2. Introduction
The American company
focused on the production,
distribution and provision
of household, health care
and personal products, such
as soaps, detergents, and
oral hygiene products
The company's corporate
offices are on Park Avenue
in Midtown Manhattan,
New York City.
3. In August 1992, Colgate-Palmolive was
poised to launch a new toothbrush in
the United States, named COLGATE
PRESICION.
Now, it faced a highly Competitive
Market with substantial new product
activity.
Susan Steinberg, the product manager
had to recommendPositioning,Branding
and Communications strategies for “The
Precision”.
Situation
4. SWOT ANALYSIS
1. Market leaders
globally with excellent
R&D
2. Excellent advertising
and brand visibility
1. Market share is limited
2. Fake brands are
supplied under their
brand names
1. Tap rural markets and
increase penetration in
urban areas
2.Increasing purchasing
power of people thereby
increasing demand
1. Intense and increasing
competition
2. Competition from
unbranded and local
products
5. In the 1980’s,Industry executives divided the
Toothbrush category into three segments
Value
Professional
&
Super Premium
PRODUCT SEGMENTS
7. Consumer Behavior
Consumers were more concerned
about the health of their gums and
willing to pay a premium price for the
new products
Purchasers were unplanned and
unfamiliar with prices
48% consumers claimed to change
their brushes at least every 3 months
Consumers chose their brand based
on features, comforts and
professional recommendations
8. The table gives a broader view on
the priority of choice of Brand
based on their effectiveness and
functionality
Continued…
9.
10. Market leader
Professional endorsement
Known as “the dentist’s
toothbrush”
Brush with beveled handle
Increase efficiency of brushing
New products scheduled to
arrive which is going to clash
with the release of precision
11. Had long, rippled bristles of
different length
Have the ability to reach
between the teeth up to 37%
farther than leading brands
Had flexible handles that allow for
gentle brushing
Promotional offer
“Buy-two-get-one free”
12. It was hard to increase primary demand, so new
products tended to steal sales from existing
products. In the case of toothbrushes, increased
advertising and promotion enhanced the category’s
visibility which fuelled consumer demand.
Advertising and Promotion
13. Points to consider !
• Growing competition increased the featured and value of
consumer promotion event
• Retail advertising features and in store displays
increased toothbrush sales
• When Colgate toothbrush were combined with Colgate
toothpaste, the toothbrush sales increased by 170%
• The CP toothbrush line held 25% to 40% of the category shelf
space in most stores
• 22% of all toothbrushes were expected to be distributed to
consumers by dentist-with dedicated sales force
Oral-B dominated this Market
14. • SsProduct design
The long inner bristles
cleaned between the
teeth
The longer outer
bristles cleaned
around the gum line
The shorter bristles
cleaned the teeth
surface
35% increase
in Plaque removal
compared to other
leading toothbrushes
A superior,
technical, plaque
removing device
15. Goals of task force
A. Understanding the various techniques used by
consumers while brushing their teeth
B. Testing the between-teeth access of different
toothbrush designs
C. Establishing an index to score clinical plaque-removal
efficacy at the gum line and between
D. Creating a bristle configuration and handle
design offering maximum plaque- removing efficacy
E. Determining the efficacy and acceptance of the new
toothbrush design.
16. Conclusion given by task force
• Brushing was often ineffective at removing
plaque from the gum line and between the teeth
• CP’s new design was superior to both Oral-B
and reach in accessing front and back
teeth, using either horizontal or vertical brushing
• the new product removed an average 35% more
plaque than other leading brushes
17. Positioning
Precision was developed with the
objective of creating the best
brush possible and as such,
becoming a top-of-the range,
super-premium product.
In what ways it can
be positioned ?
18.
19. Niche Positioning strategy
Clear cut strategy
Target group more open to
paying higher prices
Less erosion of existing
products
Less profit in future
Reach limited to a
specific section
20. MAINSTREAMPOSITIONING
Accessible to larger
market size
A Simple and direct
campaigning
Possibility of higher
profit
Higher price can turn
people off
Uninvolved consumers
can’t be included in
target market
Greater cannibalism
of Colgate Plus and Colgate
Classic’s market share
22. Executives believed that 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 Colgate plus.
It was estimated ,both under mainstream and niche positioning scenarios, the
cannibalization figures For Colgate plus would increase by 20% if the
Colgate brand name was stressed.
23. “You can really feel it working !”
When TEST were conducted among consumers the following
feedbacks were obtained-
• The toothbrush’s feature of preventing Gum disease
motivated the consumers to purchase
• 55% of test consumers found Precision to be very
different from their current toothbrushes
• The more the consumers were told about Precision and
how it worked, the greater the enthusiasm for the
product.
24.
25. Recommendation
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.
BRANDING:
“Precision By Colgate “ would be more prominent as it would reduce
cannibalization of Colgate Plus-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- give it a unique stand.
26. Recommendation
COMMUNICATION STRATEGY:
Investing a little more on Advertising and Promotion would not do much harm as it
shall give a head start to this potential product. There must be several Consumer
promotions to back the launch for the mainstream positioning as this w attract a lot
more potential buyers.
Surveys and Sampling:
Since sampling would be critical to Precision’s success, it would be better to
use Dentists to sample consumers since professional endorsements were
more credible.