A Case Study on

Colgate Palmolive Company: The Precision Toothbrush

Prepared By,

Arun K Devadas - 0174/56

Ravindra Khudania - 0190/56

Pooja Yadav - 0206/56

Saumya Shrivastava - 0222/56

Yogesh Sahoo - 0238/56

Market Summary
Toothbrush market is a red ocean in which companies are trying to outperform each other to
increase their share in the existing market. The toothbrush market has become highly
competitive, mainly due to the introduction of new products and line extensions by both
existing companies and new entrants. During late 1970s toothbrushes were purchased mainly
based on price but the purchase criteria during 1990s were mainly based on performance
benefits. Colgate Palmolive had a lower share in the toothbrush market compared to its share
in the toothpaste market. Oral B and Johnson & Johnson were the major competitors of CP in
the US toothbrush market. During the 1980s, there were two segments of toothbrushes:
Value and Professional. A new super-premium category emerged in the late 1980s, which
was the primary reason for dollar growth exceeding volume growth. Even though CP held the
number one position in the US retail toothbrush market, it did not have any product in the
Super-Premium segment. This led to the development of Precision with the objective of
creating the best brush in the Super-Premium category.
Micro-Environment: The Company​- Colgate Palmolive has all the necessary resources to
improve their toothbrush business. ​Suppliers​- CP can consider production of toothbrushes
instead of subcontracting it to Anchor Brush. ​Marketing Intermediaries​- CP can strengthen
its association with dental professionals. ​Competitors​-There is fierce competition from
existing players as well as new entrants.There is a high chance of losing its market share.
Consumers​- Preference for CP toothbrushes among therapeutic brushers is comparatively
lower.
Macro-Environment: ​The effect of macro environmental factors on Colgate Palmolive’s
toothbrush market is minimal in the present scenario.

Consumer Behaviour
Toothbrush, being a necessity product, doesn’t bring much variation in the buying behaviour
of the consumers. ​Around 82% the toothbrush purchases are unplanned and research has
shown that consumers are relatively unfamiliar with the toothbrush prices. Consumers believe
that the primary role of a toothbrush was to remove food particles. That’s why they paid
greater attention to physical features and comfort of the product. However, their buying
behaviour was also affected by their lifestyle, timing of brushing, attitude towards replacing
their brush and sometimes by recommendations by their dentists.
Since Colgate was launching a new product, Precision, it had to keep in mind a few factors,
namely relative advantage, complexity, divisibility and communicability, for easier adoption
among consumers. The triple action brushing effect provided a relative technological
advantage to Precision. The brush can be used like a normal brush which means it solves the
complexity aspect. Tests had been conducted on 400 adults and favourable results were
obtained. So it adheres to the divisibility aspect also. Colgate had invested a lot on
advertisements to communicate the features of the product. Finally, we can conclude that
Colgate shouldn’t face any difficulty in maintaining a decent rate of adoption for Precision
brush.
Product Offering
CP’s mission with respect to the Precision toothbrush was to develop a superior, technical,
plaque-removing device. It was developed using infrared motion analysis to track brushing
movements and consequent level of plaque removal. It was a unique brush with bristles of
three different lengths and orientations. The longer outer bristles cleaned around the gum
line, the longer inner bristles cleaned between the teeth, and the shorter bristles cleaned the
teeth surface. This resulted in a “triple action brushing effect” which made Precision more
effective. It helped in achieving average 35% increase in plaque removal compared with
leading toothbrushes and therefore helped to reduce the probability of gum disease.
Thus, with its unique design and bristle configuration it promised advanced gum health so
that the consumers could feel the difference.

SWOT Analysis
Opportunities​ ​: Oral-B is the only dominant brand in the unexplored market in the super
premium category. Baby Boomers are becoming more concerned about their gum health and
their willingness to pay a premium price for better oral hygiene can work as an incentive for
Colgate. Colgate could focus on increasing recommendations by dental professionals similar
to Oral-B’s strategy. The toothbrush market has a fixed consumer base. It is difficult to
increase the demand but increased advertising and promotion can enhance a brand’s outlook
and fuel consumer demand. In-store displays play an important role in toothbrush sales.
Brushes sold with toothpastes ended up increasing sales by over 170%. The strategy of
mid-shelf store displays are proven to be effective. Sampling will also play a major part in
Precision’s success.
Threats:​ Positioning ‘Precision’ in the mainstream category can cannibalize the market share
for Colgate Plus. Consumer awareness about the usage of toothbrush is low. Most believe
that toothbrush is simply used to remove food particles and plaque removal, gum stimulation
are unnecessary. Care should be maintained to not move into a variety of products too soon;
something that happened in the children’s plus category.
Strengths:​ ​Colgate Precision was a technological breakthrough which used infrared motion
analysis in developing a toothbrush that reached different parts of the mouth more effectively.
It also created a triple action brushing effect. The unique shape of Precision was a top buying
preference among consumers. From the consumer research, it was found that about 55% felt
Precision was different than their usual brushes and of them, 77% believed that Precision was
more effective. Colgate is able to cater to all markets by having a presence in all the three
price segments.
Weaknesses​: ​Professional endorsements were lower for Colgate as compared to competitor
Oral- B. Proper customer education was necessary as consumer awareness about toothbrushes
and oral health was low. Customers did not easily understand the benefit of reduced gum
disease from extra plaque removal.

