Cpcs

Colgate palmolive: the precision toothbrus h

abstract The colgate-palmolive case involves the precision toothbrush, which was entered into the market in 1993 by colgate-palmolive. The main objective of the Colgate Palmolive case study is to analyse ‘PRECISION’ SEGMENTING TARGETING POSITIONING COMMUNICATING TO CONSUMERS LOWER THE PROMOTION BUDGET PERPARE A MARKETING MIX PREPARE PROFIT AND LOSS PROFORMA

MARKET POSITIONING

MARKET POSITIONING q Act of designing companys offering and image to occupy a distinctive place in the mind of the target market.

q What the company is offering?

q How this offering helps in redesigning the image of company?

q Whether the new product is creating the customer focusssed value proposition?

q How it is similar & how it is different from a brand with which it competes and which function as close substitutes?

CONSUMER BEHAVIOURqConsumers first purchased toothbrushes without much knowledge or information concerning the product’s benefits. qAs new product development increased, and consumers became better informed about the benefits of toothbrushes, they began to focus their interest not only on cavity prevention, but also on the health of their gums, their oral hygiene, and their cosmetic appearance. qBecause consumer interest and toothbrush purchases began to increase, advertising and promotion also began to increase, which lead to the development and addition of the super-premium product class. qThe superpremium product class was a “sub-category of toothbrushes partly offset by downward pressure on average retail prices in mass merchandiser channels,”. Consumers began to purchase toothbrushes based on the specific benefits each toothbrush and company had to offer.

POINT OF DIFFERENCEqColgate-Palmolive referred to the toothbrush as a “technical innovation, [because] researchers used infrared motion analysis to track consumers’ brushing movements and consequent levels of plaque removal”. qBy studying consumers brushing techniques, and focusing on areas of the mouth that had developed excessive amounts of plaque buildup, such as in between the teeth and on the gum line, researchers were able construct a newly designed toothbrush. qThe research team tested and experimented with the toothbrush for eighteen months by the usage of “dental professional focus groups and product usage tests.” This led to the introduction stage of the product life cycle, with the “launching” of the Precision toothbrush to the oral health care market in 1993

Goods classification qThe Precision toothbrush can be classified homogeneous or heterogeneous shopping product.

as

either

a

qSome consumers may see it as a homogenous product because they see all toothbrushes as the same, and place their attention on the lowest prices. Others may see the toothbrush as a heterogeneous product because they see the need to “inspect for quality and suitability”

Design/quality qThe main design of the product concentrated on the bristles of the toothbrush. The head of the Precision toothbrush included three different lengths of bristles, each length having its own responsibility. “The longer outer bristles cleaned around the gum line, the long inner bristles cleaned between the teeth, and the shorter bristles cleaned the teeth surface,”. qBecause of the newly innovated bristles, the removal of plaque increased by 35% when compared to other leading producers of toothbrushes

POSITIONING ----Niche/mainstream marketing  The

position of the Precision toothbrush could be niche or mainstream.

Niche marketing micro-marketing. Mainstream or mass marketing 

The decision on where to place the new toothbrush on retail shelves is another important aspect of positioning. Colgate Palmolive chose to place the toothbrush in between one of their existing products and a competitor’s product.

Income proforma for launching precision

recommendation  

They should have positioned presicion initially as – Niche product and then reposition it into mainstream product once the maturation stage of the first life cycle is reached.

ANALYSIS WHY FIRST AS NICHE PRODUCT?

ØA tool used in solving the marketing mix problem companies face when launching a new product is a perceptual map. ØThis is a graphic representation of two or more features against which similar products can be ranked. ØWhen graphed, the resulting map displays areas to which the product types cater, revealing both areas of over population and areas of potential opportunity. ØClusters of products exist when similar products appeal to the same consumer market participants. Ø In these areas, competition is intense, therefore, they are not as attractive when positioning a new product.

ØAn optimal plan is to create a space within the product market that is relatively free of rivals and can enable a new product to develop and dominate. ØUsing these evaluative criteria in relation to the advantages and disadvantages of niche and mainstream marketing, we believe that Colgate-Palmolive should position the Precision toothbrush as a niche product. ØThis would establish Precision as the leading toothbrush on the market at a competitive price. It would be a superior and distinctive oral care product. ØFurther, we anticipate no significantly negative issues will be encountered by initially marketing Precision as a niche product and then moving it into the mainstream market.

