1. Kim Pauszek
Colgate-Palmolive Case-Marketing Plan
I. Executive Summary
A. Summary of situation analysis
The Colgate-Palmolive case involves the Precision toothbrush, which was
entered into the market in 1993 by Colgate-Palmolive. This marketing plan
summarizes the company’s situation at the time the Precision toothbrush was
introduced, and the different marketing strategies that we believe would be
best for Colgate-Palmolive and their new toothbrush.
B. Summary of marketing strategies
The marketing strategies include proposed strategies involving product,
price, place, and promotion.
C. Budget summary
Included in the marketing plan are pro-forma income statements for
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.
II. Situation Analysis
A. The Industry
1. Definition of industry
The purpose and main focus of the oral health care industry is to prevent
teeth and gum diseases and to deliver cosmetic benefits. Examples of
products in this industry include toothbrushes, toothpaste, dental floss, and
mouth rinses. 2. History of Industry

2. Toothbrushes first evolved in 3000 B.C., and advancements have
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,
Smithkline Beecham, Lever, Pfizer, and Sunstar.
3. Growth Patterns
Consumers first purchased toothbrushes without much knowledge or
information concerning the product’s benefits. As 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. Because 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. The superpremium product
class was a “sub-category of toothbrushes partly offset by
downward pressure on average retail prices in mass-merchandiser channels,”
(Harvard). Consumers began to purchase toothbrushes based on the specific
benefits each toothbrush and company had to offer.
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
the market in 1873, by producing “its first toothpaste, an aromatic dental

3. cream sold in jars” (Colgate-Palmolive, 1 of 3). By 1991, Colgate-Palmolive
had become the leader in not only household products but also in oral health.
2. Size, growth, profitability
By the early 1990’s there were many different companies that focused on
oral care products, with the leader being Colgate-Palmolive. By 1991,
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
1. Development and history
The product in which this marketing plan focuses around is the Precision
toothbrush. Production began in 1989 when the company put together a
research team whose purpose was aimed at testing the design of the
toothbrush, how the company would market the product, and how the
company would gain a competitive advantage over others. Colgate-Palmolive’s mission was to
“develop a superior, technical, plaque-removing
device” (Harvard).
Colgate-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” (Harvard). By
studying consumers brushing techniques, and focusing on areas of the mouth

4. that had developed excessive amounts of plaque build-up, such as in between
the teeth and on the gum line, researchers were able construct a newly
designed toothbrush. The 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 (Harvard).
2. Design/quality
The 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,”
(Harvard). Because of the newly innovated bristles, the removal of plaque
increased by 35% when compared to other leading producers of toothbrushes.
3. Goods classification The Precision toothbrush can be classified as either a homogeneous or
heterogeneous shopping product. Some 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” (McCarthy).
4. Price
Under a niche-positioning strategy Colgate-Palmolive would price the
toothbrush at $2.13 a unit. Under a mainstream-positioning strategy, the

5. company would price the toothbrush at $1.85 a unit. If the toothbrush was
sold to dental professionals “eighty percent of sales *…+ would be priced at
$.79 per unit; the remainder would be sold at $.95” (Harvard).
5. Branding
Colgate-Palmolive considered many different names, which included,
“Colgate System III, Colgate Advantage, Colgate 1.2.3, Colgate Contour,
Colgate Sensation, and Colgate Probe” (Harvard). Colgate-Palmolive decided
upon the name Precision, because they did not want a name that could lead
customers to associate the new toothbrush with their already existing
toothbrush, Colgate Plus. This is called cannibalization.
6. Promotion
The price budget for promotion was set at 14.4 million dollars. The
company’s promotion plan was to “induce trial” (Harvard). ColgatePalmolive planned to
promote the Precision toothbrush one, by offering a free five-ounce tube of toothpaste or a
fifty percent off coupon that could be put
towards any other size of toothpaste to every consumer who purchased a
Precision toothbrush, and two by offering $.50 off coupons.
7. Positioning
The position of the Precision toothbrush could be niche or mainstream. If
the position were to be niche, concentration would be placed on the
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
be mainstream, concentration would be placed on “being the most effective
brush on the market, [and] volume shares would be 10% in year 1 and 14.7 in
year 2,” (Harvard).

