This document discusses Colgate-Palmolive's development and marketing strategy for a new precision toothbrush. It provides background on Colgate-Palmolive and the US toothbrush market. The precision toothbrush was designed with triple action brushing to clean all tooth surfaces. Colgate-Palmolive considered both niche positioning targeting gum disease or mainstream positioning appealing to most consumers. Mainstream positioning could increase sales and market share but risked cannibalizing existing products and requiring large production increases. Niche positioning allowed a gradual transition but with less profit potential. The document does not recommend a definitive strategy.

1. Colgate-Palmolive
Journey of the Precision
toothbrush

2. What it does?
Colgate-Palmolive is an
American worldwide consumer
products company focused on
the provision of household,
health care and personal
products, such
as soaps, detergents, and oral
hygiene products.

3. Company Background
Global leader in household and personal
care products
Sales
$6.06
billion
Profit
$2.76
billion
R&D
$114
million
Advertising
$428
million
1991

4. The U.S.
toothbrush
Market

5. Product Segments
Value Professional
Super
Premium
Toothbrushes varied by bristle type
and by head size.

6. Consumer Behavior
Personal habits
Dentist recommendation
Individual Needs
Oral Hygiene

7. Competition
0
5
10
15
20
25
30
Oral B Colgate J & J
Volume(%)
Value(%)

8. The Precision
toothbrush

9. Product Design
Mission:
To “develop a superior technical, plaque
removing device”.
Result:
Triple action brushing effect:
Outer long bristles to clean around gum line
Inner short bristles cleaned between the teeth
Inner long bristles cleaned the teeth surface

10. Problem?
Defining the Marketing
strategy i.e. positioning,
branding, and
communication strategies
for C-P’s new toothbrush:
Colgate Precision

11. How to position the product?
Niche positioning :
Consumers concerned
about gum disease
Mainstream positioning:
Appeal of the most
effective brush in the
market

12. Factors to be considered
Volumes
Niche:
3%
Mainstream:
10%
Total
volume
share

13. Capacity and investment costs
Factors to be considered
Investment cost Annual Capacity Depreciation time
Tufters $500,000 3 million units 15 years
Handling Molds $300,000 7 million units 5 years
Packaging $150,000 40 million units 5 years
Tufters could be used if Precision is Niche Positioned and
Packaging if is Mainstream Positioned.

14. Production Costs and Pricing
Factors to be considered
Niche:
$2.13
Mainstream:
$1.85
List Price of Colgate Precision
Concerns:
•Cannibalization of
Colgate plus
•Inadequate
supply
Niche Mainstream
Food
stores
and Drug
stores
Mass
merchandis
ers and
club stores

15. Branding
Names tested:
Colgate Precision, Colgate System III, Colgate Advantage,
Colgate 1.2.3, Colgate Contour, Colgate Sensation, and
Colgate Probe.
Colgate precision was deemed favorable by
49% concept acceptors and appealing by
31%.

16. Communication and Promotion
The toothbrush
would prevent gum
disease motivated
the greatest
purchase intent
among test
consumers.

17. Niche positioning
• Easy transition in the
product life cycle from
niche to mainstream
strategy
• Less erosion of Colgate
Plus
• CP would face less
competition
•Entry into superior
premium toothbrush where
CP holds no position
• Less contribution to net
profit in future years

18. Mainstream positioning
• Possible increase in
sales
•Unsatisfied demand could
create the perception of a
Hot product which may
increase the sale
• Cannibalization of
Colgate plus
• May require dropping
one of slow moving
product in the product line
• More competition
•Possible pressure on
production

19. Recap

20. Disclaimer
Created by Shivangi Gambhir, Manipal
Institute of Technology, during a marketing
internship by Prof. Sameer Mathur, IIM
Lucknow.