Colgate-Palmolive:The Precision Toothbrush(Harvard Business School Case Study)

This presentation is an in-depth analysis of a Harvard Business School Case Study created under the able guidance of Professor Sameer Mathur of IIM Lucknow

1. Colgate-Palmolive Company
The Precision Toothbrush
Harvard Business School
Case
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HARVARD CASE STUDY

2. Industry: Personal products

Founded: 1806

Headquarters: New York City, New York ,U.S

Employees: 36,002

Website: www.colgate.com

3. Company Background
•The company had sales of $6.06 billion and a
gross profit of $2.76 billion in 1991 making it a
global leader in household and personal care
products.
•CP’s five-year plan(1991-95) emphasized new
product launches and entry into new geographic
markets, along with improved efficiencies in
manufacturing and distribution and a continuing
focus on core consumer products.

5. Situation Analysis
CP is poised to launch “Precision toothbrush”
as a line extension after significant research.
Feared competition from competitors in
premium akin to the value segment.
Conducting surveys to muster consumer
responses.
Contemplating on the process of brand
positioning and communication tactics.

6. Who all are involved ???
Susan Steinberg
(Precision Product Manager)
Nigel Burton
(Division General Manager)
John Philips
(Colgate Plus Manager)
Reuhen Mark
(Colgate-Palmolive CEO)

7. The Precision Toothbrush
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8. Toothbrush Innovations

9. Product Segmentation

10. Value
•Priced at $1.29
•12% of dollar sales

Professional

•Priced between
$1.59 and $2.09
•42% of dollar sales
Super
Premium

•Priced above $2
•46% dollar sales
Segments
As of 1992

11. Competitors in Super-Premium Segment

12. Toothbrush Brand Prices:1992

14. Consumer Trends
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15. Reasons for Purchase

16. Segmentation of Toothbrush Users

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18. There’s always some competition!!!

19. 1. Oral-B
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21. 3.
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23. Toothbrush brand product lines : August 1992

24. Principal Toothbrush Brand Unit and Dollar Market Shares:
1989-1992E

25. Principal Toothbrush Brand Unit and Dollar Market Shares by
Class of Trade: 1991

26. Principal Toothbrush Media Advertising Expenditures and
Shares of Voice: 1991-1992E

27. Advertising
And
Promotion

28. Strategies adopted by CP
Retail
advertising
Point of
purchase
Displays
Relocation of
shelf space
Consumer
Promotion
Media

29. Television and Advertising Copy Strategies and
Executions for Competitor Toothbrush
Brands: 1991

30. Colgate Plus Television Advertising; Copy Strategies and
Execution: 1985-1992.

31. Advertising and Promotion Expenditures for
Colgate-Palmolive Toothbrushes:
1989-1992E

32. Distribution

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34. Distribution Data

36. Product Design and Testing

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38. Sample Advertisements used in Consumer
Concept Test

39. Positioning

40. Ways of positioning
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41. Impact on Volumes

42. Impact on Capacity and Investment Costs

43. Impact on Production Costs and Pricing

44. Impact of mainstream positioning according to
the company
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45. Concept Tests

46. Concept Tests

48. Strengths
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49. Weaknesses
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50. Opportunities
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53. Recommendations
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54. Disclaimer !!!
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