COLGATE PALMILOVE THE PRECISION TOOTHBRUSH

OBJECTIVEDEFINE POSITIONING, BRANDING AND COMMUNICATION

STRATEGIES FOR COLGATE PALMILOVE’S LATEST PRODUCT- THE PRECISION TOOTHBRUSH

NATURE OF DEMANDSA SHIFT IN DEMANDED BENEFITS WAS OBSERVED. CONSUMERS NOW DEMAND CAVITY PROTECTION, HEALTHIER GUMS AND ARE READY TO PAY FOR A

SUPERIOR TOOTHBRUSH.

THE US ORAL CARE MARKET HAS BEEN GROWING AT A RATE OF 6.1%

ANNUALLY, AND IS CURRENTLY WORTH 2.9 BILLION IN RETAIL SALES.

THE TOOTHBRUSH MARKET HAS BEEN GROWING AT A RATE OF AN AVERAGE OF 9.3 PERCENT PER ANNUM SINCE

1947

CURRENT STANDINGSWITH TOOTHBRUSH SALES WORTH $77 MILLION DOLLARS

IN 1991, COLGATE IS CURRENTLY THE NUMBER ONE IN THE US TOOTHBRUSH RETAIL MARKET WITH A VOLUME

SHARE OF 23.3%

CONSUMERS BASE THEIR TOOTHBRUSH CHOICES ON-• FEATURES• COMFORT

• PROFESSIONAL RECOMMENDATIONS (FROM DENTISTS ETC.)

MOREOVER, CONSUMERS ARE RELATIVELY UNFAMILIAR WITH TOOTHBRUSH PRICES AND ARE WILLING TO PAY

MORE FOR ADDRESSING THESE CONCERNS

CONSUMER SEGMENTATION

ABOUT THE PRODUCT• Precision is a technological innovation

• It has a 35% more plaque removing efficiency• It is more effective in reducing gum diseases than

leading brushes

PROMOTION• AGGRESSIVE ADVERTISING CAMPAIGN

• DEMONSTRATE TECHNICAL SUPERIORITY OF THE TOOTHBRUSH

• FINANCIAL INCENTIVES• THROUGH PROFESSIONAL CHANNELS-DENTISTS

BRANDING• THE PRODUCT WAS BRANDED AS COLGATE PRECISION• STRESSING ‘PRECISION’ WOULD LIMIT THE EXTENT OF

CANNIBALIZATION OF COLGATE PLUS• EMPHASIZING ‘COLGATE’ WOULD BUILD BRAND EQUITY

MAINSTREAM MARKET STRATEGY

PROS-• UNSATISFIED DEMAND COULD CREATE THE PERCEPTION

OF A HOT PRODUCT, WHICH MAY INCREASE SALESCONS-

• GREATER EROSION OF COLGATE PLUS• MORE COMPETETION