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only on brands, which use the words “Colgate” or “Palmolive”.
Mission Statement: To provide the best quality products to
consumers to fulfill their entire household needs.
Corporate Mission: To become the number one consume r goods
company in all the regions it is operating
Colgate Palmolive’s Marketing Environment
Like any other organization, Colgate Palmolive functions in an
environment, which influences nearly every aspect of its operations.
The Macro Environment:
The macro environment consists of elements that affect all firms in
the market. The factors affecting the operations of Colgate Palmolive
has been discussed as follows.
Demographic Environment:
Changes in characteristics regarding human population, affect all
companies, especially marketing firms. Colgate Palmolive being a
consumer product marketing organization has also not remained
unaffected. Rapid urbanization has greatly influenced its marketing
mix. Its products are more focused on the urban market. Similarly it
has also successfully blended the change in the occupational priorities
of our social setup (from small-owned businesses to professional
obs in its promotional campaigns, laying more emphasis on the
working class. Similarly, while promoting Colgate toothpaste, the
company has focused on dental statistics of the population. The
information regarding poor dental health of kids was efficiently usedin Colgate’s advertising campaigns.
Social and Cultural Factors:
Changing gender roles have also affected the company’s marketing
plans. For example the detergents being marketed by the company
include male perspectives in their advertising campaigns, a concept
considered totally unfeasible two decades ago.
Lifestyle, values, and beliefs, all affect the marketing programs of
companies. For Colgate Palmolive, the change in gender roles has had
a great impact on its marketing campaigns. The advertisements aired
on behalf of the company, reflect this change, such as a more casual,family atmosphere, and often two income households, shown in its
ads.
A very important concept of our social setup is the joint family
system. Te relationships within this system are given high importance
in our society, which Colgate Palmolive keeps in mind while adopting
ideas from CP (USA) for implementation in the local market.
Economic Conditions:
Rabbi Shergill (1)
Deepa Mehta (1)
Philosophy (1)
Shoaib Mansoor (1)
NATO (1)
Kamal Uddun Azfar (1)
Shareef Kunjahi (1)
Saeed Anwar (1)
Mohenjo-daro (1)
Jassa Singh (1)
Kasur (1)
Pablo Neruda (1)
Sania Mirza (1)
Shahnaz Begum (1)
Short Stories (1)
Kashmir (1)
IT Sector (1)
Blasphemy (1)
Crime & Law (1)
Aruna Shanbaug (1)
K2 Mountain (1)
English Fiction (1)
Khushal Khan Khattak (1)
Wazir Agha (1)
Ajoka Theatre (1)
Iran (1)
Abida Parveen (1)
Socialism (1)
NADRA (1)
Healthcare (1)
Gurr (1)
Amjad Islam Amjad (1)
Munir Niazi (1)
Habib Jalib (1)
Parveen Shakir (1)
Arundhati Roy (1)
Munshi Premchand (1)
Vikram Seth (1)
Qurratulain Hyder (1)
Asghar Nadeem Syed (1)
Dr. Iffat Shahab (1)
China (1)
Migration (1)
Javed Miandad (1)
Capitalism (1)
Hinduism (1)
Social Issues (1)
MQM (1)
Sikhism (1)
Arab Spring (1)
Junoon (1)
Medicine (1)
Imperialism (1)
Ali Hajveri (1)
GC (1)
PTV (1)
Canada (1)
Mushtaq Ahmad Yusufi (1)
Mansha Yaad (1)
Interview (1)
Hanif Ramay (1)
Basant (1)
Yousaf Sallahuddin (1)
Environment (1)
Market (1)
Cowasjee (1)
1947 (1)
Pyare Abbi Jaan: Eulogy to Muzzafar
Ali Syed
Mevlana Rumi visit Allama Iqbal –
Story narrated by Dr. Javid Iqbal
POPULAR POETRY
Chapter 4. The Martians: Javidnamaby Allama Iqbal
Urdu Ghazal by Farhan Gillani
POLITICAL THEATRE
Three Arguments Against a War – By
U. Raja
Jassa Singh, The Forgotten King of
Punjab – By Sameer
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The overall economic environment has a major effect on fi rms,
especially those that have maximum consumer interaction, CP being
a prime example. An overall economic boom brings in increased sales
for CP. Since Pakistan has an agro-based economy, the impact of crop
production is quite profound on CP’s sales level. For instance, when
Pakistan had a bumper cotton crop in 1991-92, the sales went up by
leaps and bounds in nearly every category. Managers at CP closely
monitor economic forecasts and plan production level accordingly.
Rising inflation is also another area considered by CP while marketingits products. Introduction of Bonus as an inexpensive detergent,
marketing of Brite in cheap sachet packs and introduction of twin,
Colgate toothpaste and toothbrush packs were some steps taken by
CP to provide affordable products with value to customers.
