KEY PEOPLE

Susan Steinberg –

Precision Product Manager

Nigel Burton -

General Manager

YEAR 1991 FOR C-PSales $6.06 billion Gross Profit $2.76 billion

R&D $114 million Media Advertising $428 million

Oral care products

Toothbrushes

Total volume share

• Sales increment 12%

• $1.3 billion

• Sales $77million

• Profit $9.8 million

• 23.3%

C-P FIVE YEAR PLAN(91-95)OBJECTIVES

• New product launches

• Entry into new geographic

markets

• Improved efficiencies in

manufacturing

• Continuing focus on core consumer

products.

REFORMS DONE BY C-P

•$243 million was spent to upgrade 25 of CP’s

91 manufacturing plants

• 275 new products were introduced worldwide

•Several strategic Acquisitions

•Manufacturing began in China and Eastern Europe

C-P Under REUBEN MARK (CEO since 1985)

Sleepy

Inefficient

Lean

Profitable TRANSISTION

ECONOMIC EVALUATION

INCREMENT IN THE SALES OF C-P TOOTHBRUSHES SECTOR

CHRONOLOGY OF INNOVATIONS IN TOOTHBRUSHES

CONSUMER BEHAVIOUR

UNPLANNED BUYING OF TOOTHBRUSHES – 82%

COMPETITORS IN ORAL HYGIENE INDUSTRY

• ORAL –B

• JOHNSON AND JOHNSON

• PROCTOR AND GAMBLE

• SMITHKLINE BEECKHAM

Oral-B

Volume market share 23.1%

Value share of U.S retail sales 30.7%

SKUs 27

Relied heavily on professional endorsements

Known as “the dentist’s toothbrush.”

Johnson & JohnsonNew entrant – Reach brand

Volume share 19.4%

Value share 21.8%

SKUs 18

New products included -

Glow Reach (1990)

Advanced Design Reach (1991)

Proctor and GambleNew entrant – Crest Complete

Value share 13%

Media expenditures for the last quarter

of 1992 - $6.4 million

Television commercials theme “Teeth aren’t flat, so

why is your brush.”

Smithkline BeechamNew entrant – Aqua Fresh Complete

Volume Share 0.9%

Value share in U.S. retail market 1.1%

SKUs - 6

Television commercials to demonstrate

the “flexibility and gentleness”

Need for Advertising

and Promotion?

In Toothpaste Market Primary Demand

Is Stangant

Advertising Visibilty Demand

And promotion

MEDIA EXPENDITURES BY VARIOUS COMPANIES

MEDIA EXPENDITURES OF C-P

STRATEGIES ADOPTED -1/2

STRATEGIES ADOPTED -2/2

EVOLUTION OF

DISTRIBUTION

WITH TIME &

ITS EFFECT ON

MARKET SHARE?

1987Traditional food stores

sold 75% of

oral care products.

Mass merchandisers gained share due to

increased in-store promotional support.

1992SKU’s for mass merchandisers -35

SKU’s for drug stores -34

SKU’s for food outlets-35

22% of all toothbrushes were

expected to be distributed to

consumers by DENTISTS.

Distribution revenue versus Market Share

QUALITATIVE EVALUATION

INFERENCE –

People preferred plaque

remover brush

C-P ‘s

PRECISION MIX

MARKETING

REASON TO BUY???

WHAT’S NEW???

REMOVES

35% MORE

PLAQUE

THAN

RIVAL

ORAL –B

GOALS OF PRODUCT DESIGN AND TESTING

DONE IN TWO STEPS-

• CUSTOMER FEEDBACK

• CLINICAL TRIALS

CUSTOMER FEEDBACK 1/2Consumer brushing style were noted

and accordingly brush was designed

taking care of the point that plaque is found

between gum and teeth surface

CUSTOMER FEEDBACK 2/2

Extensive consumer research

was carried out over a period of

18 months to test product

design and characteristics,

marketing concept, and

competitive strengths.

CLINICAL TRIALS 1/3

To ensure plaque is

completely removed

each tooth was divided

into 9 areas and the pre

and post brushing plaques

amounts were measured .

CLINICAL TRIALS 2/3

To design a bristle and handle

configuration for maximum

plaque removal it was

considered that they need

to all sizes for their free

movement which is crucial for

cleaning all the plaque present.

CLINICAL TRIALS 3/3

To ensure cleaning either

horizontally or vertically

removes equal amount

of plaque.

DISPLAY TYPES

Counter tops -24-36 brushes

Floor stands – 72 brushes

Side Kicks – 144-278 brushes

Water falls – 288-576 brushes

HOW COULD PRECISION BE POSITIONED

AS IN THE MARKET?

MOST EFFECTIVE BRUSH

IN THE MARKET.

CAPTURES 10% OF THE

MARKET SHARE IN FIRST YEAR.

PROMOTIONS

Free 5 oz. tube of Colgate toothpaste with the

purchase of a Precision brush

A 50%-off offer on any size of

Colgate toothpaste.

A 50¢ coupon on the Precision brush in

strong Colgate markets.

COLGATE PRECISION

• More than a niche product.

• Unique brush with different

lengths and orientation.

• Removes 30% of the plague.

• Could lower the sales of Colgate plus.

• Production capacity is debatable.

DISCLAIMER

CREATED BY VARDAN GAIROLA , UPES DEHRADUN , DURING A MARKETING

INTERNSHIP UNDER PROF . SAMEER MATHUR , IIM LUCKNOW