This case study examines Colgate-Palmolive's launch of the Precision toothbrush. A task force was created comprising executives from R&D, Marketing, and dental professionals to design and test a new toothbrush. Their goals were to understand brushing techniques, test plaque removal between teeth, establish a plaque scoring index, and create a brush design that removes maximum plaque. The task force debated whether to position Precision as a niche product targeting gum disease or a mainstream brush appealing to effectiveness. They predicted 3-5% market share with niche positioning versus 10-14.7% with mainstream. The conclusion was that Precision represented a technological breakthrough with the potential to reach more consumers through mainstream positioning and marketing.

1. CASE STUDY
COLGATE-PALMOLIVE COMPANY:
THE PRECISION TOOTHBRUSH

2. COMPANY BACKGROUND
Founded by William Colgate
in 1806
Global leader in household
and personal care products
64% of International sales
and 67% of profits in 1991

3. ORAL CARE BUSINESS

4. THE U.S. TOOTHBRUSH MARKET
In 1961, Broxodent launched the
first electric toothbrush.
In 1991, the U.S. Oral Care market
was $2.9 billion in retail sales.
Toothbrushes accounted for 15.5%
($453 million).
47 new products and line extensions
were introduced during 1991-92.

6. PRODUCT SEGMENTS
In the 1980s, toothbrush category was divided
into two segments: Value and Professional.
Late 1980s saw the emergence of Super-premium
brushes.
In 1992, three players dominated the U.S.
toothbrush market overall:
Professional: Colgate Palmolive and
Johnson & Johnson
Super-premium: Oral-B

8. CONSUMER BEHAVIOR
Consumers were becoming more concerned
about the health of their gums.
82% of toothbrush purchases were
unplanned.
They replaced their brushes once every 7.5
months in 1991.
Consumers differed in the intensity of their
involvement in oral hygiene (3 groups).

11. COMPETITION

14. ADVERTISING AND PROMOTION
Total media spending, primarily on television
advertising, was estimated to total $55
million in 1992 and $70 million in 1993.
Retail advertising features and in-store
displays increased toothbrush sales.
To maximize retail sales, CP salespeople
tried to locate Colgate line between Reach
and Oral-B product lines.

18. DISTRIBUTION
In 1987, traditional food stores sold 75%of oral care products. By
1992, they accounted for 43% toothbrush and 47% toothpaste sales.
Toothbrushes provided retailers with margin of 25% to 35%, twice
that for toothpaste.
Retail sales remain fragmented, with 60% of sales derived from
40% of SKUs.
In 1992, 22% of toothbrushes were expected to be distributed by
dentists. Oral-B dominated this market segment.

19. THE PRECISION MARKETING MIX
PRODUCT DESIGN AND TESTING

20. CREDIT FOR
DEVELOPMENT
Task force comprising
executives from R&D and
Marketing, Dental
Professionals and outside
consultants
Leadership of Steinberg
Steinberg - Product Manager
Nigel Burton - Division GM
Ruben Mark - CP’s CEO
CREDIT FOR
LAUNCH

21. 5 GOALS OF TASK FORCE
Understanding techniques consumers use when brushing teeth.
Testing between teeth access of different toothbrush designs
Establishing an index to score clinical plaque-removal efficacy
Create Bristle configuration and Handle design to remove
maximum plaque
Determining the efficacy and acceptance of new toothbrush
design

22. BRAND POSITIONING
Precision can be positioned as a
niche product to be targeted at
consumers concerned about gum
disease.
Precision could also be positioned as
a mainstream brush, with a broader
appeal of being the most effective
brush available in the market.

23. VOLUME SHARE PREDICTION
With Niche Positioning:
Year 1: 3% Year 2: 5%
With Mainstream Positioning:
Year 1: 10% Year 2: 14.7%

24. Niche Positioning Strategy
PROS
Compete in the super-premium
segment
Command a 15% price
premium over Oral-B
CONS
Less contribution to
profits
Less consumer outreach

25. Mainstream Positioning Strategy
PROS
More Consumer Outreach
More Profits
CONS
Cannibalization of Colgate
Plus
Unsatisfied Demand in the
initial phase of launch

26. Solution
More premium subscribers
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27. Colgate Precision name was consistently viewed more favorable
in the name tests carried out.
Cannibalization figures for Colgate Plus would increase by 20%
if the Colgate brand name was stressed but remain unchanged if
the Precision brand name was stressed.
BRANDING

28. COMMUNICATION AND PROMOTION
Four concept tests were conducted among 400 adult professional
brush users.
The results of these tests indicate that a claim that the toothbrush
would prevent gum disease motivated the greatest purchase intent
among the test consumers
Steinberg argued for an 80% increase in CP category spending in
1993, with fully 75% of all advertising dollars assigned to
Precision and 25% to Plus.

30. CONCLUSION
Steinberg believed that Precision was more a niche product or
simple line extension and that the proven benefits to consumers
represented a technological breakthrough.
She had to develop a marketing strategy that would enable
Precision to reach its full potential.

31. DISCLAIMER
Created by S Ashish Reddy, IIT Hyderabad, during a marketing
internship by Prof. Sameer Mathur, IIM Lucknow.