COLGATE-PALMOLIVE COMPANY:THE PRECISION TOOTHBRUSH

What is it?

American worldwide consumer products company

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

Situation

In 1992, Colgate-Palmolive set to launch Colgate Precision (new toothbrush).

Precision - technologically superior toothbrush Developed for over three years

The Precision Toothbrush

• A technical innovation• Triple-action brushing effect • More effective at plaque removal• Provides gum protection

Product Segmentation

3 segments: • Value• Professional • Super-Premium Different brands for different segments

Specifications of the 3 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

Market Analysis(1992)

Consumer Analysis(1992)

3 distinct consumer groups:• 1) Therapeutic Brushers• 2) Cosmetic Brushers • 3) Uninvolved Brushers

The segmentation

Reasons to use a particular brand

Product Design

• The longer outer bristles cleaned around the gum line.

• A superior ,technical, plaque removing device.

• The shorter bristles cleaned the teeth surface

• The long inner bristles cleaned between the teeth

ADVERTISING

Competitors’ Strategies

Meanwhile, Colgate’s strategies

Positioning Precision

• Niche Positioning• Mainstream positioning

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 threats

• Less contribution to profit in coming years• Reach limited to a specific section

Mainstream positioning benefits

• Accessible to larger market size• Simple and direct campaigning• Possibility of greater returns

Main stream positioning threats

• 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

Branding Precision

Promotion strategies

• 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

• Dentists Endorsing the product

Precision

• Niche Product• Promotional Campaigns• Should not cannibalise Colgate Plus• Market the product as providing superior and

distinctive oral care

Disclaimer

• Created by Shweta Menon, Govt MEC, during a marketing internship under Prof Sameer Mathur, IIM Lucknow.