Professional Documents
Culture Documents
Marketing Plan
Marketing Plan
I. Executive Summary
summarizes the company’s situation at the time the Precision toothbrush was
C. Budget summary
Colgate Palmolive if they were to launch the product, and also if they were to
choose not the launch the product. Also included is an advertising budget.
A. The Industry
1. Definition of industry
The purpose and main focus of the oral health care industry is to prevent
mouth rinses.
2. History of Industry
continued ever since. Such advancements include the head shape, size,
flexibility, bristle texture and type, color, and angled handles. Companies,
other than Colgate-Palmolive, that have entered into the toothbrush market
include Oral-B, owned by Gillete, Johnson and Johnson, Procter and Gamble,
3. Growth Patterns
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
increase, advertising and promotion also began to increase, which lead to the
B. The Company
1. Brief History
The Colgate-Palmolive Company was founded in 1806 by William
Colgate. The company first began by centering their production around soaps,
perfumes, and candles. They began introducing oral health care products to
had become the leader in not only household products but also in oral health.
By the early 1990’s there were many different companies that focused on
Colgate-Palmolive held the number one position in the world for the sale of
oral care products, accounting for 19% of the worlds toothbrush market. The
company’s sales and profits were increasing each year, and by 1991 sales
totaled “1.03 billion dollars, while profits totaled 9.8 million dollars,”
(Harvard). At this point in time Colgate had introduced two different types of
toothbrushes to the market, the Colgate Classic and the Colgate Plus.
C. The Product
The product in which this marketing plan focuses around is the Precision
research team whose purpose was aimed at testing the design of the
toothbrush, how the company would market the product, and how the
device” (Harvard).
the teeth and on the gum line, researchers were able construct a newly
designed toothbrush. The research team tested and experimented with the
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
2. Design/quality
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,”
3. Goods classification
The Precision toothbrush can be classified as either a homogeneous or
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” (McCarthy).
4. Price
company would price the toothbrush at $1.85 a unit. If the toothbrush was
5. Branding
upon the name Precision, because they did not want a name that could lead
6. Promotion
The price budget for promotion was set at 14.4 million dollars. The
7. Positioning
prevention of gum disease, and “retail sales would represent 3% volume share
of the toothbrush market in year 1 and 5% in year 2.” If the position were to
brush on the market, [and] volume shares would be 10% in year 1 and 14.7 in
product.
D. The Market
1. Location
The oral health care market is spread worldwide mainly targeting grocery,
drug, convenience, and large retail stores. The toothbrush market in the past
had few types of toothbrushes, while today’s market carries many various
types of toothbrushes. This may have been due to lack of consumer concerns
2. Purchasing characteristics
Many toothbrush purchases are unanticipated, “with consumers
consumers claimed to change their brushes at least every three months; the
trigger to purchase a new brush for 70% of them when their toothbrush
impulse,” (Harvard).
4. Market needs
“Sixty-five percent of consumers had more than one toothbrush, 24% kept a
(Harvard).
comfortable a toothbrush feels in their mouths, whether the bristles are soft
enough, whether the head shape suits their mouth size, or whether the
toothbrush is flexible enough. They also base their purchases around the
ability of the toothbrush to “remove food particles; plaque removal and gum
stimulation,” (Harvard).
problems. They brush to prevent disease or other oral health risks, and
“search out functionally effective products.” Cosmetic brushers are concerned
with bad breath and their appearance, and “search for products that effectively
deliver cosmetic benefits.” Uninvolved brushers “view all products the same
E. The Competition
1. Identification of competitors
• Oral-b: Indicator
• Johnson & Johnson: Reach
• Proctor & Gamble: Crest Complete
• Smithkline Beecham: Aquafresh Flex
2. Weaknesses of Competition
Oral-B and Johnson & Johnson know that in order “to be a leader in the oral
care category, companies have to be able to compete in all areas of the oral
care,” besides toothbrushes and toothpaste (Harvard). Because there are many
primary competitors in the oral care market, product innovation is a key factor
cannibalizing their own products, they also had to worry about the new line of
products that were being introduced by such companies as Oral-B, Johnson &
In 1991, it was estimated that Oral-B held 23.1% of the market share and
Johnson & Johnson held 19.4% of the market share. With companies holding
such large shares of the market, Colgate-Palmolive had to worry about the
innovation of new products that could compete with the Precision toothbrush.
Companies that hold large market shares can afford to pay for more
advantage that they had their share of 16% of the toothbrush market
(Harvard).
F. Distribution
1. Types of Distribution
Aside from convenience stores and large retail stores, many food stores
played a key role in the distribution of oral health care products. “Mass
(Harvard). Because of the increase in the demand for oral care products,
stores began shelving more oral care products. This was a big advantage for
Colgate-Palmolive because there would be more room in the stores for them
to market the new Precision toothbrush. Dentists also played a big role in the
1. Strengths/Weaknesses of Distribution
Since many of the food stores began to open more shelf space for oral care
where they thought it would gain attention from consumers. The only
Palmolive did not hold the market share for the distribution of toothbrushes in
dentists’ offices. “With a dedicated sales force, Oral-B dominated this market”
G. Communication Strategies
1. Promotion pricing
of money on the promotion of their new products. “Johnson & Johnson spent
$8 million in medias support to introduce its new Reach brush; Oral-B spent
$10 million to launch its new Indicator brush; and Proctor & Gamble was
expected to support its Crest Complete brush with $15 million in media
1-Advertising Budget.
deals, such as buy one get one free, special percent off coupons, and mail in
rebates.
