Colgate Precision Toothbrush Section C
PGP 2011-13 Page 3
hand placed in high price niche segment offering aesthetic, therapeutic and cosmetic value,while others were placed in the mainstream segment for the masses.
There is considerable fragmentation in the market and hence, there is severe competitionamongst the players. In order to get an edge, competitors, Johnson & Johnson, Oral-B, Procter& Gamble, and Smithkline Beecham, are offering promotions in the form of coupons, mail-in
refunds and discounts. The company’s competition may be analyses on the basis of stock
keeping units (SKUs) and on the basis of the price segments. The company faces toughcompetition in super premium segment from companies such as Oral-B, Reach AdvancedDesign, Crest and Aquafresh Flex. In addition, all companies spend a sizeable share of theirrevenues on advertisement, which adds up to the competition. Also, the players have beenfairly lenient in allowing other players to enter into the market, fostering competition. Playershave exhibited some slackness on their parts, by remaining ignorant to some of thetechnological advancements and shift in consumer behavior. As an instance, in 1988, Johnson &
Johnson introduced “new brush technology” only to phase it out by 1992. Hence there are
healthy competitions in the market.
On basis of Price: Toothbrush industry is divided into mainly three segments on the basis of price: Value, Professional and Super Premium.Value brushes priced average at $1.29 accounted for 24% of unit volume and 12% of dollarsales on the other hand Professional brushes, priced between $1.59 and $2.09, account forcorresponding 41% and 42%. Super Premium brushes category emerged in late 1980s and by1992, its retail prices were between $2.29 and $ 2.89 and it accounted for 35% of unit volumeand 46% of dollar sales.
On the basis of attributes: In this, toothbrush differed by bristle type( firm, medium, soft ,and extra soft) and by head size( full/adult, compact , and child/youth)
:In this market is divided into groups on the basis of variables such as age, family size, family lifecycle etc. They are often associated with consumer needs and wants and are easy to measure.In 1980s, toothbrush industry had market on the basis of adult and child aesthetic. The childrensegment had variety of new products like brushes with sparkling handles, bugs and bunny etc.and later new products mainly focused on technical performance improvements.