Colgate Palmolive

Marketing Marketing ManagementManagement

Introduction:Introduction:

Colgate Palmolive is no 1 seller toothpaste Colgate Palmolive is no 1 seller toothpaste of world.of world.

It is global company serving almost 200 It is global company serving almost 200 countries of world.countries of world.

The company focus on strong global The company focus on strong global brands.brands.

History:History: In 1806, William Colgate and company…In 1806, William Colgate and company… In the era of 1872 and 1872…In the era of 1872 and 1872… In the era of 1953…. In the era of 1953…. In the beginning of television Colgate wishes In the beginning of television Colgate wishes

to compete…to compete… From past 33 years..From past 33 years..

Core competencies:Core competencies:

To act with compassion. competency and To act with compassion. competency and integrity.integrity.

Protection of global environment.Protection of global environment. All Colgate people are consider as part of All Colgate people are consider as part of

teams.teams.

Training & Training & development:development:

Business leadership program.Business leadership program. Individual development.Individual development.

Sales:Sales:

The total sales for the year 2009…The total sales for the year 2009… Total net sales volume is increased by 28% Total net sales volume is increased by 28%

over the last year.over the last year. The cost of sales shows increase due to …..The cost of sales shows increase due to …..

Employment location:Employment location:

Fastest growing FMCG company in Fastest growing FMCG company in Pakistan.Pakistan.

Location of Colgate Palmolive.Location of Colgate Palmolive. Provide direct and indirect employment to Provide direct and indirect employment to

547 people.547 people.

Corporate Objective:Corporate Objective:

The company have corporate objective of The company have corporate objective of over all sales and profitability.over all sales and profitability.

Market overview:Market overview:

Market sizeMarket size Market trendsMarket trends Market shareMarket share

Internal audit:Internal audit:

Colgate herbal white.Colgate herbal white. Colgate fresh energy gel.Colgate fresh energy gel. Colgate herbal.Colgate herbal.

Contd.Contd.

PricePrice PlacePlace PromotionPromotion

External auditExternal audit

Customer audit analysisCustomer audit analysis::

• Consideration of people about involvement Consideration of people about involvement of toothpaste.of toothpaste.

• The focus of analysis was to compare the The focus of analysis was to compare the quality and price of common whitening quality and price of common whitening toothpaste.toothpaste.

• People are more health conscious now.People are more health conscious now.

Contd.Contd. Advertisement of toothpaste usually Advertisement of toothpaste usually

perform five major tasks.perform five major tasks. People are always worried about their teeth People are always worried about their teeth

of children.of children. Experts recommendations about Colgate.Experts recommendations about Colgate. Analysis about different attributes of Analysis about different attributes of

people of different ages.people of different ages.

Contd.Contd. Colgate Palmolive strategies.Colgate Palmolive strategies. Attitude of people after using Colgate Attitude of people after using Colgate

Palmolive.Palmolive. Our recommendations to Colgate Palmolive Our recommendations to Colgate Palmolive

toothpaste.toothpaste. The main reason for success of Colgate The main reason for success of Colgate

Palmolive.Palmolive.

Contd.Contd. Results gain from analysis of children under Results gain from analysis of children under

age 10.age 10. Favorite brand analysis shows 45% shares Favorite brand analysis shows 45% shares

goes to Colgate and other toothpaste.goes to Colgate and other toothpaste. Production analysis shows 50% to packaging, Production analysis shows 50% to packaging,

flavors and quality 10% and price 30%.flavors and quality 10% and price 30%. Promotional media shows media shares is Promotional media shows media shares is

60%,personal selling is 5% and print media 60%,personal selling is 5% and print media 35%.35%.

Strengths:Strengths: Strong financial performance.Strong financial performance. Focus on innovation and new product Focus on innovation and new product

launches.launches. Qualified sales staff.Qualified sales staff. Orange Gel.Orange Gel. Maximum Protection.Maximum Protection. Friendly Environment.Friendly Environment.

Weaknesses:Weaknesses: Due to high rate of taxes our prices are Due to high rate of taxes our prices are

higher.higher. Giant competitors like close-up and Giant competitors like close-up and

Pepsodent.Pepsodent. Product recalls. Product recalls. Highly leveraged.Highly leveraged.

Opportunities:Opportunities: Large investment.Large investment. Intensive distribution.Intensive distribution. Technology is at its bang.Technology is at its bang. Restructuring initiatives. Restructuring initiatives. Colgate business planning initiative. Colgate business planning initiative. Growing global oral hygiene market.Growing global oral hygiene market. Stable economic conditions boost the Stable economic conditions boost the

growth of the product.growth of the product.

