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A full case study of colgate precision
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Group -3
Presented By:-Sheriff seth
Sanjeev singhTanmay singh
Sameer bhatnagar
THE PRECISION TOOTHBRUSH
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COLGATE PALMOLIVE
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)
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
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
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
Innovation of new products
Aggressive advertising
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COLGATE TODAY
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