The document provides an overview of Colgate-Palmolive's performance and strategic insights in the toothbrush market, noting total sales of $6.06 billion and a focus on innovative products addressing gum health. It highlights the company's positioning and branding strategies while analyzing competition and consumer behavior, leading to recommendations for mainstream positioning of their precision toothbrush. A SWOT analysis outlines strengths, weaknesses, opportunities, and threats, emphasizing the need for a targeted approach to expand market presence.

3. •Total Sales - $6.06 billion
•Gross Profit - $2.76 billion
•Research and development expenditures -
$114 million
•Media advertising expenditures - $428 million
COMPANY BACKGROUND in 1991

4. The U.S Toothbrush Market

5. • US oral care Market worth : $2.9 billion
• Dollar sales of toothbrushes had grown
at an average rate of 9.3% per annum.
• In 1992 they increased by 21% in value
and 18% in volume, due to the
introduction of 47 new products and
line extensions.

7. • Consumers of baby boom generation were
becoming more concerned about the health
of their gums as opposed to cavity
prevention.
• Most consumers agreed that the primary
role of a toothbrush is to remove food
particles; plaque removal and gum
stimulation are considered secondary.
• Choices are based on features, comfort,
and professional.
CONSUMER BEHAVIOR

9. COMPETITION
• Major competitor brands in the super-
premium segment included Oral-B,
Reach Advanced Design, Crest
Complete, and Aquafresh Flex.
• The Table shows the number and type
of stock keeping units (SKUs) for each
major brand.

11. Communication & Promotion
• Information that may contribute to success
• Four concept tests conducted among 400 adult
professional brush users (Colgate Plus, Reach, and
Oral B)
• The results indicates - consumers were highly
motivated by the Precision toothbrush claims
• Additional in-home usage tests were conducted
• 77% claimed that Precision was much more effective
than their current toothbrush
• Other consumer research revealed that the higher
the exposure to the product the greater consumer
acceptance

13. Distribution
• 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, 22% of all toothbrushes were expected to be
distributed to consumers by dentists. With a dedicated
sales force, Oral-B dominated this market segment.

15. Product Design & Testing
Researchers used infrared motion analysis to
track consumers’ brushing movements and
consequent levels of plaque removal.

16. CP developed a unique brush with
bristles of three different lengths and
orientations

17. In initial clinical tests, the brush achieved an
average 35% increase in plaque removal,
compared with other leading toothbrushes,
specifically Reach and Oral-B.

19. •Precision was to be positioned as a niche
product to be targeted at consumers
concerned about gum disease.
•Within this position Precision would be able
to command a 15% price premium over
competitor Oral-B and capture 3% of market
after first year.
•Alternative positioning was as a
mainstream brush with the broader appeal
of being the 8
POSITIONING

21. •Emphasizing the Colgate name on the new
Precision toothbrush would cause
additional cannibalization of the existing
Colgate toothbrushes-estimated at 20%.
•Using the Colgate name would be
congruent with Colgate’s strategy to build
Colgate brand equity.
BRANDING

23. SWOT ANALYSIS
• CP is global leader in personal and
household products
• Strong Brand Image Worldwide
• Technical Innovation - Triple Action
Brushing Effect
• Concepts tests - 77% found Colgate
Precision more effective.
Strengths:

24. SWOT ANALYSIS
Weaknesses:
• 33% adults - Uninvolved Oral Health
Consumers - Difficult to educate about
the technical innovation.
• CP is not yet into the super-premium
market while CP’s main competitor Oral-B
has professional endorsement as
dentist’s toothbrush.

25. SWOT ANALYSIS
Opportunities:
• CP’s customer research revealed that
46% of adult are concerned about health
of their gums.
• Customers are willing to pay a premium
for new products addressing this issue.
• Willingness of customers to try new
products.

26. SWOT ANALYSIS
Threats:
• Competitors are offering incentive program
to attract customers.
• Innovation and additional features in
competitors product
• Threat of buyer/supplier growing bargaining
power
• Threat of New Entrants - In 1991, the
toothbrush market exploded with a dramatic
increase in new entrants.

28. Steinberg should adopt a mainstream
positioning strategy for the Precision
because it would lead to increased
performance as well as helps the company in
the long run.
Also it enables Colgate Palmolive to expand
its markets through mass merchandisers and
club stores apart from the food and drug
stores.
CONCLUSION

29. Summary

30. *DISCLAIMER!!*
SAMEER MATHUR
IIM Lucknow,
Marketing Professor 2013
McGill University
Marketing Professor 2009 – 2013
Carnegie Mellon
Ph.D and M.S (Marketing) 2003 – 2009
__________________________________________________________________
AMITESH GUPTA
National Institute Of Technology
Raipur
Marketing Management Internship
Summer Internship 2017