STRATEGY MARKETING MIX

Elements of marketing strategy qMarket selection qProduct selection qDistribution system qAdvertising/market communication qPrice qPlace qPromotion The combination of these several factors , and others, and the relative emphasis on each in a marketing program is called the MARKETING MIX. Colgate-Palmolive also had to develop budget constraints and generate a marketing mix that would maximize the sales and revenues of the new product.

PRODUCT To reach a conclusion, the new toothbrush must be analyzed on three product levels – the core product, the actual product, and the augmented product For visual recognition and conveying the message that it protects the gums too along with teeth packaging could be done in gum pinkish colour with white border. A photograph of dentist recommending it could be placed on the packet. To maximize on these cosmetic suggestions, the new toothbrush should be offered with a multitude of color stripes, full and compact heads, and with sensitive, soft, and medium bristles

ADVERTISING qAdvertising companies have access to audience profiles through a wide variety of media products, such as television, radio and print media. This is the fundamental basis for successful niche marketing. qA great advantage of offering any eligible product to a niche market is that it allows for a concentrated, specific advertising campaign, targeted to a specific demographic, psychographic, behavioral or geographic segment through whichever medium is most effective at reaching the specific population. qThis allows efficient use of advertising budgets. Precision falls within the class of goods that could tender itself as a niche product. Developed to be the best toothbrush possible and placed in the super-premium category, this toothbrush is inherently a niche product.

DISTRIBUTION SYSTEMqNegotiating exclusive or selective distribution agreements with vendors would be prohibitively costly for both Colgate-Palmolive and the vendor. qInstead, Colgate-Palmolive should focus their efforts on intensive distribution, maintaining and increasing the strength they have in their current shelf positioning, display models and vendor relationships.

PRICE Although the $2.13 per unit cost may be high relative to all toothbrushes, Precision is being targeted towards a specific group of consumers who have a demand for a superior oral care product.

Thus, relative to the super-premium

segment, Precision is actually the best purchase available, as it offers superior technology and improved oral health care for no additional cost.

PLACE The distribution strategy proposed for the Precision toothbrush is through dentists, plastic

surgeons,

drug

stores,

grocery

stores, large retail stores, and department stores. , Colgate-Palmolive should focus their efforts on intensive distribution, maintaining and increasing the strength they have in their current shelf positioning, display models and vendor relationships.

PROMOTIONqThe communication objective for the new product becomes to convince therapeutic and cosmetic brushers that they should purchase and use Colgate Precision because Precision is designed to be the best toothbrush for removing plaque and preventing gum disease. . qIt will be important to place certain message emphasis on the prevention of gum disease, . qCommercials should air at night during “prime-time”, the time in which most people watch television, and during the day, especially during soap operas. These are the time periods in which more adults watch television.

qColgate could direct market the toothbrush by sending special coupons in the mail to consumers, or by offering rebates to consumers who purchase other Colgate-Palmolive oral care products. These rebates and coupons would act as an incentive to consumers when it comes to purchasing or trying the new toothbrush. qThese coupons and rebates could also be dispersed through hard to eat food products qThe toothbrush should be distributed through makeup departments because most people who shop for make up at large department stores are also concerned with looking their best.

To ensure the success of Precision, Colgate-Palmolive should: •Ensure the productdoes, and continues to, address the specific therapeutic needs and gradually it should enter in mainstream market and build a wide consumer base. •PricePrecision at competitive levels within the super-premium segment so as to offer more value than competitors, for an equivalent cost; later on if it is successful in building wider consumer the prices could be reduced. •Leverage their existing intensive distribution channel relationships to ensure that Precision receives the most effective placement •And, invest industry-standard amounts of capital into the promotion of the new toothbrushsince only through innovation they can differentiate

CONCLUSION Hence Colgate-Palmolive is recommended toposition the Precision toothbrush as a niche market product during its introductory and growth life cycle stages. Thereafter, during the products’ maturity, Precision should be repositioned to the mainstream market.

Thank you