2024 03 19 Colgate Precision Toothbrush Part B - V1

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Apr 3, 2024

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BMK710 – Brand Strategy and BMK 711 – Brand Metrics Colgate-Palmolive Company: The Precision Toothbrush Decision REMINDER This is an individual case and, as such, must demonstrate your knowledge of the appropriate course material and your ability to effectively communicate. It is not to be worked on as a “team” effort. THE MANDATE This case takes place in August 1992 and your analysis, alternatives & recommendations must reflect the situation at that point in time. You are the new Brand/Product Manager for Toothbrushes for Colgate-Palmolive U.S. replacing Susan Steinberg who has left the company for another opportunity. Your business decision deck must be written from that perspective and your mandate is to: Build the complete business case (qualitative & quantitative) to decide on the target audience, positioning, positioning statement and branding for the Colgate Precision toothbrush and, ultimately, whether or not Colgate should launch the Precision toothbrush and then present your business case to Colgate’s Chief Marketing Officer (your professor) in a business meeting format. This submission is to be a comprehensive and complete new product introduction recommendation which incorporates everything that was in Part A except the niche versus mainstream decision as well as all the other information and analysis required to decide on whether or not the Colgate Precision toothbrush should be launched or not. For this analysis, it has been decided that we will only be modeling and assessing the mainstream go to market strategy for the launch of the Colgate Precision toothbrush. The financial business case is to be based on the projections and forecasts for two years (1993 and 1994) using the information supplied in the case (1989 – 1991 actuals, 1992 estimates), and your interpretation and analysis of the case BMK711 – The Precision Toothbrush Page 1 24-Mar-27 D Reith

BMK710 – Brand Strategy and BMK 711 – Brand Metrics Colgate-Palmolive Company: The Precision Toothbrush Decision information. You should consider the information supplied for 1992 as actual numbers for the purpose of this case. ** IMPORTANT ** As you read the case, you may note that there are some forecasts provided for total market size, market share and unit sales of certain products. Just because there are forecast numbers mentioned in the case, it does not mean that they are the right forecasts or the forecasts that you should be using for your document. The Chief Marketing Officer (CMO) is looking for you to provide YOUR forecast based on YOUR analysis of the facts and situation in the case along with YOUR rationale for the forecasts that you have provided. You are the NEW Brand/Product Manager for Colgate-Palmolive and you have been asked to make take a fresh look at this opportunity and prepare & present YOUR business decision deck to Colgate's CMO on the Colgate Precision Toothbrush opportunity using YOUR forecasts NOT Susan Steinberg’s. You are NOT to use Susan Steinberg’s projections for market size, market share, advertising expenditures or capital investment in your financial model; you must develop your own projections with appropriate back-up rationale. Your business decision deck that justifies and provides your recommendation on whether or not Colgate-Palmolive should launch the Precision toothbrush and the selection of target market, positioning and product branding must provide the information listed below plus any other necessary qualitative or quantitative support for your recommendation. BMK711 – The Precision Toothbrush Page 2 24-Mar-27 D Reith

BMK710 – Brand Strategy and BMK 711 – Brand Metrics Colgate-Palmolive Company: The Precision Toothbrush Decision Remember to complete the historical analysis (1989 – 1992) before presenting any projections, forecasts or financial models that includes 1993 and 1994 information. Executive Summary  A 1 page executive summary summarizing the key aspects of this case, including the various recommendations you are making is required.  Your executive summary should be between 6 and 8 bullet points.  If you don’t know what is expected in an executive summary, please ask the professor. Market Demand & Product/Brand Market Shares  Historical size and performance of the toothbrush market o Overall market, market segment, brand & product performance, brand & product market shares, etc. o Must include analysis of the information and identification of insights and trends that are relevant to understanding the future direction of the toothbrush market and, specifically, the Precision Toothbrush opportunity and decision.  Future size and performance of the toothbrush market in 1993 and 1994 o Must include your projections for:  Total toothbrush market  All category segments (market share for value, professional & super-premium)  All brands and product lines (market share) o Projections must be provided for the base case (without the Colgate Precision toothbrush) and the innovation case (with the launch of the Colgate Precision toothbrush) o Do not analyze or provide metrics for the niche go to market approach. It has been decided that we will be only considering the mainstream go to market strategy. o Appropriate and complete rationale must be provided for all projections. BMK711 – The Precision Toothbrush Page 3 24-Mar-27 D Reith

