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rishabh-agarwal
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COLGATE PALMOLIVE:THE PRECISION TOOTHBRUSH
SITUATION
In August 1992 Colgate is planning to launch a new toothbrush in US which it has been developing for 3 years
.
DECISIONS TO BE MADE• Positioning• Branding• Communication methods• Advertising• Promotion
PRODUCT FEATURES
FEATURES:
• Bristles of three different lengths
• Triple- Action Brushing
• 35% in plaque removal than other leading toothbrushes
COLGATE’s ORAL CARE BUSINESS
Plan for 1991-1995
• New Product Launches• Entry into new geographic markets• Improve efficiency of Manufacturing and
Distribution
43; 43%57; 57%
Toothpaste Market
ColgateOther
16%
84%
Toothbrush Market
ColgateOther
PRODUCT SEGMENTS
VALUE
COLGATE CLASSIC
PROFESSIONAL
COLGATE PLUS
SUPER-PREMIUM
COLGATE-PRECISION
COMPETITION
ORAL-B23%
COLGATE23%
Johnson & Johnson
19%
Others34%
MARKET SHARE VOLUME %
ORAL-B COLGATEJohnson & Johnson Others
ORAL-B31%
COLGATE23%
Johnson & Johnson
20%
Others26%
MARKET SHARESALES %
ORAL-B COLGATEJohnson & Johnson Others
PERFORMANCE OF COMPETITORS IN 1991
1992 Product Launches of Competitors
ORAL-B• Restage its Dental Floss• Launch new mouthwash• Introduce new toothpaste
Johnson & Johnson• Launch REACH BETWEEN toothbrush
Procter & Gamble• Launch CREST COMPLETE toothbrush
Smithkline Beecham• Adding 2 adult toothbrushes and one child
to its AQUAFRESH FLEX line
HOW SHOULD COLGATE MARKET PRECISION ??
HOW SHOULD IT POSITION ITSELF??THE CHOICES:
NICHE POSITION
Advantages:• No compromise on
production of Colgate Plus• Lower Advertisement &
Promotion Cost• Less Cannibalism Disadvantage:• Smaller Target Audience• Less Sales
MAINSTREAM POSITION
Advantages:• Larger market• More sales expected.
Disadvantages:• Cannibalism of Colgate
Plus• More production required• Higher Advertisement &
Promotions Cost.
WHO COMES FIRST?COLGATE OR PRECISION
COLGATE PRECISION PRECISION COLGATE
• Estimated 20% cannibalism of Colgate Plus toothbrush if introduced under this brand.
• Will have the support of the well established brand of Colgate
• Build the brand equity of Colgate
• Unchanged effect on the sales of Colgate Plus
• Product could sustain without the use of Colgate’s brand
BRANDING
OR
MY RECOMMENDATIONS
The new toothbrush should be positioned for the Niche Market.
The new toothbrush should be branded as Precision by Colgate.
WHY SO?
INITALLY AT LAUNCH
• Can be launched at the higher cost than its competitors
• Demand can be met with the current production capacity of the company.
• Decrease the effect of cannibalism on Colgate Plus
• No SKU drops
WHY SO?
LATER EXPAND INTO MAINSTREAM
• Will give time to increase production capacity
• Will allow the brand to gain recognition and loyalty
• See the performance of the product.
TARGET AUDIENCE
Involved Oral Health Consumer as they
• Can differentiate between brushes
• Understand the features of the brush
• Appreciate the advantages of using the brush
• Concerned about oral health
SEGMENTATION
HOW TO COMMUNICATE TO THE CUSTOMERS
Tests showed:• Consumers thought
the brush looked unusual
• It was difficult to communicate certain benefits to the masses
• Positive reaction if showed the working of the toothbrush.
This concept of advertisement should be used as it showed the best results in the test group.
PRINT ADVERTISEMENT
USE OF DISPLAY SYSTEMS
• Use stands to advertise the qualities of the product
• The Floorstand’s large area can be used to show the benefits of the toothbrush visually.
• Use the display stands in the super-premium section of the store.
PROMOTIONS • Toothpaste free with each
brush
• Discounts on related products
• Higher saving coupons than competitors
• Promotion through Doctors will be helpful to get the target segment to buy the product.
DISTRIBUTION
The distribution of Precision should be mainly through Drug Stores where the customer will appreciate the benefits of using Precision.
Decreasing distribution
SUMMARY
Colgate should use niche marketing techniques to initially set up the new brand of Precision and at the time plan to expand into the mainstream market.
Using Promotions and Advertisements it can show the points-of-parity and points-of-difference
CONCLUSION
THANK YOU
DISCLAIMER Created by Rishabh Agarwal, Manipal Institute of Technology during an internship with Prof. Sameer Mathur