Colgate –Palmolive
Colgate –Palmolive was founded in 1806 by William Colgate in New York. Initially, it was a global consumer enterprise dealing with starch, soap and candle. In 1896, Colgate toothpaste was introduced in the market, and currently, it is being marketed and consumed in over 200 countries. In 1894, Palmolive soap was raised, into the market, which at some point, became the bestselling soap in the world. Due to its growth and acquisitions, the company changed its operation to Jersey City New Jersey. Its first international subsidiary was set up in Canada in 1914, and by 1930, it was listed in New York Stock Exchange. By the end of 2012, Colgate had registered an income of US$2.163 billion with worldwide sales of US$17 17.085. The total employee is around 37, 7000, who provide products, which make its consumer healthier and enjoy life in general (JRank, 2015). Colgate has four business units’ pet care, home care, personal care and oral care.
Although Colgate toothpaste, which is their best selling product, is known worldwide, there exist stiff competition among other paste producers, making the company spend a substantial amount in its marketing department.
Given that Colgate Canada plans to hike its marketing spend by $3 million for the toothpaste category, how would you spend it? As highlighted in the overview, the marketing budget has a direct effect on company revenue and company growth. The product portfolio market positioning was reliable as per 2012, but there was an upward adjustment of $3million in the marketing budget. The most effective strategies to use would be a combination of advertisements and by supporting the retailers. Trade promotions are to be linked directly to retailers where they put adverts in their circulars. This will make the consumers relate with the brand, thus bring about brand loyalty.
Retail as a brand, where staple food large retailers heavily advertise their banners. This brings about brand loyalty due to consumer shopping on everyday items. Consumers choose retailers before they make any purchases. This provides a spotlight on products, thus making sure the consumer is attracted to the work. Purchase placement, where goods are placed near the counter, making the consumer make an impulse buy, can be used effectively by investing in retail trade promotion.
Due to the change in the marketing and advertisement dynamics, traditional marketing strategies ought to be blended with the new technology in marketing. Some of the investment in social media marketing could help Colgate Canada a big deal. Trying new advertisement-based promotions by use of social media influencers can increase sales tremendously. Most of the demographic spend more time online and on social media looking into personalities and favourite celebrities. The brands portrayed by the influencers skyrocket in sales. Market ideas would be myriad since the product is in the health and beauty category
2.) Describe the characteristics of demand and segmentation in the toothpaste market.
Market segmentation is the division of a heterogeneous market into homogeneous segments. For a need to be segmented, different variables are combined or used individually. The market is usually segmented in terms of demographic, geographical location, psychographic variable and behavioural variable.
Measurable and Obtainable
The variables must include measurable in data terms. This is integral in demographical and geographical segments, where justifiable efforts are set in place to determine the values. Size, the profile is to be put in values which make it easier for analyzation and acting upon.
Relevance
Any investments demand its return. The profit potential of a market should be in terms of economics. This help understands the potential profit; thus, the marketing cost can’t be justified if the segment is small in size.
Substantial
Activities in small segments give an inappropriate result which could be biased. For a part to be given a substantial amount of investment, m then significant returns are expected to be generated. A small segment would provide a negative return on investment.
Appropriate
The segment must be in sync with the organization’s goals and objectives the component is contrary to the company goals, then hitting the target will be very unlikely.
- How do the various elements in the marketing mix influence the customer buying
The process so that Colgate’s product is ultimately the one that is purchased?
Colgate brand comprises of a variety of products, mainly those concerned with oral hygiene. Some of the toothpaste products are Colgate Enamel Health, Colgate max fresh, Colgate Optic White, Colgate 360, Colgate Total and Colgate Sensitive. In addition to those products, the company launched Colgate Kids, specially designed to be used by kids aged two years and above. The brand’s toothbrush has soft bristles that created to ensure effective cleaning of teeth. Some of the other products are Colgate mouthwash and toothpowder used by customers from different sections.
Place
Colgate has increasing emphasized on been unique in the market. Through this, the brand has concurrently maintained the interest of its customers while also establish another customer base. The distribution chain of its customers ranges from, manufacturers, wholesalers then to retailers. The brand’s products are available in most of the world (PMR, 2018). Quick delivery to the market is one of its strategies. To further improve its marketing strategy, the company uses medical stores and dentists as its chief suppliers. More so, their products are available on online platforms. Thus, the convenience of accessing their products makes it a more preferred brand to the buyers.
Price
Colgate brand combats its competitors through competitive pricing of its products.
The prices set are similar to those of the other products. However, to meet the interest of all buyers and accommodate their pockets, some of their products have a higher or lower price. For instance, Colgate Max fresh is less expensive in comparison to Colgate Visible white. Sometimes, the company offer its buyers benefits such as a quantity supplement at the regular price. Products have different packaging ranging from 30g to 500g, while some are in combo packs. As a result of the assorted packaging, customers are easily attracted to their products.
Promotion
Colgate brand has an attractive packaging and innovative scheme. The dominant colour used on its products is colour red. The colour makes it easier for the buyer to quickly familiarize with their other products, for promotion of its products, digital and print media such as radio, television, newspapers and magazines. Rampant use of the internet by a large part of the population has made it an ideal marketing tool too. To maintain a relationship with consumers, social media platforms like Facebook, Twitter and Myspace are used. Consumers express their experiences through these platforms. What is more, to popularize their products, the company uses brand ambassadors.
Question 4
The oral hygiene market has a variety of competitors. Some of the giants in the market are Crest, Proctor, Gamble, and Unilever. The competitors will try to outdo each other to be more appealing to its consumers.
These companies compete on prices, whereby each company will try to have the lowest price in the market depending on the place. Promotion of their products is another way these companies use to compete. During adverts, they show pictures of people carving out beautiful smiles, and, the targeted group will, in turn, want to emulate them. Others such as Sensodyne focuses on health matters and uses medical practitioners to make their products more appealing to the masses.
To maintain market shares, companies will occasionally strategize their market approach. Innovative and attractive products have been provided to satisfy and exceed consumer needs. Products such as electric toothbrushes, chewing gums, denture cleansers and dental floss are just but a few examples of these products. Other companies have reacted with been involved in a variety of initiatives, geared towards creating oral hygiene awareness such as Oral-B. Merger and acquisitions and collaboration have also been on the rise(PMR, 2018). For instance, Colgate collaborated with a dental association in India to conduct dental checkups.