Colgate-Palmolive Company - the Precision Toothbrush What Should Ms. Steinberg Do and Why?

In 1991, Colgate-Palmolive launched 275 new products, worldwide, and spent over $114 million on research and development. CP was clearly looking to position themselves and an innovator in the oral care market. With the emergence of the “super-premium” market segment, the company needed to continue on their path of technical innovation, to satisfy a consumer that was becoming increasingly more concerned with oral health. within the next year, growth in the category accounted for 35% in unit volume, but made up 46% of dollar sales. This meant that not only was the category huge, it was more profitable than the professional or value segments. Research was also shown to indicate that while consumers could be divided into three categories; Therapeutic, Cosmetic and Uninvolved, 46% of all consumers fell into the Therapeutic category. This segment was most concerned with preventative oral healthcare and searched for the most effective tools. This was the group to target. With the competitor launch of the Oral-B Indicator, Reach Advanced Design, Crest Complete, and the Aquafresh Flex, Colgate-Palmolive needed to develop a toothbrush a step above their current professional toothbrush, Colgate Plus, and they needed to do it fast.

As a response to the increasing growth in the super-premium market, as well as the overwhelming power of the therapeutic consumer, Colgate-Palmolive developed the technically innovative Colgate Precision. With an increase of 35% in plaque removal, Precision was a clear step above the competition. Due to the innovative design, the brush appeared very different from the competitors super-premium SKUs. This made acceptance slow. However, once the test consumers tried the product, an overwhelming 77% reported that the Precision was “much more effective than their current toothbrush.” Though this was promising, it meant that product sampling and deep discounts though coupons and promotion were crucial to success. The study also found...