Colgate-Palmolive Company : The Precision Toothbrush

Group 2: Monica Ledwani Taru Sourabh Suhas Bhave Sheth Dharmil Nirupam Naga Rama Pratap Bontha Sai Pramod Vemuri

SITUATION ANALYSIS
Colgate-Palmolive and the US toothbrush Market: Global leaders in US retail toothbrush Market with a 23.3% volume share Held 43% of the world toothpaste market and 16% of the world toothbrush Market. Value Segment: Colgate Classic (6.4% value and 4.9% volume Professional Segment: Colgate Plus(16.9% value and 18.9% volume)

 Super Premium segment CP- no presence Oral B- 23.1% volume and 30.7% value J&J Reach- 19.4% volume share and 21.8% value P&G Crest -2% volume share and 2.6% value share SKB Aquafresh Flex-0.9% vol share and 1.1% value

Toothbrush Market Segmentation

Price:- Value, Professional and super premium Attributes Bristle(firm,soft,extra soft) and head size Pyschographic:- Therapeutic, cosmetic, Unconcerned Demographic:- Adult and Child

SWOT ANALYSIS
o Strengths: Triple action technology innovated by Colgate Palmolive removes more plaque than other competitor at gum line/ between teeth. Baby boomers were concerned with gum health 77% of the testers claimed Precision was more effective than any other competitive Consumers are willing to try new brands/models Can be positioned well in stores Variety of products can be offered

o Weaknesses: There is a need to educate the people about the innovation and its relevance. Some people see toothbrush as a homogeneous product and if all the toothbrushes are available at the same cost, then they tend to buy the cheaper one. Gain dentist approval for the informed customers to make a purchase Promotions are hitting the market hard.

o Opportunities: Baby boomers are willing to spend money. Infrared technology solution can be used to educate people with visuals. There is a need to educate the people To gain dentist approval Could support educational causes such as nurses of elementary schools.

o Threats: Poses a threat of cannibalizing the superpremium model Colgate Plus of Colgate Palmolive itself. There is a need to be careful to go into mainstream and try out different products too early.

NICHE Positioning Strategy

o Benefits of this strategy: 1. Colgate - Palmolive would be able to charge premium prices as it is serving to a particular set of customers i.e. those with gum disease. 2. Colgate - Palmolive would be able to differentiate itself with the others as it has superior technology as compared to its competitors. 3. If the product is unsuccessful in the market, Colgate Palmolive has the chance to reduce its losses. o Disadvantages: 1. Sales in mass merchandisers would considerably decrease. 2. Retail sales would be less for this product.

Mainstream Positioning Strategy

Benefits: 1. It would increase the name recognition for Colgate Palmolive. 2. In the super-premium category it would be the most superior product. Disadvantages: 1. The price of Precision and its competitors brushes would be equal despite it being the superior product in the superpremium segment thus increasing the competition. 2. This strategy poses a threat of cannibalizing ColgatePlus, other super-premium toothbrush of ColgatePalmolive. 3. It may probably lead to the reduction of one or more SKUs.