Colgate-Palmolive Company: Precision Toothbrush Case Analysis
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Transcript of Colgate-Palmolive Company: Precision Toothbrush Case Analysis
![Page 1: Colgate-Palmolive Company: Precision Toothbrush Case Analysis](https://reader033.fdocuments.in/reader033/viewer/2022061522/58b881901a28ab44078b61fd/html5/thumbnails/1.jpg)
Priyanshi, IITD
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PROBLEM STATEMENT
Suggesting a marketing strategy for the new toothbrush: Colgate Precision
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THE PRECISION TOOTHBRUSH• A technical innovation• Triple-action brushing effect • More effective at plaque
removal• Provides gum protection
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PRODUCT SEGMENTS• Three segments: Value,
Professional and Super-Premium
• Different brands for different segments
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VALUE• More economic• Average price : $1.29
PROFESSIONAL• Better quality• Average Price : $1.59 to $2.09
SUPER-PREMIUM• Improved designs• Average Price : $2.29 to $2.89
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CONSUMER ANALYSIS• Three distinct consumer
groups: 1) Therapeutic Brushers 2) Cosmetic Brushers 3) Uninvolved Brushers• Each having different
expectations from toothbrushes
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COMPETITOR ANALYSIS• Oral-B and Johnson & Johnson
trying to capture more market in super-premium range
• Competitors offering coupons, refunds etc. to get an edge
• Sizeable revenues spent on advertisement
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STRENGTHS• Leading brand in oral hygiene• Number one spot in toothbrush
sales• Extensive overseas reach• Innovative product designs
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WEAKNESSES• Introduction of Precision
toothbrush may cannibalize the sales of Colgate Plus and Colgate Classic
• Media expenditure of the brand is limited compared to its rivals
• Lack of dental endorsements for the brand
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OPPORTUNITIES• Super-premium category can
help increase market share• Younger generations becoming
more health conscious• Can capture people who make
unplanned purchases by focused advertisement
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THREATS• Severe competition and
incentives given by competitors
• Aggressive expansion in different segments by other brands
• Competitors launching new products with added features
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ALTERNATIVES• Mainstream Positioning: mass
production, distribution and promotion
• Niche Positioning: targeting a subdivision of a market segment
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MAINSTREAM POSITIONING: BENEFITS• Accessible to larger market
size• Simple and direct
campaigning• Possibility of greater returns
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MAINSTREAM POSITIONING: HARMS• Higher price can turn people
off• Uninvolved consumers can’t
be included in target market• Greater cannibalism of Colgate
Plus and Colgate Classic’s market share
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NICHE POSITIONING: BENEFITS• A clear cut strategy can be
used• Can be later broadened to a
mainstream position: can’t be done the other way round
• Target group more open to paying higher prices
• Less erosion of existing products
• Entry into superior market: can compete with Oral-B
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NICHE POSITIONING: HARMS• Less contribution to profit in
coming years• Reach limited to a specific
section
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RECOMMENDATION• Position Precision toothbrush
as a niche product• Appeal to therapeutic
consumers• Market the product as
providing superior and distinctive oral care
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FUTURE SCOPE• Can expand the toothbrush
into mainstream market later
• Can replace Oral-B as the leading brand in Super-Premium range
• Can expand into other oral care products for therapeutic consumers
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