Colgate Marketing Plan.docx

8/10/2019 Colgate Marketing Plan.docx

1/22

Marketing Plan

on

Colgate-Palmolive Ltd.

Submitted to:

DR. Poonam Sharma

Submitted by:

GROUP NO.: 3

ANUBHA KUMARI

PRASANJIT BARUA

NAVNEET TYAGI

IPSHITA KUMARI

AYUSH MAHESHWARI

ANSHUL AGGARWAL


2/22

CERTIFICATE

This is to certify that the Marketing Plan on Colgate-Palmolive Ltd.was

carried out by ANUBHA KUMARI, PRASANJI T BARUA, NAVNEET

TYAGI, IPSHITA KUMARI, AYUSH MAHESHWARI, ANSHUL

AGGARWAL in fulfillment for the award of degree of Post Graduation

Diploma Of Management at JAIPURIA INSTITUTE OF

MANAGEMENT, NOIDA during the academic calendar year 2014-16

under my supervision. The matter embodied in this project is original andhas not been submitted for award of any other degree.

Coordinator REMARKS

DR. POONAM SHARMA


3/22

ACKNOWLEDGMENT

We take this opportunity to express our profound gratitude and deep regards to our

guide Dr.Poonam Sharma for her exemplary guidance, monitoring and constant

encouragement throughout the project. The blessing, help and guidance given by her

time to time shall carry us a long way in the journey of life on which we can embark.

We made this project not only for marks but also it has increased our knowledge.

Last but not the least, I would acknowledge our Parents, without their constant

motivation and sacrifice, this project would not have been successful.

Place: Noida

GROUP 3:

PRASANJI T BARUA (PGSF1436)

NAVNEET TYAGI (PGSF1431)

IPSHITA KUMARI (PGSF1425)

AYUSH MAHESHWARI (PGSF1418)

ANUBHA KUMARI (PGSF1410)

ANSHUL AGGARWAL (PGSF1409)


4/22

INTRODUCTION

Colgate Palmolive Company is an American diversified

multinational corporation focused on the production,distribution and provision of household, healthcare and personal

products, such as soaps, detergents, and oral hygiene products

(including toothpaste and toothbrushes).

Under its Hills brand, it is also a manufacturer of veterinary

products. The companys corporate offices are on Park Avenue

in New York City, across from the Waldrof Astoria.

In India, it operates under the name as Colgate-Palmolive

(India) limited and its head office is situated at Mumbai.

Colgate Palmolive is a $10.6 billion global company serving

people in more than 200 countries and territories withconsumer products that make lives healthier and more

enjoyable.


5/22

COLGATE-PALMOLIVE in INDIA:

Headquarter in Mumbai.

Annual Turnover around Rs.1100 Crores.

Market Leaders in oral care.

Colgate consistently won India no.1 brand of the year award

from last three years.

Colgate ranked among best employer in India.

Customer base of more than 8 lacs retailers.

Serviced by company field force, more than 1800 stockiest &

super stockiest & their field force.

Colgate is the brand that people trust, for complete oral care

protection for themselves and ones they love.


6/22

COMPANY OVERVIEW

Colgate Toothpaste has been fighting bad breath and maintainingproper oral health for over 200 years. Colgate was the first

toothpaste in a collapsible tube, introduced in 1896 in New Yorkwhen it had previously been sold in glass jars since 1873.

Present in Singapore since the 1920s, Colgate is almostsynonymous with toothpaste in the local market. It is also widelyaccepted well both in the rural and urban areas of Nepal and India.Manufacturing units are based in India and exported to Nepal.Colgate is willingly to introduce manufacturing plant in Nepal

where household products are used at around 4.7% of thehousehold products used in world.

In 1992, Colgate established its first factory in China to producetoothpaste for the domestic market, and by 1999 became the highestselling brand in that world. Colgate products are marketed in Chinausing the transcription which is pronounced Gaolujie, similar toColgate, and has a positive meaning of high-quality cleaning gel.As of 2002, Colgate occupied 20% of the market share fortoothpastes in China. As of 2009, Colgate and its four corebusinesses including Oral Care, Personal Care, Home Care and PetNutrition surpassed sales of over $15, selling in over 200 countriesof the world.


7/22

Company Timeline

1806-William Colgate starts a starch, soap and candle businesson Dutch Street in New York City.

1857-Upon the death of founder, William Colgate, thecompany is reorganized as Colgate & Company under themanagement of Samuel Colgate, his son.

