COLGATE-PALMOLIVE COMPANY

THE PRECISION TOOTHBRUSHCase Study

HARVARD | BUSINESS | SCHOOL

BY- SHUBHRA DESHPANDE

COLGATE PRECISIONTOOTHBRUSHWhere You Can Actually Feel It Working

No such awareness and enthusiasm in

people about oral care till 1970

BY 1980 wide acceptance for

oral care products

Heavy research and high end technology

1990, Oral care grown at an

annual rate of 6.1%.

By 1992-93, Customers took great interest HOW WAS THE GROUND

FOR THE PRODUCT?

CONSUMER BEHAVIOUR

ConsumerTHERAPEUTIC

BRUSHESHERS

46% OF ADULTS

ConsumersCOSMETIC

BRUSHERS

21% OF ADULTS

Uninvolved Oral Health Consumers

33% OF ADULTS

Functionally Effective Product Cosmetic Benefits Lack of Interest in Product

Buy & Use Product for Themselves

Buy & Use Product for Themselves

Buy Product for Family

Use Premium Products 75% Use All Product on Avg 75% Less Products with 50%

Preferences: Oral B Angle

Oral B RegularColgate PLus

REach

Preferences: Colgate ClassicOral B RegularColgate PLusOral B Angle

Preferences: Colgate ClassicOral B RegularColgate Plus

Reach

POSITION OF COLGATE-PALMOLIVE

● Global Leader in household and personal care products with gross profit of $2.76 billion

● Leaders with exotic RnD and marketing mix strategies

● Ready to compete with two segments:

○ VALUE : Mainstream market with Colgate Classic

○ PROFESSIONAL : End high market with COlgate PLus

COMPANY

COMPETITION FOR MARKET LEADER

Major Expenditure on Mix MarketingCoupons, Refunds Offers

Targets Super-Premium Range

THE TARGET STATEMENT

HOW TO DEFINE A MARKETING STRATEGY

POSITIONINGBRANDING

COMMUNICATION STRATEGYFOR NEW TOOTHBRUSH

COLGATE PRECISION

PRODUCT DESIGNING AND TESTING

WHAT● Designed with keen analysis of

Consumer’s brushing habits● Targeted Area

○ Plaque Removing○ Gum Line ○ Between Teeth○ Gum Health○ Reach where no one can reach

HOW● Triple-Action Brushing Effect● Bristles of three different length

POSITIONINGPricing & Cost

POSITIONING STRATEGY

● Create the best brush possible● Targeted Top range, Super Premium

Class● Position as NIche Product● Capture 3% of U.S. toothbrush

market

THE MAJOR CONFUSIONfor

COLGATE PRECISIONAs

NICHE PRODUCT OR MAIN STREAM PRODUCT

MAIN STREAM PRODUCT NICHE PRODUCT ● Widely Reached Market● Consumers are Interested in Product Features● High Returns● Consumers are Ready to Pay High Amount● Easy to Hit the Competition● Manufacturing Price : 2.02● Retail Price : $ 2.89

● Easy to Reach the Market● Consumers are Trend Followers● Large NUmber of Consumers● Consumers are Consistent● Target Market can be Hit easily with

Association with Dentist● Less Competition● Manufacturing cost : $1.76● Retail Price : $2.49

CATEGORY AVERAGE RETURNS

VALUE More Economic

Wide Market$1.29

PROFESSIONAL Better QualityMore Market

$ 1.59 - $ 2.09

SUPER PREMIUM Targeted Baby Boom$2.29 - $2.89

SEGMENTATION & RETURNS

BRANDING & COMMUNICATION

NAME TEST● Name that have prominence of name Colgate● To take the advantage of Brand Equity● Finalized name Colgate Precision

COMMUNICATION● Product was branded as 35% More Plaque

Removal and Gum Disease Preventer● Which produced 80% probability that

market will get attracted and 14% of which, will definitely buy it

● Product Display● Media Advertisement● Free Sampling● Coupons● Use Dentist to Sample Consumers● Proper Separation of Niche

Position & Main Stream● Took care that Precision doesn’t

Overshadow ‘Colgate Plus’

BRANDING STRATEGY

ANALYSIS

● The case study is about Launching a Premium Product

○ Consumer is aware of it’s ‘Need’○ Clear Segmentation○ Clear Objectives

● Observations○ Excellent work by Research & Development ○ Clear & Strong Positioning○ Proper Branding○ Marketing is done so that the product lifts up the

overall Brand Equity● Point of Difference of Case

○ Product and variation in quality○ Strategy to check Competition○ Marketing strategy○ Approach that is completely based on Consumer

Survey

OF CASE

CONCLUSION

● Precision is more than a niche product or simple extension

● Has technological benefits● Should be positioned and branded

according to charts.● Precision should reach to it’s full

potential without overshadowing ‘Plus’

● It definitely a potential product to confirm Colgate as a market leader.

& Future Scope

DISCLAIMERCREATED BY

SHUBHRA DESHPANDEDURING THE MARKETING INTERNSHIP

UNDER THE GUIDANCE OF PROF. SAMEER MATHUR, IIM LUCKNOW