Review of a Case Study under Prof. Sameer Mathur, IIM Lucknow as a part of Summer Internship 2017...
Case Study: Colgate-Palmolive Company: The Precision Toothbrush
Codes and Conventions of Film Magazine Covers.pptx
HBR Case Study: Precision Toothbrush by Tejas Kotha
1.
2.
3. Strengths and Weaknesses
STRENGTHS
• Global leader in the personal care products.
• Launched 275 new products in a year.
• #1 toothbrush brand in USA with a market share
of around 23%.
WEAKNESSES
• Introduction of new products in such a huge scale
led to cannibalization of the old ones.
• Oral-B got more credibility in the dental
association on its products.
4. Product
Segmentation
Till 1980s the toothbrush market was classified into two major
segments, but in the late 1980s another segment made its way. They
were:
1. Value
2. Professional
3. Super Premium
5. Consumer Behavior
• The toothbrush in the last few decades has shown a shift in the
behavior and are willing to pay more for the premium products
which promise to:
1. Cavity Preventions
2. Healthy Gums
• The market is now ready for Super Premium range of Toothbrushes
for “Enhanced Oral Care”.
• Half of the consumers claimed to change their brushes in every 3
months.
• Consumers chose their based on features, comforts and dentist
recommendations.
6. Factors
There a lot of factors that consumers have in mind before choosing a
product.
• New entrant likes P&G and Smithkline Beecham placed their products
in the premium range.
• The new designs from the late 1980s. The designs of the head,
bristles and handles did matter.
• The action of bristles: the soft or the hard according to their
preferences and dental recommendations. Super premium rage
focused on plaque removal and gum protection.
• New market for children: Colorful handles with cartoon characters.
8. Challenges
Oral-B has professional
endorsement, claiming it to be
“the dentist’s toothbrush.”
Hence posing a tough
competitions.
1
REACH has excellent
innovations in it’s products to
help consumers have better
brushing experience. It was
supposed to be launched just
before PERCISION would hit
the market.
2
Beecham’s product had
flexible handles, and soft
bristles not to forget its
excellent marketing strategy.
3
P&G claimed the it’s
toothbrush reaches 37%
farther between the teeth
than the leading brands.
4
9.
10. • Growing competition has increased the importance of advertising.
• CP products occupied 25% - 40% of the category shelf space in the
stores.
• Colgate toothpaste sold with the brush resulted in 170% increase in
the sales.
• Retail advertising and in store posters have proved that there is a
tremendous increase in the sales.
• 22% of the brushes were distributed by dentists and Oral-B
dominates in this kind of market.
14. • Target consumers with gum
problems.
• If so, it could demand
premium pricing more than
that of Oral-B and so it could
capture 3% more of the US
Market in its first year itself.
• If it is categorized as a
mainstream product then it
would additionally capture
10% of the market in the first
year.
• The volume shares when
positioned as mainstream
would be 10% in 1 year as
compared to 5% when
positioned as Niche product!
16. • It might lead to
CANNIBALIZATION of
Colgate’s product line.
• Product shortage as the
product line made was
designed for niche market. So
they might not hit the market
with adequate stock.
• The no. of units sold will be
high as they will be available
in all general stores and
chemist.
• It is more appealing as it
would capture more market
shares than the niche market.
21. The design and the looks were cliched so it left
the consumers thinking if the product really keep
its promise of total gum care.
It is difficult to convey the message of plaque
and gum care as most of the market is not really
aware about most of the gum diseases.
However…
22.
23. Branding it as “Precision from Colgate” will reduce
the cannibalization of the Colgate Plus line of
products which has been a mainstream product of
CP for a long time.
Precision can be given special booths in the
supermarket and drug stores to attract special
attention.
24. Investing a little more on advertising in the starting would turn out beneficial in
the long run.
Promotion campaigns should happen before and after the launch in the initial
stage giving the consumers a brief introduction of PRECISION, giving away
samples, get professional(dental) certification and branding. As professional
endorsements are credible and accounted for.
Spending around 75% of the advertising bills on PRECISION was worthy as it
gave it an initial boost in the promotion and sales and doing so it won’t affect
Colgate Plus because it is already safe under the CP’s umbrella of products…
25. Created by Tejas Kotha, IIIT Bangalore, during a marketing
internship by Prof. Sameer Mathur, IIM Lucknow.