9. In1980s, industry executives divided toothbrush category into two segments: value and professional.
Many consumers traded up to professional, higher-priced toothbrushes with resulting erosion of value.
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26. NET PROFIT (from prices) 17.5 MM (y1) 12.22 MM (y2) 34.9 MM (y1) 74.98 MM (y2)
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31. Advertising and promotion budget : $24.1 million in 1992, with $9.6 million in advertising
and $14.4 million in consumer and trade promotion.
One proposal consistent with a niche positioning for Precision was to increase total CP
category spending by $11.2 million and to allocate this to the Precision launch.
Steinberg believed that this was not enough to permit Precision to reach its full sales
potential. She 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.
Phillips argued that Plus was the bread-and-butter of CP’s toothbrush line and claimed
that his mainstream brand should receive more rather than less support if Precision was
launched and continued support of Plus was essential to defend its market position.
32. The cost of this promotion was estimated at $4 million and Steinberg believed it should
be used as part of the launch program for a mainstream positioning strategy.
Philips pressed for trade deals in advance of the Precision launch as the trade would not
support two Colgate brushes at one time. But Steinberg countered that launch of
Precision would enable CP to increase its share of trade advertising features and special
displays in the toothpaste category.
Use dentists to sample consumers since professional endorsements will establish the
credibility of a new toothbrush. Under the niche, 3 million Precision brushes could be
channelled through dental professionals versus 8 million under the mainstream scenario.
33. The profit is clearly high in case of the mainstream category. In all the strategies, the
mainstream profit tops everywhere as per the figure. So the brand should be positioned
as mainstream technological breakthrough.
Branding should emphasize on the word Precision as a statement.
Steinberg should go ahead with what she decided supported by numbers to counter
Philips in advertising allocation and promotional communications.