Threats:Threats: Increasing number of Competitors.Increasing number of Competitors. Competitive landscape from other CPGs. Competitive landscape from other CPGs. Private label growth.Private label growth. Increasing commodity prices. Increasing commodity prices. Unstable political conditions.Unstable political conditions. Chances of Failure due to the new taste.Chances of Failure due to the new taste.

PEST ANALYSISPEST ANALYSIS

Political Factors:Political Factors:

Inactive government.Inactive government. Political issues. Political issues. change in laws or regulations.change in laws or regulations. Political instability.Political instability. Restriction on imports.Restriction on imports.

Economical Factors:Economical Factors:

World economy. World economy. Taxes.Taxes. High consumer spending.High consumer spending. Inflation.Inflation. Global Recession.Global Recession.

Socio-cultural factors:Socio-cultural factors:

Children health and hygiene.Children health and hygiene. Disposable income.Disposable income.

Technological factors:Technological factors:

Production is high due to high technology Production is high due to high technology machines.machines.

Advanced in technology. Advanced in technology. Improved communication medium.Improved communication medium. Advancement in science.Advancement in science.

Assumptions:Assumptions: Further investment opportunities.Further investment opportunities. Inflation rate will remain unchanged.Inflation rate will remain unchanged. focus on team work. focus on team work. Political conditions in the country will Political conditions in the country will

remain stable.remain stable. No threat of new entrant.No threat of new entrant. Government policies will remain same.Government policies will remain same.

No considerable change in the No considerable change in the environmental factors but technology will environmental factors but technology will not undergo major changes.not undergo major changes.

No violation of business ethics and No violation of business ethics and corporate social responsibility.corporate social responsibility.

No change in the prices of fuel and energyNo change in the prices of fuel and energy Non-existence of substitutes in the market.Non-existence of substitutes in the market.

Marketing Objectives & Marketing Objectives & Strategies:Strategies:

ObjectivesObjectives are basically the mission are basically the mission purpose, that can be achieved within the purpose, that can be achieved within the expected timeframe and with the expected timeframe and with the available resources. available resources.

They are the most basic They are the most basic planning tools underlying all planning planning tools underlying all planning and strategic activities. and strategic activities.

Smart Objective:Smart Objective:

Specific. Specific. Measurable. Measurable. Achievable.Achievable. Realistic.Realistic. Time. Time.

Objectives of Colgate Objectives of Colgate Junior:Junior:

Increase the net profit to more than 25% of Increase the net profit to more than 25% of the sales by the end of 2011. the sales by the end of 2011.

To gain 10% of the market share by the To gain 10% of the market share by the mid of 2011.mid of 2011.

To introduce our product also in Northern To introduce our product also in Northern areas somewhere around 2011. areas somewhere around 2011.

To grow by 15% year on year for the next To grow by 15% year on year for the next five years.five years.

Features of the Product:Features of the Product:

Significance of Product.Significance of Product. Energetic.Energetic. Economical.Economical. Attractive Packing. Attractive Packing. Attractive Design.Attractive Design.

Market Strategy:Market Strategy: Marketing strategies are the means by Marketing strategies are the means by

which objectives will be achieved.which objectives will be achieved. Marketing strategy includes:Marketing strategy includes:

Market Segmentation.Market Segmentation. Market Targeting.Market Targeting. Market Positioning. Market Positioning.

Market Segmentation:Market Segmentation: A market segment is a sub-set of a market made A market segment is a sub-set of a market made

up of people or organizations sharing with one or up of people or organizations sharing with one or more characteristics that cause them to demand more characteristics that cause them to demand similar product.similar product.

To target the market in a better way, we have To target the market in a better way, we have divided our market on the basis of following four divided our market on the basis of following four variables:-variables:-

GeographicGeographic DemographicDemographic PsychographicPsychographic BehavioralBehavioral

Market Targeting:Market Targeting: A target market consists of a set of buyers A target market consists of a set of buyers

who share common needs or characteristics who share common needs or characteristics that the company decides to serve. that the company decides to serve.

Colgate Palmolive is serving customers Colgate Palmolive is serving customers through through “Differentiated Marketing”.“Differentiated Marketing”.

Colgate Junior by Colgate Palmolive is now Colgate Junior by Colgate Palmolive is now planning to be part of the overwhelmed planning to be part of the overwhelmed customer group (children). customer group (children).

