Colgate-Palmolive Journey of the

Precision toothbrush

What it does? Colgate-Palmolive is an

American worldwide consumer products

company focused on the provision of household,

health care and personal products, such

as soaps, detergents, and oral hygiene products.

Company Background

Global leader in household and personal care products

Sales$6.06 billion

Profit $2.76 billion

R&D$114

million

Advertising$428

million

1991

The U.S. toothbrush Market

Product Segments

Value Professional

Super Premium

Toothbrushes varied by bristle type and by head size.

Consumer Behavior

Personal habitsDentist recommendation

Individual Needs

Oral Hygiene

Competition

Oral B Colgate J & J0

5

10

15

20

25

30

Volume(%)Value(%)

The Precision

toothbrush

Product Design

Mission: To “develop a superior technical, plaque

removing device”.Result:Triple action brushing effect:Outer long bristles to clean around gum lineInner short bristles cleaned between the teethInner long bristles cleaned the teeth surface

Problem?

Defining the Marketing strategy i.e. positioning, branding, and communication strategies for C-P’s new toothbrush: Colgate Precision

How to position the product?

Niche positioning : Consumers concerned about gum disease

Mainstream positioning: Appeal of the most effective brush in the market

Factors to be considered

VolumesNiche: 3%

Mainstream: 10%

Total volume share

Capacity and investment costs

Factors to be considered

Investment cost Annual Capacity Depreciation time

Tufters $500,000 3 million units 15 years

Handling Molds $300,000 7 million units 5 years

Packaging $150,000 40 million units 5 years

Tufters could be used if Precision is Niche Positioned and Packaging if is Mainstream Positioned.

Production Costs and Pricing

Factors to be considered

Niche:$2.13

Mainstream:

$1.85

List Price of Colgate Precision

Concerns: •Cannibalization of Colgate plus •Inadequate supply

Niche Mainstream

Food stores and Drug stores

Mass merchandisers and club stores

BrandingNames tested: Colgate Precision, Colgate System III, Colgate Advantage, Colgate 1.2.3, Colgate Contour, Colgate Sensation, and Colgate Probe.

Colgate precision was deemed favorable by 49% concept acceptors and appealing by 31%.

Communication and Promotion

The toothbrush would prevent gum disease motivated the greatestpurchase intent among test consumers.

Niche positioning

• Easy transition in the product life cycle from niche to mainstream strategy • Less erosion of Colgate Plus • CP would face less competition•Entry into superior premium toothbrush where CP holds no position

• Less contribution to net profit in future years

Mainstream positioning

• Possible increase in sales •Unsatisfied demand could create the perception of a Hot product which may increase the sale

• Cannibalization of Colgate plus • May require dropping one of slow moving product in the product line• More competition•Possible pressure on production

Recap

DisclaimerCreated by Shivangi Gambhir, Manipal Institute of Technology, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.