COLGATE - PALMOLIVE COMPANY

The Precision Toothbrush

Harvard Business School Case

WHAT IS COLGATE-PALMOLIVE?

- American worldwide consumer products company

- Focussed on the production, distribution and provision of household, health care

and personal products,

KEY PLAYERS• Susan Steinberg

Precision Product manager • Nigel Burton

Division General Manager• John Philips

Colgate Plus Manager

SITUATION ANALYSIS

COLGATE PRECISION • In 1992,Colgate-Palmolive set to launch

Colgate Precision (new toothbrush). • Precision - technologically superior

toothbrush • Developed for over three years

CURRENT SCENARIO

QUESTIONS AT HAND

HOW TO BRAND THE PRODUCT

ADVERTISING AND PROMOTION BUDGET NEEDS TO BE FIXED

ADVERTISING AND PROMOTION BUDGET NEEDS TO BE FIXED

HOW TO POSITION & COMMUNICATE PRECISION TO THE

CONSUMERS

EVALUATING THE ORAL CARE MARKET

IN 1992

HOW

Product Market - Precision Colgate was entering into (1992)

Precision was entering a market space with already existing

brands with a trusted reputation .. And CP having their toothbrush Colgate Plus , doing well as a

consumer product.

CONSUMER BEHAVIOUR

Consumer Segmentation

Reasons to buy a Toothbrush

BRAND CHOICE

FEATURES

COMFORT

PROFESSIONAL RECOMMENDATIONS

ADVERTISING &

PROMOTION

COMPETITOR BRANDS AND THEIR STRATEGIES

COLGATE PLUS ADVERTISING STRATEGIES

PRECISION

TECHNICAL INNOVATION

3 DIFFERENT BRISTLES

35% INCREASE IN PLAQUE REMOVAL

POSITIONING PRECISION

NICHE PRODUCT

MAINSTREAM PRODUCT

OR

3% Volume Share - Year 15% - Year 2

10% Volume Share - Year 114.7% - Year 2

BRANDING PRECISION

BRANDING PRECISION WITHOUT CANNIBILISING

COLGATE PLUS

CONSUMER PROMOTIONS METHODS

5.oz tube of Colgate Toothpaste with the purchase of a Precision brush

50%-off offer on any size of Colgate Toothpaste

with a 50cent off on the brush

Dentist Endorsing the product

Consumer Concept Test Results

Precision was bound to do well given GOOD promotional strategy

PRECISION

NICHE PRODUCT

SHOULDN’T CANNIBALISE COLGATE

PLUS

PROMOTIONAL CAMPAIGNSNEEDED TO REACH ITS FULL POTENTIAL

WITH THE BUDGETING BEING ACCEPTABLE TO

COLGATE PLUS

DISCLAIMER:Created by Ankita Elizabeth Mathew, Govt.

Model Engineering College , during an internship by Prof. Sameer Mathur , IIM

Lucknow.