6. 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.
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
with what type of toothbrush they desired.
2. Purchasing characteristics Many toothbrush purchases are unanticipated, “with consumers
purchasing toothbrushes once every 11.6 month. Forty-eight percent of
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
bristles became visibly worn. Eleven percent decided to switch to a new
brush after seeing their dentists, and only 3% admitted to purchasing on
impulse,” (Harvard).
4. Market needs
In most cases consumers only need two to three toothbrushes a year.
“Sixty-five percent of consumers had more than one toothbrush, 24% kept a
toothbrush at work, and 54% had a special toothbrush for traveling,”
(Harvard).
5. Buying behavior patterns

7. Many consumers base a lot of their purchase decisions on how
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).
When it comes time to purchase a toothbrush, there are three different
consumer groups. These groups include therapeutic, cosmetic, and
uninvolved brushers. Therapeutic brushers are concerned with oral care
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
and lack interest in this product category,” (Harvard).
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
Many competitors striving to succeed in the oral care market such as
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

8. care,” besides toothbrushes and toothpaste (Harvard). Because there are many
primary competitors in the oral care market, product innovation is a key factor
to a company’s success. Colgate-Palmolive not only had to worry about
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 &
Johnson, and Procter and Gamble.
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
advertising for a newly developed product. It was to Colgate-Palmolive’s
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
merchandisers gained share due to increased in-store promotional support”
(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
distribution of oral care products.

9. 1. Strengths/Weaknesses of Distribution
Since many of the food stores began to open more shelf space for oral care
products, this would allow for Colgate-Palmolive to situate the Precision
where they thought it would gain attention from consumers. The only
drawback about distribution for Colgate-Palmolive was dentists. ColgatePalmolive did not hold
the market share for the distribution of toothbrushes in
dentists’ offices. “With a dedicated sales force, Oral-B dominated this market”
(Harvard). Without dominating the dentist market for toothbrushes, ColgatePalmolive would
have to focus more strongly on other retail locations, considering in 1992, “22% of all
toothbrushes were expected to be distributed
to consumers by dentists” (Harvard).
G. Communication Strategies
1. Promotion pricing
It has been proven that increasing promotion has lead to an increase in
consumer demand. Both Colgate-Palmolive and their competitors spent a lot
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
expenditures,” (Harvard). These figures are also summarized in Attachment
1-Advertising Budget.
Because competition was increasing, these companies saw it necessary to
increase their spending on promotion. Companies began to offer purchase
deals, such as buy one get one free, special percent off coupons, and mail in
rebates.

10. 2. Advertising programs
“Total media spending for the category, primarily on television
advertising, was estimated to total $55 million in 1992 and $70 million in
1993,” (Harvard). Between the years 1985 and 1992, Colgate-Palmolive ran
four different commercials. Each commercial had its own marketing
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
harder-hitting copy.” Colgate’s copy platform for this commercial stated,
“Plaque focus, Efficiency message.” Colgate’s execution plan was, “Armed
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).
III. Marketing Strategy
A. General marketing strategy
1. Niche/mainstream positioning strategy
The main focus of niche positioning would be placed on consumers
who are concerned about the prevention of gum diseases. There would be
many positive benefits to the company if Colgate-Palmolive were to position
the Precision toothbrush as a niche product. These benefits would include
one, by targeting the segment of consumers who are worried about gum
disease; Colgate-Palmolive would be able to charge premium prices. Two,
Colgate-Palmolive would be able to differentiate the Precision toothbrush
from other toothbrushes, because of Precision’s technological superiority over
the other toothbrushes already on the market. Three, it is safe to say that

