Colgate Palmolive

7/17/2019 Colgate Palmolive

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The Marketing plan of Colgate aims to address all the important areas that carefully identifies and

elaborates as how the company has evolved as a brand and differentiates its product line all across

the globe.

The Colgate Palmolive Company, which is headquartered in New ork, is known to be the biggest

seller of toothpaste and a global leader in oral care Products. The company serves its product

offering in over !"" countries worldwide.

Challenges#Critical $ssuesThe Colgate Company has been working constantly with the retail partners and provides the

consumer with the best quality service. The company continues to engage with the customers

worldwide by creating unique shopping e%periences, introducing in&store innovative marketing

communications strategies and different merchandising techniques in order to ensure the right

product assortment at the right location. The company continues to serve its customers with a

superior consumer&friendly e%perience that could drive both the company's sales and retailers.

(ituational )nalysisCompany )nalysis• Goals: *n May, !"+, the Colgate Company announced that it will try to meet the sustainable goal

by making products using recyclable materials. The company revealed that it will develop +""-

recyclable packaging for or products which includes home, pet and personal care packaging.

• Focus: The Colgate /Palmolive is an )merican Multinational Company that focuses mainly on

production, distribution and provision of household, healthcare and personal products like soaps,

detergents, toothpastes and tooth brushes 0oral hygiene products1.

• Culture: The Company has been known to provide its workforce with a balanced professional and

personal life structure. The employees and management are able to communicate effectively and

promotes time&management skills. The company's culture reflects the importance of culture, global

teamwork and constant improvement.

• Strength: *ne of the biggest brands in the personal consumer products industry.

• Weakness: 2ake brands are publici3ed under their name.

• Market share: The Company achieved sales growth of - driven by !.4- sales volume growth

with +.4- increase in price.

Customer )nalysis



5espite of facing a tough competitive market, the company always aims to deliver ma%imum

customer value to the market through its multi product segment strategy. Colgate has catered all it

segments that starts from baby boomer generation. They have retained its customers by constantly

launching new innovative products to remain competitive in the market.

Competitive )nalysisP67 as Competitors8 9oth Colgate and Procter and 7amble were established in +:""s as a small

family run business. )nd now both not ;ust have sustained them but transformed as the !+st century

personal care products multi&nationals with several household name brands.

<owever, Colgate /Palmolive is less diversified as compared to its competitors like P67 and

=nilever. The company's biggest source of sales is in oral care business.

The current market cap of Colgate&Palmolive is >4:,:4mil while P67 has >!!4,"! million.

Collaborators• Joint ventures: <awley and <a3el Chemical Co. 0Taiwan1 with Colgate&Palmolive formed a ;oint

venture since +?:4.

• Distributers: $n Pakistan, The Company has products in four categories8 *ral care, 2abric Care,

<ousehold and Personal Care. The company has divided it's distributions in eight 3ones i.e. @arachi,

Aahore, Multan, Bawalpindi etc.

Climate8 Pest )nalysis

• Political And Legal nviron!ent: very government is willing to impose more ta%es in order to

gain more profit. Moreover, the instable political conditions in the country disrupt the business to

operate the ongoing activities.

• cono!ic nviron!ent: The overall economic growth has remained stable so far but at the time

of inflation, the change in the interest rate affects the company.

• Social and Cultural nviron!ent: The massive social interactions via communication channels

make a huge contribution to the company's productivity. Consumers are now more aware about the

market trends and therefore, Colgate caters each market segment keeping in mind the

cultural#societal trends of the consumers.

• "echnological nviron!ent: The Besearch and 5evelopment department of the company are

committed to improve oral health through the advanced leading /edge technologies. The

technologies are updated based on the prevention and treatment of oral diseases.DskyE

(F*T )nalysis



(trengthsG 7eographically diversified industry.

G (trong brand image.

G (trong market share.

G )ppealing advertisements.

G <uge sales growth.

G (killed workforce.

G (trong promotional strategies.

FeaknessesG Product e%pansion is restricted.

G (aturated market.

G Market share is lower than its competitors.

*pportunitiesG $nternational Market %pansion.

G merging markets may attract business

G 5ifferentiation strategy is required.

ThreatsG $ncrease in commodity prices.

G 2ierce competition.

G New entrants in the market can be a threat to Colgate

Market (egmentationThe Company has divided its market into two product segments8 *ral, Personal, <ousehold (urface

and 2abric Care. Colgate is considered to be the global leader in the *ral care Products such as

toothpaste, Toothbrushes and many other pharmaceutical products. Colgate also possesses a

strong market in the Personal Care segment that includes products like bar, liquid hand soaps,

shower gels, shampoos etc.

Marketing (trategies• Geogra#hic Seg!entation Strateg$: The Colgate Company has implemented this strategy by

e%panding its business in over !"" countries. The company does not market the same product in

every country. 2or instance, in =nited (tates they are selling si%teen different types of toothpastes

while in =@H they are selling twenty two different types of varieties.

• De!ogra#hic Seg!entation Strateg$:The Company caters the market segment based on

different demographics such as age, gender, social class etc. 2or kids aged :&+", they have



products like transitional toothpastes. They have a separate section for infants, children, teenagers

and adults.

• Ps$chogra#hic Seg!entation Strateg$: <ere the company sells the products considering the

lifestyle and needs of the consumers. 2or people who are sensitive about their teeth, they have

introduced (ensitive pro&relief toothpaste and brushes which are made to decrease tooth sensitivity

issues.

Marketing Mi% 'Ps• Product: $n Pakistan, Colgate's <erbal Fhite toothpaste is widely used. The product has a unique

blend of herbs and ensures a good oral health to the consumers.

• Price: Market penetration pricing strategy is adopted by Colgate in order to gain market

dominance. Most of the personal consumer products and oral care products are priced at a cheaper

rate so that a massive amount of consumers could be persuaded towards the brand.

• Place: The products are made available via direct distribution channel where the ma;ority of the

consumers can easily get an access to the Colgate's products.

• Pro!otions: Colgate promotes all its products through personal selling, advertising, publicity and

public relations.

(hort Term#Aong Term Pro;ectionsThe company reported to achieve revenues of >.! billion for the quarter. )dditionally, the

company's gross profit margin narrowed to 4:.- in the quarter due to high raw material and

packaging costs and the net income reached to >:: million for the period.

ConclusionsThe Colgate&Palmolive is a consumer oriented company which is currently operating in more than

+"" countries. They provide many employee oriented programs and managing their international

business quite well. The way they have established in the business and international market, they

still have a higher chance to remain competitive in the years ahead.

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Colgate Palmolive