This document discusses the launch and positioning of a new toothbrush brand called Precision by a global household products leader. It considers niche versus mainstream positioning and pricing strategies. Research found consumers' priority is removing food, then plaque and gum health. The challenges discussed are allocating promotional budgets between established and new products to avoid cannibalization while allowing Precision to reach its potential. Success requires the right technological breakthrough, strategic budget, positioning and promotion.

2. 
 By 1991, a global leader in household products.
 Emphasis on new product launches.
 To enter new geographic markets.
WHY LAUNCH A NEW
PRODUCT?

3. 
 Strategic acquisitions.
 Manufacturing in China and East Europe to avail
low production cost.
 Investment in R&D for new technologies.
TOWARDS AN EFFICIENT
LEADERSHIP

4. 
 Colgate Classic: positioned in value segment.
 Colgate Plus: higher quality product for professional
segment.
PRODUCT SEGMENTATION

5. 
POSITIONING

6. 
 Launched with the
objective of being the
best brush .
A SUPER PREMIUM
PRODUCT……
 Mainstream positioning
would result in 10%
volume share in a year
as compared to 33% in
case of niche positioning.

7. 
 Somewhere in between
Colgate Plus and Oral B
products.
 Initial discounts and
mainstream price.
 But mainstream product
implies more supply.
 However can lead to
cannibalization.
PRICING AND SITUATION

8. 
VIEWS RELATING TO
POSITIONING
 I consider , already well established market is meant
to bring newer and modified products with
enhanced versions.
 Precision , since targeted towards gum disease , it
had a message.
 Lethargic projects to be shut and greater focus over
premium products with increment in investment.
 So initial launch with high price as a brand would be
somewhat lucrative.

9. 
 Surveys revealed that the
primary utilization of
toothbrush is to remove the
food particles.
 Plaque removal and gum
stimulation comes secondary.
 Consumers’ shifting concern
towards health of gum.
 Willing to pay attention
towards secondary issues.
RESEARCH AND
SURVEYS

10. 
 Oral-B: The dentist’s
toothbrush.
 Its product lines comprises of
oral-b indicator product.
COMPETITION

11. 
 JOHNSON AND
JOHNSON:
JOHNEEN
 Prevent: Brush at
45 degree angle.
 Consumer
promotions an
offers buy-two-
get-one-free.

12. 
Procter and Gamble.
Smithkline: Aqua fresh in US market.

13. 
 In store promotional activities.
 Adequate media expenditure.
 Incentives and offers using the established platform
of Colgate toothpaste to create and introduce the
new brush via coupons and discounts on paste.
PROMOTION

14. 
WHY SHOULD CUSTOMERS
PREFER IT OVER OTHERS?

15. 
MESSAGE……
Serve its need?
Will a well sorted
demonstration and

16. 
REASON…….
Provide , the consumers a

17. 
BEGINS THE CAMPAIGN..

18. 
 Greater the
knowledge of the
product, greater the
enthusiasm to use
it.
 A comparative
exposure to claims
by competitors.
CONSUMER INSIGHT:

19. 
Advertising budget and its impact on sales of
auxiliary and mainstream products.

20. 
 Precision: Launch program for a main stream
positioning strategy or niche positioning.
 Segmentation of promotional budget.
 A greater % for precision or allocation as per sale of
each product i.e. Classic, Plus, Precision.
The Challenges….

21. 
UNCERTAINTY AND AMBIGUITY.

22. 
 ‘Plus’ a mainstream brand
and pioneer of its
toothbrush line i.e. of
company.
 Less for Precision and
more for Plus to defend its
market position.
 So is niche positioning a
considerable solution for
Precision.
 Will 2 toothbrush category
simultaneously be
supported?
ARGUMENTS AND POINTS TO
PONDER.

23. 
 Precision should reach
its full sales potential.
 Increased budget for
Precision promotion
compared to Plus.
 Providing incentives and
offers based on
established categories.
 A mainstream launch for
precision.
STEINBERG’S IDEOLOGY.

24. 
CANNIBALIZATION?..
BUT WILL A NEW PRODUCT LEAD
TO

25. 
Focus on
“PRECISION”
TO BE PRECISE

26. 
 A technological breakthrough
( Paved the way for its success).
 Success= strategic budget plan + positioning +
promotion.
INFERENCE

27. 
THANK YOU

28. 
DISCLAIMER
Created by Shilpa Rani, NIT Agartala(Tripura),
during an internship under Prof. Sameer Mathur ,
IIM Lucknow.