Colgate-Palmolive CompanyThe Precision Toothbrush

Group 7, Section C

Amitrajit Sett (09P126)

Chintan Singh (09P133)

Priyak Purkayastha (09P156)

Rudranil Dutta (09P165)

Saurabh Agrawal (09P168)

Shobhit Pareek (09P171)

Company BackgroundGlobal leader in household and personal care

productsIn 1991, CP held 43% of the world toothpaste

market and 16% of the world toothbrush market

Held 23.3% of the US Retail toothbrush market share

Offered two lines of toothbrushes – Colgate Classic and Colgate Plus

Colgate Classic was positioned as a value product while Colgate Plus was Positioned as higher quality product in ‘professional’ segment

Facts - Overview

Year Duration

1990 12.4 months

1991 11.6 months

1992 9.7 months

Customers

Habits

45% Before Breakfast

57% After Breakfast

28% After Lunch

24% After Dinner

71% Before Bed

Customers

Habits

48% 3 months

70% Bristles worn out

11% After visiting Dentists

3% Impulsive

Customers’ Brushing Habits

Purchase frequency

Consumer Behaviour AnalysisFeaturesComfortRecommendationHealth ConcernsUnfamiliar with pricesUnaware of new styles providing better

care82% purchases are unplanned

Competitor Analysis• Oral-b

– Indicator

• Johnson & Johnson – Reach

• Proctor & gamble – Crest Complete

• Smithkline Beecham – Aquafresh Flex

Precision Toothpaste - FeaturesNew ProductSuperior functioningTechnical breakthrough, one of a kind35% more plaque removalPositive market research results(77% claiming it

more effective)

Positioning - Mainstream• Positives

– Creation of Hot product– Possible increase in sales– Possible increase in recognition of Colgate brand

due to high quality lone product in the segment• Negatives

– Greater erosion of Colgate Plus– May require dropping one of the slow moving

Children’s brush from the Plus line– Possible pressure on production schedules

resulting in inadequate supply of product– Price differential cannot be high with others– More competition

Positioning - Niche• Positives

– Niche could later be broadened to a mainstream position which would be an easier transition in the product life cycle

– Less erosion of Colgate Plus. The products are more isolated

– Entry into new superior toothbrush market which CP currently holds no position

– Less competition– The product can be priced at a premium

• Negatives– Less contribution to profit– Can sell in less retail stores

Positioning Strategy - Niche → Mainstream

10 months lead time required for MainstreamCost of shortage of inventory

Niche cant be held onto foreverPotential competition

Relatively easier transition from High end to lower end leading to a broader market

RecommendationsTarget therapeutic and cosmetic brushersEnter super premium niche marketMove to mainstream laterDistribute to dentists Focus on prevention of diseases and

effectivenessPlace the product with the competitor's

product and not with Colgate’s