Marketing Assignment-3
Colgate-Palmolive Company
GROUP-2, SECTION F
ANUPAMA CHINTA (2012IPM017)
HARSHWARDHAN SINGH (2016PGP140)
JAY DHARMAMEHER (2016PGP152)
NIMBALKAR MOHIT HEMANT (2016PGP237)
RICHA KHAKLARI(2016PGP311)
S. VISHNU PRIYA (2013IPM074)
VASANTADA SRIKANTH (2016PGP423)
1.
Problem Statement:
In August 1992 Colgate-Palmolive(CP) was introduced a new tooth brush Precision in the
united states. Susan Steinberg Precision product manager had to recommend the positioning,
branding and communication strategies for the introduction of new product.
2.
Situational analysis (5Cs)
Competitors:

Oral-B is the market leader with 23.1 volume % and 30.7% value share (1991)

Johnson & Johnson has a value share of 22% with a major focus on professional and
super premium segments under Reach brand.

Competition is increasing day by day with new entrants
Context:

Toothbrush market was shifting towards being a commodity market, so companies
were trying to come up with technological advancements to differentiate their product
Consumer:

Shift in consumer focus from value to premium & super premium segments

Needs of consumer was shifting from just cavity prevention to gum health care (46%
were therapeutic brushers)

Consumers' brand shifted to functional features and technical performance from
aesthetic features
Collaborator:

Dentists– Expected distribution increase through recommendations

Retailer – In-store displays
Company:
3.

Ranked 2nd in US toothbrush market (23.4 % value share)

New product launches and entering into new geographical markets

Improving efficiency in manufacturing and distribution

Focus on core customer products
Positioning:
The product can be positioned as Mainstream or Niche product. There are pros and cons
with each aspect.
Main stream Product
Most effective brush on market
Niche Product
Target consumers with gum disease
Large Volumes:10% volume share of Smaller Volumes:3% volume share of
market in year1 and 14.7% in year 2
market in year1 and 5% in year 2
Can create an inadequate supply of demand No demand issues
Possible cannibalization of Colgate plus
No cannibalization
SKU of existing products has to be dropped SKU of existing products unlikely to drop
Distribution through mass merchandisers
and club stores
4.
Branding:

5.
Distribution through food and drug stores
Stressing Precision over Colgate would limit the extent of cannibalization
Communication and Promotion:

Pitching the toothbrush as a product that prevents gum diseases motivated sales, but
this was difficult to market.

Once a customer tries the product, intent to purchase rise drastically. So distributed it
through free samples, discounts and dentists.
6.
Conclusion:
The Colgate Precision should be introduced as a Niche product and later it can be converted to
Mainstream product.

Introducing as a niche product would decrease cannibalization of the mainstream
Colgate Plus

Production is predicable

SKUs are unlikely to drop for niche product.