11. SKU’s would not decrease if Colgate-Palmolive were to position the Precision
as a niche product. And four, if costs were to decrease then it enables Colgate
to reduce the losses of Precision if it were not successful. Niche positioning
not only offers positive benefits, but it also offers negative ones as well.
The negative benefits if Colgate-Palmolive were to position the Precision
toothbrush as a niche product would include one, sales in mass merchandisers would decrease,
and two, retail sales would be less if niche positioning were
used.
Mainstream positioning would place emphasis on the Precision toothbrush
as being the most appealing and effective toothbrush available on the market.
The advantages of using mainstream positioning for the Precision toothbrush
would be one, most retail stores are under a mainstream position rather than a
niche position. Two, in the super-premium category, the Precision toothbrush
would be the most superior product. And three, by positioning the toothbrush
as a mainstream product, it would in return increase name recognition for
Colgate. Negative advantages of using mainstream positioning for the
Precision toothbrush are one, although the toothbrush would be superior to the
other super-premium toothbrushes, the prices for the Precision and other
brushes would be equal. Equal prices would then lead to increased
competition, which in return could cause prices to go up. A second
disadvantage could also lead to the cannibalization of Colgate-Palmolive’s
other super-premium toothbrush, the Colgate Plus. And three, a mainstream
position would probably lead to the reduction and removal of one or more
SKU’s.

12. By looking at Attachment 2-Pro-forma Income Statement For Launch
of Precision, which compares the profits if Colgate-Palmolive were to use
niche or mainstream positioning, one would be able to see that if mainstream
positioning were to be used for the Precision toothbrush, it would generate
more profits to Colgate-Palmolive. We believe that maximizing your profits is the most
important thing, and that positioning the Precision toothbrush as a
mainstream product, rather than a niche, it would create higher profits.
2. Product differentiation strategy
By differentiating a product, it creates a difference that sets certain
products apart from other products, and also targets certain market segments.
Colgate-Palmolive will need a product differentiation strategy that will make
the Precision toothbrush unique from all other toothbrushes already
available on the market. The company will also need a strategy that will
appease to certain consumer segments. By coming up with this strategy, it in
return will cause Colgate-Palmolive to increase profits and market share.
The main area of this strategy’s focus should be placed on the design and
packaging of the toothbrush. For example, we suggest Colgate make
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
way. We suggest that a picture is placed on the toothbrush package showing
the different lengths of bristles, and an explanation of what each length is
responsible for doing. Also we suggest that the bristles be different colors
representing the different lengths. This way the consumer will be able to

13. differentiate the Precision from all other toothbrushes.
We suggest that Colgate-Palmolive package the Precision toothbrush
differently than the other toothbrush companies. We think that the
toothbrushes’ packaging should be very colorful in order to draw customer attention away from
other brushes. The name Precision should also be placed
on the packaging in a distinct font.
3. Price/quality differentiation strategy
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
more qualities than the other toothbrushes available on the market, at or
around the same price as the competition, consumers will hopefully want to
purchase the Precision toothbrush over the others. There will be more
qualities offered at no extra charge.
The price of the toothbrush if positioned as a mainstream product will
have to be equal to the prices of the other toothbrushes already available on
the market. If the Precision toothbrush is profitable and there is a high
percentage of consumer demand, then Colgate-Palmolive might want to
consider increasing the price of the toothbrush by a small margin.
4. Mission marketing strategy
Colgate-Palmolive’s mission strategy is to be successful in the toothbrush
market, and hope the Precision toothbrush is not a failure. They will strive to
gain a competitive advantage over other companies, while producing a profit,
and satisfying the wants and needs of buyers. A goal of Colgate-Palmolive is
for the Precision toothbrush to add utility or value to its consumer’s lives.

