Colgate Palmolive-Precision Toothbrush Case
COLGATE - PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH
I-SYNOPSIS
In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products like toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2.76 billion and it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. It was also the leader in retail toothbrush sales in the United States.
Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. But the 1990s saw that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. This led to a rise in the sales of therapeutic toothbrushes. The toothbrush industry experienced a massive influx of worthy competitors and this led to the formation of a niche, super-premium market. In order to gain an edge each competitor worked on developing new toothbrush technology, forming alliances with dental professionals, expanding advertising budgets and offering promotions that would grab consumer attention.
In August 1992, Colgate – Palmolive was poised to launch a new toothbrush in the United States, tentatively named Colgate Precision in the super-premium market. Precision, was proven to be very effective in removing plaque – 35% more effective than existing brands – and in preventing gum disease. This advantage has been attributed to the innovative design, high-tech research using CAD and infrared scanning, consumer research and extensive product testing. CP’s Oral Care had been developing this technologically superior toothbrush for over three years. But the market was highly competitive with new products already in the fray. CP had to market Colgate Precision as per existing market strategies that include proposed strategies involving product, price, place, and promotion. The issues and Challenges, Analysis and Recommendations of the case are enumerated in the succeeding
I-SYNOPSIS
In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products like toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2.76 billion and it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. It was also the leader in retail toothbrush sales in the United States.
Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. But the 1990s saw that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. This led to a rise in the sales of therapeutic toothbrushes. The toothbrush industry experienced a massive influx of worthy competitors and this led to the formation of a niche, super-premium market. In order to gain an edge each competitor worked on developing new toothbrush technology, forming alliances with dental professionals, expanding advertising budgets and offering promotions that would grab consumer attention.
In August 1992, Colgate – Palmolive was poised to launch a new toothbrush in the United States, tentatively named Colgate Precision in the super-premium market. Precision, was proven to be very effective in removing plaque – 35% more effective than existing brands – and in preventing gum disease. This advantage has been attributed to the innovative design, high-tech research using CAD and infrared scanning, consumer research and extensive product testing. CP’s Oral Care had been developing this technologically superior toothbrush for over three years. But the market was highly competitive with new products already in the fray. CP had to market Colgate Precision as per existing market strategies that include proposed strategies involving product, price, place, and promotion. The issues and Challenges, Analysis and Recommendations of the case are enumerated in the succeeding