Political and legal forces
The political and legal forces operating in our environment also affect
Colgate Palmolive. Colgate Palmolive tries to maintain an active link
with agencies such as, Monopoly Control Authority, and Securities and
Exchange Commission. Similarly regulations by the tax authorities,
and Customs are closely followed. New legislations, especially those
concerning import duties are closely observed.
Colgate Palmolive also supplies products to various government
agencies, so that government policy regarding expenditure has a
direct impact on sales.
Technology:
Technology and innovation, at CP, are focused mainly at providing
better products to its customers. New technological procedures were
incorporated in its manufacturing operations in the recent past, which
made it possible for CP to produce products at competitive prices.
Similarly, adoption of information technology, (IT) tools has ensuredefficiency, and effectiveness of managers at CP.
The Micro Environment
A firm is particularly impacted by its microenvironment in a variety of
ways. The microenvironment can itself be further divided into two.
These include the external and internal environments.
The External Environment
The Market:
The total market according to the definition includes people with
needs to satisfy, possessing purchasing power, and the willingness to
spend. For Colgate Palmolive, the market consists of literate middle
class, and upper middle class people, with average, and above
average income.
Suppliers:
For Colgate Palmolive, the market contains two types of supply
options:
Imports1.
Dr. Waseem Anwar (1)
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Locally manufactured raw materials2.
Imports:
Locally manufactured raw materials. Most Colgate Palmolive’s
manufacturing needs are, however, fulfilled by local suppliers.
Maximum effort is made to ensure an effective supply chain, and to
avoid shortages.
Marketing intermediaries:
Colgate Palmolive has an efficient market intermediation setup. Good
relations with whole sellers, and retailers, are ensured. Colgate
Palmolive’s strong distribution network is one of its competitive
strengths. This network is maintained through both professional and
personal ties. It is due to this strong distribution, Colgate Palmolive
has a very strong presence in the market, even in small rural areas
where other MNCs have failed to penetrate.
Internal Environment
Colgate Palmolive’s marketing program is also greatly affected by
certain internal forces. These forces make up the internal
environment, which is controllable by the management of the
enterprise. These factors include:
Production facilities:
Colgate Palmolive has a big production setup. It has two
manufacturing plants working at full capacities. These factories are
situated at Kotri, Sindh, and near Swat, NWFP. Clean, hygienic , and
friendly atmosphere is maintained at these factories.
Financial Resources:
In spite of being a marketing oriented organization, a lot of emphasisis laid on efficient financial management. Colgate Palmolive’s financial
department consists mainly of qualified cost accountants. The
financial division is quite active.[4]
Human Resources:
Colgate Palmolive doesn’t have a specific Human Resource or
Personnel department. The administration looks after basic Human
Resource functions, while most of the recruiting, and selection
procedures are handled by senior, and middle level marketing
managers. The company realizes that the absence of a Human
Resource department is a major drawback, and plans to have one
very soon.
Location:
Colgate Palmolive has its head office in Karachi. There are other zonal
offices at Lahore, Peshawar, Hyderabad, Multan, Quetta and
Islamabad. These zonal offices take care of their specific allotted
areas. Thus, for a company with such a wide consumer base, Colgate
Palmolive is ideally located.
Research and Development: Colgate Palmolive has an active R&D
department. Studies are held at a regular basis to encourage the spirit
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of innovation. Similarly, training sessions are also organized.
Workshops in collaboration with Colgate Palmolive (USA) are also
held.
Company Image:
Colgate Palmolive enjoys a healthy image in the market. The fact that
it is an MNC is a big contributor to its image building exercise.
However, the management of Colgate Palmolive believes in a unique
philosophy. Unlike companies, such as Nestle, and, Johnson &
Johnson, who believe in promoting the products with the company’s
name, Colgate Palmolive believes in creating strong brand names and
a unique image for each product. Colgate Palmolive has largely been
successful in doing so because consumer behavior in the market has
shown that they have come to identify products of Lever Bros and
Proctor & Gamble, with the respective company names more then
with the brand names themselves, which has not been the case with
Colgate Palmolive’s products.
SWOT ANALYSIS
Overall organizational swot analysis
Strengths:
Colgate Palmolive’s strength lies in its strong marketing team. Even
while working within a small budget, the team has delivered and
carved a niche out for itself in the consumer goods market. Its
aggressive strategies are clearly reflected in the marketing
campaigns of Bonus VS Wheel, and Express VS Ariel. Colgate
Palmolive’s marketing efforts have been particularly strong in the
promotional, and the distribution aspect of its marketing mix.
Weaknesses:
Lack of capital, and inadequate financial resources, is a big weakness
for Colgate Palmolive. Facing the onslaught of huge MNCs like Lever
Bros, and P&G, requires a strong monetary backing. Since Colgate
Palmolive, is basically sponsored by a local group (Lakson), their
financial background is comparatively weak.
Opportunities:
Growing demands for consumer goods, especially branded items,
represent an ideal opportunity for Colgate Palmolive to cash on.
