colgate-palmolive company: precision toothbrush case analysis

Priyanshi, IITD

PROBLEM STATEMENT

Suggesting a marketing strategy for the new toothbrush: Colgate Precision

THE PRECISION TOOTHBRUSH• A technical innovation• Triple-action brushing effect • More effective at plaque

removal• Provides gum protection

PRODUCT SEGMENTS• Three segments: Value,

Professional and Super-Premium

• Different brands for different segments

VALUE• More economic• Average price : $1.29

PROFESSIONAL• Better quality• Average Price : $1.59 to $2.09

SUPER-PREMIUM• Improved designs• Average Price : $2.29 to $2.89

CONSUMER ANALYSIS• Three distinct consumer

groups: 1) Therapeutic Brushers 2) Cosmetic Brushers 3) Uninvolved Brushers• Each having different

expectations from toothbrushes

COMPETITOR ANALYSIS• Oral-B and Johnson & Johnson

trying to capture more market in super-premium range

• Competitors offering coupons, refunds etc. to get an edge

• Sizeable revenues spent on advertisement

STRENGTHS• Leading brand in oral hygiene• Number one spot in toothbrush

sales• Extensive overseas reach• Innovative product designs

WEAKNESSES• Introduction of Precision

toothbrush may cannibalize the sales of Colgate Plus and Colgate Classic

• Media expenditure of the brand is limited compared to its rivals

• Lack of dental endorsements for the brand

OPPORTUNITIES• Super-premium category can

help increase market share• Younger generations becoming

more health conscious• Can capture people who make

unplanned purchases by focused advertisement

THREATS• Severe competition and

incentives given by competitors

• Aggressive expansion in different segments by other brands

• Competitors launching new products with added features

ALTERNATIVES• Mainstream Positioning: mass

production, distribution and promotion

• Niche Positioning: targeting a subdivision of a market segment

MAINSTREAM POSITIONING: BENEFITS• Accessible to larger market

size• Simple and direct

campaigning• Possibility of greater returns

MAINSTREAM POSITIONING: HARMS• 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

NICHE POSITIONING: BENEFITS• A clear cut strategy can be

used• Can be later broadened to a

mainstream position: can’t be done the other way round

• Target group more open to paying higher prices

• Less erosion of existing products

• Entry into superior market: can compete with Oral-B

NICHE POSITIONING: HARMS• Less contribution to profit in

coming years• Reach limited to a specific

section

RECOMMENDATION• Position Precision toothbrush

as a niche product• Appeal to therapeutic

consumers• Market the product as

providing superior and distinctive oral care

FUTURE SCOPE• Can expand the toothbrush

into mainstream market later

• Can replace Oral-B as the leading brand in Super-Premium range

• Can expand into other oral care products for therapeutic consumers