely would buy 15% 15% 10%
  • 11.
    Concept Test 2 35%more plaque remover prevent gum disease 35% more plaque remover Prevent gum disease Feel the difference Probably would buy 63% 72% 62% 66% Definitely would buy 13% 16% 11% 14%
  • 12.
    Concept Test 3 Gun disease/replac ement Gumdisease only Replacement message Trouble spots Probably will buy 63% 72% 62% 66% Definitely will buy 13% 16% 11% 14%
  • 13.
    Concept Test 4 Noprice given prevent gum disease 20% price premium to oral-B prevent gum disease Probably will buy 87% 61% Definitely will buy 29% 19%