Upload
shweta-menon
View
102
Download
1
Embed Size (px)
Citation preview
COLGATE-PALMOLIVE COMPANY:THE PRECISION TOOTHBRUSH
What is it?
American worldwide consumer products company
Focussed on the production, distribution and provision of household, health care and personal products
Situation
In 1992, Colgate-Palmolive set to launch Colgate Precision (new toothbrush).
Precision - technologically superior toothbrush Developed for over three years
The Precision Toothbrush
• A technical innovation• Triple-action brushing effect • More effective at plaque removal• Provides gum protection
Product Segmentation
3 segments: • Value• Professional • Super-Premium Different brands for different segments
Specifications of the 3 segments• VALUE• More economic• Average price : $1.29
• PROFESSIONAL• Better quality• Average Price : $1.59 to $2.09
• SUPER-PREMIUM• Improved designs• Average Price : $2.29 to $2.89
Market Analysis(1992)
Consumer Analysis(1992)
3 distinct consumer groups:• 1) Therapeutic Brushers• 2) Cosmetic Brushers • 3) Uninvolved Brushers
The segmentation
Reasons to use a particular brand
Product Design
• The longer outer bristles cleaned around the gum line.
• A superior ,technical, plaque removing device.
• The shorter bristles cleaned the teeth surface
• The long inner bristles cleaned between the teeth
ADVERTISING
Competitors’ Strategies
Meanwhile, Colgate’s strategies
Positioning Precision
• Niche Positioning• Mainstream positioning
Niche positioning benefits
• A clear cut strategy can be used• Can be later broadened to a mainstream
position: can’t be done the other way round• Target group more open to paying higher
prices• Less erosion of existing products• Entry into superior market: can compete
with Oral-B
Niche positioning threats
• Less contribution to profit in coming years• Reach limited to a specific section
Mainstream positioning benefits
• Accessible to larger market size• Simple and direct campaigning• Possibility of greater returns
Main stream positioning threats
• Higher price can turn people off• Uninvolved consumers can’t be included in
target market• Greater cannibalism of Colgate Plus and
Colgate Classic’s market share
Branding Precision
Promotion strategies
• 5.oz tube of Colgate Toothpaste with the purchase of a Precision brush
• 50%-off offer on any size of Colgate Toothpaste with a 50cent off on the brush
• Dentists Endorsing the product
Precision
• Niche Product• Promotional Campaigns• Should not cannibalise Colgate Plus• Market the product as providing superior and
distinctive oral care
Disclaimer
• Created by Shweta Menon, Govt MEC, during a marketing internship under Prof Sameer Mathur, IIM Lucknow.