1896- Colgate introduces toothpaste in a collapsible tube. 1911- Colgate distributes two million tubes of toothpaste and

toothbrushes to schools, and provides hygienists todemonstrate tooth brushing.

1953-Colgate-Palmolive Company becomes company'sofficial name. 1956- Colgate opens corporate headquarters at 300 Park

Avenue in New York City. 1968- Colgate toothpaste adds MFP Fluoride, clinically

proven to reduce cavities. 1996- Bright Smiles, Bright Futures oral health education

program expands to 50 countries, and today reaches over 50

million children annually. 1997- Colgate Total toothpaste is introduced in the U.S. and

quickly becomes the market leader. Only Colgate Total, withits 12-hour protection, fights a complete range of oral healthproblems.

2000- Colgate creates, Colgate 2in1 Toothpaste. 2007- Colgate launches Colgate Max Fresh toothpaste line.

2009- Colgate launches Colgate Luminous.


8/22

Executive Summary

Perception of Brand and Category

Current status: Colgate Toothpaste has been fighting bad breath andmaintaining proper oral health for over 200 years. With an array of 40different patented toothpastes and 13classifications of oral care, Colgateremains competitive in the market place. The toothpaste category sales areestimated at $3 billion or 3% of the oral health care industry. The currentColgate market share is 36.2%. Crest is at 30% and Aqua fresh is at8.13% of the toothpaste market. Colgate is a strong earner and its marketshare reflects this. Strong competition from Crest has cost Colgate valuablemarket share over the last five years.

Critical Issues/Keys To Success:

- Colgate toothpaste is the leader within the product category holding 36.2%of the market or $1,114,137,768 in sales.

- Colgate has a vast product line of toothpaste and many are less than a

decade old. While others date back over thirty years and the original is overone hundred years old..

- The highest selling trend within toothpaste is the toothpaste and notToothpaste gel.

- The target market for Colgate toothpaste is Black and Hispanic individualsAge 18-35, with several children aged 7 and younger.


9/22

Marketing Plan

- Colgate commits millions of dollars to community programs and theADAs

- Colgate has established Colgate Smile a social network, an interactive I

phone application, Facebook page, Twitter account and Myspace page.

- Colgate is committed to Reducing Environmental Impacts (REI) aroundthe world.

- Colgate is not the leader with regard to technological advancement withinthe category.

Strategy:

Brand ReductionThe strategy is to phase-out unproductive toothpastes in the baking soda/gelvarieties specifically Colgate Baking Soda & Peroxide Oxygen WhiteningFrosty Mint Striped Gel, Colgate 2in1 Oxygen Whitening and CavityProtection Winter fresh Gel. The product packaging will be advertising

other Colgate products in an attempt to retain brand loyal users. By October2011, these varieties of Colgate will no longer be produced for the UnitedStates market. In effect, this will generate more cash flow that can beMarketing Plan diverted into the creation of new brands and new marketingcampaigns thereby decreasing stress upon margin levels.Fostering Positive Colgate Image In order to gain favorable PR and keepColgate in the light of the media, this plan suggests a campaign that willdonate a 1% of specially marked packages to a charity of ones choice.

Partnering with www.charitynavigator.org to create a micro list of charitiesand their information. Purchasers will be able to choose and track thedonations via the Colgate website by answering several demographicquestions and entering a unique code.

Current Market Situation and SWOT Analysis


10/22

Strength

Colgate has a history of producing quality products and a stellar reputation

for oral health products. Colgate has strong channels of distribution not only

on a national scale but also globally. Thereby, Colgate is the number one

selling toothpaste in the world. Colgate is accepted by the ADA as

effectively helping to prevent and reduce tooth decay.

1. Colgate offers all-around cavity protection, even where a toothbrush

cannot reach

2. Its great mint taste freshens breath

3. It protects against root caries4. It cleans & makes teeth whiter and repairs early decay spots

5. Extremely popular brand and high brand awareness due to advertising

Weakness

Within the product life cycle most of Colgate products are either mature ordeclining, creating the need for Colgate to keep introducing new products.Colgates product line is broad with over 40 different products varying in

tube size, quantity, flavor and desired effect. Toothpaste promotion iscutthroat. Products are frequently on sale, which appeals to price buyers andpotential brand switchers. This may also cost the company profits due toregular users taking advantage of the discounted price.

1. High dependence of the company on a single category i.e. Oral Care

2. Reduction in advertisement expenditure in order to maintain growth.


11/22

Opportunity

Colgate commands 37% of the toothpaste market share opening the doorto brand growth through marketing, acquisitions and mergers.Colgates brand image is an ever-revolving door opening the opportunityfor rebranding and new promotion/marketing tactics to be explored.

