This Presentation highlights the detailed description of the company with focus on various marketing and advertising strategies adopted by the company.

2. •Global leader in hosehold and personal care
products
•Till 1991,Sales of $6.06 billion
•Gross Profit of $2.76 billion
•Media advertising expenditure was $428
million

4. •CP’s C.E.O since 1984
•Widely Praised for his leadership
•Transformed a “sleepy and inefficient”
company into a lean and profitable one
•Since 1985,gross margin climbed from 39%
to 45%

5. •In 1991,CP held 43% of world toothpaste market
•Held 16% of World toothbrush Market
•New Products were launched in US markets

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7. 1. In 1938 with the launch of Dr. West’s Miracle Tuft
Toothbrush , a major design advance occurred
2.In late 1940s , Oral –B began selling a soft-bristle brush
which was better for the gums
3.In 1961 Broxodent launched the first electric toothbrush
4.In 1970s toothbrush were purchased primarily on price.

8. 5.In 1991 U.S. oral care market was $2.9 billion in
retail sales and had grown at annual rate of
6.1% since 1986
6.Dollar sales of toothbrush had grown at an
average of 9.3% per annum
7. In 1992 , they increased by 21% in values and
18% in volumes , due to introduction of 47 new
products .

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10. 1.In 1992, three players dominated the U.S. market
overall : Colgate Palmolive and johnson & johnson ,
whose brushes were positioned in the professional
segment ; and ORAL-B whose brushes were
positioned in the super premium segment
2. Proctor & Gamble and Smithkline Beecham were
new entrants in 1990’s

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CONSUMER BEHAVIOUR
BABY BOOM
GENERATION
• People becoming more concerned about their health of their gums
• Willing to pay a premium for new products addressing this issue .
REPLACING
TOOTHBRUSH
• In 1991 , people replaced their brushes on average only once every 7.5 months .
• While dental professionals recommended replacement every three months .
ORAL
HYGIENE
• Most consumer agreed that toothbrush are as important as toothpaste, primary role of
toothbrush is to remove food particles ; plaque removal and gum stimulation.
• 65% consumer have more than 0ne toothbrush , 24% kept a toothbrush at work , and 54
% had a special toothbrush for travelling.

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14. 1.ORAL-B
2.JOHNSON & JOHNSON
3.PROCTOR & GAMBLE
4.SMITHKLINE BEECHAM

15. •Had been the market leader since the 1960s
•Relied heavily on professional endorsement and was known as
“the dentist’s toothbrush
•In july 1991 , Oral-B launched the Indicator brush , priced at 15 %
premium to other brushes
•Had been the market leader since the 1960s
•Relied heavily on professional endorsement and was
known as “the dentist’s toothbrush
•In july 1991 , Oral-B launched the Indicator brush ,
priced at 15 % premium to other brushes

16. •Entered the U.S. toothbrush market in the 1970s with
the Reach brand
•In 1991 J&J ranked 3rd in the U.S. retail toothbrush
market with a 19.4 % share volume and a 21.8 %
value share
•Consumer promotions in 1992 were estimated at
$4.6 million
•In 1998 J&J introduced a second product line under
the brand name Prevent

17. •Most recent entrant in the toothbrush market
with Crest Complete,an extension of
company’s toothpaste brand name
• Captured a 13% value share in test market
•Crest complete claim to have the ability to
reach between the teeth upto 37 % farther
than leading flat brushes

18. •Entered the U.S toothbrush market in August 1991
with Aqua fresh Flex ,an extension of the company’s
toothpaste brand
•Aquafresh Flex toothbrushes had flexible handles
that allowed for gentle brushing
•By the end of 1991 , it held a 0.9 % share by volume
and 1.1 % by value
•Company was expected to make an operating loss
on toothbrushes in 1992

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23. •In case of toothbrush, advertising and promotion
enhanced the category’s visibility which in turn fuel
consumer demand
•Oral – B spent $10 million to launch its indicator brush
•Total media spending for the category , primarily on
television advertising , was estimated to total $55
million in 1992 and $70 million in 1993
•When Colgate toothbrush combined with Colgate
toothpaste sales increased by 170%

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26. •In 1987, traditional food stores sold 75 % of oral care
products , but by 1992 they accounted for only 43 % of
toothbrush sales and 47 % of toothpaste sales
•Toothbrushes provided retailers with an average margin
between 25 % and 35 %, twice that for toothpaste
•In 1992 , the average number of toothpaste SKUs had
increased from 31 to 35 for mass merchandiser , from 27
to 34 for drug stores and from 30 to 35 for food outlets
•In 1992 , 22% of all toothbrushes were expected to be
distributed to consumer by dentist

28. •The precision toothbrush was a technical innovation
•Researchers used infrared motion analysis to track
consumers’ brushing movements
and consequent level of plaque Removal
•With this knowledge and through computer aided design ,
CP developed a unique brush with bristles of three different
length and orientation

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30. 1. Understanding the 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 at the gum line and between teeth
4.Creating a bristle configuration and handle design
offering maximum plaque removing efficacy
5. Determining through clinical and consumer research ,
the efficacy and acceptanceof the new toothbrush design

31. •Positioned as a niche product to be , targeted at consumers
concerned about gum disease
•It could command a 15 % price premium over Oral-B
• Expected to capture 3% of the U.S. toothbrush market by
the end of the first year following its launch

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34. •Debate over the CP toothbrush advertising and
promotion budget
•Amounted to $24.1 million in 1992 , with $9.6 million in
advertising and $14.4 millionin consumer and trade
promotion
•Steinberg believed that this was not enough to permit
Precision to reach its full sales potential
•Believed that the launch of Precision would enable CP to
increase its overall share of trade advertising features
and special displays in the toothpaste category

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36. •Steinberg believed that Precision was more than a niche
product or sample line Extension
• Proven benefits to customers represented a technological
breakthrough
•Wondered how Precision should be positioned , branded ,
and communicated to consumers
•Developed a marketing mix and profit-and-loss pro forma
that would enable Precision to reach its full potential

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This presentation is created by Somesh Bhardwaj of Heritage Institute of Technology
during a marketing Internship under Prof.Sameer Mathur,IIM Lucknow