Orange and appleOrange and apple cooling crystal gel that is cooling crystal gel that is specifically manufactured for kids standing specifically manufactured for kids standing somewhere between 4 to 9 years. somewhere between 4 to 9 years.

BCG Matrix:BCG Matrix: Colgate Junior to be in Colgate Junior to be in QUESTION MARKQUESTION MARK

box.box.

Marketing Mix Strategy:Marketing Mix Strategy: It includes Marketing Mix which is stated as It includes Marketing Mix which is stated as

follows:follows:

Product:Product:1. 1. Core Product:Core Product: It cleans teethIt cleans teeth It prevents decayIt prevents decay

2. 2. Actual Product:Actual Product: Brand nameBrand name Quality Quality Design and styleDesign and style PackagingPackaging

3. 3. Augmented Product:Augmented Product: Website addressWebsite address Helpline numberHelpline number

Price:Price:

Market Skimming Strategy. Market Skimming Strategy. Value Based Pricing.Value Based Pricing. Geographical Pricing. Geographical Pricing. Uniform delivered pricingUniform delivered pricing..

Place:Place:

Departmental stores Departmental stores Shopping malls Shopping malls Target retailers Target retailers

Promotion:Promotion:

Advertising Advertising Personal SellingPersonal Selling Public RelationsPublic Relations Sales PromotionSales Promotion Direct Marketing Direct Marketing

Alternative Marketing Alternative Marketing PlanPlan

Target More SegmentsTarget More Segments

Changes in Marketing Mix.Changes in Marketing Mix.

1.1.ProductProduct2.2.PricePrice3.3.PromotionPromotion4.4.PlacePlace

Implementation of Implementation of Promotional ProgramPromotional Program

Actions: Actions: • • Organizational Chart.Organizational Chart.

• • Schedules and Deadlines. Schedules and Deadlines.

• • Budget Allocation. Budget Allocation.

• • Project Management.Project Management.

Organizational Organizational Chart:Chart: Director of the marketing department.Director of the marketing department.

General Manger of the marketing General Manger of the marketing department.department.

Marketing managers. Marketing managers.

Company’s quality control department.Company’s quality control department.

Schedules and Schedules and Deadlines:Deadlines:

Timely completion of the tasks and goals.Timely completion of the tasks and goals. Campaign on TV.Campaign on TV. Billboards.Billboards. Distribution of the pamphlets.Distribution of the pamphlets. Puppet show.Puppet show. Announcement of Annual Report.Announcement of Annual Report.

Budget Allocation:Budget Allocation: Budget for Lahore branch is Rs.2, 000,000.Budget for Lahore branch is Rs.2, 000,000. Budget for Faisalabad, Islamabad, Budget for Faisalabad, Islamabad,

Rawalpindi and Multan branch is Rs.1, Rawalpindi and Multan branch is Rs.1, 500,000 each.500,000 each.

Total budget per month is Rs.65, 00,000 Total budget per month is Rs.65, 00,000 with the annual budget of Rs.78, 000,000.with the annual budget of Rs.78, 000,000.

Budget Allocation:Budget Allocation: Further Allocation of Marketing Budget:Further Allocation of Marketing Budget:

• • 50% of the marketing budget is allocated 50% of the marketing budget is allocated for Promotion, which is affordable for us.for Promotion, which is affordable for us.

• • 20% for distribution along with vehicle 20% for distribution along with vehicle fuel expenses.fuel expenses.

• • 15% for office supplies.15% for office supplies.• • 15% for Research and Development.15% for Research and Development.

Distribution of Distribution of promotional Budget:promotional Budget:

45% for advertisement.45% for advertisement.

25% for Sales Promotion.25% for Sales Promotion.

10% for Public Relations.10% for Public Relations.

10% for Direct Marketing. 10% for Direct Marketing.

Objectives of each Objectives of each Promotional Activity:Promotional Activity:

1.1. Advertising objectives.Advertising objectives.2.2. Newspapers and magazines.Newspapers and magazines.3.3. Television.Television.4.4. Bill boards and poster campaign.Bill boards and poster campaign.5.5. Online advertising.Online advertising.6.6. Brochures and pamphlets. Brochures and pamphlets. 7.7. Sales promotion. Sales promotion. 8.8. Public relations. Public relations.

Measurement, Review Measurement, Review and Control:and Control:

Monitoring:Monitoring:

Media PlanMedia PlanUpdating PlanUpdating Plan

Measuring ObjectivesMeasuring Objectives