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Colgate-Palmolive Company-
The Precision toothbrush
Situation:
Colgate-Palmolive (CP) was poised to launch
a new toothbrush in the United States,
tentatively named Colgate Precision but now
faced a highly competitive market with
substantial new product activity.
Decisions to be made:
Product segment
Branding
Advertising
Promotion
Product segmentation
Value
Professional Super-premium
Product features
the long inner bristles
cleaned between teeth,
The longer outer bristles
cleaned around the gum
line,
The shorter bristles
cleaned the teeth
surface
An average 35% increase in
plaque removal
Competition
23%
19%
23%
35%
Volume Share
oral B
johnson &johnson
colgate
others
oral B
31%
johnson
&johnson
20%
colgate
23%
others
26%
VALUE SHARE
1991/92 Product launches by competitors
Oral-B Indicator bristles Tells you when to change toothbrush
Johnson & Johnson Angled neck; raised rubber; ridges on
handle
Cleans in even the hardest to reach
places
Procter & Gamble Ripped bristle design.Handle with
rubber grip
Reaches between teeth like a dental
tool
Smithkline Beecham Pressure sensitive, flexible neck
linking brush and handle
Prevents gum irritation
Consumer Research Analysis
• Therapeutic Brushers
• Cosmetic Brushers
• Uninvolved Brushers
Consumer behaviour
63
52
46
36 35
30
0
10
20
30
40
50
60
70
Percentofconsumers
Main reason for using a brand
Consumer Behavior
Fits most comfortably in my mouth Best for getting at hard-to-reach places The bristles are the right softness
The bristles are the right firmness Toothbrush my dentist recommends Important part of my oral care regimen
Distribution
19%
10%
29%
42%
Colgate plus Volume share
food stores drug stores mass merchandisers others
• Food Stores
• Drug Stores
• Mass Merchandisers
7%
4%
4%
85%
Colgate Classic Volume share
food stores drug stores mass merchandisers others
Positioning
Where exactly to position Colgate
Precision in the market place ?
Mainstream Positioning Strategy
Niche Positioning Strategy
Targeted at consumers
concerned about gum disease
Appeal of being the most
effective brush available in the
market
Niche positioning
Advantages
• Lower advertisement & production cost
• Less cannibalization
• No compromise on Colgate plus production
Disadvantages
• Smaller target audience
• Less sales
Mainstream positioning
Advantages
• More sales expected
• Larger market
Disadvantages
• Cannibalization of Colgate plus
• Higher promotion cost
• More production required
Colgate Precision or Precision by Colgate ??
Colgate Precision
• Estimated 20% cannibalization of Colgate plus
• Will have the support of well established Colgate
• Build brand equity of Colgate
Precision by Colgate
• Unchanged effect on Colgate plus sales.
• Product could sustain on its own.
My Recommendations
POSITIONING
Niche positioning at launch
Advantages:
• Can be launched at higher cost than the competitors
• Reduce cannibalization of Colgate plus
• No SKU drops.
• Demand can be met through the current capacity of
firm
After a year, Mainstream position
Advantages:
• Provide time for increasing production
• Bringing more revenue and profit to the firm.
• Product will gain recognition and loyalty
PROMOTIONS
• Toothpaste free with every brush
• Discount on products
• Higher saving coupons than competitors
• Professional endorsement through Dentists
DISTRIBUTION
• Initially because of niche positioning, primarily sales by food and drug stores.
• Under a mainstream launch scenario, a relatively large proportion of sales would occur
through mass merchandisers and club stores
COMMUNICATION STRATEGY
Investing a little more
on advertising and
promotion
There must be several
consumer promotions to back
the launch of mainstream
positioning of Colgate
precision
Positioning
Branding
Advertisements
&
Promotions
Consumer
behaviour
Product segments
DISCLAIMER
• Created by Ashish kapoor, IIT Bombay, during a marketing internship
under Prof. Sameer Mathur, IIM Lucknow.

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Colgate Palmolive case study HBS