Similarly, positive economic signals, economic growth, and the end of
recessionary periods around the globe present bright economic
marketing prospects for Colgate Palmolive.
Threats:
Continuous onslaught by other FMCG companies, especially Proctor &
Gamble, is a big threat for Colgate Palmolive. Proctor & Gamble has
captured huge market shares from Express, Brite, and the Palmolive
soap. Its aggressive marketing strategies pose an ever-increasing
threat to Colgate Palmolive’s marketing efforts.
Strategic Marketing Planning
Colgate Palmolive Pakistan prepares its strategic marketing plans for
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all its products categories division. Separate marketing plans are
made for key brands like Express Brite , max and Colgate. These plans
are formulated by the brand management teams and are carefully
reviewed semi annually. Progress reports are regularly submitted to
the top managers.
Products
Colgate Palmolive (Pakistan) has four product categories. Included
under these categories are several brands. The product categories are
as follows
Hard surface care
Oral care
Personal care
Fabric care
Hard Surface Care:
Hard Surface Care category includes some popular brands
Max:
Max is the market leader in hard surface care category. Its majorcompetitor is Vim being marketed by lever brothers
Javex:
Javex is a liquid hard surface care product. It is only marketed in urban
area
Oral Care Products:
Oral Care Product category at Colgate Palmolive includes the three
brands.
Colgate toothpaste:
Colgate toothpaste is the market leader in Pakistan
Freshmint toothpaste:
This is a relatively less popular brand by Colgate Palmolive it was
basically targeted towards people with bad breath problem. To some
extent its marketing mix targeted towards with quite similar to that of
close-up toothpaste
Colgate classic toothbrush:
Colgate classic toothbrush commands a huge market share. It ranks
second after Shield in the branded category of toothbrushes.
Personal Care Products:
Personal Care Category includes various popular soaps
Palmolive:
Palmolive is one of the most popular brands worldwide but failed to
make a big impact in the local market when it was introduced in the
1980’s. Aggressive marketing by Lever Brothers’ brand Lux was one
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of the reasons for its moderate success. In spite of its failure to gain
the top slot, Palmolive still commands quite a large market.
Donge:
Donge soap is another premium brand by Colgate Palmolive. It is
basically catered to the upper income segment of the market. The
‘niche’ marketing concept has been employed while marketing Donge.
It is only available at top retailers in urban cities. Its competitors
include premium brands imported in Pakistan such as thosemanufactured by Cussons (England)
Protex:
This is another personal care brand offered by CP. It is basically a
semi-medicated soap competing against brands like Safeguard and
Lifeboy gold but unlike these brands this is targeted towards the
middle and the lower class.
Fabric Care:
Fabric care division is the biggest revenue earner at Colgate
Palmolive. In this area the competition amongst brands has
intensified to a great extent over the past few years.
CP markets some well-known Fabric care brands, these include
Express:
Express is the best selling detergent in the country. It’s Express that
introduced the concept of poly bags in Pakistan. It successfully
dislodged Surf from the top position but is facing resistance from
Ariel, being marketed by Proctor and Gamble. Express was changed to
express lemon to compete Surf’s conversion to Surf Excel. Also
included in the Express series is Express bar targeted towards those
who prefer soap to detergents.
Brite:
Brite is another popular brand. For years it was the market leader in
Pakistan. Brite is available in convenient sachet packs and is targeted
more towards the middle class. Brite underwent a similar conversion
process like Surf and Express. It was first changed to double action
Brite and later to Brite total.
Bonus:
Bonus is aimed at the middle and lower middle class. Its main
competitor is wheel being marketed by Lever Brothers.
Texapol:
Texapol is another detergent manufactured by Colgate Palmolive. It is
basically made up of left over scrap and is very cheap. It is marketed
in only rural and semi-urban areas.
Aim:
Aim is another product targeted towards the rural area.
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Competition
The competitive environment also has a big influence on Colgate
Palmolive’s marketing programs. Colgate Palmolive mainly competes
with two other huge multinationals, namely, Lever Brothers, and
Proctor & Gamble. It also competes in some categories with Zulfiqar
Industries, and Transpak Corporation.
The brand war between these fast moving consumer goods (FMCGs)
marketing companies is especially tough in the detergent and
toothpaste market.
A careful analysis of the competitive environment among these
FMCGs reveals three types of competition, namely: Brand
competition, Substitute competition, and General competition
Brand Competition: brand competition exists between similar
products. For example, in the case of Colgate Palmolive, Colgate
toothpaste with Close Up, English toothpaste, and Macleans. Express
detergent competes with Surf Excel, and Arial in a similar fashion.
Substitute Competition: this competition exists between products
that satisfy the same needs. Incase of Colgate Palmolive, Colgate
toothpaste competes with Dentonic, and Khas tooth powder. Similarly
Express competes with detergent bars and soaps. Donge, Colgate
Palmolive’s premium personal care brand competes with imported
face washes.
