Colgate-Palmolive developed a new precision toothbrush based on 3 years of intensive research. Testing showed the precision brush was more effective than competitors at removing plaque from between teeth and gumlines. It provided a triple-brushing action that removed an average of 35% more plaque. The product manager believed the precision brush was a technological breakthrough that could appeal beyond a niche market with the right marketing strategy. However, a full marketing plan and financial projections still needed to be developed to realize the product's full potential.
This presentation is prepared by Shivang Thakkar, under guidance of Sameer Mathur, IIM-Lucknow. SOURCE:- The Colgate-Palmolive Company : The Precision Toothbrush (Harvard Case)
Colgate-Palmolive Company:The Precision ToothbrushSaurabh D.
Colgate-Palmolive Company:The Precision Toothbrush case study of Harvard Business Review made during Marketing Internship under guidance of Prof. Sameer Mathur, IIM Lucknow
This presentation is prepared by Shivang Thakkar, under guidance of Sameer Mathur, IIM-Lucknow. SOURCE:- The Colgate-Palmolive Company : The Precision Toothbrush (Harvard Case)
Colgate-Palmolive Company:The Precision ToothbrushSaurabh D.
Colgate-Palmolive Company:The Precision Toothbrush case study of Harvard Business Review made during Marketing Internship under guidance of Prof. Sameer Mathur, IIM Lucknow
Colgate-Palmolive Company:The Precision Toothbrush case study of Harvard business review made during marketing internship under guidance of Prof. Sameer Mathur.
Colgate-Palmolive Company:The Precision Toothbrush case study of Harvard business review made during marketing internship under guidance of Prof. Sameer Mathur.
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2. A little about the company
• American Diversified multinational corporation
• Focused on : Production, Distribution & Provision
• Headquarters : New York City, New York, U.S.
• CEO : Ian M. Cook
• More than 200 years older
• Three core corporate values : Caring, Global Teamwork
and Continuous Improvement
3. Statistics for 1991 !
• Sales : $ 6.06 Billion
• Gross Profit : $2.76 Billion
• Global Leader in Household and
personal care products !
• RnD Expenditure Cost : $114 Million
• Advertising Expenditure $428 Million
AND FURTHER
Further…
5. COLGATE PRECISION TOOTHBRUSH
• Household, healthcare and personal product
specialist company
• Launched in August 1992 in United States
• Developed by Susan Steinberg, the precision
product manager
• Product was developed with intense research in 3
years
• Technologically Superior toothbrush over 3 years
8. Colgate Palmolive’s Oral Care Business
43% World Toothpaste
Market
16% World Toothbrush
Market
Other include ~ Dental
Floss, Mouth Rinses
Team of 170 CP Researchers
New Products included :
- Colgate Baking Soda
Toothpaste
- Colgate Angle
- Wild Ones Toothbrushes
16. Results of Consumer Research
• Adults Born in 1940s – 1960s –
concerned about gum health as opposed
to cavity prevention
• Willing to pay premium for new
products
• 82 % toothbrush purchase were
unplanned
• Toothbrush replacement after 7.5
months - 1991
19. 1. Oral-B
• Market Leader since 1960s
• Called as “the dentist’s toothbrush.”
• Launched indicator brush in 1991
• 1992 – Buy one Get one Free Offers
• Media Expenditure (1992) : $11.2 Million
20. 2. Johnson & Johnson (J&J)
• Entered the market in 1970s
• Second Product in 1988 – Prevent
• Prevent – Beveled handle with 45% angle
• Ranked third in 1991 in retail toothbrush market
• 19.4 % Volume Share ; 21.8% Value Share
• Media Expenditure : $ 17.1 Million ( Expected
1992)
21. 3. Procter & Gamble (P&G)
• Most recent entrant in the market
• Crest Complete – tooth brush brand,1992
• Claimed – Ability to reach between the teeth up to 37%
farther than leading flat brushes.
• 2% Volume Share; 2.6% Value Share
• Media Expenditure : $6.4 Million (Last Quarter,1992)
22. 4. Smithkline Beecham
• Entered the market in Aug, 1991
• First Product – Aquafresh Flex, toothpaste
• Aquafresh toothbrush – Allowed gentle
brushing
• 1991 –> 0.9% Volume Share; 1.1 % Value Share
• Buy two get one free – promotional plans
• Media Expenditure : $10 Million
23. Other Competitors
• Lever – Aim , Pepsodent Professional
& Regular
• Pfizer – Plax Brush (groove for
thumb)
• Sunstar – Butler Brand
30. Product Design and Testing
• An Amazing Technical Innovation
• Used Infrared Motion Analysis to track
consumers brushing movements
• Analysed level of Plague removal.
These parameters developed a unique brush with bristles
cleaned the teeth surface. This resulted in a triple action
brushing effect
33. 1. Understanding Consumer Techniques
Concluded that brushing removed plaque from teeth
surface but ineffective in removing from gum line and
between teeth.
34. 2. Testing between teeth access of different
toothbrush design
Concluded that the new design was more
efficient than Oral-B and Reach in accessing front
and back teeth
35. 3. Index to score clinical plaque-removal efficacy
Here Presence of Plaque on each tooth area was
calculated - pre and post usage of toothbrush
36. 4. Creating an efficient bristle
configuration and handle design
An average 35% more plaque was found to
be removed than other leading brands
37. 5. Efficacy and Acceptance of new toothbrush
design
Extensive consumer research was carried to test
product design and characteristics, marketing
concept and strengths
43. Conclusion
• Steinberg believed that Colgate Precision toothbrush was
more than a niche product
• The Proven benefits to consumers were technological
breakthrough !
• The positioning, branding, advertising and marketing of
the product should be upgraded
• Still need to develop a marketing mix and profit and loss
pro forma to reach the product to its potential
44. Disclaimer Created by Hitesh Kumar Vyas, NIT
Indian Institute of technology during a Marketing
Internship by Prof. Sameer Mathur, IIM
Lucknow