This presentation was made during a marketing management internship under professor Sameer Mathur , IIM Lucknow

1. COLGATE-PALMOLIVE
COMPANY :THE
PRECISION
TOOTHBRUSH

2. Susan Steinberg
Precision Product Manager
NigelBurton
General Manager
Reuhen Mark
Colgate Palmolive CEO
John Philips
Colgate Plus Manager

4. In , August 1992 Colgate-Palmolive (CP) launched a new toothbrush in the United States - COLGATE
PRECISION.
THE SITUATION (1/3)

5. Branding Positioning Communication Strategies
THE SITUATION (2/3)

6. THE SITUATION ( 3/3)
John Phillips, argued that Colgate Plus was the bread-and-butter of
CP’s toothbrush line and claimed that his mainstream brand should
receive more rather than less support if Precision was launched.

8. intheU.Sretailtoothbrushmarketwitha
23.3% volumeshare.
Introduced275 newproductsworldwide
Global leader inthehouseholdand
personalcareproducts.
(1/4)

9. Unable to achieveproper credibility from thedental association on its
products whencompared to its competitor ORAL-B
Introduction of newproducts may result in cannibalization of other
products like Colgate plus.
(2/4)

10. (3/4)

11. (4/4)

12. (4/4)

13. CP: A GLOBAL LEADER IN HOUSEHOLD AND PERSONAL CARE PRODUCTS

15. In the 1980’s,Industry executives divided the toothbrush
category into two segments :-
• Value
• Professional
Thelate 1980’s saw the emergenceof another category called
super premium brushes

17. THE US TOOTHBRUSH MARKET
CONSUMER BEHAVIOR
COMPETITION

18. THE US TOOTHBRUSH MARKET
• In the twentieth century, a major design advance occurred in 1938 with
the launch of Dr. West’s Miracle Tuft Toothbrush, the first nylon-bristle
brush.
• In 1991, the U.S. Oral Care market was $2.9 billion in retail sales and had
grown at an annual rate of 6.1% since 1986.
• Toothpaste accounted for 46% of this market, mouth rinses 24%,
toothbrushes 15.5% ($453 million in retail sales), with dental floss and
other products making up the remainder.
• Dollar sales of toothbrushes had grown at an average rate of 9.3% per
annum since 1987, but, in 1992 they increased by 21% in value and 18%
in volume, due to the introduction of 47 new products and line
extensions during 1991-1992.
MAIN ASPECTS (1/3)

19. THE US
TOOTHBRUSH
MARKET
MAIN ASPECTS (1/3)

20. • Consumers were willing to pay a premium for the
new products addressing issues regarding the
health of their gums.
• 48% consumers claimed to change their brushes
at least every three months.
• Consumers chose their brand based on features,
comforts and professional recommendations.
MAIN ASPECTS (2/3)
MAIN REASON %
Fits comfortably 63
Getting at hard to
Reach places
52
Bristles of Right
softness
46
Bristles of right
firmness
36%

23. MAIN ASPECTS (3/3)

24. ORAL-B
JOHNSON&
JOHNSON–REACH
BRAND
P&G’S CREST
AQUAFRESH FLEX
MAIN ASPECTS (3/3)

25. PRINCIPAL TOOTHBRUSH BRAND AND DOLLAR MARKET SHARES BY CLASS OF TRADE: 1991

26. MAIN ASPECTS (3/3)

27. PRINCIPAL TOOTHBRUSH BRAND UNIT AND DOLLAR MARKET SHARES (1989-
1992E)

29. BRAND POSITIONING
Precisionwas developed with the objective ofcreating best brush possibleand as
such becoming a top-of-the –range product.

30. MAINSTREAM
POSITIONING
STRATEGY
NICHE POSITIONING
STRATEGY

31. NICHE POSITIONING STRATEGY PROS

32. NICHE POSITIONING STRATEGY CONS
• IfPrecision is positioned as a Mainstream brush,Precision would capture10%of themarket
shareatthe end of 1st yearfollowing its launch.(Veryhigh whencomparedwith Niche
positioning)
• Thevolume shares whenpositioned asmainstream wouldbe 10%in1 yearwhen comparedto
5% whenpositioned as Nicheproduct!

