This is a Harvard case analysis on The precision toothbrush of Colgate-Palmolive.

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4.  Toothbrush market is close to a century old but last few
decades have witnessed many changes.
 Now, there is a shift in demand benefits:
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 Market is emerging from value and premium range to a third
category of ‘Super Premium’ range – Enhanced oral care.

5.  In 1991,U.S. oral care market:
• $2.9 billion in retail sales.
• Growing at a rate of 6.1% annually.
 Toothbrush market growth
• Average 9.3% per annum since 1987.
 CP’s toothbrush sales in 1991 is
$77 million.

7. Consumer’s choice is based on:
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As a consequence,
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11. COMPETITORS
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12. CP appears to have a considerate share of the market.

13. THE
PRECISION
MARKETING
MIX

14. PRODUCT
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16. Short term-Niche
Long term- Mainstream
Why?
• 10 months lead time for mainstream.
Cost of shortage of inventory.
• Niche strategy cannot hold long.
Potential competitors with similar product/technology.
• Relatively easier to move from high end to low end.
Market of precision will be broader.
• Profit number from cannibalization calculations.
When total sales are high enough, profit from precision will exceed cannibalization.
POSITIONING

17. PRICING
NICHE SUPER-
PREMIUM
• Equal to Oral-B
indicator.
• Premium when
compared to
Oral-B regular.
MAINSTREAM
PROFESSIONAL
• Best value for
level efficiency.

18. • Emphasizing the colgate name on the
new precision toothbrush would cause
additional cannibalization of the existing
colgate toothbrushes-estimated at 20%.
• Using the colgate name would be
congruent with colgate’s strategy to build
colgate brand equity.

19. Special coupons- strong colgate market
• 60% discount on precision provided when purchased colgate
toothpaste and other oral products.
• Maximizes benefit from being dominant player in the toothpaste
market.
Buy 1 get 1 bundling- competitive market
• A free 5 Oz tube of colgate toothpaste or travel size dental floss with
a purchase of precision toothbrush.
• Have less undesired effect on repeat purchase frequency than two-
for-one toothbrush offer.

20. NICHE MARKETING STRATEGY
ADVANTAGES DISADVANTAGES
• Entry into new superior
toothbrush market with
CP currently holds no
position.
• CP would face less
competition.
• Less erosion of Colgate
Plus.
• The products are more
isolated.
• Less contribution to
net profits in near
future.

21. MAINSTREAM MARKETING STRATEGY
ADVANTAGES DISADVANATGES
• Unsatisfied demand
could create the
perception of a hot
product that may
increase sale.
• Product will be
accessible to larger
market.
• Greater erosion of colgate
plus.
• May required dropping one
of the slow moving children
brush from the plus line.
• Possible pressure on
production schedules
• resulting in inadequate
supply of products.
• More competition.

22. COLGATE PRECISSION

28. Ques 1. What changes are occurring in the toothbrush
market?

29. Ques 2. Who has the biggest market share?
Answer Oral-b
Ques 3. Which channel sells the most for colgate?
Answer Colgate Plus
Ques 4. Which brand spends the most in advertising by the
end of 1992?
Answer Reach
Ques 5. what are the three segments for the toothbrush
market?
Answer 1. Therapeutic
2. Cosmetic
3. Health

30. CONCLUSION

31. THANK
YOU!