Precicion

Group 14
Toothbrush Please enter Names Here

Harshank Agarwal (0110)

Anshuman Majhi (0094)
By Colgate Palmolive
STP Analysis
 Market Segmentation

Therapeutic Cosmetic Uninvolved

Uninvolved
Consumers Therapeutic
33% Brushers Differentiate among Search for products Lack of interest
46% products that deliver cosmetic
benefits

Buy and use for Buy and use for Buy and for all family
themselves themselves members

Oral-B Angle, Oral-B Colgate Classic, Oral- Colgate Classic, Oral-

Regular, Colgate B Regular, Colgate B Regular, Colgate
Plus Plus Plus
Cosmetic
Brushers
21%

Target Market
Targeting
● Consumer behavior study conducted by Colgate showed adults were ready to pay a premium
for gum protecting products
● The target audience for precision would be primarily therapeutic and cosmetic buyers since
it’s a technically advanced product

Consumer Behaviour

Healthier Gums

Don't care about price given gum

disease protection
More plaque removal with prevention of
gum disease
0% 20% 40% 60% 80% 100%
Probably Would Buy Would Not Buy
Positioning
• Objective was to create the best brush possible, in the Super Premium Segment
• There were 2 major positioning strategies that were considered – Niche & Mainstream
• Launching it as mainstream would require large production lead time due to increased demand
• Even argued to launch first as Niche and then expand to mainstream

Volume Share Estimates

20
14.7%
15
Shares (%)

10%
10
5%
5 3%

0
Niche Mainstream
Year 1 Year2
Positioning
Niche Product Mainstream

Positioning Consumers concerned about gum Broader appeal with most affective brush
disease
Price $2.13 (above Oral-B Regular) $1.85 (parity with Oral-B Regular)

Shelf Positioning Between Colgate Plus & Oral-B Close to competitive super premium brushes

Shelf Space No existing SKUs dropped from Drop one or more SKUs
shelf
Cannibalization Less internal cannibalization Cannibalization with Colgate Plus (35-60%)

Distribution Food & drug stores Mass merchandisers and club stores
Channel
Product Segmentation Super
Premium
• Till 1980’s there existed only 2 segments: Value PI: 130-165
& Professional
• Super Premium emerged in late 1980’s
• Late 1980’s also introduced aesthetic brushes
including children’s segment Professional
• However, by 1991, focus again shifted to PI: 90-120
technical improvements

Unit Volume Dollar Sales

Super Value
Value Premium 12%
24% 35%
Super Value
Premium
46% PI: <90

Professio
Professio nal
nal 42%
41%
1992 Scenario PI: Price Index