General Competition: In a more general sense, Colgate Palmolive
competes with every other company for a share in the consumer’s
budget.
Market research analysis- Colgate Palmolive
Colgate Palmolive believes in not only building i ts differential
advantage over the competitors but also in maintaining it through
constant research and development. The research efforts of Colgate
Palmolive are channeled towards constant improvement of its
product, finding out new and improved ways of reducing its costs , and
exploring new opportunities for promoting its products as compared
to its rival products, such as English, Macleans, and Pepsodent
toothpaste.
In view of the ever-increasing importance of the R&D function in i ts
organization, Colgate Palmolive has increased its research and
development budgets over the last few years.
Why Colgate Palmolive invests in research and
development?
Competitive Pressure: Colgate Palmolive needs to develop and
market new products more quickly than ever before, since new
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products (such as Close-up’s Ultra whitening Gel), are being
launched by rivals, as well as new brands in the existing product
market are flooding the market (Pepsodent, Ora toothpaste). Thus
research is required to find out what current and potential
competitors are doing.
Expanding Market: Colgate Palmolive realizes the importance of
broadening its market, previously, operating in urban areas only, it
broadened its market in Pakis tan by bringing in various rural and
semi-urban areas under its sales operations
Making a mistake can be very costly: Marketing is expensive and
a failed marketing campaign can be very costly to Colgate
Palmolive. So research is vital for effective implementation of
marketing operations.
Growing customer expectations: with the vast array of new
products in the market such as English, Mcleans, Close-up,
Sparkle, the customers have plenty of variety to choose from and
thus, customer expectations are higher than ever before. There is
thus a need to quickly identify any problems that the customers
are facing with regard to the product, for e.g. if the toothpaste is
causing allergic reactions to some people, then Colgate Palmolive
needs to look into this problem and quickly come up with a
solution.
Colgate Palmolive has a well-established marketing research network
to rely upon. Not only does it utilize information from secondary
sources such as published reports on FMCG companies, but also has
its own Marketing Information System (MKIS) within the organization,
and frequently, Marketing research projects are undertaken.
Marketing Information system has been providing up to date,
information about the competitors sales information, their marketingstrategies, and also pertinent timely information about the market
demographics, the changing tastes and trends, information about the
sales and demand of substitute products, and any product that might
be a threat to the Colgate toothpaste. Soon after its launch,
Pepsodent was spotted by Colgate Palmolive to be a potential threat
to the Colgate toothpaste in the subcontinent market, and thus
Colgate Palmolive intensified it marketing efforts for the toothpaste.
Colgate toothpaste had till then been primarily advertised as a
toothpaste that strengthened teeth, but later advertisements
stressed that Colgate was a toothpaste that fought plague, and
freshened breath, besides making them strong.
Colgate Palmolive has a computerized marketing information system,
whereby the company maintains all sales records, and captures
market data as mostly relayed by the sales people.
Relational databases are maintained, which store data on customers,
suppliers, changing market trends, as well as sales data.
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Marketing Research Projects are carried out as and when required.
These projects are mostly started at a time when a new product is
‘in-the-pipeline’. Not only does Colgate Palmolive does research to
ensure that it is going to make the right kind of product but it also
likes to make sure that the product is launched at the right time, the
right way, and in the right market. Thus marketing research projects
are carried out to ensure that the launching goes right.
How Colgate Palmolive collects data
for marketing research:
Colgate Palmolive uses both primary , as well as secondary data while
conducting research. Primary data primarily consists of forms filled
out by the customers at the retailer end, as well as retailer feedback
on customer preferences. Usually both of these are utilized whenever
Colgate Palmolive conducts a formal research, such as for the
launching of a new product. When the Colgate Palmolive was
launching the Colgate Palmolive toothpaste in the new packing, both
of these forms of primary data collection were made use of.
Important information regarding competitor performance can also be
obtained through primary and secondary research. Such a practice of
collecting information about competitors in the case of secondary
information is called as Competitive Intelligence. Colgate Palmolive likes
to collect fortnightly data about the sales of its own product as well as
those of competitors by geographical location, in order to keep up
with customer preferences and make any necessary changes in its
marketing mix. Colgate Palmolive’s research department if highly
sensitive to any changes in the sales of rival products; English
toothpaste, Sparkle, Pepsodent, Mc leans.
Important sources for acquiring secondary data for Colgate Palmolive
are the published journals on ‘Fast Moving Consumer Goods
Companies (FMCGs).
Product Analysis
Colgate toothpaste is a star product of the company. With high growth
rate and an equally high market share it is one of the most popular
family product in the world.
Product levels
Core Product: The core product of Colgate Palmolive or the idea sold
through Colgate toothpaste is, ‘something that enables clean, healthy,
strong teeth’. One of the characteristic s stressed the most in all
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Colgate toothpaste advertisements is, that it leads to strong, healthy
teeth. The presence of calcium in the toothpaste is thus stressed
since it’s widely believed that calcium strengthens teeth.
