Colgate palmolive- The precision toothbrush

Analysis of Colgate Palmolive- the precision toothbrush

1. COLGATE PALMOLIVE: THE PRECISION TOOTHBRUSH

2. BACKGROUND OF THE COMPANY: 1991: Global leader in oral care production 43%-toothpaste market 16%-toothbrush market 1991-1995: Launched many new products Annual sales of $5.7billion world wide. Colgate toothpaste was number 1 and Palmolive soap was number 2 in world in respective markets. Competitors of Colgate Palmolive are Procter & gamble and lever, dominated the personal care and household market sectors.

3. PRODUCT SEGMENTATION & PRODUCT LINES

4. PRODUCT SEGMENTATION: In 1980’s , industry executives divided the toothbrush category into three segments: Value Professional Super Premium

5. PRODUCT LINE: Colgate has two lines of toothbrushes: Colgate classic: Positioned in ‘value’ segment. Colgate plus: Positioned in ‘Professional’ segment.

6. CONSUMER BEHAVIOR: CP’s consumer Research indicated that baby boon generation were more concerned about the health of their &cavity prevention. Willing to pay premium for new products addressing this issue. 48% consumers claimed to change their brushes at least every three months. Consumer chose their brand based on features, comforts and professional recommendation.

7. COMPETITORS: Oral-B, Procter &gamble and smith Kline Beecham in super premium segment J&J in professional segment.

8. 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, through clinical and consumer research, the efficacy and acceptance of the new toothbrush design.

9. ADVERTISING & PROMOTION: In toothbrush category, it was hard to increase primary demand , so new products tended to steal sales from existing products. In case of toothbrushes, however, increased advertising and promotion enhanced the category’s visibility which, in turn seemed to fuel consumer demand.

10. ADVERTISING & PROMOTION:

11. ADVERTISING & PROMOTION:

12. ADVERTISING & PROMOTION:

13. ADVERTISING & PROMOTION:

14. DISTRIBUTION: In 1987, traditional food stores sold 75% of oral care products. By 1992, they accounted for only 43% of toothbrush sales and 47% of toothpaste sales. Between 1991 & 1992, the number of drug stores supplying toothbrushes increased from 27 to 34. In 1992, 22% of total toothbrushes were recommended to consumers by dentists.

15. POSITIONING

16. NICHE POSITIONING STRATEGY: PROS -Target at consumers concerned about gum disease. -Captures 3% of the US toothbrush market by the end of 1 st year following i ts launch. -No SKU’s needed to be dropped CONS -If precision is positioned as a mainstream brush, precision would capture 10% of the market share at the end of 1 st year following its launch. -If positioned as mainstream the volume share would be 10% in 1 st year compared to 5% when positioned as Niche product.

17. MAINSTREAM POSITIONED STRATEGY PROS -More appealing as it proclaimed larger market share & volume share at the end of 1 st year after its launch -Greater proportion of ales would occur through mass merchandisers and club stores. CONS -Production capacity increases in inadequate supply of product. -Positioning precision as a mainstream product with 7 SKU’s would probably require dropping one or more existing SKUs.

18. CONCLUSION: Initially positioning precision as niche toothbrush and later broadening to mainstream positioning would help the product gain sufficient recognition and would ensure additional capacity once it enters the mainstream. Broadening into mainstream positioning would enhance greater proportion of sales which would now also called occur through mass merchandisers and club stores apart from the food and drug stores. ‘Precision by C olgate’ would be more prominent as it would reduce cannibalization of Colgate plus which is the bread and buer of CP’s toothbrush line and secure its market position.

19. SUMMARY

20. DISCLAIMER Created by Priyanka Kumari, IIT(ISM) Dhanbad, during a marketing internship by prof. Sameer Mathur, IIM Lucknow.