A NEW ERA BEGINS FOR COLGATEPALMOLIVE
In August 1992, CP plans to launch a newly designed toothbrush
CP’s R & D Oral care division uses technology to create an advanced model brush
• Designed to prevent gum disease
It’s designed to remove plaque better than leading
• Designed for efficiency

toothbrushes

• Short bristles to scrub plaque from surface of teeth
• Long stiff bristles to remove plaque from in between teeth
• Angled bristles to sweep the plaque from the gum line

Proven to remove 33% more plaque than Oral-B
• Oral-B finally meets it’s match with Colgate-Palmolive’s “Precision Toothbrush”

Toothbrush Manufacturers Invests
Millions
Only three Giants Stand unopposed
Colgate-Palmolive Johnson & Johnson Oral-B
• Oral care is important
• Education is essential
• CP is king of household and personal care products
• 1991 Toothbrush sales of $77million with operating profits of $9.8 million

• CP has big Plans
Develops five year plan for new product launches and expanding to new global markets

Toothbrush Market Segmentation
• Two segments: Value and Professional (super-premium in professional segment)
• Therapeutic vs. Cosmetic
• 4 Oral care brands currently in super premium toothbrush market (CP currently not in market)
• Oral-B leader in professional premium market
• Super-premium brushes = 35% unit volume / 46% dollar sales CONSUMER BEHAVIOR:
TOOTHBRUSHES VS. TOOTHPASTE
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Consumers agree toothbrushes equally important to toothpaste
Involved therapeutic consumers: 46% of adults (reliable %)
Involved cosmetic consumers: 21% of adults
Uninvolved consumers: 33% of adults
Toothpaste replaced when used
Toothbrushes replaced every 7.5 months on average
Toothpaste: new products steal sales from existing products to increase demand
• Toothbrushes: Increased advertising and promotion increase demand

NICHE
Niche
Positioning
Strategy

Mainstream
Positioning
Strategy

# units retail

Year 1 = 8mm ,
Year 2 = 15 mm

Year 1 = 26.8 mm
Year 2 = 44.1 mm

# units consumer promotion sampling

Year 1 & 2 = 2 mm Year 1 & 2 = 7 mm

# units through
Year 1 & 2 = 3mm professionals • Loss on profit gains in Y1 and Y2 to Mainstream

Year 1 & 2 = 8mm

• Niche approach ‘Need’ for product by many Baby boomers and consumers concerned with gum care (76+ million pop.)
• Technology breakthrough more appealing to niche customers willing to pay premium price

MAINSTREAM
• Potentially cannibalize Colgate Classic and Plus
• Colgate Classic and Plus = 35-60% sales volume
• Lead time increases 10 months with production
• Projected sales well above niche market in Y1 and Y2 (see table C.)
• Best all around toothbrush in the market as supported by
Steinberg

RECOMMENDATIONS
Precision displayed in super-premium category shelf, which will help consumer compare prices with competitors and the design of the Precision can be compared with competitors.

Place in super-premium area with Oral-B Indicator/
Regular because it does what it is designed to do,