Actual Product: The actual or the physical form, in which the core
product is sold, is the white fluoride, and calcium based toothpaste,
contained in a squeezable tube.
Augmented Product: Any additional features to the actual product
(necessary to make the product functional) are augmented part of the
product. Social appeal and attractiveness through brighter teeth and
fresher breath are important augmented features of Colgate
Toothpaste.
The product life cycle
Colgate Palmolive has a large market share, which is increasing at an
increasing rate. Thus it is clearly in the growth stage. The brand
management team feels that its growth stage will continue for at
least another half a decade and then it will approach the maturity
stage.
Positioning and Differential AdvantageThe positioning of Colgate toothpaste is quite unique. Colgate
Palmolive (Pakistan) has been able to capture the original positioning
theme from CP (USA) unlike CP (India) and other local partners in Asia.
This successful theme adoption can be attributed to the energetic
marketing team of Colgate Palmolive. (Pakistan). Colgate’s image in
Pakistan is that of a family brand with multidimensional advantages.
It has an attractive taste, and is equally good for children and adults.
Unlike its competitors who focus on only one theme like
Pepsodent lays emphasis on dental decay in children \1.
Macleans emphasizes on strong teeth2.
Close up focuses on shinning teeth and a fresher breath for socialappeal and
3.
Medicam anti toothache formula,4.
Colgate has been able to evolve all these images into one brand,
Colgate Toothpaste. Colgate toothpaste because of its
multidimensional image i s often refereed to as an all rounder brand.
Price and quality are thus major attributes through which Colgate is
positioned. High quality for a complete dental care and premium
pricing are the major positioning theme.
According to CP’s marketing tem Colgate’s differential advantage is
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its all rounder capabilities. Its ability to fight tooth decay, eliminate bad
breath and give strong white teeth under one brand label is why it’s
the most preferred brand in Pakistan.
Target market
Ever since its introduction in Pakistan, Colgate has had a consistent
target market. Unlike other brands Colgate has never altered its target
market segment. Though there has been some expansion in recent
years.
Colgate is targeted at middle income and upper income families.
Lower middle and educated families with white-collar jobs are also
included in its target market, Colgate through its advertisements
focuses on its key concept that is toothpaste of the family theme.
A few years back Colgate was introduced in the semi urban and rural
areas. Again educated middle and upper class are targeted here.
Market demand
The marketing team of CP believes that Colgate toothpaste has a lot
of growth potential and the saturation point is quite far off.
management.
Brand equity
Colgate toothpaste enjoys very strong brand equity both
internationally as well as in the local markets. In fact it was this brand
equity that led to the introduction to the Colgate toothbrush in the
country. Regular market surveys conducted by rese arch consultants
hired by CP (Pakistan) reveal that Colgate’s brand equity has been
increasing at a rapid pace. More and more people now have a
favorable image of Colgate and more people place as a first choice
now against the previous trend when the oral care brands like
Macleans, Shield and signal enjoyed very high brand equity as
compared to Colgate.
Packaging and labeling
Colgate toothpaste comes in an attractive, eye-catching red colored
pack. The CP marketing team feels that packaging of product is of
vital importance and the emphasis on this area on this area can be
gauged by packaging innovation such as introductions of polybags in
case of Express, paper wrappers in case of Palmolive against card
packaging of soaps and Max in plastic bags. Similarly Colgate has also
been marketed with user-friendly packaging. A push-up lid replaced
the cap, however no change was made in the tube style. The red packof Colgate is very attractive and eye-catching and consumers find it
easy to trace it from the retailers’ shelf.
The packaging highlights all use instruction and multiple advantages
of the paste. Similarly the claim that Colgate is recommended by
more dental associates in the world as compared to any other
toothpaste is also clearly highlighted. This, the management feels
adds to the brand equity.
One element is however missing out from Colgate’s label of oral care,
products have a customer suggestion or complaint address
mentioned in their packages. This is not present in the case of
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Colgate.
Packaging analysis of Colgate
Palmolive tooth paste
Colgate Palmolive packages its premier quality toothpaste, keeping in
mind sweat factor. Packaging is intended to sure various purposes: –
Project the product on its way to the consumer: Keeping till
functional especially in mind, CP has untraced Pre “flexi” tube,
which has added durability to the toothpaste package. The flexi
tube protects the tube from breaking and causing product spills,
while still on its way to the consumer. The tube is further
concerned in a cardboard box to protect the paste from
concerning into direct contact with eat, deist, intense sunlight.
1.
Provide protection after the toothpaste is unpacked:2.
Not only does the flexible plastic packaging protect the product on its
way to the consumer, but it also ensures that the tube does not break
and retains its original shape ever after repeated usage, in f act till the
using end.
3. Help gain acceptance from the new
dilemma:
The primary concern of the middle mean regarding packaging is that it
should be easy to store, possess attractive packaging to attract
customer and require minimal sales from middle man, possess self
explanations labels and finally the product should possess a high
turnover. Colgate Palmolive keeps these middlemen concerns in mind
and has there desired a suitable packaging.
