Colgate Precision Toothbrush: Market Segmentation Strategy

Behavioral Market Segmentation

The most instructive segmentation framework presented in the case study is behavioral segmentation, which differentiates between therapeutic brushers (45%), cosmetic brushers (21%), and uninvolved oral health consumers (33%). This is the most effective form of market segmentation for this product category because it identifies three clearly distinct consumer groups that companies can target directly. As the case study shows, Oral-B, for example, targeted the first category by promoting the "dentist's toothbrush" brand.

The first category comprises consumers who seek functionally effective products. These consumers are less interested in additional design features but are highly sensitive to the core and augmented product — particularly technical characteristics that improve performance. Oral hygiene is a priority for this group: 85% brush twice a day, and they most likely select products based on technical features such as bristle angle, rippled bristles, and similar attributes.

The second category comprises cosmetic brushers, for whom the priority is not necessarily healthy teeth but teeth that look good. This group is less focused on technical characteristics and is more likely to respond to design-oriented features. We should expect cosmetic brushers to adopt improvements in plaque removal or gum care more readily, since their overarching goal is to deliver cosmetic benefits.

The third category is least sensitive to the components of the augmented product and is characterized simply by a lack of interest in the product category. For this group, other variables and factors — beyond product features — are likely to drive purchase behavior.

Income and Age as Segmentation Variables

One of the most significant additional variables is price, which reflects the fact that consumer income remains a relevant segmentation factor even in the toothbrush market. The first behavioral category is likely to occupy an upper income bracket, with earnings that allow consumers to pay a premium for a product with superior technical characteristics — one that also needs to be replaced more frequently to deliver optimal results. The targeting strategy Gillette applied to this segment was well conceived: price is not the primary concern for these consumers, but quality and technical advancement are. Accordingly, production costs can be increased to improve product quality while a premium price is charged for the added value provided.

The second group of consumers may fall into a broadly similar income bracket. The distinction between the first and second groups is not primarily income-based but is instead defined by the specific purpose each group assigns to the product. The third category, however, will not pay a premium, and the appropriate targeting strategy for these consumers involves promoting simple, affordable products that can still deliver significant profit margins through volume.

The second major segmentation variable is age. Three age groups merit discussion: 7 to 14, 14 to 55, and consumers over 55. The youngest group is drawn to fun products — a tendency that emerged in the 1980s and persists today. While parents typically make the purchase decision for this age group, they are often influenced by the child's preference rather than the product's functional benefits. The parent will generally seek adequate performance but may ultimately choose on aesthetic grounds.

After the age of 14, individuals typically become more engaged with their personal oral hygiene. They begin purchasing their own toothbrush and will likely fall into one of the three behavioral groups described above. After the age of 55, consumers appear to lose interest in toothbrushing and are likely to practice it less frequently than in earlier life stages.

Product Positioning and Managerial Considerations

The most important issue managers must address when deciding on product positioning is identifying which consumer category they intend to reach. Clear segmentation schemes — incorporating income, age, social position, and other relevant variables — should inform this decision. These external environmental factors provide the foundation from which the product can be developed, including the features that constitute the augmented and expected product. Understanding the target consumer is essential to creating and delivering a product that achieves full customer satisfaction and supports customer retention.

At the same time, the manager must conduct an internal analysis and determine, in terms of costs, human resources, and operational capacity, whether the organization can produce and deliver the product to the chosen consumer segment. If internal constraints make this impossible, further segmentation of the target market may be necessary to identify a flexible niche the company can successfully serve.

A sound alignment between internal resources — what the company can produce and deliver — and the external environment being targeted — what the company wants to produce — is therefore critical to effective product positioning.

Product naming is also important at the launch stage, as a well-chosen name can create an initial stimulus that encourages consumers to try a product. Its role may be somewhat limited in the toothbrush industry specifically; however, consumers in the first behavioral category may be drawn to a toothbrush named "Precision" if the name signals technical characteristics that improve brushing performance.

References

Laidler, Nathalie. (November 1993). Colgate-Palmolive Company: The Precision Toothbrush. Harvard Business School.

Levitt, Theodore. (2000). Marketing success through differentiation — of anything.

Seybold, Patricia. (May 2001). Get inside the lives of your customers. Harvard Business Review, 79(5).