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Colgate Precision

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A full case study of colgate precision

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Page 1: Colgate Precision

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Group -3

Page 2: Colgate Precision

Presented By:-Sheriff seth

Sanjeev singhTanmay singh

Sameer bhatnagar

THE PRECISION TOOTHBRUSH

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COLGATE PALMOLIVE

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In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.

HISTORY

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1. Changes occurring in Toothbrush category

• Customer choice - Performance benefits rather than price

• Brand choice - Feature, comforts and professional recommendations

• New products - Aesthetic features and technical performance improvement

• Customer preference - Soft bristle from firm bristle

Toothbrush replacement frequency ----- once in 8.6 months in 1990 to 7.5 months in 1991

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Super Premium segment

CP – No presence

Oral-B – 23.1% Vol. share and 30.7% value

J & J Reach - 19.4% Vol. share and 21.8% value

P & G Crest – 2.0% Vol. share and 2.6% value

Aquafresh Flex- 0.9% Vol. share and 1.1% value

Colgate Plus —16.9% Vol. and 18.5% value

Value segment

Colgate Classic — 6.4% Vol. And 4.9% value

Colgate- Palmolive's Competitive Position

CP - 43% of World Toothpaste market and 16% world Toothbrush Market

CP - US retail Toothbrush market with 23.3% vol. shareProfessional

segment

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2. Toothbrush Market Segmentation PRICE- Value, Professional and Super premium based on price

ATTRIBUTES - Toothbrushes on the basis of Bristle and head size

DEMOGRAPHIC - Toothbrush market on the basis of adult and child (aesthetic look)

PYSCHOGRAPHIC – Therapeutic, Cosmetic, Unconcerned

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Consumer Behaviour for Toothbrush and Toothpaste

• Most consumers – Toothbrush and Toothpaste equally important

• No Sharing of Toothbrush in members of same household

• Combine Display of Toothbrush and Toothpaste increased sale by 170% (Colgate)

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PRODUCT

FEATURE BENEFIT REASON

TAG-LINE

LAUNCH DATE

Oral –B Indicator

Indicator Bristles

You know when to change

Blue band fades halfway

The brand more dentist use

7/91

Johnson & Johnson

Angled neck Cleans even hardest to reach places

Slimmed down, Tapered head

Feel the difference

8/91

Procter & Gamble

Rippled bristle design

Handle with rubber grip

Reaches b/w teeth like a dental tool

Rounded bristles

Only CREST could make a brush this complete

8/91 (test)

9/92 (national)

Aquafresh Flex

Pressure sensitive, flexible neck linking brush and handle

Prevents gum irritation

Flexes as you brush

For gentle dental care

8/91 (flex)9/92 (line extension)

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3. Launch of Precision in Niche MarketPros: New market for CP in super premium market CP USP – Brand Image and command 15% price premium Appeal to Gum diseases concerned customer Failure of Product – No cannibalization of Colgate existing market share Precision positioned in 4 SKU, no existing SKU will be dropped

Cons: Per unit cost of the product is high

Less Revenue generation

Less market share as compared to Mainstream

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Mainstream positioning would place emphasis on the Precision toothbrush as being the most appealing and effective toothbrush available in the market.

Most retail stores are under a mainstream position rather than a niche position. Secondly, in the super-premium category, the Precision toothbrush would be the most superior product.

By positioning the toothbrush as a mainstream product, it would in return increase name recognition for Colgate.

Negatives Although the toothbrush would be superior to the other super-

premium toothbrushes, the prices for the Precision and other brushes would be equal.

Equal prices would then lead to increased competition, which in return could cause prices to go up.

It could also lead to the cannibalization of Colgate-Palmolive’s other super-premium toothbrush, the Colgate Plus.

A mainstream position would probably lead to the reduction and removal of one or more SKU’s.

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MAINSTREAM BRAND

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4. Marketing Recommendation

I. Precision Toothbrush placed in Niche market and after maturity repositioned to mainstream market

II. Product- Precision continue to address targeted consumer' specific need—plaque Removal/attractive packaging

III. Price – More value to consumers than competitor’ product

IV. Placement- Leveraging of intensive distribution channels. e.g. : toiletries, unique display model, vendor relationship

V. Promotion- invest industry-standard amounts of capital for the new toothbrush promotion—target youth and dentist majorly

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BRAND DECISION FACTORS

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MAIN REASONS FOR % OF

USING A BRAND CONSUMERS

Fits most comfortably in my mouth 63

Best for getting at hard to reach places 52

The bristles are the right softness 46

The bristles are the right firmness 36

Toothbrush my dentist recommends 35

Important part of my oral care regimen 30

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Innovation of new products

Aggressive advertising

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COLGATE TODAY

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