The Colgate toothpaste is packaged is an easy to store packaging
design and sizes. The labeling itself explanations, since the
toothpaste is the most popular and largest selling toothpaste inPakistan, the turnover rate is also very high.
4. Help persuade consumer to buy the
product:
The red and color of the Colgate toothpaste together with its
convenient flexi tube packaging has proved attractive to the
consumers. The brand loyal customer of CP toothpaste is familiar
with red and white packaging and can easily spots it in the
supermarket shelves.
Packaging Strategy of ColgatePalmolive Toothpaste
When making the packaging decision, the executives must be very
clear as to which packaging strategy needs to be pursued. That
weather family packaging or product line packaging strategy wil l be
followed. CP follows the strategy given below: –
Product Line Strategy
CP packages the CP toothpaste is its distinctive red and white colored
packaging with the familiar Colgate trademark. This packaging color
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combination is unique only to the product line CP toothpaste. The
different sizes of CP toothpaste are all packaged in the same
packaging. Such a strategy is being followed so that the product is
district not only from the competitors but also from any future
product line in toothpaste that Colgate may introduce.
Also, CP has never hesitated in pursuing the strategy of changing the
package whenever it has felt the red. This occurred when, the new
and improved flexi tube with the flip cap was introduced. The initial
package was the traditional metal tube, then the flexi tube and finallythe flexi tube with the flip cap was introduced.
CP has also made recurrent improvements in the outer cardboard
packaging, making it more attractive and durable over time
Labeling:
Labeling is closely related to packaging. It is the part of a product that
carries information about the product and the seller. A label may be
part of a package (as in the case with CP toothpaste) or it may be a
tag. There exist a very close relationship between labeling, packaging
and branding.
Brand Label:
CP toothpaste carries a brand label which the CP toothpaste name.
Along with the brand name often a tagline is also printed, which in the
case of CP toothpaste is ‘For Stronger, healthier teeth’.
Descriptive Label:
Gives information about the product’s use and performance etc. CP
toothpaste carries instruction that it should be used after every meal.
It also emphasize that CP has calcium, which makes teeth stronger,
healthier.
The plague fighting ability is also highlighted in the descriptive
packaging.
Statutory labeling requirements:
CP keeps in mind, the statutory labeling requirements when
packaging its toothpaste. The size the net weight of the toothpaste,
along with manufacturing date, retail price, sales tax, manufacturer’s
name and origin are clearly printed on the package.
The absence of any of the above information is considered as illegal
practice.
In addition to the above, CP also mentions, the ingredients in the
toothpaste. Further the packaging is environmentally friendly;
whereby the tube as well as cardboard can be recycled.
Good packaging can improve customer acceptance through improved
color, design and style, which give the product a differential advantage
over the substitutes available. Packaging has increased the brand
equity of the product and the CP toothpaste is CP’s star product.
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Product competition
The competitions in the oral care category especially in the toothpaste
market very intense. For nearly a decade, a cutthroat battle has been
going on between brands belonging to established FMCG companies.
Colgate has captured a huge chunk of the market and its share is
increasing day by day. Some of the major competitors are as follows
Macleans1.
Medicam2.
Close-up3.
English4.
Minto5.
Pepsodent6.
Among all these competitors, Medicam has the largest market share.
It comes very close to overtaking Colgate in terms of sales. The USP
of both the products are however widely different. Colgate is a more
general product for overall dental health while Medicam targets
people with toothaches and those suffering from dental decay. Due to
poor oral hygiene a large number of our urban population suffers from
these problems and hence Medicam has been able to capture a large
chunk of the market. A couple of years back when Medicam’s share
was increasing at a very high rate, there were plans of Colgate to
introduce a similar specialized product with Colgate brand name.
However, the company decided against i t and continued to
concentrate on its original USP.
The introduction of English toothpaste in the market by a competing
group was another challenge faced by Colgate brand management
team. English toothpaste was targeted at the middle class and waspriced at nearly at half the price if existing brands. Its promotional
campaign focused on its cost-leadership strategy and the brand was
successful in the market leader for a brief period. Close-up being
marketed by Lever Brothers is another prominent player in the
toothpaste market. Premiumly priced close-up is targeted at the
upper class. Close-Up’s marketing strategy lays a greater emphasis
on shinning teeth and fresher breath for social acceptance rather than
on dental problems.
Touchme introduced Minto in the market a year ago. Minto adopted a
strategy similar to that of English but laid emphasis on both price and
quality.
Macleans some years back used to be market leaders but have lost
its share mainly due to ineffective promotional efforts. Pepsodent,
Signal 2, Forhans and Ora 3 are other competing oral care products
Colgate has competition with. The shares of this toothpaste have
been declining.
Pricing strategies
When Colgate was introduced in the market skimming pricing
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strategy was used. The price was higher than most of the brands.