1. Leverage on fact that Colgate has been ranked as the most trusted brand

in India from 2003 - 2007

2. Focus on innovation and new product launches by deploying advanced

technologies

3. Growth in emerging marketsrural and semi-urban

Threats

Aquafreshs products use innovative technology in packaging and

development. Within the last several years Colgate has lost its leadershipposition to Crest. While the lost market share was regained, Colgate mustremain aware of the competition. Both Crest and Aquafresh products are

cheaper per ounce than Colgates.

1. High competition from competitive brands like Pepsodent from HUL.

2. Increasing commodity prices for manufacturing.


12/22

Marketing Objective

Goals: In order to remain a leader in the category four goals must beachieved:-Increase Colgate market share by 1.7% or $1,326,546,098-Increase website traffic and Facebook friends by 10%.-Carry over current 2010 margin at 18% of Colgate sales into 2011expenditure.- Systematically phase-out 5% of the brands that are currently strugglingfinancially.


13/22

Marketing Strategy

(STP ANALYSIS)

SEGMENTATION

Colgates market segmentation is very broad because all their products are

of need to most people so those people share a similar interest in product

needs.

Colgate uses a segmentation bases by knowing that certain groups of people

need Colgate toothpaste for a specific similar reason like yellow teeth,

sensitive teeth or just teeth with cavities.

Colgate also uses the family life cycle because they make toothpaste that

could be used for grownups and children.

Also, toothbrushes are made to attract young children with cartoon

characters and different tastes and are less strong so that it wouldnt

damage their gums.
http://2.bp.blogspot.com/_sqA_U01jykw/TQVeR6q51OI/AAAAAAAAADg/uXQtOSJWAS4/s1600/Colgate.jpghttp://2.bp.blogspot.com/_sqA_U01jykw/TQVeR6q51OI/AAAAAAAAADg/uXQtOSJWAS4/s1600/Colgate.jpg


14/22

TARGETING GROUP

MAX FRESH Colgate targeted youth with the introduction of this toothpaste,

as this helps in refreshes breath.

ACTIVE SALTElder people are targeted in this segment as it makes teeth

stronger and provides protection from cavities.

COLGATE TOTALColgate Total contains the anti-microbial ingredient

triclosan,which reduces the number of bacteria that cause gingivitis, cavities and

halitosis Basically its for kids but Mothers are targeted as they are very

concerned about their kids. This toothpaste safeguards teeth for 12 hours.

COLGATE SENSITIVEPeople who have sensitive teeth are targeted in this

segment who have problem in their gums.

KIDS TOOTHPASTEOften small children dont like to brush teeth, so for

them this toothpaste was launched. Colgate had focused on taste aspect to

encourage kids to brush teeth.

COLGATE WHITENNINGA whitening toothpaste that is "Clinically-proven

to whiten in 14 days. Its whitening ingredient is hydrogen peroxide, which

gradually bleaches the teethFocus is given on group of customers in this segment

those who are already suffering from plaque in their teeth.

COLGATE 2in1 People who want both strongness and fresh breath are

targeted.
http://en.wikipedia.org/wiki/Triclosanhttp://en.wikipedia.org/wiki/Triclosanhttp://en.wikipedia.org/wiki/Triclosan


15/22

POSITIONING

Colgate dental cream positions itself as toothpaste that has the necessary

calcium and minerals to provide decay protection, strong teeth, germ protectionand fresher breath.

Colgate positioned several toothpaste so that people would like the products

more like adding a different style or taste to the toothpaste.

Colgate repositions their products because with the way they market and

promote their products, consumers know that these products are way better than

other brands and competition that is out there.

Lately with competition from indigenous vegetarian toothpastes, Colgate

dental cream has also positioned itself as an always 100% vegetarian

toothpaste. The tagline of its advertisements, trusted by generations to make

teeth stronger.

Colgate total 12 have been projected as the most advanced toothpaste that

provide 12 hr germ protection even after eating and drinking by building aprotective shield around the teeth.

Colgate maxfresh positions itself on the basis of freshness. The tagline new

dimensions brings home this very point.

Colgate kids toothpaste tries to position itself based on emotions which is

apparent in its tagline makes fighting cavities fun.


16/22

MARKETING M IX


17/22

MARKETING MIX

PRODUCTCUSTOMER WANTS

AND NEEDS

PRICE COST TO SATISFY

PLACE CONVIENCE TO BUY

PROMOTION COMMUNICATION


18/22

Product

The product, the Precision toothbrush, is a product that should add value

to a buyers life.