BMK710 – Brand Strategy and BMK 711 – Brand Metrics Colgate-Palmolive Company: The Precision Toothbrush Decision o You must provide cannibalization rates for the “Do Something” case for both the Plus and Classic products and rationalization for the cannibalization rate you have estimated. o Remember that low cannibalization would be between 20% and 35%, and high cannibalization would be between 55% and 70%. o When calculating cannibalization, also remember that you are comparing the “Do Nothing” and “Do Something” scenarios for 1993 and for 1994. o Do not make the mistake of calculating cannibalization using the 1992 market shares for Plus and Classic. o Select the most appropriate base (units or dollars or both if you are so inclined) for analyzing the market and market share based on the information available for you to analyze and how you will be using that information in your analysis and financial modeling.  Provide a clear rationale for why you chose that base for your analysis. Segmentation, Targeting, Positioning & Branding  You do not need to define the market (what business we are in). You can assume that it is the manual toothbrush market.  You are also to assume that the product will be a sub-brand of the Colgate master brand using the name “Colgate Precision”. o Do not do a criteria table to assess different branding options. The decision has been made.  Target Market, Positioning and Product Branding o Your market share projection for the Colgate Precision as well as the amount that you expect the existing product’s to be cannibalized by the introduction of the Colgate Precision will, of course, be a function of your decisions on target market, product positioning, as well as how the product is branded, and the investment being made in marketing. o Market segmentation alternatives are provided in the case which you can use to select a target audience (or audiences). BMK711 – The Precision Toothbrush Page 4 24-Mar-27 D Reith

BMK710 – Brand Strategy and BMK 711 – Brand Metrics Colgate-Palmolive Company: The Precision Toothbrush Decision  You are not to do a criteria table analysis to justify your choice of segmentation base.  You are not to do a criteria table analysis to justify your choice of target audience(s).  Simply state your choice of target audience(s) with a couple of bullet points to justify that decision. o Other qualitative decisions in the case will require identification of alternatives and the thorough evaluation of those alternatives with well thought-through close-ended criteria with a summary for reach alternative and an overall recommendation. o As part of deciding the best positioning for the Colgate Precision toothbrush, you must also create a proper positioning statement which requires the identification and assessment of the functional and emotional benefits of your positioning.  You must create a minimum of 3 perceptual maps to determine your positioning recommendation.  A minimum of 3 functional and 3 emotional benefits must be identified and assessed before creating your positioning statement. Advertising  Evaluate the CMO’s proposed marketing expenditures (as outlined below and in the spreadsheet provided on Blackboard with the assignment instructions): Classic Plus Precision Classic Plus Precision $'OOO's $'OOO's $'OOO's $'OOO's $'OOO's $'OOO's Media $0 $4,600 $0 $4,000 Consumer Promotions $500 $8,700 $200 $8,000 Trade Promotions $500 $8,700 $200 $8,000 Total Marketing $1,000 $22,000 $400 $20,000 Innovation Case - Precision Mainsteam Launch Media $0 $1,000 $15,500 $0 $500 $12,000 Consumer Promotions $0 $4,500 $9,000 $0 $2,500 $10,000 Trade Promotions $200 $4,500 $7,500 $200 $3,000 $8,500 Total Marketing $200 $10,000 $32,000 $200 $6,000 $30,500 1993 1994 Base Case Colgate Marketing Expenditures BMK711 – The Precision Toothbrush Page 5 24-Mar-27 D Reith

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