A Study Of

Colgate Palmolive Precision Toothbrush

0. History of toothbrushes

1. Company background

2. U.S toothbrush market

3. Product segment

4. Consumer behaviour

5. Competition

6. Swot analysis

7. Conclusion

History of toothbrushes

• Egyptians were the first to think about cleaning their teeth. They started with twigs. 3000 years before Jesus Christ was born.

• First modern toothbrush was invented by Doctor West. It was made of nylon bristles. And the name was – Miracle Tuft.

• In olden times, people bought toothbrush with lowest price. However, they realised the importance of quality later.

Company Background

Launched: August 1992

Significant people: Susan Sandberg – Product Manager

Nigel Burton – G.MReuben Mask – CEO

Contributions:

Susan Sandberg innovated the product, marketed it well, and made it reach its full potential.

Reuben Mask was known for converting the former ‘sleepy and inefficient company’ to his current ‘lean and profitable giant.’

Company background Statistical

Year: 1991

Colgate:

• 43% of world’s toothpaste market• 16% of world’s toothbrush market• Sales worth $6.06 billion• Profit worth $2.76 billion• Upgradation plan of 25 out of 91 manufacturing plants • Expenditure worth $243 million• Introduction of 275 new products

U.S toothbrush market

Product Segments

Super premium 46%

42%Professional

Value brushes

$2.2 - $2.89

$1.59 - $2.09

$1.24 - $1.29

35%

41%

24%

Types of brushes Price Volume Sales

12%

Product Segments

Three segments: Value, professional, and super-premium

Consumer behaviour

Classification by Variety: Bristle type

Lead sizeAesthetic/Appearance Functional features

Brand choice: Features ComfortProfessional recommendation

Competitors

• Oral B

• J & J

• Lever

• Crest

• Aqua-fresh

• Butler

Major competitor

Brand Positioning • Niche • Mainstream

Pros

• Target market: Consumers concerned about gum diseases. • No SKUs needed to be dropped • Expected to capture 3% of the U.S. market in one year with 15% price advantage over Oral- B.

Cons

• Occupies lesser market and volume share as opposed to mainstream positioning. Example: Volume share for Niche is 5% while for Mainstream is 10%.

Pros

• Larger market share and volume share at the end of one year, about 10% market share and 10% volume share. Mainstream Positioning

Cons

• “Cannibalization” of Colgate plus. • Increased pressure on Production capacity and schedules. • (May) Require dropping of one or more SKUs. Mainstream Positioning

Marketing Mix for Colgate Precision

• Positioning

• Branding

• Communication Strategies