Colgate palmolive HBS case study
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This is an analysis of the positional strategy for Colgate Precision toothbrush which is an HBS case study.This presentation is prepared by M. Raghu Kumar Reddy, Nit Calicut during the marketing Internship by Prof. Sameer Mathur, IIM Luck now.
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Colgate palmolive HBS case study
- 1. -M RAGHU KUMAR REDDY -NIT CALICUT
- 2. Precision Tooth brush Case Analysis
- 3. Product Mix • Tooth paste • Tooth brushes • Mouth Rinses • Dental Floss
- 4. Tooth Brush-Product line Colgate Classic Colgate Plus • High quality product. • Targeting professional segment. • Original quality product. • Positioned in value segment
- 5. Competitors
- 6. PROBLEM STATEMENT Suggesting a positioning strategy for the new tooth brush Colgate Precision
- 7. Colgate Precision • Innovative Design • Super Premium product • Very effective in plaque removal • Great efficacy in gum disease prevention
- 8. Consumer Analysis 3 Different customer groups 1 Therapeutic Brushers -holds 46% in market share 2 Cosmetic Brushers -occupies 21% of market 3 Uninvolved Brushers -holds the rest.
- 10. Strengths • Patented innovation. • Unique brush with three different lengths and orientations. • Extensive global reach.
- 11. Weakness • Cannibalization of its own products like Colgate Plus, Colgate Classic etc.. with the Introduction of Precision. • Lack of dental endorsements from organisations like ADA,IDA etc..
- 12. Opportunities • Has an edge over its competitors with its efficacy. • Younger generations are becoming more health conscious. • Can grab a large market share with its super premium status.
- 13. Threats • Competition from Oral B, Johnson & Johnson and Crest. • Aggressive product expansion and incentives given by competitors. • Threat of new and local entrants like Dabur, Himalaya etc..
- 14. Positioning alternatives Main stream positioning: Mass production, distribution and promotion Niche positioning: concentrated, specific advertising campaign, targeted to a specific demographic, psychographic, behavioural or geographic segment.
- 15. Mainstream positioning-Benefits • Accessible to larger market • High return of investments. • Risks can be alleviated. • Simple and direct campaigning.
- 16. Mainstream positioning-Risks • Cannibalization of Colgate Plus and Colgate classic’s sales. • Although being a super premium product, competitive prices should be maintained. • Thereby lesser ROI, diminishing marginal utility.
- 17. Niche positioning-Benefits • Effective in reaching the targeted segments. • Cost effective marketing. • Lesser competition for existing products lines • Gives room for Precision to establish itself in the market and fight against new contenders.
- 18. Niche positioning-Risks • Contributes a lesser revenue despite premium prices. • Poor market share.
- 19. Recommendations • CP should establish Precision as a niche product. • This would give room to prove itself in the market. • Establish Precision as the leading toothbrush on the market at a competitive price. • Concentrate more on therapeutic customers.
- 20. Potential Direction • After success in niche groups, bring it to wider audience. • Can compete with other players in value and professional segments.
- 22. Disclaimer Created by M. Raghu Kumar Reddy, Nit Calicut during the marketing Internship by Prof. Sameer Mathur, IIM Luck now.