14. 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
plaque and gum disease. These consumers are known as “therapeutic
consumers,” because they purchase products, toothbrushes, that will be the
most effective when it comes to oral health care. These consumers “buy and
use products for themselves,” (Harvard). Consumers in this target market
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
who have oral health problems.
When distributing the Precision toothbrush to this market segment, we
suggest they place emphasis of distribution on dentists, drug stores, grocery
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
distributor when it comes to dentists, this would be a good opportunity for
Colgate to gain competitive advantage over Oral-B, by getting dentists to
distribute the new toothbrush while selling the benefits to patients.
Advertising and promotion should be done through commercials,
magazines, radio, and ads put up in places such as dentists offices. These
advertising and promotion mediums should target this segment’s consumers,
and should focus on the benefits the Precision toothbrush has to offer in

15. connection with oral healthcare. Commercials made for this market segment should also
show the benefits of the toothbrush, possibly through
demonstration. Commercials 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. Also when it comes to advertising, Colgate-Palmolive should
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
available on the market.
Colgate 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. These coupons and rebates could also be dispersed through
hard to eat food products, such as popcorn. Also in-store displays could be set
up through out stores. These in-store displays could also include
demonstrations.
2. Target market B and proposed strategies
The second segment market that we would target the new Precision
toothbrush would be consumers concerned with their oral hygiene, such as
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,”
(Harvard). Target B consumers feel the same way as Target A consumers

16. when it comes to pricing. Most are willing to pay more if the product offers
more advantages than competing products, although because the toothbrush
will be positioned as a mainstream product, price will vary in accordance to
the prices of other toothbrushes.
When it comes to the distribution of this product, the toothbrush should be
distributed through the same locations as Target A, with the addition of plastic
surgeon practices and make-up departments of large retail department stores,
such as Von Maur, and Bloomingdales. The toothbrushes should be
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
their teeth. The toothbrush should be distributed through make-up
departments because most people who shop for make up at large department
stores are also concerned with looking their best.
Advertising and promotion should be done in a similar manner as Target
A, through commercials, magazine ads, the radio, with the addition of
placing advertisements on billboards, and buses. The commercials and other
advertisements should focus on the cosmetic benefits of the toothbrush. We
suggest the adds show well made up men and women, who one can tell place
great emphasis on their looks, demonstrating the strengths of the new
toothbrush. The placement of ads on billboards and buses throughout the larger cities will
hopefully increase consumer demand because many people
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

17. 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.
By placing the new toothbrush on the shelf between an existing Colgate
product and a competitor’s profits, this may or may not be a good idea. By
placing the product next to an existing company’s product, consumers may
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
consumer questioning which product is better, hopefully causing the consumer
to try the new product, over its competing product.
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
quality of the Precision toothbrush will be significantly higher than other

18. leading toothbrushes, the price of the toothbrush will be determined by the
prices of the other toothbrushes already in the market. This pricing strategy is
a result of positioning the toothbrush as a mainstream product rather than a
niche product.
3. Place
The most important part of marketing is how a product will get from the
seller to the buyer. Many products go through a channel of distribution,
which involves, manufactures, wholesalers, retailers, and consumers. The
distribution strategy proposed for the Precision toothbrush is through dentists,
plastic surgeons, drug stores, grocery stores, large retail stores, and
department stores.
4. Promotion
Product promotion is communication spread through advertising,
publicity, and sales promotion. We suggest that Colgate-Palmolive
advertise their products by using commercial, magazine ads, the radio,
ads that are to be placed in dentist offices, billboards, and the sides of
buses. Advertising is done to promote new products, remind consumers 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
usage of in-store displays.
C. Attachments
1. Attachment 3-Pro-forma Income Statements Without Precision
Launch 1989-1993 Works Cited

19. Laidler, Nathalie. “Colgate-Palmolive Company: The Precision Toothbrush.” Harvard
Business School. 1993
McCarthy, Jerome E. and William D. Perreault. Basic Marketing: A Global-Managerial
Approach. New York: McGraw-Hill Companies, 2002. 276-277.
Younger, Vicki. “Colgate Palmolive.” Redgum Soaps. 8 Sept. 2002.
http://www.redgumsoaps.com.au/soaphistory/colgate.htm.