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