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The Case On Precision Tooth Brush: By, Sharon Liz Varghese

The document discusses a case study on introducing a new toothbrush called Precision. It analyzes positioning it as either a niche or mainstream product. Data shows the super-premium category driving industry growth since 1992. Precision removes 35% more plaque than other brands. The manager must decide on positioning, branding, and promotion strategies. It is recommended to launch Precision as a niche super-premium product to avoid cannibalizing existing lines. Using the Colgate name would leverage brand equity, and increased advertising, sampling, and store visibility would best support the innovative product.

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0% found this document useful (1 vote)
162 views4 pages

The Case On Precision Tooth Brush: By, Sharon Liz Varghese

The document discusses a case study on introducing a new toothbrush called Precision. It analyzes positioning it as either a niche or mainstream product. Data shows the super-premium category driving industry growth since 1992. Precision removes 35% more plaque than other brands. The manager must decide on positioning, branding, and promotion strategies. It is recommended to launch Precision as a niche super-premium product to avoid cannibalizing existing lines. Using the Colgate name would leverage brand equity, and increased advertising, sampling, and store visibility would best support the innovative product.

Uploaded by

sharonliz1992
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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.

OTHER OPINIONS AND FACTS


The toothbrush segment is expected to grow because of the number of promotions and free
brushes, so although the number of people are not purchasing as many brushes, they are
stocking. Trend is expected to continue due to new products in the market and increased
consumer sampling. On average, one in four toothbrushes come from the dentist. On average

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.

FINAL ACTION AND THEIR IMPLICATIONS:


Precision should be placed as a niche product in the super premium product category.
This is because the company currently do not have a presence in this segment. And if placed
in the main stream category there would be a cannibalisation effect on Colgate Plus and
moreover they would be basically competing against their own product. Also the features of
Precision are strong enough to compete with Oral B and Reach as data provides that
Precision fights plague 35% better than them. Moreover they wouldnt need to take out the
children toothbrush category. Once they have established a good manufacturing system that
decreases the lead time, it can think about entering the main stream segment as well. With
regard to the naming, I suggest using Colgate precision as using the brands name would
indicate that the product is from a well-established company. This also ensures that the brand
equity is build up. With regard to the communication strategies, Colgate Precision should
increase its advertising ahead of its competition in order to successfully support the launch of
its innovation. They should establish and advertise through health magazines, providing instore sampling thereby increasing consumer enthusiasm, and also increase store visibility.

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