Colgate has persisted with its premium pricing concept ever since.
Emphasizing on quality for product differentiation it has never used
price cuts to increase its sales. Colgate’s price throughout the country
has been the same.
Though it has never decreased its prices in times of stiff competition
the CP management have used discount offering like two in one pack,
toothbrush packs and extra volume packs. This tact was however
employed in face of increasing competition. The main pricing concept,
however, has revealed around premium pricing. Today, Colgate is sold
at Rs 27/- (75 gms), which is way above the competition considering
that one of the main competing brand; English is sold at Rs.10.
Like other products of CP, retailers and wholesalers are given quantity
discounts, price discounts regularly.
Distribution
Colgate Palmolive has one of the most effective networks in the
country. Its deep penetration even in the far-flung areas isremarkable. It is because of this effective system that Colgate
toothpaste is widely available and occupies a substantial place on the
retailer’s shelves. All over the country CP unlike its competitors P&G
and Levers does not rely on external distribution agencies but has an
internal distribution subsidiary by the name of Express. This provides
the company wit an administrative VMS while its competitors have a
contractual VMS. Colgate’s toothpaste distribution takes place
through various channels. In the urban areas the chain is:
Colgate Palmolive Express distributors Retailers
Consumers
In certain semi-urban areas the company follows a slightly different
route. For areas like Hyderabad, Sukkur, Sialkot, Gujaranwala etc the
company involves agents wholesalers for the expertise in these
areas. The chain therefore expands into:
Colgate Palmolive Express distributors Agent wholesalers
Retailers
Consumers
However, in purely rural areas, Colgate in directly sold through agent
wholesalers:
Colgate Palmolive Agent wholesalers
Retailers consumers
No matter where Colgate is marketed, the parent company has a lot
of influence on the other members of the distribution chain and thus
sufficient channel power.
Intensity of distribution
Since Colgate toothpaste is a convenience product, the management
at CP wants it to be available to every retailer I the market where
consumer might reasonably look for it. Thus, an intensive distribution
policy is followed.
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Changes in the distribution environment.
The Colgate Palmolive management realizes that the distribution
environment will undergo a huge change in the coming period.
Colgate toothpaste is a convenience good with huge dependency on
the retailers. The retail outlet in Pakistan is going through a big
change, new chains, and large supermarkets are replacing old
neighborhood grocery stores. Rajani’s, TesMart and select stores are
important examples. CP plans to enter into exclusive contracts with
these outlets to gain effective sales management.
Promotion
Promotion is the most important element of the marketing of any
consumer good item especially if it’s a convenience good.
Since competition in the all care area is extremely intense, it is
promotion, which brings out the differential advantage of a product.
The management at Colgate Palmolive realizes the importance of
promotion and huge efforts are made to ensure effective promotional
planning and the success of all promotional campaign. All majorproduct of Colgate Palmolive is heavily promoted including Max,
Palmolive, Express, Brite and Colgate toothpaste.
Colgate’s success over other oral care brands can be attributed to its
high and effective promotional campaign. The promotional mix of
Colgate consists of the following activities:
Advertising1.
Sales Promotion2.
Personal selling3.
Publicity4.
Public relations5.
On an overall basis a push strategy is applied. This is directed towards
the ultimate consumers with the intention to motivate them to ask
retailers for their product. In turn the retailers, would request the
product from the wholesaler and distributors.
The campaign objective:
Colgate toothpaste is presently in is growth stage. Keeping this in
mind, the Colgate management has outlined two major objectives of
its campaign. S ince the product has been in the market for quite some
time, and has crossed its introduction stage, the management feels
there is no major need for informative promotion rather the focus
should be on
Persuasive promotion1.
Reminder promotion.2.
Persuasive promotion basically aims at convincing people that
Colgate toothpaste should be their first choice amongst all the other
toothpaste. On the other hand reminder promotion aims at constantly
reminding people that the products widely available in the market.
According to Colgate’s brand management team reminder promotion
is of vital importance in case of all fast moving consumer goods and
especially toothpaste’s. Many good products have failed just because
their parent companies failed to focus on reminder promotion. Binaca
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and Natural toothpaste were pushed out of the market because if this
reason. The decline of Sparkle and Signal 2 both market leaders a few
years back can be attributed to the same factor.
The Promotional Budget
Promotional budgets at Colgate Palmolive are usually established at
the beginning of the year but the management I always ready to
adjust them, if such a need arises. The overall budget is set after
analyzing after analyzing the long-term strategic marketing plans and
their implementation.
The basic budget is set in line with some objective or overall goal in
mind. Revisions are usually made keeping in view the competition
and promotional expenditure made by the competing firms.
Colgate Palmolive’s promotion Mix:
The promotion mix at CP. consists of the following in order of
significance.
Advertising1.
Sales Promotion2.
Personal selling3.
Public relations and publicity4.
