The Case On Precision Tooth Brush: By, Sharon Liz Varghese
The Case On Precision Tooth Brush: By, Sharon Liz Varghese
PROBLEM DEFINITION
Colgate- Palmolive has decided to come up with a new toothbrush, Precision. With regard to
introducing this product to the market, the Product Manager has two option in front of her:
either to introduce it as a niche product in super-premium category or as a mainstream
product in the professional category. She also has to decide on the naming of the product.
Also choices have to be made with regard to using promotional offers which are becoming a
standard practice in the industry and other advertising techniques. Thus the Product manager
have to decide on the positioning, branding and communication strategies.
RELEVANT DATA AND ANALYSIS
Till 1991, value and professional were the only two segments that were present in the
toothbrush industry. Prior to 1990, industry growth rates for the toothbrush category were in
the single digits. That changed in 1992 when 47 new products/line extensions were released.
Their introduction led to 21% growth in value and 18% growth in volume for the industry.
Several factors influenced that growth, but the primary driver was the introduction of the
super-premium sub-category of toothbrushes. Prior to 1992, CP offered the Colgate Classic to
the value segment and the Colgate Plus to the professional segment. The Classic segment was
decreasing with respect to the volume and market share whereas Plus was indicating growth.
The Precision toothbrush was a technological innovation with a design that increased plaque
removal by 35% compared with other brands. In consumer concept testing plaque removal &
preventing gum disease, together, ranked as the most important attribute in the purchase
decision by prospective consumers.
replace brushes every 7.5 months and 65% of people had more than one toothbrush. Without
introducing a super-premium product in this category, Colgate will lose 3% share in 1993 and
4.5% share in 1994 in the toothbrush market.
DECISION ALTERNATIVES
1. Precision can be places either in the main stream category or introduced as a niche
product.
2. The naming of the product- the product manager can either use a new label or go with
the traditional naming.
3. Options on promotions and communications have to be decided.