colgate palmolive: the precision toothbrush analysis

Colgate Palmolive – The Precision Toothbrush

A Harvard Business School case study analysis

What is The Precision Toothbrush??

The precision toothbrush is Colgate Palmolive’s developed and

technologically superior toothbrush.

• With the current scenario, it is now facing a highly competitive market with substantial new product activity.

Who are the key players?Susan Steinberg

(Precision product manager)Reuben Mark

(Colgate Palmolive’s CEO)Nigel Burton

(Division General Manager)John Phillips

(Colgate Plus Manager)

What exactly was the situation?

Situation AnalysisIn 1992, Colgate Palmolive was poised to launch a new

toothbrush by the name of Colgate precision.

Susan, the precision product manager had managed the entire new product development process.

She recommended positioning, branding and communication strategies to division GM Nigel Burton.

Key concerns and objectives of

introducing The precision Toothbrush

were….

Key concerns and objectivesTo design the best brush possible and as such, becoming a top-of-the range, super-premium product that removes maximum

plaque and solves gum problems.

To position the toothbrush among the most established brands which have acing in their sales in toothbrushes.

To set it’s own brand value, advertise and market the product at an affordable price for the customer and profitable for the

company.

The main three aspects that had to be analysed before

planning the marketing strategies of The Precision

Toothbrush were…

The U.S. Toothbrush Market

Consumer Behaviour Competitions

1. The U.S. Toothbrush Market (1/3)

• In 1938 , the launch of Dr. West’s Miracle Tuft Toothbrush, the first nylon-bristle brush.

• In the late 1940s, a soft-bristle brush, better for the gums by Oral-B.

• In 1961, Broxodent launched the first electric toothbrush.

1. The U.S. Toothbrush Market (2/3)

• In 1991, the U.S. Oral Care market was $2.9 billion in retail sales and had grown at an annual rate of 6.1% since 1986.

• Dollar sales of toothbrushes had grown at an average rate of 9.3% per annum since 1987, but, in 1992 they increased by 21% in value and 18% in volume, due to the introduction of 47 new products and line extensions during 1991-1992.

1. The U.S. Toothbrush Market (3/3)

• Unit sales growth in 1993, however, was projected to be slower due to a build up in household inventories of toothbrushes in 1992.

• as a result of increased sampling of free brushes through dentists and an abnormally high number of “two-for-one” consumer promotions.

Chronology of Toothbrush Innovation in the U.S.The US toothbrush market as seen here shows how the innovations in toothbrushes have

been prevailing before the launch of The Precision Toothbrush in 1992.

2. Consumer Behaviour (1/3) 82%: purchases were unplanned.7.5 months : Frequency of replacing toothbrushes. 48%: consumers change their brushes at least every three months.

• Replacement of brush decision : 70% : when their toothbrush-bristles became visibly worn.11% : after seeing their dentists.3% : purchasing on impulse.

• 65% of consumers had more than one toothbrush, 24% kept a toothbrush at work, and 54% had a special toothbrush for traveling.

2. Consumer Behaviour (2/3)

Brand Decision factors for consumers

Brand choice was based on features, comfort and professional recommendations. This table summarizes the main reasons why consumers used specific brands.

Consumer Segmentation of Toothbrush Users

2. Consumer Behaviour (3/3)

Consumers differed in the intensity of their involvement in oral hygiene. This table summarizes the buying behaviour of the three groups.

Toothbrush Brand Prices comparision; 1992

3. Competitions (1/3)

It lists the major brands and product prices for each of the three toothbrush product segments.

Principal Toothbrush Brand Product Lines; August 1992

3. Competitions (2/3)

This table shows the number and type of stock keeping units (SKUs) for each major brand.

Principal Toothbrush Brand Unit and Dollar Market Share; 1989-1992

3. Competitions (3/3)

This table summarizes market shares over time and by class of trade.

Now, let’s see what and how were The Precision

Marketing strategies chosen and executed!!

Precision Toothbrush

Bristles of three different lengths and orientation.

Plaque removal

Triple-action brushing effect

Clean gum line, between the teeth and surface of the teeth

The R&D process by Steinberg involved 5 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 efficacy at the gum line and between teeth.

Creating a bristle configuration and handle design offering maximum plaque- removing efficacy.

Determining the efficacy and acceptance of the new toothbrush design.

Brand Positioning in the market

• The Main Question that had to be answered before the positioning of the Precision Toothbrush in the market was whether to consider the product as

Niche OR Mainstream ??

The table outlines how these unit volumes would reach the consumers.

Production Costs and Pricing

Positioning decision would impact distribution and percentage of sales by class of trade.

Steinberg hoped to develop a pro-forma income statement to compare the profit implications of

the niche versus mainstream positioning strategies.

Alternative Positioning Scenarios for precisionPrecision, positioned as a niche product, would be carried by food and drug stores. Under a mainstream launch scenario, a relatively greater proportion of sales would

occur through mass merchandisers and club stores.

Branding, Communication and Promotion

Colgate Plus Television Advertising; Copy Strategies and Execution: 1985-1992.

Increased advertising and promotion enhanced the category’s visibility which, in turn, seemed to fuel consumer demand.

Reproductions of the Colgate Precision Toothbrush

Colgate Toothbrush Point-of-Sales Display Racks

Techniques used for branding, advertising and promotion were:

Concept and tests

Consumer research

In-home usage tests

Sampling

Free 5 oz. tube of Colgate

toothpaste with the purchase of

a Precision brush Used dentists to

sample consumers

since professional

endorsements 50%-off offer on any Colgate

toothpaste with a 50¢ coupon on

the Precision brush

The Precision Toothbrush

Precision was more than a niche product.

Requires a marketing mix and profit-and-loss pro

forma that enables Precision to reach its full

potential.

Cannibalization of Colgate Plus should be taken care

of.

More Concession and promotional Prices

should be introduced to lure the consumers.

*DISCLAIMER!!* Sameer Mathur

IIM Lucknow, Marketing Professor 2013

McGill University Marketing Professor 2009 – 2013

Carnegie Mellon Ph.D and M.S (Marketing) 2003 – 2009

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Vaishali Iyengar

Institute of Infrastructure, Technology, Research and Management (IITRAM)

Marketing Management Intern Winter Internship 2017