This document discusses Colgate-Palmolive's development and marketing strategy for a new precision toothbrush. It provides background on Colgate-Palmolive and the US toothbrush market. The precision toothbrush was designed with triple action bristles to improve plaque removal. Colgate-Palmolive considered both niche positioning targeting gum disease or mainstream positioning appealing to most consumers. Mainstream positioning could increase sales and market share but risked cannibalizing existing products and requiring large production increases. Niche positioning allowed a slower transition but faced less competition. Colgate-Palmolive ultimately had to weigh factors like volumes, costs, branding in deciding their marketing strategy.
HBR Case Study: Precision Toothbrush by Tejas KothaTejas Kotha
Review of a Case Study under Prof. Sameer Mathur, IIM Lucknow as a part of Summer Internship 2017...
Case Study: Colgate-Palmolive Company: The Precision Toothbrush
Colgate Palmolive - The Precision Toothbrush - Case Study AnalysisSharanya Ray
A presentation on Case Study Analysis of The precision Toothbrush made Colgate Palmolive, base on a Harvard Business School Case Study, written by John Quelch and Nathalie Laidler.
HBR Case Study: Precision Toothbrush by Tejas KothaTejas Kotha
Review of a Case Study under Prof. Sameer Mathur, IIM Lucknow as a part of Summer Internship 2017...
Case Study: Colgate-Palmolive Company: The Precision Toothbrush
Colgate Palmolive - The Precision Toothbrush - Case Study AnalysisSharanya Ray
A presentation on Case Study Analysis of The precision Toothbrush made Colgate Palmolive, base on a Harvard Business School Case Study, written by John Quelch and Nathalie Laidler.
This presentation is based on Colgate Palmolive Precision Toothbrush which is created under the guidance of Prof Sameer Mathur, during the marketing management internship of IIM, Lucknow.
Colgate palmolive company the precision toothbrush case studyshubhra deshpande
This is overview of Colgate-Palmolive case study from Harvard Business School. Presentation contains overview and short analysis of case study.This presentation was made during marketing internship under prof. Sameer Mathur.
Executive Summary
Toothbrush is currently one of the most promising categories and Colgate has proven to be a market leader with its products, Classic in value segment and Plus in professional. Increasing concern over oral hygiene amongst consumers resulted in a superior and premium grade of toothbrush that entirely focuses on improving brushing experience and oral health
Users are making transition towards higher value toothbrushes (super premium), due to the increased awareness of oral hygiene. Research suggests that majority of the consumers are more concerned about their oral health than ever and all the major brands like Oral B, Johnson & Johnson and Proctor and Gamble have either launched or in the process to launch a product in this segment
Colgate Palmolive is expected to lose it’s market share by almost 4% in 1993 and 3% in 1994, as it faces tough competition from major oral care competitors. If we don’t extend our toothbrush portfolio to include a super premium toothbrush, we are expected to lose our foothold in the toothbrush category
Our oral care division decided to launch a technological innovative product, that would meet the current market demand to cater premium brush users called “Precision”. If executed right, Precision will ensure a 5% growth in overall market share and maintain Colgate’s position as a market leader in the industry
With an investment of $14 million towards media advertisement and almost $7.6 million towards production, launching Precision as a mainstream product would result in NPV of $11 million and an IRR of 129%
This is a brief case study analysis on Colgate Palmolive Toothbrush Brand. This presentation has been done as a fulfillment of an assignment given by Prof. Sameer Mathur, Marketing Professor, IIM Lucknow.
This presentation bases its focus on marketing strategy of the company and break-even analysis on the basis of the exhibits given at the end of the case.
This presentation is based on Colgate Palmolive Precision Toothbrush which is created under the guidance of Prof Sameer Mathur, during the marketing management internship of IIM, Lucknow.
Colgate palmolive company the precision toothbrush case studyshubhra deshpande
This is overview of Colgate-Palmolive case study from Harvard Business School. Presentation contains overview and short analysis of case study.This presentation was made during marketing internship under prof. Sameer Mathur.
Executive Summary
Toothbrush is currently one of the most promising categories and Colgate has proven to be a market leader with its products, Classic in value segment and Plus in professional. Increasing concern over oral hygiene amongst consumers resulted in a superior and premium grade of toothbrush that entirely focuses on improving brushing experience and oral health
Users are making transition towards higher value toothbrushes (super premium), due to the increased awareness of oral hygiene. Research suggests that majority of the consumers are more concerned about their oral health than ever and all the major brands like Oral B, Johnson & Johnson and Proctor and Gamble have either launched or in the process to launch a product in this segment
Colgate Palmolive is expected to lose it’s market share by almost 4% in 1993 and 3% in 1994, as it faces tough competition from major oral care competitors. If we don’t extend our toothbrush portfolio to include a super premium toothbrush, we are expected to lose our foothold in the toothbrush category
Our oral care division decided to launch a technological innovative product, that would meet the current market demand to cater premium brush users called “Precision”. If executed right, Precision will ensure a 5% growth in overall market share and maintain Colgate’s position as a market leader in the industry
With an investment of $14 million towards media advertisement and almost $7.6 million towards production, launching Precision as a mainstream product would result in NPV of $11 million and an IRR of 129%
This is a brief case study analysis on Colgate Palmolive Toothbrush Brand. This presentation has been done as a fulfillment of an assignment given by Prof. Sameer Mathur, Marketing Professor, IIM Lucknow.
