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COLGATE
PALMOLIVE
THE PRECISION
TOOTHBRUSH.
COLGATE
PALMOLIVE
THE PRECISION
TOOTHBRUSH
ESTABLISHMENT
• FOUNDER : WILLIAM COLGATE IN
1806
• FIRST TOOTHPASTE : COLGATE
RIBBON DENTAL CREAM
• PRODUCTS: TOOTHPASTE,
TOOTHBRUSH, MOUTHWASH,KIDS
PRODUCTS,SPECIALITY
PRDCUTS,HOUSEHOLD PRODUCTS.
• CEO – REUBEN MARK
• PRECISION PRODUCT MANAGER – SUSAN STEINBERG
• DIVISION GENERAL MANAGER- NIGEL BURTON
MAJOR DECISION MAKERS
COMPANY BACKGROUND
CHRONOLOGY OF TOOTHBRUSH INNOVATIONS IN THE
USA
SITUATIONAL
ANALYSIS
• DEVELOPING
TECHNOLOGICALLY SUPERIOR
TOOTHBRUSH.
• HIGH COMPETITIVE MARKET
WITH NEW PRODUCT ACTIVITY
• DEFINING THE MARKETING
STRATEGY FOR COLGATE
PRECISION
QUESTIONS RAISED
1. How to promote the new
product as a high quality niche product or as a
mainstream toothbrush? (SLIDE 40)
2. How develop budget constraints and generate a
marketing mix that would maximize the sales
and revenues of the new product? (SLIDE 41)
STRENGTH
1.unique brush with three different
lengths and orientations
2.removes 35% more plaque than
other super premium brushes
WEAKNESS
1. the availability of production
capacity at CP
OPPORTUNITIES
Also consumers are willing to
experiment with new toothbrushes.
THREATS
1. Competition from other leading
brands
J&J,P&G.
SWOT
COLGATE PRECISION
WHICH ONE TO CHOOSE?
MAINSTREAM POSITIONING
NICHE POSITIONING
• Niche could later be
broadened to a mainstream
position.
• Less cannibalization of
Colgate plus Brand.
• Entry into new super
premium category where CP
currently holds no value.
• Less competition due to
small group.
Less contribution to net
profit
RESEARCH AND SURVEYS
1. Varying techniques consumers used when
brushing their teeth.
2. Testing the between-teeth access of different
toothbrush designs.
3. Establishing an index to score clinical
plaque-removal efficacy
4. Creating a bristle configuration and handle design offering
maximum plaque- removing
efficacy.
5. Determining the efficacy and acceptance of the new
toothbrush design
CUSTOMERSEGMENTATION THERAPEUTIC BRUSHERS(46% OF
ADULTS)
COSMETIC BRUSHERS(21% OF
ADULTS)
UNINVOLVED HEALTH
CONSUMERS(33% OF ADULTS)
PRODUCT SEGMENTATION
VALUE
SEGMENT
PROFESSIONAL
SEGMENT
SUPER
PREMIUM
SEGMENT
Analysis
PRODUCT DESIGN AND TESTING
The triple action brushing effect with
longer outer bristles, Longer inner
bristles resulted in 35% increase in
plaque removal compared with Reach
and Oral-B
ADVERTISING
AND
PROMOTION
• Brushes reached the customers either free
with paste or with another Tooth brush( BUY
ONE GET ONE FREE ).
• The number of coupons increased from 10 in
1990 to 33 in 1992.
• Extensive retail advertising features.
• In store displays.
• Point of purchase displays , variety of items,
bristle qualities and handle Colours.
THE ICONIC COLGATE PRECISION
ADVERTISEMENT
DISTRIBUTION
STRATEGY
• The traditional food stores originally had 75% of
oral products .
• In 1992: toothbrush = 43%
toothpaste = 47%
• The SKU’s increased from :31 to 35 mass
Merchandisers
27 to 34 for drug stores
30 to 35 for food outlets
• Shelf space increased
• In 1992 22% of all toothbrushes were expected to be
distributed to consumers by dentists.
NICHE OR MAINSTREAM
PRODUCT?
Colgate-Palmolive is recommended to
position the Precision toothbrush as a
niche market product during its
introductory and growth life cycle
stages. Thereafter, during the products’
maturity, Precision should be
repositioned to the mainstream market
NICHE OR MAINSTREAM?
Advertising Costs = $9.6 million
Promotion and trade = $14.4 million
Total advertising cost = $24.1 million
For Colgate precision = $24.1 million + $11.2 million
= $35.3 million
BUDGET CONSTRAINTS
Prof Sameer Mathur
Marketing professor IIM
LUCKNOW
Carnegie Mellon
University PhD and MS in
marketing.