It should also add utility, and meet the wants and needs of targetedconsumers.

The product should be unique and different from all similar products that

are already available on the market.

The strategy is to differentiate the products design and packaging, which in

return will cause the toothbrush to stand out.

VARIOUS TYPES OF COLGATE


19/22

Price

The price of a product says something about the quality.

Even though the quality of the Precision toothbrush will be significantly

higher than other leading toothbrushes, the price of the toothbrush will be

determined by the prices of the other toothbrushes already in the market.

This pricing strategy is a result of positioning the toothbrush as a

mainstream product rather than a niche product.

COLGATE 20gm

s

40gm

s

50gm

s

75gm

s

80gm

s

100g

ms

150g

ms

200g

ms

300g

ms

Dental cream 5Rs. ---- 14Rs. ---- ---- 30Rs. 45Rs. 56Rs. 86Rs.

Max fresh --- --- 15Rs. --- 32Rs. 35Rs. 55Rs. ---- ---

Total ---- ---- --- 35Rs. --- --- 65Rs. --- ---

Sensitive --- --- 35Rs. --- --- 60Rs. --- --- ---

Kids --- 26Rs. --- --- --- --- --- --- ---

Advance

whitening

--- --- --- 27Rs. --- --- 53Rs. --- ---

Active salt ---- --- 14Rs. ---- ---- 30Rs. ---- 54Rs. ----

Cibaca --- --- --- --- --- 18Rs. --- 28Rs. ---

Herbal --- --- 14Rs. --- --- 30Rs. --- 55Rs. ---


20/22

PLACE

The most important part of marketing is how a product will get from the

seller to the buyer.

Many products go through a channel of distribution, which involves

manufacturers, wholesalers, retailers, and consumers.

The distribution strategy proposed for the Precision toothbrush is through

dentists, plastic surgeons, drug stores, grocery stores, large retail stores, and

department stores.

The product is available in the all India market, including semi-urban &

rural markets which are their primary focus.

Promotion

Product promotion is a communication spread through advertising, Publicity

and sales promotion.

Promotion represents all of the communication that marketers use in the

market.

We suggest that Colgate-Palmolive advertise their products by using

commercial, magazine ads, the radio ads that are to be placed in dentist

offices, billboards, and the sides of buses.

Advertising is done to promote new products, remind consumers of existing

products, and also to promote the image of the company at hand. We also

Fresh energy

gel

--- ---- ---- ----- --- --- 55Rs. 60Rs. ---


21/22

suggested that Colgate offer special coupons and rebates through their

other products, and also food products.

Functional plan

Performance Goals Actions

1.Design optimise packaging to

achieve resource efficiency and

reduce environmental impact without

compromising product quality and

safety.

2.Proportion of signatories in the

supply chain implementing the SPG

for design or procurement of

packaging.

3.Target: 70% of Covenant

signatories with documented policies

and procedures for evaluating and

procuring packaging using the SPG

or equivalent.

4.Target: 70% of Covenant

signatories assessing 100% of new

packaging and 50% of existing

packaging against the guideline.

Broaden engagement on APC

principles and goals within Colgate

Palmolive, by establishing across

functional team to monitor progress

and support packaging sustainabilityinitiatives. Have team in place by

end 2013. Team will report progress

to senior management quarterly.

Embed Colgates Global Product

Sustainability Scorecard process,

targeting 80% of new productsassessed by end 2014.

Sustainable Packaging Guidelines

assessment to all new products.

Periodically audit to ensure

continued compliance.


22/22

CONCLUSION

(Monitoring, Evaluation & Review of Plan)

By the Detailed study on the product and market of COLGATE it was

able to get a clear picture of the past and present of the products and

was able to get in to the assumptions about the future of the product.

The Brand COLGATE has been sold successfully and has created a

good demand all the time.

It is also holding a good place in the toothpaste market with a share ofaround 10% to 15%.

As like for all other products Colgate is also facing a Cut-throat

competition in the toothpaste Market.

Since the competition is too strong the company has to keep on

watching market closely for avoiding any sudden collapse for theproduct.

Finally, it should note that the company may have to face lot of

threats in coming years like political threats, legislation threats,

ongoing economic crisis, changing life style of the people etc. If the

company is able to overcome all the threats and can prepare

themselves for facing the problems in advance it can achieve a good

growth for COLGATE.

Documents

Colgate Marketing Plan.docx