colgate palmolive: the precision tootbrush
TRANSCRIPT
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Colgate-Palmolive Journey of the
Precision toothbrush
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What it does? Colgate-Palmolive is an
American worldwide consumer products
company focused on the provision of household,
health care and personal products, such
as soaps, detergents, and oral hygiene products.
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Company Background
Global leader in household and personal care products
Sales$6.06 billion
Profit $2.76 billion
R&D$114
million
Advertising$428
million
1991
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The U.S. toothbrush Market
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Product Segments
Value Professional
Super Premium
Toothbrushes varied by bristle type and by head size.
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Consumer Behavior
Personal habitsDentist recommendation
Individual Needs
Oral Hygiene
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Competition
Oral B Colgate J & J0
5
10
15
20
25
30
Volume(%)Value(%)
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The Precision
toothbrush
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Product Design
Mission: To “develop a superior technical, plaque
removing device”.Result:Triple action brushing effect:Outer long bristles to clean around gum lineInner short bristles cleaned between the teethInner long bristles cleaned the teeth surface
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Problem?
Defining the Marketing strategy i.e. positioning, branding, and communication strategies for C-P’s new toothbrush: Colgate Precision
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How to position the product?
Niche positioning : Consumers concerned about gum disease
Mainstream positioning: Appeal of the most effective brush in the market
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Factors to be considered
VolumesNiche: 3%
Mainstream: 10%
Total volume share
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Capacity and investment costs
Factors to be considered
Investment cost Annual Capacity Depreciation time
Tufters $500,000 3 million units 15 years
Handling Molds $300,000 7 million units 5 years
Packaging $150,000 40 million units 5 years
Tufters could be used if Precision is Niche Positioned and Packaging if is Mainstream Positioned.
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Production Costs and Pricing
Factors to be considered
Niche:$2.13
Mainstream:
$1.85
List Price of Colgate Precision
Concerns: •Cannibalization of Colgate plus •Inadequate supply
Niche Mainstream
Food stores and Drug stores
Mass merchandisers and club stores
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BrandingNames tested: Colgate Precision, Colgate System III, Colgate Advantage, Colgate 1.2.3, Colgate Contour, Colgate Sensation, and Colgate Probe.
Colgate precision was deemed favorable by 49% concept acceptors and appealing by 31%.
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Communication and Promotion
The toothbrush would prevent gum disease motivated the greatestpurchase intent among test consumers.
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Niche positioning
• Easy transition in the product life cycle from niche to mainstream strategy • Less erosion of Colgate Plus • CP would face less competition•Entry into superior premium toothbrush where CP holds no position
• Less contribution to net profit in future years
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Mainstream positioning
• Possible increase in sales •Unsatisfied demand could create the perception of a Hot product which may increase the sale
• Cannibalization of Colgate plus • May require dropping one of slow moving product in the product line• More competition•Possible pressure on production
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Recap
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DisclaimerCreated by Shivangi Gambhir, Manipal Institute of Technology, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.