33. MAINSTREAM POSITIONING STRATEGY PROS
• Mainstreamwas more appealing as it proclaimed larger
market share & volume shareat the end of1 yearafter
launch.
• Greaterproportion ofsales would occurthroughmass
merchandisersand club stores.

34. MAINSTREAM POSITIONING STRATEGY CONS
• Raised concernsabout ‘CANNIBALIZATION’ofColgate plus and
about pressureon ProductionSchedules that had been developed
for Nichepositioning.
• Productioncapacity increasesrequired 10months lead-resulting
in inadequate supplyofproduct.
• Positioning Precision asa mainstream product with 7 SKU’s would
probably requiredropping oneormore existing SKUs.

35. BRANDING!

36. • Executives believedthat Product should standalone andthe PRECISIONbrandnameshould be
emphasized.
• Stressing Precision asopposedto Colgatewould-limitthe extent of Cannibalizationof Colgate plus.
• It wasestimated,both under mainstream andniche positioning scenarios, the cannibalizationfigures For
Colgate plus wouldincrease by20% if the Colgate brandnamewasstressed.
The Debate whetherthe brush should be knownas “Colgate Precision” or
“Precision ByColgate”????

37. TESTREULTS WERE AS FOLLOWS :-
• The toothbrush’sfeatureofpreventing Gum disease
motivatedthegreatestpurchaseintentamong test
consumers.
• Additionalconsumer researchrevealed that55%oftest
consumersfoundPrecisionto beverydifferentfromtheir
currenttoothbrushes.
• Theresearchalsorevealed thatthe morethe consumers
weretoldaboutPrecision andhowit worked,the greater
the enthusiasmforthe product.

38. • However,theclichéd look of the brushput the
consumers in dilemma.
• Also it was difficult to translate the message of
greater plaque removal with a broad consumer
appeal, since few consumersacknowledged that
they might have gum disease.

43. Points to Ponder!
Growing competition increased thefeatured and value ofconsumerpromotion event.
Retail advertising featuresand in store displays increased toothbrushsales.
WhenColgate toothbrushwere combined with Colgate toothpaste, the toothbrushsales increased by
170%
TheCPtoothbrushline held 25% to 40% of the category shelfspace in most stores.
22% of all toothbrusheswere expected to be distributed to consumersby dentist-with dedicated sales
force-OralB dominated this Market.

45. COPIES OF THE
ADVERTISEMENTS
USED IN THE
CONSUMER CONCEPT
TIMES !!!

46. DISPLAY RACKS

47. REPRODUCTION OF THE
COLGATE PRECISION
TOOTHBRUSH !!!

49. Initially positioning Precision as Niche toothbrush and later broadening toMainstream positioning would help the product gain
sufficient recognition by avoiding cannibalization and would ensure additional capacity onceit enters the mainstream.
Broadening into the mainstream positioning would enhance greater proportion of sales which
would now also occurthroughmass merchandisersand club stores apart from thefood and drug
stores.
Market the product as providing superior and distinctive
oral care . Appeal to the therapeutic consumers.
POSITIONING:-

50. BRANDING:-
• “Precision ByColgate "would bemore prominent as
it would reducecannibalization ofColgate Plus-
which is the bread and butter of CP’stoothbrushline
and secureits market position.
• Placing The Precisionat the center ofthe Brushes
in the storage shelves would ensureeasy acceptance
due to the prevalence of the Brand at the same time-
giveit a unique stand.

51. COMMUNICATION STRATEGY:
Investing a little more on Advertising and Promotion would not do much harm as it shall give a head start tothis potential
product.
There must be several Consumer promotions to back the launch forthe mainstream positioning as this w attracta lot
more potential buyers.
Since sampling would be critical to Precision’s success, it would be better touse Dentists to sample consumers since
professional endorsements were more credible.
Spending 75%of all advertising dollars of CP’s category spending forPrecision was essential because it ensured Precision was
able to Reach its Potential consumers through extensive advertising.

53. DISCLAIMER :
Created by Disha Dahiya during a marketing management internship
under Professor Sameer Mathur , IIM Lucknow
Disha Dahiya
Delhi Technological University