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Colgate palmolive case study - promotion strategy


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Colgate palmolive case study - promotion strategy

  1. 1. Running Head: Colgate-Palmolive`Colgate-Palmolive case study - Promotion Strategy[Write name appear here][Institute name appear here]
  2. 2. Colgate-Palmolive http://www.Virtual-Dissertation.comColgate-Palmolive case study - Promotion StrategyColgate-Palmolive is the global leader in the domain of Personal care products includingtoothbrushes and toothpastes. During the 1990s it sales reached the pinnacle of of six milliondollar that became the catalyst of 2.76 billion US dollar profit. Furthermore, Colgate-Palmoliveis also enjoying the forty three percent of share of global toothpaste market and sixteen percentshare of global tooth brush market. in the USA its share is twenty three percent in the domain oftooth brush sales ("Our company"). “For the full year 2010, worldwide sales were $15,564million, up 1.5% versus full year 2009. Global unit volume grew 3.0%, pricing was flat with theyear ago period and foreign exchange was negative 1.5%. Organic sales (excluding foreignexchange, acquisitions and divestments) grew 3.0%. Net income and diluted earnings per sharefor full year 2010 were $2,203 million and $4.31, respectively, compared to $2,291 million and$4.37, respectively, in 2009. As previously disclosed, full year 2010 results were reduced by aone-time, non-cash after tax charge of $271 million ($0.53 per diluted share) resulting from arequired accounting change related to the transition to hyperinflationary accounting in Venezuelaas of January 1, 2010. Full year 2010 results also include $61 million of after tax charges ($0.12per diluted share) for termination benefits relating to ongoing overhead reduction initiatives, a$30 million aftertax gain ($0.06 per diluted share) from the sale of non-core product lines and abenefit of $31 million ($0.06 per diluted share) resulting from a non-recurring tax initiativerelating to an overseas subsidiary. Excluding these items, net income was $2,474 million anddiluted earnings per share was $4.84, increases of 8% and 11%, respectively, versus full year2009. "Colgates global market shares in toothpaste and manual toothbrushes are both at record
  3. 3. Colgate-Palmolive http://www.Virtual-Dissertation.comhighs year to date. Colgates share of the global toothpaste market strengthened to 44.2% year todate, led by share gains in Brazil, China, India, Venezuela, France, Greece and the UnitedKingdom. Colgate also strengthened its global leadership in manual toothbrushes, with its globalmarket share in that category reaching 31.6% year to date, up 1.6 share points versus year ago.”(Thompson , & Spiller)Discussion about product, product strategies, products positioning and other related aspects.Besides, Colgate-Palmolive’s strategy to reach and reap the cross borders market and itsbenefit is the key catalyst that gives a power to its strength. in that connection Colgate introduceda range of 275 new products globally with building the factories in Europe and china. Because ofthis unique and dedicated strategies Colgate profit and growth is increasing by leaps and boundsand during the 1990s its sales totaled to 1.03 billion US dollar with overall profit of 9.8 millionUS dollar. (Harvard). This was the time period when Colgate further thrust to its rivals byintroducing its new breed of tooth brush with unique branding.It should be noticed that the key strength that give the edge to the Colgate-Palmoliveamong its rivals under the domain of niche market, is its product that are promoted in the marketas Colgate® 360° that is proven as a effective and efficient plaque remover that is comparatively35% more smarter than its rival products. These advantages are key characteristics that areattributed to the dedicated research by using CAD and infrared scanning and innovative design.Because Colgate treat toothbrushes regarding policy as “technical innovation, researchers usedinfrared motion analysis to track consumers’ brushing movements and consequent levels ofplaque removal” (Harvard).
  4. 4. Colgate-Palmolive http://www.Virtual-Dissertation.comThe top of the Colgate® 360° toothbrush are comprised with the diverse angles of bristlesand every angle having its own characteristics. This characteristic leads the 360 to product lifecycle from launching as the toothbrush to the oral health care tool. (Harvard). This uniquedesigning of bristles give the edge to the Colgate® 360° to remove the plaque efficiently andcomparatively 35% more than to its rival products.The classification of the product is totally dependent upon the consumer needs andperceptions; they may consider it as homogeneous or heterogeneous both. The homogeneous inthat perspective, all toothbrush perform same action, therefore, the lowest price is their choiceand as a heterogeneous because of the efficiency and quality.The key purpose to select the brand name is to avoiding the perplexity to consider it newproduct as homogeneous one. Colgate did consider different name in that regard such as“Colgate System III, Colgate Advantage, Colgate 1.2.3, Colgate Contour, Colgate Sensation, andColgate Probe” (Harvard).As far as the positioning concern, it could either be niche or mainstream. following arethe advantages and disadvantages of both markets.Advantages of Niche marketThe Colgate has the option an opportunity to set the price, according to its desire withoutfear about the rivalry. the issue of cannibalization can be reduced such as Colgate Extra clean,etc. and develop the equity of brand ("Colgate 360," ). The Colgate has the vast room to producethe product adequately as well as to translate from one market to another one according to theavailable capacity. this niche market is the catalyst to reach and fulfill the demand of those
  5. 5. Colgate-Palmolive http://www.Virtual-Dissertation.comclientele who are sensitive about the oral hygiene such as therapeutic and cosmetic brushers aswell as different type of gum disease.However, there are also flip sides that are following:The organization will have the fewer market shares comparatively than the mainstreammarket. it will has to face the high entry barriers into the niche market domain. Furthermore,Colgate can take a position as a mainstream brushes to promoting the highest effective brushesthat are available for users.Advantages of Mainstream marketIn the Mainstream market, Colgate has the comparatively big share. The new products aseffective and efficient tool to clean the teeth and gum will have the bigger realization from thewhole clientele. As far as the disadvantages are concerned, the organization may face the supplybarrier because of not producing the enough products. The new product may create the hype of“hot in the market” but there could be a possibility not to get the predefined revenue targetbecause of low price and volume. The Colgate has to acquire further uncertainly investment tofull the product demand. The new product could be the catalyst to lead the Colgate to off theirexisting any stock keeping units. (Laird, Boivin, Shelton, Srivannusorn, & Chanprasert)The price of the product is the type of barometer at some extent that set customer mind inthe perspective of product quality. it is obvious that pricing of the new product will be differentfrom the existing one because of the research and production cost but Colgate should set theprices after analyzing the market and consumer trend properly.