2. Advertising programs
advertising, was estimated to total $55 million in 1992 and $70 million in
1993,” (Harvard). Between the years 1985 and 1992, Colgate-Palmolive ran
situation, platform, execution plan, and tag line. The marketing situation that
the last commercial dealt with before the introduction of the Precision
toothbrush was “Increased competitive activity and consequent need for
to the Teeth, execution where the bristles were soldiers.” And Colgate’s tag
line was, “In the fight against plaque, it’s a Plus,” (Harvard).
who are concerned about the prevention of gum diseases. There would be
one, by targeting the segment of consumers who are worried about gum
the other toothbrushes already on the market. Three, it is safe to say that
as a niche product. And four, if costs were to decrease then it enables Colgate
not only offers positive benefits, but it also offers negative ones as well.
used.
as being the most appealing and effective toothbrush available on the market.
would be one, most retail stores are under a mainstream position rather than a
would be the most superior product. And three, by positioning the toothbrush
Precision toothbrush are one, although the toothbrush would be superior to the
other super-premium toothbrushes, the prices for the Precision and other
position would probably lead to the reduction and removal of one or more
SKU’s.
products apart from other products, and also targets certain market segments.
available on the market. The company will also need a strategy that will
The main area of this strategy’s focus should be placed on the design and
sure the consumers know that the bristles are of different lengths for a reason,
for the reduction of plaque build-up in places such as the gum line and in
between the teeth, and that no other toothbrush on the market is designed this
responsible for doing. Also we suggest that the bristles be different colors
representing the different lengths. This way the consumer will be able to
Our main focus here is on the customers. We want them to be able to get
the most for their money. By producing a superior toothbrush, that offers
around the same price as the competition, consumers will hopefully want to
purchase the Precision toothbrush over the others. There will be more
market, and hope the Precision toothbrush is not a failure. They will strive to
for the Precision toothbrush to add utility or value to its consumer’s lives.
B. Target markets
1. Target market A and proposed strategies
The first segment market that the Precision toothbrush will target will be
consumers who are concerned about oral health issues, such as fighting
most effective when it comes to oral health care. These consumers “buy and
usually do not care about the price, as long as they are getting the highest
quality products. Most consumers in this segment are adults, especially ones
stores, and large retail stores. Dentists would be a good when distributing
the new toothbrush because many dentists act as “opinion leaders”, meaning
they have a big impact on what others think. Although Oral-B is the main
magazines, radio, and ads put up in places such as dentists offices. These
and should focus on the benefits the Precision toothbrush has to offer in
connection with oral healthcare. Commercials made for this market segment
should also show the benefits of the toothbrush, possibly through
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
institutional advertise, meaning they should not only promote their new
Precision toothbrush, but they should also promote the company’s image.
This in return will remind consumers of Colgate’s other products that are
other Colgate-Palmolive oral care products. These rebates and coupons would
new toothbrush. These coupons and rebates could also be dispersed through
hard to eat food products, such as popcorn. Also in-store displays could be set
demonstrations.
The second segment market that we would target the new Precision
bad breath, and personal appearance. Many, but not all, consumers in this
group are female adults who worry about what they look like. These
consumers purchase products that will “effectively deliver cosmetic benefits,”
when it comes to pricing. Most are willing to pay more if the product offers
distributed through the same locations as Target A, with the addition of plastic
distributed through plastic surgeons because many people who visit a plastic
surgeon are concerned about their appearance, and would likely consider the
different options available to them that will enhance their appearance, such as
departments because most people who shop for make up at large department
suggest the adds show well made up men and women, who one can tell place
who live in large cities have important jobs that require them to look nice.
Special promotions that Colgate can offer can be through other Colgate
products that many consumers also associate with appearance and oral
hygiene. Such products can include dental floss and mouth rinses. As with
Target A, special rebates and coupons can be offered through these products.
Also, the use of in-store displays could be useful when promoting the
toothbrush.
product and a competitor’s profits, this may or may not be a good idea. By
not see the benefits of switching, and could continue to prefer using the
existing product rather than even considering trying the new one. But by
placing the new product next to a competitor’s product, it may lead to the
C. Summary of tactics
1. Product
The product, the Precision toothbrush, is a product that should add value
to a buyer’s life. It should also add utility, and meet the wants and needs of
targeted consumers. The product should be unique and different from all
similar products that are already available on the market. The strategy is to
differentiate the product’s design and packaging, which in return will cause
the toothbrush to stand out.
2. Price
The price of a product says something about the quality. Even though the
prices of the other toothbrushes already in the market. This pricing strategy is
niche product.
3. Place
The most important part of marketing is how a product will get from the
plastic surgeons, drug stores, grocery stores, large retail stores, and
department stores.
4. Promotion
ads that are to be placed in dentist offices, billboards, and the sides of
existing products, and also promote the image of the company at hand. We
also suggested that Colgate offer special coupons and rebates through their
other products, and also food products. Also, Colgate could benefit from the
C. Attachments
Launch 1989-1993
Works Cited
Laidler, Nathalie. “Colgate-Palmolive Company: The Precision Toothbrush.” Harvard
http://www.redgumsoaps.com.au/soaphistory/colgate.htm.