Colgate

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Product Life Cycle

• The course of a products sales and profits over its lifetime is called the product life cycle.

• PLC shows the stages that products go through from development to withdrawal from the market.

• Product Life Cycle (PLC):

– Each product may have a different life cycle.

– PLC determines revenue earned.

– Contributes to strategic marketing planning

– To identify when a product needs support, redesign, renovating , withdrawal

Introduction - Product Life Cycle

HistoryAmerican diversified multinational corporation focused on the production, distribution and provision of household, health care and personal products

Started in 1806 by William Colgate, the company was named William Colgate & Company

Sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.

In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company.

In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name.

Today Colgate has numerous subsidiary organisations spanning 200 countries, but it is publicly listed in only two, the United States and India.

In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.

Global Market Share

Products

Sales Introduction Growth Maturity Decline

PLC - Colgate

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

Product StrategyProduct Strategy

Price StrategyPrice Strategy

Low sales Low sales

High cost per customerHigh cost per customer

NegativeNegative

Create product awareness in major cities in India

Offer a basic productOffer a basic product

Use cost-plus Use cost-plus

Distribution StrategyDistribution StrategyBuild selective distributionBuild selective distribution

Advertising StrategyAdvertising Strategy Build product awareness among early adopters and dealers.

Build product awareness among early adopters and dealers.

SalesSales

CostsCosts

ProfitsProfits

Rapidly rising sales Rapidly rising sales

Average cost per customerAverage cost per customer

Rising profitsRising profits

Maximize market shareMaximize market share

Offer product extensions, servicesOffer product extensions, services

Price to penetrate marketPrice to penetrate market

Distribution StrategyDistribution Strategy Build intensive distributionBuild intensive distribution

Advertising StrategyAdvertising Strategy Build awareness and interest in the mass market

Build awareness and interest in the mass market

SalesSales

CostsCosts

ProfitsProfits

Peak salesPeak sales

Low cost per customerLow cost per customer

High profitsHigh profits

Maximize profit while defending market share

Diversify brand and modelsDiversify brand and models

Price to match or beat competitorsPrice to match or beat competitors

Distribution StrategyDistribution Strategy Build more intensive distributionBuild more intensive distribution

Advertising StrategyAdvertising Strategy Stress brand differences and benefitsStress brand differences and benefits

SalesSales

CostsCosts

ProfitsProfits

Marketing objectivesMarketing objectives

Declining salesDeclining sales

Low cost per customerLow cost per customer

Declining profitsDeclining profits

Reduce expenditure and milk the brandReduce expenditure and milk the brand

Phase out weak itemsPhase out weak items

Cut priceCut price

Distribution StrategyDistribution Strategy Go selective: phase out unprofitable outlets

Go selective: phase out unprofitable outlets

Advertising StrategyAdvertising Strategy Reduce to level needed to retain hard-core loyal customers

Reduce to level needed to retain hard-core loyal customers

REPOSITIONING COLGATE

• Innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive.

• Tapping the rural market by the development of ‘Colgate Ayurvedic Toothpowder‘.

• Introducing sachets of tooth powder for the rural market who buy in smaller lots.

PRODUCT

• For Urban population, products catering to young generation.

• For Urban rich and consuming class, they came up with the products on the basis of functional benefits.

Eg: 1.They launched different toothbrushes for different age groups.

2.They launchecd a special toothpaste and toothbrush for kids in the age group from 4-10 years.

• Aligned according to the competitor's price .

• Chargedhigher premium which focused on consuming and lower income classes.

• Customized package on the basis of price points.

• Positioned Colgate dental white crème and toothpowder towards rural rich segment.

• For rural consuming class they developed Cibaca toothpaste.

• Advertized through T.V. & Print • FM Radio for Urban population & MW

and AM radio for Rural population.• Hoarding on National highways.

• Focused on rural markets by

Increasing the wholesalers to smaller towns.

Tracking the distribution path so that they are covering all the village areas around the towns.

• Increasing circumference of toothpaste tube.

• Free Dental Check-up in mobile vans

• Free Dental Check-up by sending a SMS• Scholarship offers like Learn & earn offer

• Various Surveys like…1. Colgate's Bright Smiles, Bright Futures

: This Educational Program worldwide was

developed to teach children positive oral health habits of basic hygiene, diet and physical activity.

2. Colgate Professional Program: The Program works towards improving oral

health awareness and oral care on a mass scale. Oral care awareness is created and spread through appropriate mechanisms such as exhibitions, the use of audio-visuals, lectures, demonstrations, teacher training Programs .

Attractive offers:• Super Saver Offer for 'All Around Decay

Protection'. Buy 200g plus a 100g tube with a Colgate Extra Clean Toothbrush in a Family Value Pack for Rs. 82/-. Save Rs. 18/-.

• Colgate Maxfresh Gel is the first toothpaste infused with cooling crystals giving you a whole new dimension of freshness. Get a 150g plus a 80g tube with a Colgate Extra Clean Toothbrush in a Freshness Value Pack for Rs. 79/-. Save Rs. 20/-

CURRENT POSITION

Colgate

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