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Hitesh kumar vyas_case_study_colgate_palmotive

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Hitesh Vyas

Colgate-Palmolive developed a new precision toothbrush based on 3 years of intensive research. Testing showed the precision brush was more effective than competitors at removing plaque from between teeth and gumlines. It provided a triple-brushing action that removed an average of 35% more plaque. The product manager believed the precision brush was a technological breakthrough that could appeal beyond a niche market with the right marketing strategy. However, a full marketing plan and financial projections still needed to be developed to realize the product's full potential.

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COLGATE PALMOLIVE COMPANY : THE PRECISION TOOTHBRUSH - HBR CASE STUDY
A little about the company American Diversified multinational corporation Focused on : Production, Distribution & Provision Headquarters : New York City, New York, U.S. CEO : Ian M. Cook More than 200 years older Three core corporate values : Caring, Global Teamwork and Continuous Improvement
Statistics for 1991 ! Sales : $ 6.06 Billion Gross Profit : $2.76 Billion Global Leader in Household and personal care products ! RnD Expenditure Cost : $114 Million Advertising Expenditure $428 Million AND FURTHER Further
Sales growth over the years !!!
COLGATE PRECISION TOOTHBRUSH Household, healthcare and personal product specialist company Launched in August 1992 in United States Developed by Susan Steinberg, the precision product manager Product was developed with intense research in 3 years Technologically Superior toothbrush over 3 years
So what is the point of interest here ?
DEFINING THE MARKET STRATEGY POSITIONING BRANDING COMMUNICATION STRATEGIES FOR COLGATE PRECISION
Colgate Palmolives Oral Care Business 43% World Toothpaste Market 16% World Toothbrush Market Other include ~ Dental Floss, Mouth Rinses Team of 170 CP Researchers New Products included : - Colgate Baking Soda Toothpaste - Colgate Angle - Wild Ones Toothbrushes
Company at a glance !
U.S. TOOTHBRUSH MARKET
History
With Unimaginable Features!!!
Dominators of U.S. Toothbrush Market Colgate Palmolive Johnson & Johnson]-Professional Segme Oral - B ]- Super-Premium Segment
And a few more details !!!
Consumer Behavior What to choose and what not to??
Results of Consumer Research Adults Born in 1940s 1960s concerned about gum health as opposed to cavity prevention Willing to pay premium for new products 82 % toothbrush purchase were unplanned Toothbrush replacement after 7.5 months - 1991
Some Insights
Competition
1. Oral-B Market Leader since 1960s Called as the dentists toothbrush. Launched indicator brush in 1991 1992 Buy one Get one Free Offers Media Expenditure (1992) : $11.2 Million
2. Johnson & Johnson (J&J) Entered the market in 1970s Second Product in 1988 Prevent Prevent Beveled handle with 45% angle Ranked third in 1991 in retail toothbrush market 19.4 % Volume Share ; 21.8% Value Share Media Expenditure : $ 17.1 Million ( Expected 1992)
3. Procter & Gamble (P&G) Most recent entrant in the market Crest Complete tooth brush brand,1992 Claimed Ability to reach between the teeth up to 37% farther than leading flat brushes. 2% Volume Share; 2.6% Value Share Media Expenditure : $6.4 Million (Last Quarter,1992)
4. Smithkline Beecham Entered the market in Aug, 1991 First Product Aquafresh Flex, toothpaste Aquafresh toothbrush Allowed gentle brushing 1991 > 0.9% Volume Share; 1.1 % Value Share Buy two get one free promotional plans Media Expenditure : $10 Million
Other Competitors Lever Aim , Pepsodent Professional & Regular Pfizer Plax Brush (groove for thumb) Sunstar Butler Brand
Advertising and Promotion
Hitesh kumar vyas_case_study_colgate_palmotive
Some Important Figures!!
Distribution
Important Distribution Statistics
The Precision Marketing Fix
Product Design and Testing An Amazing Technical Innovation Used Infrared Motion Analysis to track consumers brushing movements Analysed level of Plague removal. These parameters developed a unique brush with bristles cleaned the teeth surface. This resulted in a triple action brushing effect
Hypothesis Time
Team Steinberg had 5 major goals set !
1. Understanding Consumer Techniques Concluded that brushing removed plaque from teeth surface but ineffective in removing from gum line and between teeth.
2. Testing between teeth access of different toothbrush design Concluded that the new design was more efficient than Oral-B and Reach in accessing front and back teeth
3. Index to score clinical plaque-removal efficacy Here Presence of Plaque on each tooth area was calculated - pre and post usage of toothbrush
4. Creating an efficient bristle configuration and handle design An average 35% more plaque was found to be removed than other leading brands
5. Efficacy and Acceptance of new toothbrush design Extensive consumer research was carried to test product design and characteristics, marketing concept and strengths
Niche Vs Mainstream Positioning
Hitesh kumar vyas_case_study_colgate_palmotive
Communication and Promotion
Hitesh kumar vyas_case_study_colgate_palmotive
Summary of Promotional Activities
Conclusion Steinberg believed that Colgate Precision toothbrush was more than a niche product The Proven benefits to consumers were technological breakthrough ! The positioning, branding, advertising and marketing of the product should be upgraded Still need to develop a marketing mix and profit and loss pro forma to reach the product to its potential
Disclaimer Created by Hitesh Kumar Vyas, NIT Indian Institute of technology during a Marketing Internship by Prof. Sameer Mathur, IIM Lucknow

