colgate
TRANSCRIPT
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THE PRECISION TOOTHBRUSH
By:Yamini Harsola,VIT, Chennai
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PROBLEM SCENARIO• In August ’92, the company planned to launch a
Precision Toothbrush in the market.• The product faced a severe competition• Thus the problem was to establish strategies in:
PositioningBrandingCommunication
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COMPANY BACKGROUND
• An American worldwide consumer products company.
• Focused on the production, distribution and provision of household, health care and personal products
• The company's corporate offices are on Park Avenue in Midtown Manhattan, New York City.
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THE TOOTHBRUSH MARKET IN ‘92
• Toothpaste: 46% • Mouth rinses: 24%• Toothbrushes: 15.5%• Dental floss and oral hygiene
products: 4.5%
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CONSUMER BEHAVIOR• Around ’92, people were concerned
about their oral hygiene.• Primarily, toothbrushes were for
removing food particles, then, for plaque removal and gum stimulation
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BRAND CHOICE• People chose a brand on the basis of:
o Featureso Comforto Professional Recommendationo Brush that would fulfill their individual
needs• Consumers differed on the intensity of their
involvement in oral hygiene.
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COMPETITION• The major competing brands were:
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PROCTOR & GAMBLECrest Complete
• Rippled bristle design. • Handle with rubber grip • Reaches between teeth like a dental tool • Rippled endrounded bristles • Tagline: Only Crest could make a brush this
complete
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PROCTOR & GAMBLE
• The brush had captured a 13% value share in test markets.
• Expected to be introduced at a manufacturer’s list price to retailers of $1.67 and capture a
o 2.0% volume shareo 2.6% value share of the U.S. retail market
• Estimated media expenditures in 1992 were estimated at $6.4 million.
• Advertising theme: “Teeth aren’t flat, so why is your brush.”
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ORAL BIndicator Bristles • Tells you when to change toothbrush • Blue band fades halfway. • Dental heritage. • Tagline: The brand more dentists use
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ORAL B• Oral-B (owned by Gillette) had been the market leader
since the 1960s. • In 1991,
o it held a 23.1% volume market share o 30.7% value share of U.S retail saleso 27 SKUs.
• Endorsed as the dentist’s toothbrush. • In 1992, consumer promotions were expected to cost
$4.5 million (5% of sales). • Media expenditures for 1992 were estimated at $11.2
million (12.7% of sales).
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JOHNSON & JOHNSON
Reach Advanced Design • Angled neck• Raised rubber ridges on handle • Cleans in even the hardest-to- reach places • Slimmed down, tapered head • Tagline: Feel the difference
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JOHNSON & JOHNSON
• Johnson & Johnson (J&J) entered the U.S. toothbrush market in the 1970s with the Reach brand, which, in 1991, comprised 18 SKUs.
• In 1991, J&J ranked third in the U.S. retail toothbrush market
o 19.4% volume shareo 21.8% value share
• The Reach line was positioned as the toothbrush that enabled consumers to brush in even the hardest-to-reach places.
• Consumer promotions in 1992 were $4.6 million (8.6% of sales).
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SMITHKLINE BEECHAM
Aquafresh Flex• Pressure sensitive, flexible neck linking brush
and handle • Prevents gum irritation • Flexes as you brush • Tagline: For gentle dental care
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SMITHKLINE BEECHAM
• Smithkline Beecham entered the U.S. toothbrush market in August 1991 with Aquafresh Flex.
• By the end of 1991, Aquafresh Flex held o 0.9% share by volume o 1.1% by value of the U.S. retail marketo 6 SKUs
• Promotion plan, estimated at $4.6 million (25% of sales).• Media expenditures at $10 million (almost 50% of sales). • Endorsed the “flexibility and gentleness” of the brush.
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ADVERTISING & PROMOTION
• More advertising, more category visibility, hence, more customer demands
• Retail ad features and in-store displays increased toothbrush sales
• To maximise retail sales, CP people located the Colgate line in the middle of the category shelf space.
• Useofdentistsrecommendationsinadvertsingtomakeitlookmoreconvincing.
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THE PRECISION
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Product Design and Testing
Positioning
Branding
Communication and Promotion
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PRODUCT DESIGN AND TESTING
1.• Understanding the varying techniques consumers used.
2.• Testing the between-teeth access of different designs.
3.• Establishing an index to score clinical plaque-removal
efficacy at the gum line and between teeth.
4.• Creating a bristle configuration and handle design offering
maximum plaque- removing efficacy.
5.• Determining, through clinical and consumer research, the
efficacy and acceptance of the new toothbrush design.
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POSITIONING• It could be positioned as a niche product.• Alternatively, Precision could be positioned as
a mainstream brush. • The positioning decision had important
implications for the appropriate shelf location of Precision.
• Steinberg believed that the best location for Precision on the retail shelves would be between the Colgate Plus and Oral-B product lines.
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POSITIONINGNICHE POSITIONING STRATEGY
MAINSTREAM POSITIONING
# units retail Year 1 = 8 MM, Year 2 = 15 MM.
Year 1 = 26.8 MM, Year 2 = 44.1 MM
# units consumer promotion sampling
Year 1 & 2 = 2 MM. Year 1 & 2 = 7 MM.
# units through professionals
Year 1 & 2 = 3 MM. Year 1 & 2 = 8 MM.
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BRANDING• Name tests were also conducted. • Alternative names included: Colgate Precision,
Colgate System III, Colgate Advantage, Colgate 1.2.3, Colgate Contour, Colgate Sensation, and Colgate Probe.
• The Colgate Precision name was consistently viewed more favorably—it was deemed appropriate by 49% of concept acceptors and appealing by 31%.
• “Colgate Precision” or as “Precision by Colgate.” • CP’s stated corporate strategy was to build on
the Colgate brand equity.
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COMMUNICATION AND PROMOTION
• Sampling proved be critical to Precision’s success.
• Another important tactic was to use dentists to sample consumers since professional endorsements were believed important to establishing the credibility of a new toothbrush.
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CONCLUSION• Susan Steinberg, Precision product
manager, had managed the entire new product development process and now had to recommend positioning, branding, and communication strategies to division general manager Nigel Burton.
• And with the calculated risks the product was able to compete in the competitive environment.
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THANK YOU!!!