Advertising
Advertising forms a single most important promotional tool as far as
Colgate toothpaste is concerned. Its advertising campaign can be
classified as
A consumer advertising effort and not Business-to-Businessadvertising.
1.
Product advertising for indirect action i.e. it is designed to
stimulate demand for over a longer period of time.
2.
Selective demand advertising i.e. it is directed towards
stimulating demand for an individual brand. i.e. Colgate
toothpaste and not a generic category of product.
3.
Competitive advertising since its advertising campaign is basically
against other competing brands and focus is on its special
features and differential advantage.
4.
Campaign Development and Implementation An advertising campaign consists of all tasks involved in converting a
basic theme
Into an advertising program for achievement of a specific
organizational goal relating to a particular product.
At CP., the brand management team initially comes up with an overall
objective of the campaign. This is discussed in detail with middle
management consisting of marketing managers. After this a budget
is established from the overall promotional budget, decided at the
beginning of the year. After this budget has been approved the brand
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management team gets in touch with the advertising agency, which
is spectrum communications, and the basic message of the campaign
is created. Spectrum Communication is one of the largest advertising
agencies in Pakistan and has some blue-chip accounts of top MNCs
and national companies. It also has affiliation with world-renowned
advertising firms. The campaign message is decided after active
consultation between
Brand management team1.
Client service executives of Spectrum Communications2.
Creative department team at Spectrum. Communications3.
After the campaign message has been decided and approved by the
CP. top management, the brand management team decides over the
media required to execute the campaign. The media-planning
department helps in making this decision. For Colgate toothpaste,
television is the most prominent media. Some advertising is also
done through newspapers, magazines and on very small scale
through outdoor media like billboards.
Timings of advertising especially those that are aired on television areof great importance. The local television scene has undergone a huge
change with multiple channels and large number of productions. This
makes the placement of advertisement more difficult. Colgate
Palmolive uses the services of certain advertising agencies like AD
Track, which provides information regarding view ship and timing of
advertisement.
Similarly, Aftab Associates, a leading research firm also provides
relevant data necessary to gauge the effectiveness of the advertising
campaign.
Measurement of effectiveness
Once advertisements have been developed and aired, the company
tries to evaluate the effectiveness of these advertisements. Recall
the company conducts tests. One drawback as far as the total
advertising campaign is concerned, is that Colgate Palmolive does not
have its own advertising department like its competitors. Due to this
the company has to rely on its agency.
Sales promotion
After advertising, sales promotion is the most effective tool used at
CP. as afar as Colgate toothpaste is concerned. Some of the common
sales promotional techniques used by the brand management team
include:
1. Free sampling:
Free small sized samples of toothpaste are given to doctors, dentists
and general consumers. The per head cost of s ampling, according to
the management, is high but results are much more positive if
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compared to advertising.
2. Distribution of souvenirs:
Free souvenirs and momentous like pens, key chains, T-shirts etc are
distributed to consumers, especially students.
3. Contests:
Sales contests are organized amongst retailers and prizes are
distributed amongst the winners.
Conferences:
Annual conferences are held. Doctors, dentists and the Colgate’s sales
team attend these conferences. These conferences not only enhance
sales but also help in image building.
Personal Selling:
Regular presentations are arranged for dentists and medical students.
Workshops are also frequently organized in medical colleges. The aim
is to convince future dentists that Colgate is the best toothpaste as
far as quality is concerned.
Public Relations and Publicity:
The public relations activities are undertaken as regard as Colgate
toothpaste is concerned focus on creating a healthy image of the
brand. Sponsorship of community events, distribution of customer
newsletters among the dental community are important examples.
Publicity for Colgate toothpaste usually takes place through mention
in newspapers, medical journals and other magazines.
Colgate Palmolive: A Good Corporate
Citizen:Despite of being a capitalistic concern, Colgate Palmolive as an
organization is aware of its social duties and responsibilities. Realizing
this, it has launched several programs for its community welfare. One
of these programs is the “School dental care” program. Being
sponsored by the company, dental surgeons along with Colgate’s
brand management team visit schools frequently and organize dental
clinics on a regular basis for complete checkups.
These programs, the company feels are not part of their promotional
efforts since these programs are not advertised nor are the products
promoted through these events.
Conclusion:
Colgate Palmolive is one of the top multinationals operating in
Pakistan. Colgate toothpaste is one of the leading brands. It is the
largest selling oral care product in the country and its market share is
increasing day by day. The team managing the brand is dynamic and
in spite of limited resources, has been able to come up with new
innovative marketing strategies, giving Colgate a competitive edge
over other oral care products.
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Tags: Reports & Studies
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[1] Source: Colgate Palmolive website USA
[2] Source: Annual report 1997 Colgate Palmolive Pakistan
[3] Source: Interview with Mr. Omar Qadri, Brand manager Colgate
Toothpaste, Colgate Palmolive Pakistan
[4] Source: Mr. Shahid Iqbal, Director Finance, Colgate Palmolive
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