  6. 6. Colgate-Palmolive http://www.Virtual-Dissertation.comRecommendation about the Promotion Strategy(s)As far as the pricing, strategies and recommendation is concerned, in the domain of nichemarket, Colgate can set the price after analyzing the consumer behavior and market trend, itcould be lower, equal and greater than the existing product range but the core focus should be onthe uniqueness so that customer attention could not only be developed but also retained. forbranding the new product will be called as Colgate® 360°. For attracting the customer and enjoythe lion share of niche market, Colgate can promote its new product as an efficient, effective anunique gum remover with the flexibility to clean those part of the teeth that are generallyunreachable by the standard tooth brushes. In that connection, Colgate can setup the workshopand free sample testing to have the customer confidence ("Identify the leading," 2006). For themainstream market, in the perspective of pricing, Colgate also needs to be more cautious asshould use its goodwill to gain the customer confidence. For promoting, Colgate should displaytheir product in all types of stores, including grocery stores, etc. for branding; Colgate should thesame niche market technique as described above. for having the attention of mainstreammarket’s costumers, Colgate should use the general ideas such as it is the product that isdeveloped after the highly dedicated research that enabled it to portray as a totally unique breedof tooth brush that was not available in the market before. Sample testing facility will also workhere as in the niche market (Kotler, 2000). Besides, to promote the new brand, Colgate shouldalso focus the colleges and university students by giving them a special discount on the basis ofconfirmation of their college or university identity cards, etc. The reason behind is that fast food
  7. 7. Colgate-Palmolive http://www.Virtual-Dissertation.comand choloclates are the common among the students, and these type of foods are the key sourceof plaque and gum in the teeth, in case of careless behavior regarding teeth. Therefore,promotimg this product among the juvenile students will open the new door of cash inflows.http://www.Virtual-Dissertation.comWe provide writing help to develop quality Essays, Term Papers, Coursework, Thesis and Dissertation, etc. for those who are quality oriented.We cover lots of different subjects including (but not to bound only these),Cyber Laws,Cyber Security,English Literature,Anthropology, Social Science,Case Studies,Law,Philosophy,Psychology,IT,Economics,Business,Marketing,Management,Politics,Global Issues and lots of others.........................Just Contact Us for any query and Order........................We are here at: http://www.Virtual-Dissertation.comReferences
  8. 8. Colgate-Palmolive http://www.Virtual-Dissertation.comColgate 360. (n.d.). Retrieved from the leading oral hygiene products companies such as colgate-palmolive, johnson &johnson & procter & gamble.. (2006, October 27). Retrieved from company: home page. (n.d.). Retrieved from , Bina, & Spiller, Hope. (n.d , January 27). Colgate announces 4th quarter and fullyear 2010 results -diluted earnings per share exceeds expectations. Retrieved from, Philip. (2000). Marketing management: the millennium edition. New Jersey: PrenticeHall.Laidler, Nathalie. (1993). “Colgate-Palmolive Company: The Precision Toothbrush.”. HarvardBusiness School Case StudyLaird, Matthew, Boivin, Gilles, Shelton, Roy, Srivannusorn, Chanin , & Chanprasert, Roongruk.
  9. 9. Colgate-Palmolive Colgate palmoliv. The precision toothbrush. Retrieved from, Initials, Jerome E, Initials, & William D, Perreault. (2002). Basic marketing: aglobal-managerial approach. . New York: McGraw-Hill Companies.
  10. 10. Colgate-Palmolive Colgate palmoliv. The precision toothbrush. Retrieved from, Initials, Jerome E, Initials, & William D, Perreault. (2002). Basic marketing: aglobal-managerial approach. . New York: McGraw-Hill Companies.