This Presentation on Colgate was created during a marketing internship br Prof. Sameer Mathur

1. CASE STUDY
COLGATE PALMOLIVE:THE
PRECISION TOOTH BRUSH

2. THE BRAND LOGO

3. COMPANY’S BACKGROUND
Founded BY WILLIAM COLGATE IN 1806
A GLOBAL LEADER IN HOUSEHOLD
AND PERSONAL CARE PRODUCTS
COLGATE HAS NUMEROUS SUBSIDIARY
SPANNING 200 COUNTRIES,BUT IT IS
PUBLICLY LISTED IN ONLY TWO,
UNITED STATES AND INDIA.

4. SITUATION
In august 1992,Colgate Palmolive(CP) was
poised
to launch a new toothbrush in United states
,tentatively named Colgate Precision.
Susan Steinberg, Susan Steinberg, Precision
product manager, had managed the entire
new product and now had to recommend
positioning, branding, and communication
strategies to division General manager Nigel
Burton.

5. COLGATE PALMOLIVE’S ORAL CARE BUSINESS
In 1991, CP held 43% of the world toothpaste
market and 16% of the world toothbrush
market.
Other oral care products included dental floss
and mouth rinses
In 1991, worldwide sales of CP’s oral care products
increased 12% to $1.3 billion, accounting for
22% of CP’s total sales.

8. Until 1980 the toothbrush category was divided into
two segments, value and professional.
The late 1980’s saw the introduction of a new
toothbrush category called the super premium
brushes.
By 1992 By 1992, super-premium brushes
accounted for 35% of unit volume and 46% of
dollar sales. Professional brushes accounted for a
corresponding 41% and 42%, and value
brushes accounted for 24% and 12%.
This shows that the super premium brushes were
impactful on the market.

9. CONSUMER BEHAVIOUR
CP’s consumer research revealed consumers of
baby boom generation became more and
more concerned of their oral health.
Most consumers believed primary usage of
toothbrush is for removing food particles;
plaque removal was secondary.
Handle, bristles and head shapes were
perceived as most important physical features
of toothbrush.

10. COMPETITORS
UNILEVER
PROCTER AND GAMBLE
CHURCH AND DWIGHT CO.
JHONSON & JHONSON

13. As the pace of new product introductions quickened in the late
1980s,the advertising media expenditures needed to launch a new
toothbrush
Growing competition increased the frequency and value of consumer
promotion events .
Retail advertising features and in-store displays increased toothbrush
sales.
CP had four display systems Counter Tops, containing 24 to 36
brushes; Floor Stands, 72 brushes; Sidekicks,144 to 288 brushes; and
Waterfall displays, 288 to 576 brushes.

17. Precision was developed with the objective of creating
the best brush possible and as such, becoming a top-of-
the range , super premium product. IT could be
positioned as a niche product to be targeted at consumers
concerned about gum disease.
Positioning Precision as a mainstream toothbrush raised
concerns about the possible cannibalization of colgate
Plus and about pressure on production schedules that had
been developed for a niche positioning.

18. SEGMENT MARKET COMPARISONS
NICHE
Creating a One Strong Brand
Avoid Cannibalization
Lower Marketing Investment
than Mainstream
Higher Gross Profit than
Mainstream
MAINSTREAM
Replace Paramount
Pro(Cannibalization)
Higher Marketing Investment
Lower Gross Profit.

20. It was estimated, both ‘Colgate Precision’
and ‘Precision by Colgate’ under the
mainstream and niche positioning
scenarios, that cannibalization figures for
Colgate Plus would increase by 20% if
the Colgate brand name was stressed
but remain unchanged if the Precision
brand name was stressed. On the other
hand, Colgate Palmolive’s stated
corporate strategy was to build on the
Colgate brand equity.

25. Precision was more than a niche product or
simple line extension and that the proven
benefits to consumers represented a
technological breakthrough.
Precision’s unique design could remove
more plaque from teeth than the other
leading toothbrush brands in the market.

27. DISCLAIMER
 This Presentation was created by Sashwat Dubey, ITER BBSR, during a marketing
internship by Prof. Sameer Mathur