This document discusses marketing strategies for Colgate's new Precision toothbrush. It analyzes the toothbrush market, noting customers are willing to pay more for cavity and gum prevention. For the Precision, it recommends a niche market strategy initially targeting the emerging super premium segment. This involves aggressive advertising and sampling to establish the Precision brand's technical superiority over competitors in plaque removal and gum health. Financial forecasts project higher initial profits from the niche versus mainstream strategy due to less cannibalization of existing Colgate brands.

1. COLGATE
PALMOLIVE
THE PRECISION
TOOTHBRUSH
Vaibhav Garg

2. PROBLEM STATEMENT
Define the marketing strategy
(Positioning, Branding and
Communication Strategies) for the
new toothbrush- Colgate Precision.

3. Nature of Demand
Shift in Demanded Benefits
• Cavity Prevention
• Healthier Gums

4. Nature of Demand
Shift in Demanded Benefits
• Cavity Prevention
• Healthier Gums
Emergence of a super premium
range

5. Nature of Demand
Shift in Demanded Benefits
• Cavity Prevention
• Healthier Gums
Emergence of a super premium
range
Customers willing to pay more

6. Extend of Demand
 Current Us toothbrush market- US $ 30MN
 CP’s share- US $ 77MN
 Market Growth- 9.3%per annum since 1987
 1992- Market Growth- 18% by volume, 21% by $ sale.
 $ growth exceeded volume growth due to emergence of
Super Premium Toothbrush.

7. Colgate Precision
• Presently in introduction stage.
• Planned promotion for entry into Super Premium
segment.
• Expected Return of Investment (ROI) in few
years

8. COLGATE PRECISION
Technical Innovation 35% more efficient in plaque
removal
More effective in reducing gum
diseases

9. PRODUCT

10. PRICE
Retail
Price
Trade
Price
Manufacture
Price
Main Stream
Strategy $ 2.49 $ 1.85 $ 1.76
Niche market
Strategy $ 2.89 $ 2.13 $ 2.02

11. Promotion
Niche Market
• Aggressive advertising campaign- demonstrating technical
superiority.
• Sampling of Precision toothbrush across different markets.
• Excessive promotion through professional endorsements.

12. MAINSTREAM MARKET
• Through financial incentives like coupons and
buy 1 get 1 free schemes.
• Diverting marketing funds from other CP
products into marketing of Precision.
* Bad initial approach for Precision in terms of sales and
cannibalisation.

13. FINANCIAL FORECAST

14. 1st Year Estimates
Niche Category (13MN Units)
Production cost- US$ 12.14 MN
Marketing cost- US$ 11.2 MN
Sales- US$ 26.26 MN
Profit- US$ 2.86MN
Mainstream Category (42MN Units)
Production cost- US$ 36.86MN
Marketing cost- US$ 32.8MN
Sales- US$ 73.92MN
Profit- US$ 4.242MN

15. BRANDING
• Emphasizing the Colgate name on Precision would
cause up to 20% cannibalisation for Colgate Plus.
• Using Colgate’s name would be congruent to with
its strategy to build Brand Equity.

16. Pros and Cons of Positioning
MAINSTREAM STRATEGY
PROS CONS
• Unsatisfied demand could create
the perception of “hot product’
which may increase the sales.
• Possible increase in sales.
• Greater erosion of Colgate Plus.
• May require dropping one of the slow
moving children’s brush.
• Pressure on production schedules
resulting in inadequate supply of
products.
• More competition

17. NICHE STRATEGY
PROS CONS
• Niche could later be broadened
to a mainstream position
• Less cannibalisation of Plus
brand.
• Entry into new Super Premium
category where CP currently
holds no value.
• CP would face less competition.
• Less contribution to net profit in
future years.

18. RECOMMENDATION
• New product development specifically focused on
gum care and plaque removal. Make customers
aware of this.
• Target the Super Premium segment
• Position the Precision toothbrush in the more
consistent niche market at least for one year.
• Extensive sampling and professional endorsements
to establish the brand.

19. THANK YOU