This document analyzes Colgate Palmolive's launch of the Precision Toothbrush in 1991. It provides background on Colgate's market share in toothpaste and toothbrushes. It then discusses consumer research showing concerns about gum health and unplanned toothbrush purchases. The document analyzes competitors like Oral-B, Johnson & Johnson, and Procter & Gamble. It considers positioning the Precision as a niche or mainstream product and developing branding, communications, and advertising strategies. Finally, it concludes the Precision should initially be niche marketed before transitioning to mainstream and leveraging Colgate's distribution channels.

1. CASE STUDY
ANALYSIS
The Precision Toothbrush

2. ● Global leader in household and personal care
products.
● The company has 43% world toothpaste market
share.
● It also has 16% share in the toothbrush market.
COMPANY BACKGROUND

3. SCENARIO-1991
❖ In 1991 the company witnessed sales of $6.06 billion with a
gross profit of $2.76 billion.
❖ CP’s five year plan 1991-1995 is to focus on core consumer
products with improved efficiencies in manufacturing and
distribution. It also entered into new geographic markets mainly
emphasizing in new product launches.
❖ With the development in Oral care division, Precision product
manager Susan Steinberg had recommended positioning,
branding and communication strategies to GM Nigel Burton.

4. OBJECTIVE:
➢Analyze the launching of product
into the market.
➢Develop strategies that can
be used to position the Colgate
precision in the market.

5. The Precision Toothbrush:
➢ Innovative technology
➢ Mission: To develop a
superior, technical,
plaque-removing device.
➢ Triple action brushing
effect
➢ Softer bristles provide
gum protection

6. CONSUMER RESEARCH:
❏ Consumers of the baby boom generation were becoming
more concerned about the health of their gums.
❏ CP estimated that 82% of toothbrush purchases were
unplanned.
❏ Consumers were unfamiliar with toothbrush prices and
they replaced their brushes on average only once every
7.5 months in 1991.
❏ Brand choice was based on features, comfort and
professional recommendations.

7. COMPETITORS

8. COMPETITOR ANALYSIS
● Oral-B (owned by Gillette) had been the market leader since the 1960s.
With heavy endorsements it was known as “dentist’s toothbrush”.
● Johnson & Johnson (J&J) entered the U.S. toothbrush market in the 1970s
with the Reach brand, which in 1991, comprised 18 SKUs.
● Procter & Gamble (P&G) had captured a 13% value share in test markets
with an extension of the company’s toothpaste brand name, Crest.
● Smithkline Beecham entered the U.S. toothbrush market in August 1991
allowing gentle brushing with its flexible handles.
● Other competitors included Lever, Pfizer, and Sunstar.

9. -Positioning
-Branding
-Communicating
HOW?

10. POSITIONING
Precision has developed ad best super premium
toothbrush of top range.It can positioned as:
-Niche Product -Mainstream Product
Both have their own advantages and
disadvantages.

11. ❏ With a Niche positioning retail sales
would represent 3% volume share of the
toothbrush market in year 1 and 5% in
year 2.
❏ With a Mainstream positioning, these
volume shares would be 10% in year 1 and
14.7% in year 2.

13. Branding:
❏ The Colgate Precision name was consistently viewed and deemed
appropriate by 49% of concept acceptors and 31% of them appealed.
❏ Stressing Precision as opposed to Colgate would to limit the
cannibalization of Colgate Plus.
❏ Colgate brand name was stressed but remain unchanged if the precision
brand name was stressed corporate strategy was to build on the Colgate
brand equity.

14. Communicating:
❏ Special coupons
❏ Buy 1 get 1 bundling
❏ Concept tests
After establishing the basic product design, CP conducted four concept
tests 400 adults between 18-54 years old who were professional brush
users of Colgate Plus, Reach, and Oral-B.

15. ➢ A typical CP toothbrush display
increased sales by 90% over a
normal shelf facing.
➢ For maximum retail sales, CP
tried to locate the Colgate line in
the middle of the category shelf
space.
Advertising:

16. CONCLUSION:
● At first the precision should be niche marketed and after
achieving maximum productivity requirements it can be
mainstream positioned so it can enjoy high price and later it
can be changed .
● Precision by Colgate is better name because it doesn't affect
sales of Colgate plus.
● New Precision is priced equally or less within the super-
premium segment so as to offer more value than competitors.
● Leverage their existing intensive distribution channel
relationships to ensure that Precision receives the most
effective exposure to consumers

17. SUMMARY:
In this presentation we have analysed a case study of Colgate
Palmolive.We have learnt about:
-The company
-Precision Toothbrush
-Consumer Market
-Competition in the market
-How Branding,Positioning,Communicating should be done?
-Types and analysis
-Conclusion

18. THANK YOU!

19. DISCLAIMER:
This presentation was made by Shreya Arisenapally during a
Marketing Internship under Professor Sameer Mathur, IIM
Lucknow.