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COLGATE-PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH

Colgate Palmolive Case Study

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Page 1: Colgate Palmolive Case Study

COLGATE-PALMOLIVE COMPANY:THE PRECISION TOOTHBRUSH

Page 2: Colgate Palmolive Case Study

What is it?

American worldwide consumer products company

Focussed on the production, distribution and provision of household, health care and personal products

Page 3: Colgate Palmolive Case Study

Situation

In 1992, Colgate-Palmolive set to launch Colgate Precision (new toothbrush).

Precision - technologically superior toothbrush Developed for over three years

Page 4: Colgate Palmolive Case Study

The Precision Toothbrush

• A technical innovation• Triple-action brushing effect • More effective at plaque removal• Provides gum protection

Page 5: Colgate Palmolive Case Study

Product Segmentation

3 segments: • Value• Professional • Super-Premium Different brands for different segments

Page 6: Colgate Palmolive Case Study

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

Page 7: Colgate Palmolive Case Study

Market Analysis(1992)

Page 8: Colgate Palmolive Case Study

Consumer Analysis(1992)

3 distinct consumer groups:• 1) Therapeutic Brushers• 2) Cosmetic Brushers • 3) Uninvolved Brushers

Page 9: Colgate Palmolive Case Study

The segmentation

Page 10: Colgate Palmolive Case Study

Reasons to use a particular brand

Page 11: Colgate Palmolive Case Study

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

Page 12: Colgate Palmolive Case Study

ADVERTISING

Page 13: Colgate Palmolive Case Study

Competitors’ Strategies

Page 14: Colgate Palmolive Case Study

Meanwhile, Colgate’s strategies

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Positioning Precision

• Niche Positioning• Mainstream positioning

Page 16: Colgate Palmolive Case Study

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

Page 17: Colgate Palmolive Case Study

Niche positioning threats

• Less contribution to profit in coming years• Reach limited to a specific section

Page 18: Colgate Palmolive Case Study

Mainstream positioning benefits

• Accessible to larger market size• Simple and direct campaigning• Possibility of greater returns

Page 19: Colgate Palmolive Case Study

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

Page 20: Colgate Palmolive Case Study

Branding Precision

Page 21: Colgate Palmolive Case Study

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

Page 22: Colgate Palmolive Case Study

Precision

• Niche Product• Promotional Campaigns• Should not cannibalise Colgate Plus• Market the product as providing superior and

distinctive oral care

Page 23: Colgate Palmolive Case Study

Disclaimer

• Created by Shweta Menon, Govt MEC, during a marketing internship under Prof Sameer Mathur, IIM Lucknow.