COLGATE THE PRECISION TOOTHBRUSH

By 1991, a global leader in household

products. Emphasis on new product launches. To enter new geographic markets.

WHY LAUNCH A NEW PRODUCT?

Strategic acquisitions. Manufacturing in China and East Europe to

avail low production cost. Investment in R&D for new technologies.

TOWARDS AN EFFICIENT LEADERSHIP

Colgate Classic: positioned in value segment.

Colgate Plus: higher quality product for professional segment.

PRODUCT SEGMENTATION

POSITIONING

Launched with the

objective of being the best brush .

A SUPER PREMIUM PRODUCT…… Mainstream positioning

would result in 10% volume share in a year as compared to 33% in case of niche positioning.

Somewhere in

between Colgate Plus and Oral B products.

Initial discounts and mainstream price.

But mainstream product implies more supply.

However can lead to cannibalization.

PRICING AND SITUATION

VIEWS RELATING TO

POSITIONING I consider , already well established market is

meant to bring newer and modified products with enhanced versions.

Precision , since targeted towards gum disease , it had a message.

Lethargic projects to be shut and greater focus over premium products with increment in investment.

So initial launch with high price as a brand would be somewhat lucrative.

Surveys revealed that the

primary utilization of toothbrush is to remove the food particles.

Plaque removal and gum stimulation comes secondary.

Consumers’ shifting concern towards health of gum.

Willing to pay attention towards secondary issues.

RESEARCH AND SURVEYS

Oral-B: The dentist’s

toothbrush. Its product lines comprises

of oral-b indicator product.

COMPETITION

JOHNSON AND

JOHNSON: JOHNEEN

Prevent: Brush at 45 degree angle.

Consumer promotions an offers buy-two-get-one-free.

Procter and Gamble.

Smithkline: Aqua fresh in US market.

In store promotional activities. Adequate media expenditure. Incentives and offers using the established

platform of Colgate toothpaste to create and introduce the new brush via coupons and discounts on paste.

PROMOTION

WHY SHOULD CUSTOMERS PREFER IT OVER OTHERS?

MESSAGE……

Serve its need?

Will a well sorted demonstration and

REASON…….

Provide , the consumers a

“ YOU CAN REALLY FEEL IT

WORKING”

BEGINS THE CAMPAIGN..

Greater the

knowledge of the product, greater the enthusiasm to use it.

A comparative exposure to claims by competitors.

CONSUMER INSIGHT:

Advertising budget and its impact on

sales of auxiliary and mainstream products.

Precision: Launch program for a main stream

positioning strategy or niche positioning.

Segmentation of promotional budget.

A greater % for precision or allocation as per sale of each product i.e. Classic, Plus, Precision.

The Challenges….

UNCERTAINTY AND AMBIGUITY.

‘Plus’ a mainstream brand

and pioneer of its toothbrush line i.e. of company.

Less for Precision and more for Plus to defend its market position.

So is niche positioning a considerable solution for Precision.

Will 2 toothbrush category simultaneously be supported?

ARGUMENTS AND POINTS TO PONDER.

Precision should reach

its full sales potential. Increased budget for

Precision promotion compared to Plus.

Providing incentives and offers based on established categories.

A mainstream launch for precision.

STEINBERG’S IDEOLOGY.

CANNIBALIZATION?..

BUT WILL A NEW PRODUCT LEAD TO

Focus on

“PRECISION”

TO BE PRECISE

A technological breakthrough( Paved the way for its success).

Success= strategic budget plan + positioning + promotion.

INFERENCE

THANK YOU

DISCLAIMER

Created by Shilpa Rani, NIT Agartala(Tripura),

during an internship under Prof. Sameer Mathur , IIM Lucknow.