colagate palmolive company:the precision toothbrush
Post on 19-Jan-2017
43 Views
Preview:
TRANSCRIPT
Colgate-Palmolive Company:The Precision Toothbrush
Harvard Business School Case
Colgate-Palmolive Company: The Precision Toothbrush
In August 1992, Colgate-Palmolive was poised to launch a new toothbrush in market.
Colgate-Palmolive Company: The Precision Toothbrush
CP’s five-year plan for 1991 to 1995 emphasized new product launches and entry into new geographic markets, along with improved efficiencies in manufacturing and distribution and a continuing focus on core consumer product.
Colgate-Palmolive Company: The Precision Toothbrush
THE U.SToothbrusH Market
Colgate-Palmolive Company: The Precision Toothbrush
Product SegmentsIn 1980s, industry executives divided the toothbrush category into two segments:ValueProfessional
Colgate-Palmolive Company: The Precision Toothbrush
Three players dominated the U.S. toothbrush market
Colgate-Palmolive Company: The Precision Toothbrush
Major new products in the Super-Premium Toothbrush Segments:-
Colgate-Palmolive Company: The Precision Toothbrush
In 1980s, Children’s segment had seen a variety of new products.By 1991,however,new product introductions were again focused on technical performance improvements.
Colgate-Palmolive Company: The Precision Toothbrush
Consumer BehaviorCP’s consumer research indicated that consumers of the baby boom generation were becoming more concerned about the health of their gums as opposed to cavity prevention and were willing to pay a premium for new product addressing this issue.
Colgate-Palmolive Company: The Precision Toothbrush
Brand choice was based on features , comfort and professionalrecommendations
Main reasons why consumers used specific brands:-
Colgate-Palmolive Company: The Precision Toothbrush
Consumer segmentation of toothbrush users:-
Colgate-Palmolive Company: The Precision Toothbrush
Competition
Major competitor brands
Colgate-Palmolive Company: The Precision Toothbrush
Major brands and product prices
Colgate-Palmolive Company: The Precision Toothbrush
Market share and class of trade:1991
Colgate-Palmolive Company: The Precision Toothbrush
Advertising and PromotionIn Toothbrush category, it was hard to increase primary demand ,so new products tended to steal from existing products.In case of toothbrushes, increased advertising and promotion seemed to fuel consumer demand.
Colgate-Palmolive Company: The Precision Toothbrush
The main message in each brand’s Commercial:-
Colgate-Palmolive Company: The Precision Toothbrush
Advertising and prom. expenditure for Colgate-Palmolive toothbrushes: 1989-1992E($ in tho):-
Principal toothbrush media advertising expenditure and share of voice:1991-1992E:-
Colgate-Palmolive Company: The Precision Toothbrush
Colgate Plus Television Advertising Copy strategies and execution: 1985-1992:-
Colgate-Palmolive Company: The Precision Toothbrush
The PrecisionMarketing Mix
Colgate-Palmolive Company: The Precision Toothbrush
Product designing and testingIn Laboratory experiments, researchers used infrared motion analysis to track consumer’s brushing movement and consequent level of plaque removal.
CP developed a unique brush with bristles of three different lengths and orientation.
Colgate-Palmolive Company: The Precision Toothbrush
In 1989,CP had established a task force compromising executives from R&D and marketing, dental professionals , and outside consultants . The task force had force had five goals:-Understanding the varying techniques
consumers used when brushing their teeth.
Testing the between-teeth access of different toothbrush designs.
Establishing an index to score clinical plaque-removal efficiency at the gum line and between teeth.
Creating a bristle configuration and handle design offering maximum plaque-removal efficacy.
Determining through clinical and consumer research, the efficacy and acceptance of the new toothbrush design.
Colgate-Palmolive Company: The Precision Toothbrush
PositioningPrecision was developed with the objectives of creating the best brush possible and as such, becoming a top-of-the range , super-premium product.
It was estimated that , as a mainstream brush, with the broader appeal of being the most effective brush available on the markets.
Colgate-Palmolive Company: The Precision Toothbrush
BrandingName tests were carried out by the task force. Alternative names tested included Colgate Precision, Colgate System III, Colgate Advance, Colgate 1.2.3, Colgate Contour, Colgate Sensation, and Colgate Probe. The Colgate Precision name was consistently viewed more favorably - it was deemed appropriate by 49% of concept acceptors and appealing by 31%.
Colgate-Palmolive Company: The Precision Toothbrush
Communication and PromotionFour concept test conducted among 400 adult professional brush users 18 to 54 years of age, were run during 1990-1991. Consumers were exposed to various product claims in prototype print advertisements and then asked about the likelihood that they would purchase the product.
Colgate-Palmolive Company: The Precision Toothbrush
Copies of The advertisement
Colgate-Palmolive Company: The Precision Toothbrush
Results of tests:-
Colgate-Palmolive Company: The Precision Toothbrush
Another Important tactic was to use dentists to sample consumers since professional endorsements were believed important to establishing the credibility of a new brush.
Colgate-Palmolive Company: The Precision Toothbrush
Steinberg believed that Precision was more than a niche product line extension and that the proven benefits to consumers represented a technological breakthrough. Precision was positioned , branded, and communicated to consumers after proper analysis. Market mix was developed that enabled Precision to reach its full potential.
DisclaimerCreated by Ritish Gupta, APJ Jalandhar during a marketing internship byProf. Sameer Mathur ,IIM Lucknow
top related