Created by Shriya Jangid, Dyal Singh College(M), Delhi University, during a marketing internship by Prof. SAMEER MATHUR, IIM LUCKNOW

2. • Founded In: 1806,
• Founder: William
Colgate
• CEO: Ian M. Cook
• Headquarters: New
York City

3. Company Background
The Colgate-Palmolive Company is an American
worldwide consumer products company focused on
1. Production
2. Distribution and provision of household
3. Health care and personal products, such as soaps,
detergents, and oral hygiene products

4. • It’s a technical innovation
• Triple-action brushing
effect
• Increased Effectiveness at
plaque removal
• Provides good gum
protection
The Precision Toothbrush

5. Three segments:
Value
Professional and
Super-Premium
Product Segments

6. VALUE
• More economic
• Average price : $1.29
PROFESSIONAL
• Better quality
• Average Price : $1.59 to
$2.09
SUPER-PREMIUM
• Premium designed
toothbrush
• Average Price : $2.29 to
$2.89

7. Three consumer groups:
1) Therapeutic Brushers
2) Cosmetic Brushers
3) Uninvolved Brushers
• 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
Consumer Analysis

8. To Suggest a marketing strategy
for the new toothbrush:
‘Colgate Precision’
Problem Statement

10. • Global leader in personal
care and household
products.
• Concept tests revealed
that 77% found precision
much more effective than
their current toothbrush.
• Held number one position
in the U.S retail
toothbrush market with a
23.3% volume share.
• Extensive overseas reach

11. • 33% of adults were uninvolved
oral health consumers hence it
becomes difficult to educate
them the importance of the
toothbrush.
• Was not able to achieve proper
credibility from the dental
association on its products
when compared to its
competitor ORAL-B.
• Media expenditure of the
brand is limited compared to
its rivals.
• Lack of dental endorsements
for the brand.

12. • CP’s consumer research
revealed that 46% of
adult consumers are
concerned about the
health of their
gums and are willing
to pay premium for
new products.
• Can attract consumers
who make unplanned
purchases by focused
advertisement

13. • Competitors are offering
incentives such as buy-
one-get-one-free, mail in
refund coupon deals and
toothbrush on pack with
toothpaste.
• Procter & Gamble are
preparing to launch Crest
Complete with features
like long, rippled bristles.
• Smith Kline Beecham by
expanding Aquafresh Flex
line to include two adult
compact heads and one
child brush.

15. • Oral-B’s“Thedentist’stoothbrush”givesa toughmatchin the
competition.
• J&K’sReach-hasexcellentinnovations like-abeveledhandleto
helpconsumerbrush at 45% angle.
• TheBrand has scheduledtheLaunch of ‘ReachBetween’on
September1992.This has tobekeptinmind-afterfewmonths-
Precision has tolaunched
• P&G ‘sProduct claimstohave the abilitytoreach betweenthe
teethup to 37% fartherthanleadingbrands.
• SmithklineBeechman’sAquaFreshFlexhad flexiblehandlesand
allowedgentlebrushing. TheBrand has goodpromotionalplans
which has chances ofattractingmore consumers.
COMPETITORS

16. MAINSTREAM POSITIONING BENEFITS
• It is more appealing due
to its larger market
share & volume share
at the end of one year
after its launch.
• It is more accessible to
its target consumers.
• Chances of higher
returns.

17. MAINSTREAM POSITIONING HARMS
• ‘CANNIBALIZATION’ concern
of Colgate plus and about
pressure on Production
Schedules that had been
developed for Niche
positioning.
• Uninvolved consumers can’t
be included in target market.
• Positioning Precision as a
mainstream product with 7
SKU’s would probably require
dropping one or more
existing SKUs.

18. • Target Market:
Consumers concerned
with gum problems.
• No SKU’s Needed to be
dropped!
• Entry into superior
market.
• Can be later broadened to
a mainstream position
which can’t be done the
other way round
NICHE POSITIONING BENEFITS

19. • If Precision is positioned as a
Mainstream brush, it would
capture 10% of the market
share at the end of 1st year
following its launch.
• The volume shares when
positioned as mainstream
would be 10% in 1 year
when compared to 5% when
positioned as Niche product.
• The reach would be limited.
NICHE POSITIONING HARMS

21. Recommendation
• By InitiallyPositioningthePrecision as NicheToothbrush and
later broadening tomainstreampositioningwould helpthe
product gainsufficientrecognitionby avoiding cannibalization.
• Moreover bybroadening into themainstreampositioningwould
enhance greaterproportion ofsales.
• It couldfocus on its branding by placing ‘ThePrecision’ atthe
centerofthe Brushes in the storageshelves which wouldensure
easyacceptanceduetotheprevalence of itsBrand.
• It shouldalso invest money in its advertisementand promotion of
its toothbrush.

22. In continuation…
• Appeal to therapeutic consumers
• Market the product as providing superior and
distinctive oral care
• Since sampling would be critical to Precision’s
success, it would be better to use Dentists to
sample consumers as professional endorsements
were more credible.

24. DISCLAIMER
Created by Shriya Jangid, Dyal Singh College(M), Delhi
University, during a marketing internship by Prof. SAMEER
MATHUR, IIM LUCKNOW