Created by:
Samikshya Swain IIIT
Bhubaneswar during
Summer marketing
internship Under
Prof Sameer Mathur

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Colgate Palmolive The precision toothbrush

  • 2. ESTABLISHMENT • FOUNDER : WILLIAM COLGATE IN 1806 • FIRST TOOTHPASTE : COLGATE RIBBON DENTAL CREAM • PRODUCTS: TOOTHPASTE, TOOTHBRUSH, MOUTHWASH,KIDS PRODUCTS,SPECIALITY PRDCUTS,HOUSEHOLD PRODUCTS.
  • 3. • CEO – REUBEN MARK • PRECISION PRODUCT MANAGER – SUSAN STEINBERG • DIVISION GENERAL MANAGER- NIGEL BURTON MAJOR DECISION MAKERS
  • 5. CHRONOLOGY OF TOOTHBRUSH INNOVATIONS IN THE USA
  • 7. • DEVELOPING TECHNOLOGICALLY SUPERIOR TOOTHBRUSH. • HIGH COMPETITIVE MARKET WITH NEW PRODUCT ACTIVITY • DEFINING THE MARKETING STRATEGY FOR COLGATE PRECISION
  • 8. QUESTIONS RAISED 1. How to promote the new product as a high quality niche product or as a mainstream toothbrush? (SLIDE 40) 2. How develop budget constraints and generate a marketing mix that would maximize the sales and revenues of the new product? (SLIDE 41)
  • 9. STRENGTH 1.unique brush with three different lengths and orientations 2.removes 35% more plaque than other super premium brushes WEAKNESS 1. the availability of production capacity at CP OPPORTUNITIES Also consumers are willing to experiment with new toothbrushes. THREATS 1. Competition from other leading brands J&J,P&G. SWOT
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  • 16. WHICH ONE TO CHOOSE?
  • 18. NICHE POSITIONING • Niche could later be broadened to a mainstream position. • Less cannibalization of Colgate plus Brand. • Entry into new super premium category where CP currently holds no value. • Less competition due to small group. Less contribution to net profit
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  • 20. RESEARCH AND SURVEYS 1. Varying techniques consumers used when brushing their teeth. 2. Testing the between-teeth access of different toothbrush designs. 3. Establishing an index to score clinical plaque-removal efficacy 4. Creating a bristle configuration and handle design offering maximum plaque- removing efficacy. 5. Determining the efficacy and acceptance of the new toothbrush design
  • 21. CUSTOMERSEGMENTATION THERAPEUTIC BRUSHERS(46% OF ADULTS) COSMETIC BRUSHERS(21% OF ADULTS) UNINVOLVED HEALTH CONSUMERS(33% OF ADULTS)
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  • 30. PRODUCT DESIGN AND TESTING The triple action brushing effect with longer outer bristles, Longer inner bristles resulted in 35% increase in plaque removal compared with Reach and Oral-B
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  • 33. • Brushes reached the customers either free with paste or with another Tooth brush( BUY ONE GET ONE FREE ). • The number of coupons increased from 10 in 1990 to 33 in 1992. • Extensive retail advertising features. • In store displays. • Point of purchase displays , variety of items, bristle qualities and handle Colours.
  • 34. THE ICONIC COLGATE PRECISION ADVERTISEMENT
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  • 37. • The traditional food stores originally had 75% of oral products . • In 1992: toothbrush = 43% toothpaste = 47% • The SKU’s increased from :31 to 35 mass Merchandisers 27 to 34 for drug stores 30 to 35 for food outlets • Shelf space increased • In 1992 22% of all toothbrushes were expected to be distributed to consumers by dentists.
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  • 39. NICHE OR MAINSTREAM PRODUCT? Colgate-Palmolive is recommended to position the Precision toothbrush as a niche market product during its introductory and growth life cycle stages. Thereafter, during the products’ maturity, Precision should be repositioned to the mainstream market NICHE OR MAINSTREAM?
  • 40. Advertising Costs = $9.6 million Promotion and trade = $14.4 million Total advertising cost = $24.1 million For Colgate precision = $24.1 million + $11.2 million = $35.3 million BUDGET CONSTRAINTS
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  • 42. Prof Sameer Mathur Marketing professor IIM LUCKNOW Carnegie Mellon University PhD and MS in marketing. Created by: Samikshya Swain IIIT Bhubaneswar during Summer marketing internship Under Prof Sameer Mathur