3. The Colgate-Palmolive Company
-American worldwide consumer products company
-Focusses on Production , Distribution and Provision of Household ,
Health Care and Personal Products.
In 1992, the company was poised to launch a
Toothbrush in the US, named COLGATE
PRECISION TOOTHBRUSH.
11. • 37% more
reach to
remote oral
parts
• Flexible
Handles
• 45 angle
Brushing
• Known as
“The
Dentist’s
Toothbrush”
Oral-B J&J
P&G
Aquafresh
Flex
12.
13. Growing competition increased the
value of Consumer Promotion Event.
Retail Advertising displayed increased
sales.
When Toothbrush were combined with
Toothpaste sales increased to 170%.
The CP Toothbrush held 25%of shelf
space in stores.
14. Product Design
• Longer Outer Bristles cleaned around the Gumline.
• The long Inner Bristles cleaned between the teeth.
• The Shorter Bristles cleaned the Teeth Surface.
• A superior, technical Plaque removing device with
35% more success rate.
17. • When positioned as Niche
Product , it would target at
consumers concerned
about Gum Diseases.
• It could command 15%
Price Premium over Oral-B
and would be expected to
capture 3% of the US
Toothbrush Market by the
end of one year of launch.
• No SKU’s needed to be
dropped!
• If Precision is positioned as
a Mainstream brush ,
Precision would capture
10% of the market share at
the end of one year
following its launch.(Quite
high compared to Niche
Positioning)
• The volume shares when
positioned as mainstream
would be 10% in a year
when compared to 5%as in
Niche Product!
Niche Positioning Strategy
18. Mainstream Positioning
Strategy
• Mainstream was more
appealing as it
Proclaimed larger market
share and volume share
at the end of one year of
launch.
• Greater proportion of
sales would occur
through mass
merchandisers and club
stores.
• Raised concerns about
‘Cannibalization’ of ColgatePlus and
about pressure on Production
Schedules that had been developed
for Niche positioning.
• Production capacity increases
required 10 months lead resulting in
inadequate supply of product.
• Positioning Precision as a
mainstream product with 7 SKU’s
would probably require dropping
one or more existing SKUs.
20. Executives believed that the product should stand alone
and the Precision Brand Name should be emphasized.
Stressing Precision as opposed to Colgate would limit the
extent of Cannibalization of ColgatePlus.
It was estimated both under Mainstream and Niche
Positioning Scenarios, the Cannibalization Figures for
ColgatePlus would increase by 20% if the Colgate brand
name was stressed.
21. Test Results
• The toothbrush’s feature of preventing
Gum disease motivated the greatest
purchase intent among test consumers.
• Additional consumer research revealed
that 55% of test consumers found
Precision to be very different from their
current toothbrushes.
• The research also revealed that more
the consumers were told about Precision
and how it worked , the greater was their
enthusiasm towards the product.
22.
23. Positioning
• Initially Positioning Precision as Niche Toothbrush and
later broadening to Mainstream Positioning would help
the product gain sufficient recognition by avoiding
Cannibalization and would ensure additional capacity
once it enters the mainstream.
• Broadening into the Mainstream Positioning would
enhance greater proportion of sales which would now
also occur through mass merchandisers and club stores
apart from the food and drug stores.
24. Branding
• ‘Precision by Colgate’ would be more prominent
as it would reduce Cannibalization of
ColgatePlus which is the bread and butter of
CP’s toothbrush line and secure its market
position.
• Placing the Precision at the centre of the
brushes in the storage shelves would ensure
easy acceptance due to the prevalence of the
brand at the same time giving it a unique stand.
25. Communication Strategy
• A little more should be invested in Advertising
and Promotion to give Head start to potential
product.
• Several consumer promotions must be
launched to attract more potential buyers.
• Since sampling would be critical to Precision’s
success , would be better to use Dentists as
professional endorsements are more
creditable.
26. Summary
• Company Background and
Situation
• Objective and Problem
• Product Segmentation
• Consumer segmentation
• Consumer Behaviour
• Competition
• Advertising and Promotions
• Product Design
• Positioning
• Branding
• Test Results
• Recommendations
27. Disclaimer
This presentation is prepared by Vaishnavi Naik as a part
of Marketing Internship under Prof.Sameer Mathur , IIM
Lucknow.
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