colgate palmolive's harvard univ. case study
TRANSCRIPT
0. History of toothbrushes
1. Company background
2. U.S toothbrush market
3. Product segment
4. Consumer behaviour
5. Competition
6. Swot analysis
7. Conclusion
History of toothbrushes
• Egyptians were the first to think about cleaning their teeth. They started with twigs. 3000 years before Jesus Christ was born.
• First modern toothbrush was invented by Doctor West. It was made of nylon bristles. And the name was – Miracle Tuft.
• In olden times, people bought toothbrush with lowest price. However, they realised the importance of quality later.
Company Background
Launched: August 1992
Significant people: Susan Sandberg – Product Manager
Nigel Burton – G.MReuben Mask – CEO
Contributions:
Susan Sandberg innovated the product, marketed it well, and made it reach its full potential.
Reuben Mask was known for converting the former ‘sleepy and inefficient company’ to his current ‘lean and profitable giant.’
Company background Statistical
Year: 1991
Colgate:
• 43% of world’s toothpaste market• 16% of world’s toothbrush market• Sales worth $6.06 billion• Profit worth $2.76 billion• Upgradation plan of 25 out of 91 manufacturing plants • Expenditure worth $243 million• Introduction of 275 new products
Product Segments
Super premium 46%
42%Professional
Value brushes
$2.2 - $2.89
$1.59 - $2.09
$1.24 - $1.29
35%
41%
24%
Types of brushes Price Volume Sales
12%
Consumer behaviour
Classification by Variety: Bristle type
Lead sizeAesthetic/Appearance Functional features
Brand choice: Features ComfortProfessional recommendation
Brand Positioning • Niche • Mainstream
Pros
• Target market: Consumers concerned about gum diseases. • No SKUs needed to be dropped • Expected to capture 3% of the U.S. market in one year with 15% price advantage over Oral- B.
Cons
• Occupies lesser market and volume share as opposed to mainstream positioning. Example: Volume share for Niche is 5% while for Mainstream is 10%.
Pros
• Larger market share and volume share at the end of one year, about 10% market share and 10% volume share. Mainstream Positioning
Cons
• “Cannibalization” of Colgate plus. • Increased pressure on Production capacity and schedules. • (May) Require dropping of one or more SKUs. Mainstream Positioning