colgate palmolive company the precision toothbrush case study
TRANSCRIPT
COLGATE-PALMOLIVE COMPANY
THE PRECISION TOOTHBRUSHCase Study
HARVARD | BUSINESS | SCHOOL
BY- SHUBHRA DESHPANDE
COLGATE PRECISIONTOOTHBRUSHWhere You Can Actually Feel It Working
No such awareness and enthusiasm in
people about oral care till 1970
BY 1980 wide acceptance for
oral care products
Heavy research and high end technology
1990, Oral care grown at an
annual rate of 6.1%.
By 1992-93, Customers took great interest HOW WAS THE GROUND
FOR THE PRODUCT?
CONSUMER BEHAVIOUR
ConsumerTHERAPEUTIC
BRUSHESHERS
46% OF ADULTS
ConsumersCOSMETIC
BRUSHERS
21% OF ADULTS
Uninvolved Oral Health Consumers
33% OF ADULTS
Functionally Effective Product Cosmetic Benefits Lack of Interest in Product
Buy & Use Product for Themselves
Buy & Use Product for Themselves
Buy Product for Family
Use Premium Products 75% Use All Product on Avg 75% Less Products with 50%
Preferences: Oral B Angle
Oral B RegularColgate PLus
REach
Preferences: Colgate ClassicOral B RegularColgate PLusOral B Angle
Preferences: Colgate ClassicOral B RegularColgate Plus
Reach
POSITION OF COLGATE-PALMOLIVE
● Global Leader in household and personal care products with gross profit of $2.76 billion
● Leaders with exotic RnD and marketing mix strategies
● Ready to compete with two segments:
○ VALUE : Mainstream market with Colgate Classic
○ PROFESSIONAL : End high market with COlgate PLus
COMPANY
COMPETITION FOR MARKET LEADER
Major Expenditure on Mix MarketingCoupons, Refunds Offers
Targets Super-Premium Range
THE TARGET STATEMENT
HOW TO DEFINE A MARKETING STRATEGY
POSITIONINGBRANDING
COMMUNICATION STRATEGYFOR NEW TOOTHBRUSH
COLGATE PRECISION
PRODUCT DESIGNING AND TESTING
WHAT● Designed with keen analysis of
Consumer’s brushing habits● Targeted Area
○ Plaque Removing○ Gum Line ○ Between Teeth○ Gum Health○ Reach where no one can reach
HOW● Triple-Action Brushing Effect● Bristles of three different length
POSITIONINGPricing & Cost
POSITIONING STRATEGY
● Create the best brush possible● Targeted Top range, Super Premium
Class● Position as NIche Product● Capture 3% of U.S. toothbrush
market
THE MAJOR CONFUSIONfor
COLGATE PRECISIONAs
NICHE PRODUCT OR MAIN STREAM PRODUCT
MAIN STREAM PRODUCT NICHE PRODUCT ● Widely Reached Market● Consumers are Interested in Product Features● High Returns● Consumers are Ready to Pay High Amount● Easy to Hit the Competition● Manufacturing Price : 2.02● Retail Price : $ 2.89
● Easy to Reach the Market● Consumers are Trend Followers● Large NUmber of Consumers● Consumers are Consistent● Target Market can be Hit easily with
Association with Dentist● Less Competition● Manufacturing cost : $1.76● Retail Price : $2.49
CATEGORY AVERAGE RETURNS
VALUE More Economic
Wide Market$1.29
PROFESSIONAL Better QualityMore Market
$ 1.59 - $ 2.09
SUPER PREMIUM Targeted Baby Boom$2.29 - $2.89
SEGMENTATION & RETURNS
BRANDING & COMMUNICATION
NAME TEST● Name that have prominence of name Colgate● To take the advantage of Brand Equity● Finalized name Colgate Precision
COMMUNICATION● Product was branded as 35% More Plaque
Removal and Gum Disease Preventer● Which produced 80% probability that
market will get attracted and 14% of which, will definitely buy it
● Product Display● Media Advertisement● Free Sampling● Coupons● Use Dentist to Sample Consumers● Proper Separation of Niche
Position & Main Stream● Took care that Precision doesn’t
Overshadow ‘Colgate Plus’
BRANDING STRATEGY
ANALYSIS
● The case study is about Launching a Premium Product
○ Consumer is aware of it’s ‘Need’○ Clear Segmentation○ Clear Objectives
● Observations○ Excellent work by Research & Development ○ Clear & Strong Positioning○ Proper Branding○ Marketing is done so that the product lifts up the
overall Brand Equity● Point of Difference of Case
○ Product and variation in quality○ Strategy to check Competition○ Marketing strategy○ Approach that is completely based on Consumer
Survey
OF CASE
CONCLUSION
● Precision is more than a niche product or simple extension
● Has technological benefits● Should be positioned and branded
according to charts.● Precision should reach to it’s full
potential without overshadowing ‘Plus’
● It definitely a potential product to confirm Colgate as a market leader.
& Future Scope
DISCLAIMERCREATED BY
SHUBHRA DESHPANDEDURING THE MARKETING INTERNSHIP
UNDER THE GUIDANCE OF PROF. SAMEER MATHUR, IIM LUCKNOW