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Hitesh kumar vyas_case_study_colgate_palmotive

  • 1. COLGATE PALMOLIVE COMPANY : THE PRECISION TOOTHBRUSH - HBR CASE STUDY
  • 2. A little about the company American Diversified multinational corporation Focused on : Production, Distribution & Provision Headquarters : New York City, New York, U.S. CEO : Ian M. Cook More than 200 years older Three core corporate values : Caring, Global Teamwork and Continuous Improvement
  • 3. Statistics for 1991 ! Sales : $ 6.06 Billion Gross Profit : $2.76 Billion Global Leader in Household and personal care products ! RnD Expenditure Cost : $114 Million Advertising Expenditure $428 Million AND FURTHER Further
  • 4. Sales growth over the years !!!
  • 5. COLGATE PRECISION TOOTHBRUSH Household, healthcare and personal product specialist company Launched in August 1992 in United States Developed by Susan Steinberg, the precision product manager Product was developed with intense research in 3 years Technologically Superior toothbrush over 3 years
  • 6. So what is the point of interest here ?
  • 7. DEFINING THE MARKET STRATEGY POSITIONING BRANDING COMMUNICATION STRATEGIES FOR COLGATE PRECISION
  • 8. Colgate Palmolives Oral Care Business 43% World Toothpaste Market 16% World Toothbrush Market Other include ~ Dental Floss, Mouth Rinses Team of 170 CP Researchers New Products included : - Colgate Baking Soda Toothpaste - Colgate Angle - Wild Ones Toothbrushes
  • 9. Company at a glance !
  • 13. Dominators of U.S. Toothbrush Market Colgate Palmolive Johnson & Johnson]-Professional Segme Oral - B ]- Super-Premium Segment
  • 14. And a few more details !!!
  • 15. Consumer Behavior What to choose and what not to??
  • 16. Results of Consumer Research Adults Born in 1940s 1960s concerned about gum health as opposed to cavity prevention Willing to pay premium for new products 82 % toothbrush purchase were unplanned Toothbrush replacement after 7.5 months - 1991
  • 19. 1. Oral-B Market Leader since 1960s Called as the dentists toothbrush. Launched indicator brush in 1991 1992 Buy one Get one Free Offers Media Expenditure (1992) : $11.2 Million
  • 20. 2. Johnson & Johnson (J&J) Entered the market in 1970s Second Product in 1988 Prevent Prevent Beveled handle with 45% angle Ranked third in 1991 in retail toothbrush market 19.4 % Volume Share ; 21.8% Value Share Media Expenditure : $ 17.1 Million ( Expected 1992)
  • 21. 3. Procter & Gamble (P&G) Most recent entrant in the market Crest Complete tooth brush brand,1992 Claimed Ability to reach between the teeth up to 37% farther than leading flat brushes. 2% Volume Share; 2.6% Value Share Media Expenditure : $6.4 Million (Last Quarter,1992)
  • 22. 4. Smithkline Beecham Entered the market in Aug, 1991 First Product Aquafresh Flex, toothpaste Aquafresh toothbrush Allowed gentle brushing 1991 > 0.9% Volume Share; 1.1 % Value Share Buy two get one free promotional plans Media Expenditure : $10 Million
  • 23. Other Competitors Lever Aim , Pepsodent Professional & Regular Pfizer Plax Brush (groove for thumb) Sunstar Butler Brand
  • 30. Product Design and Testing An Amazing Technical Innovation Used Infrared Motion Analysis to track consumers brushing movements Analysed level of Plague removal. These parameters developed a unique brush with bristles cleaned the teeth surface. This resulted in a triple action brushing effect
  • 32. Team Steinberg had 5 major goals set !
  • 33. 1. Understanding Consumer Techniques Concluded that brushing removed plaque from teeth surface but ineffective in removing from gum line and between teeth.
  • 34. 2. Testing between teeth access of different toothbrush design Concluded that the new design was more efficient than Oral-B and Reach in accessing front and back teeth
  • 35. 3. Index to score clinical plaque-removal efficacy Here Presence of Plaque on each tooth area was calculated - pre and post usage of toothbrush
  • 36. 4. Creating an efficient bristle configuration and handle design An average 35% more plaque was found to be removed than other leading brands
  • 37. 5. Efficacy and Acceptance of new toothbrush design Extensive consumer research was carried to test product design and characteristics, marketing concept and strengths
  • 38. Niche Vs Mainstream Positioning
  • 43. Conclusion Steinberg believed that Colgate Precision toothbrush was more than a niche product The Proven benefits to consumers were technological breakthrough ! The positioning, branding, advertising and marketing of the product should be upgraded Still need to develop a marketing mix and profit and loss pro forma to reach the product to its potential
  • 44. Disclaimer Created by Hitesh Kumar Vyas, NIT Indian Institute of technology during a Marketing Internship by Prof. Sameer Mathur, IIM Lucknow