Colgate PalmoliveEssay Preview: Colgate PalmoliveReport this essayColgate Palmolive Company ÐŽV The Precision ToothbrushThe toothbrush market was divided into three segments: super-premium, professional, and value brushes. The retail prices for each segment by 1992 were as follows:
Super-premium ÐŽV between $2.29 and $2.89Professional ÐŽV between $1.59 and $2.09Value ÐŽV averaged at $1.29By 1992, super-premium brushes accounted for 35% of unit volume and 46% of dollar sales. Professional brushes accounted for 41% and 42%, and value brushes accounted for 24% and 12% respectively. Three companies dominated the U.S. toothbrush market: Colgate-Palmolive, Johnson & Johnson, and Oral-B.
Mainstream PositioningThe objective of positioning Precision as a mainstream brush was to broaden the appeal of being the most effective brush available on the market. PrecisionÐŽ¦s price would be at parity with Oral-B regular and Aquafresh Flex at $1.85 (Exhibit 4). This raised concerns about possible cannibalization of Colgate Plus and inadequate supply of the product. Inadequate supply could create the perception of a ÐŽ§hotÐŽÐ product but some executives thought shortage should be avoided if possible. CP would plan for an 80% increase in 1993 for advertising and promotion, with 75% of all advertising dollars assigned to Precision and 25% to Plus. This could be costly for profits and may increase cannibalization. Mainly mass merchandisers and club stores would carry the brush (24% retail toothbrush sales). Positioning Precision as a mainstream product with an existing 7 SKUs may result in dropping one or more existing SKUs, such as childrenÐŽ¦s brush from the Plus line.
Niche PositioningPrecision was developed with the objective of creating the best brush possible ÐŽV becoming a superior, super-premium product. Precision would be targeted at consumers concerned about gum disease. Precision would be priced at $2.13, a premium over Oral-B regular and at parity with Oral-B Indicator. It would have 4 SKUs and it was unlikely that any existing SKUs would be dropped. Precision would be carried primarily by food and drug stores (74% of retail toothbrush sales). CP would increase total advertising and promotion spending by $11.2 million and allocate this to the Precision launch. However, this was not enough for Precision to reach its full sales potential.
RecommendationCP should position the Precision brush in the super-premium product category as a niche product. Involved oral health consumers will recognize the PrecisionÐŽ¦s superiority in technical innovation, giving CP a strong position against its competitors on the basis of product attributes. CP should emphasize the brushÐŽ¦s 35% increase in plaque removal and its ability to prevent gum disease better than the leading competition. Positioning Precision as a niche product would not jeopardize ColgateÐŽ¦s existing SKUs. Furthermore, unlike the mainstream positioning strategy, the niche strategy would result in an adequate supply of the product. As a new entrant into the segment, Colgate
s current SKUs (i.e. products of the “premium” brand) should be positioned as specialty products that provide a broad range of new and alternative protection options in the range of different environmental conditions for an alluring, eco-friendly or medicinal treatment. This is the strategy outlined by the manufacturer of the Precision® and was adopted in the current version of the SKU. The position should align with the marketing goals of the brand and the brand name of the product in order to be positioned as a niche product. It should target the highest competitive advantage in terms of innovation, quality and longevity of the product, and also provide effective replacement for the traditional brush. As the brand’s value proposition grows, as the manufacturer continues to grow, the position of PrecisionÐŽ¦s position in the market segment is increasing. As a new-to-market competitor, the position position of PrecisionÐŽ¦s position in the SKU category is increasing.
Acknowledgement, Thanks, and Support To the authors for their continued and thorough consideration of this field of research and development. For continued reading, please refer to this press release, along with a related press release at the following references: “Plaque Remover and Tooth Replacement For Use With Precision® Products” http://www.tohyng.com/news/research-1.cfm, “Clinical Studies Identify The Long-Term Impact of Precision Precision® on Tooth Tooth Protection Technology” http://www.tohyng.com/news/clinical-studies-sustaining-long-term-effect-of-precision-precision-precision-sight-principle-precision-sight-principle/8237745, “Mental Health & Diet Research: Precision Technologies For Oral Health In Clinicians” http://www.tohyng.com/info/news/research-2f4e46a-0f6c-11e5-89ed-10e6cf3dbbe4 The authors acknowledge funding from The Pharmaceutical Research and Manufacturers of America (RUS) and MMWR, the National Institutes of Health, The Health Department’s National Institute of Allergy and Infectious Diseases (NIAID, CDC), and the National Institute of Neurological Disorders and Stroke (NINDS). The National Cancer Institute and American Cancer Society (AAC) supported research in this research. The authors’ responsibilities have been identical for all of its funding. Dr. Thomas B. Moore, Ph.D., AACP.
Author Contributions Conceived and designed the experiments: JM. CB