This presentation bases its focus on marketing strategy of the company and break-even analysis on the basis of the exhibits given at the end of the case.
Case Analysis:Colgate-PalmolivePrecision ToothbrushVivek Kumar Gupta
In July 1992, CP senior management announced a new toothbrush model, the Precision, that was set to launch in early 1993. In order to meet consumer demand CP could introduce the toothbrush as a niche, super-premium or a mainstream, professional product. It could also introduce the product using standard naming conventions or introduce a new labeling system by calling it the “Precision by Colgate.” CP could leverage existing industry relationships and make an effort to form new ones in order to gain a competitive edge. At launch, CP could plan to offer competitive promotions, a popular offering that was slowly becoming standard practice in the oral care industry. The company could also increase its advertising budget to include educating the public on the dangers of gum disease. Depending on how it chooses to introduce the Precision toothbrush to the market, 1992 could serve as an important year for CP to establish itself as the definitive oral health care company.
Guided By: Prof Sameer Mathur
(Marketing PROFESSOR, IIM Lucknow)
Colgate-Palmolive Company:The Precision ToothbrushSaurabh D.
Colgate-Palmolive Company:The Precision Toothbrush case study of Harvard Business Review made during Marketing Internship under guidance of Prof. Sameer Mathur, IIM Lucknow
Colgate- Palmolive:The Precision Toothbrush case analysisNavdeep Jain
This is a case analysis of Harvard Business School case, Colgate-Palmolive Company: The Precision Toothbrush prepared under the guidance of Prof. Sameer Mathur
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2. What it does?
Colgate-Palmolive is an
American worldwide consumer
products company focused on
the provision of household,
health care and personal
products, such
as soaps, detergents, and oral
hygiene products.
3. Company Background
Global leader in household and personal
care products
Sales
$6.06
billion
Profit
$2.76
billion
R&D
$114
million
Advertising
$428
million
1991
9. Product Design
Mission:
To “develop a superior technical, plaque
removing device”.
Result:
Triple action brushing effect:
Outer long bristles to clean around gum line
Inner short bristles cleaned between the teeth
Inner long bristles cleaned the teeth surface
11. How to position the product?
Niche positioning :
Consumers concerned
about gum disease
Mainstream positioning:
Appeal of the most
effective brush in the
market
12. Factors to be considered
Volumes
Niche:
3%
Mainstream:
10%
Total
volume
share
13. Capacity and investment costs
Factors to be considered
Investment cost Annual Capacity Depreciation time
Tufters $500,000 3 million units 15 years
Handling Molds $300,000 7 million units 5 years
Packaging $150,000 40 million units 5 years
Tufters could be used if Precision is Niche Positioned and
Packaging if is Mainstream Positioned.
14. Production Costs and Pricing
Factors to be considered
Niche:
$2.13
Mainstream:
$1.85
List Price of Colgate Precision
Concerns:
•Cannibalization of
Colgate plus
•Inadequate
supply
Niche Mainstream
Food
stores
and Drug
stores
Mass
merchandis
ers and
club stores
15. Branding
Names tested:
Colgate Precision, Colgate System III, Colgate Advantage,
Colgate 1.2.3, Colgate Contour, Colgate Sensation, and
Colgate Probe.
Colgate precision was deemed favorable by
49% concept acceptors and appealing by
31%.
16. Communication and Promotion
The toothbrush
would prevent gum
disease motivated
the greatest
purchase intent
among test
consumers.
17. Niche positioning
• Easy transition in the
product life cycle from
niche to mainstream
strategy
• Less erosion of Colgate
Plus
• CP would face less
competition
•Entry into superior
premium toothbrush where
CP holds no position
• Less contribution to net
profit in future years
18. Mainstream positioning
• Possible increase in
sales
•Unsatisfied demand could
create the perception of a
Hot product which may
increase the sale
• Cannibalization of
Colgate plus
• May require dropping
one of slow moving
product in the product line
• More competition
•Possible pressure on
production
20. Disclaimer
Created by Saswat Prusty, Manipal Institute
of Technology, during a marketing internship
by Prof. Sameer Mathur, IIM Lucknow.
P.S. I am on the right :p