Colgate precision

COLGATE PALMOLIVE:THE PRECISION TOOTHBRUSH

SITUATION

In August 1992 Colgate is planning to launch a new toothbrush in US which it has been developing for 3 years

.

DECISIONS TO BE MADE• Positioning• Branding• Communication methods• Advertising• Promotion

PRODUCT FEATURES

FEATURES:

• Bristles of three different lengths

• Triple- Action Brushing

• 35% in plaque removal than other leading toothbrushes

COLGATE’s ORAL CARE BUSINESS

Plan for 1991-1995

• New Product Launches• Entry into new geographic markets• Improve efficiency of Manufacturing and

Distribution

43; 43%57; 57%

Toothpaste Market

ColgateOther

16%

84%

Toothbrush Market

ColgateOther

PRODUCT SEGMENTS

VALUE

COLGATE CLASSIC

PROFESSIONAL

COLGATE PLUS

SUPER-PREMIUM

COLGATE-PRECISION

COMPETITION

ORAL-B23%

COLGATE23%

Johnson & Johnson

19%

Others34%

MARKET SHARE VOLUME %

ORAL-B COLGATEJohnson & Johnson Others

ORAL-B31%

COLGATE23%

Johnson & Johnson

20%

Others26%

MARKET SHARESALES %

ORAL-B COLGATEJohnson & Johnson Others

PERFORMANCE OF COMPETITORS IN 1991

1992 Product Launches of Competitors

ORAL-B• Restage its Dental Floss• Launch new mouthwash• Introduce new toothpaste

Johnson & Johnson• Launch REACH BETWEEN toothbrush

Procter & Gamble• Launch CREST COMPLETE toothbrush

Smithkline Beecham• Adding 2 adult toothbrushes and one child

to its AQUAFRESH FLEX line

HOW SHOULD COLGATE MARKET PRECISION ??

HOW SHOULD IT POSITION ITSELF??THE CHOICES:

NICHE POSITION

Advantages:• No compromise on

production of Colgate Plus• Lower Advertisement &

Promotion Cost• Less Cannibalism Disadvantage:• Smaller Target Audience• Less Sales

MAINSTREAM POSITION

Advantages:• Larger market• More sales expected.

Disadvantages:• Cannibalism of Colgate

Plus• More production required• Higher Advertisement &

Promotions Cost.

WHO COMES FIRST?COLGATE OR PRECISION

COLGATE PRECISION PRECISION COLGATE

• Estimated 20% cannibalism of Colgate Plus toothbrush if introduced under this brand.

• Will have the support of the well established brand of Colgate

• Build the brand equity of Colgate

• Unchanged effect on the sales of Colgate Plus

• Product could sustain without the use of Colgate’s brand

BRANDING

OR

MY RECOMMENDATIONS

The new toothbrush should be positioned for the Niche Market.

The new toothbrush should be branded as Precision by Colgate.

WHY SO?

INITALLY AT LAUNCH

• Can be launched at the higher cost than its competitors

• Demand can be met with the current production capacity of the company.

• Decrease the effect of cannibalism on Colgate Plus

• No SKU drops

WHY SO?

LATER EXPAND INTO MAINSTREAM

• Will give time to increase production capacity

• Will allow the brand to gain recognition and loyalty

• See the performance of the product.

TARGET AUDIENCE

Involved Oral Health Consumer as they

• Can differentiate between brushes

• Understand the features of the brush

• Appreciate the advantages of using the brush

• Concerned about oral health

SEGMENTATION

HOW TO COMMUNICATE TO THE CUSTOMERS

Tests showed:• Consumers thought

the brush looked unusual

• It was difficult to communicate certain benefits to the masses

• Positive reaction if showed the working of the toothbrush.

This concept of advertisement should be used as it showed the best results in the test group.

PRINT ADVERTISEMENT

USE OF DISPLAY SYSTEMS

• Use stands to advertise the qualities of the product

• The Floorstand’s large area can be used to show the benefits of the toothbrush visually.

• Use the display stands in the super-premium section of the store.

PROMOTIONS • Toothpaste free with each

brush

• Discounts on related products

• Higher saving coupons than competitors

• Promotion through Doctors will be helpful to get the target segment to buy the product.

DISTRIBUTION

The distribution of Precision should be mainly through Drug Stores where the customer will appreciate the benefits of using Precision.

Decreasing distribution

SUMMARY

Colgate should use niche marketing techniques to initially set up the new brand of Precision and at the time plan to expand into the mainstream market.

Using Promotions and Advertisements it can show the points-of-parity and points-of-difference

CONCLUSION

THANK YOU

DISCLAIMER Created by Rishabh Agarwal, Manipal Institute of Technology during an internship with Prof. Sameer Mathur