Colgate Analysis

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of the Precision toothbrush. From Exhibit 7, it is also evident that Colgate succeeds in the mass market according volume and dollar market shares, where Colgate has 33.2% volume market share in the mass market and 24.6% of dollar market shares. Oral-B falls slightly shorter at 22.4% and 27.6% respectively in the mass market but succeeds in the drug market (25.1% volume and 34.1% dollar market share) where Colgate falls short (14.1% volume and 15.1% dollar market shares). Colgate’s strength in the mass market gives it a competitive edge in term of mass sale and distribution. The U.S toothbrush market has also emphasized slower projected growth in 1993 as a result of buildup in household inventories of toothbrushes as a result of increased sampling of free brushes and two-for-one consumer promotions in previous years. This as a result may diminish Colgate’s competitive position in the market regarding their ability to market and sell the “Precision”. Since toothbrushes have a relatively short replacement time (recommended once every three months but projected in 1992 to replace after 9.7 months), the buildup may slightly hinder Colgate’s competitive position as well as the rest of their competition. With the emergence of the “super-premium” segment, the ability to have product differentiation, high margins, increased media support and high market share in the mass market creates a strong competitive position for Colgate that yields’ great profit. It is evident that Colgate’s strength in the mass market be taken into consideration when selecting a segment for the “Precision” brush.

How is the toothbrush market segmented? Compare consumer behavior for toothbrushes and toothpaste.

As mentioned above, the toothbrush market initially was a commodity market driven by low prices. As the importance of oral health care became prominent as well as more media awareness, toothbrush manufacturers were able to differentiate their products through special features (such as indicator bristles, angled necks, etc.) and create a new segment – “super premium”. Prior to the emergence of this “super-premium” segment, the other segments that were present were the “professional” segment, and the “value segment” (illustrated in Exhibit 4).