Colgate Palmolive HBR case analysed under the guidance of Dr. Sameer Mathur during the summer marketing internship by Pragya Sharma.

1. HARVARD BUSINESS REVIEW
Submitted by-
Pragya Sharma
(PGDAV)
Under the
Guidance of Dr.
Sameer Mathur

2. CONTENTS OF THE PRESENTATION
 Company background
 U.S. toothbrush market
 Product segments
 Consumer behavior
 Competition
 The Precision Marketing mix
 Conclusion

4. COMPANY BACKGROUND
The COLGATE-
PALMOLIVE is an American diversified
multinational corporation which operates in
1.INNOVATION
2. PRODUCTION
3.DISTRIBUTION
of household, healthcare, and personal products

5. COMPANY BACKGROUND
FOUNDED: 1806
FOUNDER: WILLIAM COLGATE
HEADQUARTERS: 300 PARK AVENUE, NYC, NEW YORK
PRODUCTS: CLEANING AND PERSONAL PRODUCTS
REVENUE: 16.034 BILLION DOLLARS (2015)
NO. OF EMPLOYES: 38,000
WEBSITE: http://www.colgatepalmolive.com/

6. THE U.S. TOOTHBRUSH
MARKET

7.  In late 1970’s toothbrush was considered as a
commodity and was based on price.
 Recently the performance benefits have become
increasingly important purchase criterion.
 U.S oral care market has grown at an annual rate
of 6.1% since 1986.
 Sales declined during 1992 due to free sampling
and promotion strategies.

8. PRODUCT SEGMENT

9. PRODUCT SEGMENT
 The product segments are professional, super
premium and value.
 35% of unit volume sale was super premium
brushes
 41% were the professional brushes.
 24% of unit volume sale were value brushes.

10. Major new products in super premium toothbrush segment

12. CONSUMER BEHAVIOUR
 82% toothbrush purchases were unplanned
 Toothbrushes were replaced on an average of 7.5
months
 Unlike toothpastes, toothbrushes were not shared.
 Brand choice was based on-
1. Features
2. Comfort
3. Professional recommendations

14. COMPETITION

15. ORAL B
•Market leaders since 1960’s
•In 1992 oral B it will restage its dental floss, rollout a
new mouth wash and introduce a specialty toothpaste
•Oral B management states that “to be a leader in the
oral care category we must compete to all areas of oral
care”

16. Johnson and Johnson
•In 1991 J&J was ranked third in retail toothbrush
market
•New product models included glow-reach,
advanced design reach.
•Entered the market in 1970’s with the reach brand
which in 1991 compromised 18 SKU’s

17. P & G
•Most recent entrant in the
toothbrush market
•Product had long rippled bristles of
different lengths and designs.

19. PRECISION MARKETING MIX
•Precision toothbrush was a technical innovation
•It was developed with the objective of creating the best brush
possible and as such becoming a top of the range super
premium product
•Production was sub contracted to anchor brush who also
manufactured CP’s plus line of tooth brushes.
•Alternative names included Colgate precision, Colgate system
III, Colgate advantage, Colgate sensation.
•Consumer research revealed the more tests consumers were
told about precision and how it worked the greater the
enthusiasm for the work.

20. CONCLUSION
Steinberg believed that precision was more than a
niche product a simple line extension and that the
proven benefits to consumer represented a
technological breakthrough. She wondered how
precision should be positioned, branded and
communicated as well as what the advertising
and promotion budget should be broken down.