Problem Statements
● To decide the positioning, branding and communication strategies for Colgate’s new
product ‘Precision’ under production and promotional budgetary constraints.
● To determine the most effective strategy under positioning ‘Precision’ either as a
niche or a mainstream product.
● Generate a marketing mix that would maximize the sales and revenues of the new
product.
 Market Segmentation
The next step was to find the answer to the question- What group of consumers would be
served? This was achieved by identifying segmentation variables, dividing the market into
distinct groups of buyers (or segments) and developing the profiles of resulting segments.
Consumers were divided into 6 segments based on their price sensitivity and involvement in
oral hygiene:
● Low Price Sensitive – Therapeutic brushers​: They want to prevent/cure oral care problems
and are willing to spend more. They look for product differentiation, effective health
benefits and high quality.
● Low Price Sensitive – Cosmetic brushers​: They want to prevent bad breath and/or ensure
white teeth, and are willing to spend more. They also look for cosmetic benefits and high
quality.
● Low Price Sensitive – Uninvolved consumers​: They are uninterested in the product but don't
mind spending more to ensure high quality.
● High Price Sensitive – Therapeutic brushers​: They are concerned about their health but may
sacrifice on quality and expensive products.
● High Price Sensitive – Cosmetic brushers​: They look for cheaper cosmetic brushes to
ensure white teeth and may sacrifice on quality.
● High Price Sensitive – Uninvolved consumers​: Their lack of interest in the product category
makes them care less about the price and quality of toothbrushes.
The segments created are:
● Measurable​: Each of these segments and their profiles can be distinctly measured and
identified. For example, Therapeutic brushers constitute 46% of the toothbrush market.
● Accessible​: After analysing each segment, it can be found that toothbrushes with various
benefits and offerings can satisfy the needs of consumers in all segments.
● Substantial:​ We can safely say that the market is large enough since >90% of the consumers
brush their teeth at least once a day.
● Differentiable:​ From the above segment profiling, it can be seen that there is no overlap
between the segments.
● ​ ctionable​: Colgate Precision is already aiming at segment-specific promotional strategies.
A
(Explained in the Marketing Mix)
Low price sensitive customers look for high quality and more expensive toothbrushes.
Uninvolved oral health consumers in the premium segment can include rich consumers who
don’t actively seek out for toothbrushes but are willing to spend more on any toothbrush to
ensure high quality.
Market Targeting
Two segments were selected based on the above requirements: ​Low price sensitive –
therapeutic brushers ​and​ low price sensitive – uninvolved consumers​.
Both these segments have a substantial number of consumers who are willing to spend more
while buying toothbrushes (they are less sensitive about the price). From the consumer
behaviour research, it was concluded that the purchase intent among consumers increased
with the claim that the toothbrush would prevent gum disease. Therapeutic brushers who fall
into this category will be the potential target market. Competitors present in this segment
either have a lower market share or have different product offerings as compared to Precision.
Although market access looks difficult in low price sensitive – uninvolved consumers
segment, it would prevent cannibalization of other Colgate brands. While Colgate is an
established brand, it won’t be easy for other new entrants to enter this market. There is a huge
untapped potential in this segment as very few competitors are present here. Consumers can
be educated about the health benefits to shift to high involvement which can lead to sales in
this segment.

Market Positioning
The question that arises next: How to serve the needs and preferences of the selected target
markets?
Two different positioning strategies were analysed: mainstream and niche positioning. While
the mainstream positioning strategy focused on the broader appeal of being the most effective
brush available in the market , the niche positioning strategy targeted at customers concerned
about gum disease. While both strategies have their own pros and cons, it was concluded that
competitive advantage was achieved by using the niche strategy:
● By launching Precision in the super-premium segment, there would be a Colgate
product present in each of the price segments (Classic in value segment and Plus in
Professional segment).
● Targeting health conscious consumers by focusing on prevention of gum disease is
unique to Precision and no other competitor has this value proposition in the market.
● Targeting uninvolved customers leads to meeting untapped needs of the niche market.
Precision is positioned based on ​benefits sought for both the target segments: ​“Prevention of
gum disease” for low price sensitive-therapeutic customers and ​“Creating a unique feel in
the mouth” for low price sensitive-uninvolved consumers. While the first segment is
concerned about their oral health, the second segment is not interested in the product. Their
focus could be on regular brushing, how it feels in their mouth and whether they can feel the
toothbrush working.
Marketing Mix
Which differences to promote?
Product​: Precision is for those consumers who are concerned about their gum health and are
smart enough to take preventive action.
Price:​ Price of Colgate Precision should be set to be higher than Oral-B Indicator as it would
be the “best in the super-premium segment”. Trade discounts should be provided to
wholesalers and retailers to give them higher margin.
Place:​ Selling Precision in drug stores will be helpful as there is a high chance that
therapeutic consumers will buy toothbrush from a drug store. It should be placed in
countertops and sidekicks for easy access to consumers. Uninvolved consumers will most
likely buy it from a food or general stores. It should be placed in floor stands and countertops
for similar reasons as in the case of drug store.
Promotion : Target low price sensitive-therapeutic consumers by educating them about how
higher plaque removal leads to lower chances of gum disease and better oral health through
television advertisements. Free samples of ‘Precision’ can be distributed along with
endorsement by dentists. Target low price sensitive-uninvolved consumers by combining
Colgate Precision with most sold Colgate toothpaste in the higher price category so that
consumers can use it and feel the difference. This will allow the consumer to experience the
toothbrush which could lead to them buying the toothbrush again. ​“Fighting gum disease
takes PRECISION” ​can be used as a slogan to attract therapeutic consumers while ​“You can
really feel it working” ​can be something that can attract uninvolved customers.