Successful Marketing Strategy of Colgate

Successful merchandising Strategy of ColgateTo develop a merchandise system is a vital for any telephone line because it is a mathematical process in which an organization concentrate its limited resource on the opportunities to increase sales and get the best from it as an advantage . For that one needs to financial backing in mind that only a customers satisfaction should be a main goal for ones. Marketing strategy should be centered around the find out concept that customer satisfaction is the main goal. In each and e very organization whether it is public or privy organization, should be able to consider both(prenominal) strategic selling approach so as to be ensured com darlingitive position in the market place. One of the most marketing aspects of marketing is marketing strategies nowadays because marketing strategy is the term which is generally preferred to advancements. Marketing Strategy is a vital contributor to the satisfaction of the customer needs and wants. ( Shimp, 2003)Marketing strategy approach is a way to capture a niche in the consumer marketThe marketing strategy is a mix consists of five major modules of communication alike advertize, sales furtherance, public dealing and publicity, personal selling, and direct marketing (Neumann Sumser 2002). An identified Sponsor payAdvertising form of non-personal presentation and promotion of ideas, goods, or services. Sales promotion is a variety of short-term incentives to encourage trial or purchase of a crossroad or service. Public relations and publicity is a variety of programs designed to promote or protect a companys image or its individual products. Personal selling is a face to face interaction with one or to a greater extent prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. Direct marketing is the use of mail, telephone, fax, e-mail, or Internet to communicate like a shot with or solicit a direct response from specif ic customers and prospects (Goldberg Mc Calley, 1992).IntroductionColgate was found in the United States 200 age ago. For the half of the years its business was foc utilise only the. It is marketing its products in more than 200 countries and territories under some internationally recognized brand names as Colgate, Ajax, Palmolive, Softsoap, some(prenominal) Hills Science diet products. Colgate Palmolive is leading product consumer product company focuse on Oral business, Household c be, Personal care and many more. Today Colgate-Palmolive is $9 billion Company.Colgate is famous for having a yen history of strong relationship with its retail trade partners. This Company delights consumers around on that point world with a an rove of Oral Care, Home Care, Personal Care, and Pet Nutrition products. Small stores around the world are just important to Colgate as large ones. Behind the succeeder of Colgates brands are carefully developed business and marketing strategies. Based o n consumer and shopper insights, the Company works closely with local merchandisers and shop owners to offer a applicable assortment of products and merchandising services to get high visibility in each store...Overview-1806Colgate was originated with a small business of starch, Soap and preemptdles form Dutch street, forward-looking York by William Colgate.1817The offset Colgate advertisement was appeared in US newspaper publisher.1820Colgate establishes a starch factory in New Jersey.1866-1873Colgate introduced perfumed soap and toothpaste in jars.1896Colgate introduced toothpaste in telescopic tube.1900In the world fair of Paris, Colgate won top honors for its products like soaps and perfumes.1902Stylish Palmolive Advertisement begins. emphasizing ingredient purity and product benefits.1906Colgate Company celebrates its 100thanniversary. Product field includes over 800 divers(prenominal) products.1908Colgate is incorporated by the five sons of Samuel Colgate.1911Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.1912William Mennen introduces the first American shaving cream tube1914Colgate established its first international subsidiary in Canada1920Colgate establishes in Europe, Asia, Latin America, Africa.1928Colgate merge with Palmolive -Peet and became Colgate- Palmolive- Peet Company.1930On March 13, Colgate is first listed on the New York Stock Exchange1939Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy from kidney.1947Ajax cleanser is darted, establishing powerful now-global brand equity for cleaning products.1953Colgate -Palmolive company becomes an prescribed name for the company.1956Colgate opens research center in Piscataway, NJ. Fabric conditioner is launched in France as Soupline. Today, fabric conditioners are sold in over 54 countries around the world.1966Palmolive washup liquid is introduced and today it is sold in over 35 countries.1968Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.1970Irish Spring launches in Germany as Irische Frhling and in Europe as Nordic Spring. In1972, Irish Spring is introduced in North America.1972Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals.1975Ca harm tomentum care launches in Mexico. Today, hair care products are sold in over 70 countries, with variants to suit every type of hair need.1976Colgate-Palmolive acquires Hills Pet Nutrition. Today Hills is the global leader in pet nutrition and veterinary recommendations.1983Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgate toothbrushes are sold annually worldwide. If you lined them up end to end, they would circle the earthly concern 16 times.1985Protex bar soap is introduced, and today offers all-family antibacterial protection in over 56 countries. Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley Hazel, a le ading spontaneous care company, which adds strength in key Asian markets.1986The Chairmans You Can Make A Difference Program is launched, recognizing innovation and exceptional excellence by Colgate people.1987Colgate acquires palaver liquid soap business from the Minnetonka Corporation. Today, Colgate is the global leader in liquid handsoap.1989Annual company sale surpassed the $ 5 million mark.2006Colgate purchased Toms of maine and entered fast maturation naturals segment.TodayColgate with sales Surpasses $ 15 million, focuses on all Oral Care, Personal Care, Home Care, Pet Nutrition.Situational psychoanalysis (SWOT )Situation AnalysisInternal Analysis out-of-door AnalysisStrengthsWeaknessesThreatsOpportunitiesSWOT Analysis is a simple framework for generating strategic alternatives from a situational analysis. The Swot analysis classifies the internal aspects of the company as strengths or weaknesses and the foreign situational factors as opportunities and threats. Strength can serve as a foundation for building a competitive advantage and weaknesses may hinder it.SWOT Analysis of Colgate -Palmolive-Strengths-Brand image is very strongCash flow-to-sales is freeIn America market share is approximately half of 100%, It is going very strong in Asia and Europe.Weaknesses-All Products are recalledIt is highly leveragesVery low innovation or a followerOpportunitiesTo grow globally oral hygiene marketIncreasing Spanish people in the USTo grow in India, Asian market by tapping personal care.ThreatsThe label growth is privateCommodity prices are increasing.A large number of competitors are increasing.Differential advantage / Competitive edge (USP)Strategy USP (Unique Selling Proposition) developed by Rosser Reeves, the advertising heart of New York, Madison Avenue.One of the companies being regarded and honored as one of the global producer of various products specially for personal hygiene is the Colgate-PalmoliveWith a view to promoting their oral products to their tail market, the company has been able to use various marketing strategies approaches. In line with above the line promotions, the company uses television, radio and newspaper advertisements and many more. In addition, the company also promotes their products in famous magazines and internet banner ads as well.It can also be said that Colgate-Palmolive also uses via-the-line promotion approach. This is done by considering a via the line communication approach. The company does this by hiring an advertising agency which helps them to come across a better advertising campaign for their products.It can be said that or In a general sense, advertising is being utilized to be able to impart to the consumers the availability of a particular(a) product or service.Colgate-Palmolive pursued a multipronged marketing strategy to support the introduction of Irish Springs reformulated bar and liquid soap. In order to introduce a wide audience to its new image and latest product offer ings, Colgate-Palmolive aired television commercials for both products and ran print ads in a variety of magazines. Furthermore, the company especially concentrated on free-standing inserts and product sampling to convince consumers to try the updated Irish Spring. Coupons were an essential aspect of the relaunch of Irish Spring bar soap. In order to make these coupon ads eye-catching, the company included a four-leaf clover shape that could be scratched off-like a lottery ticket-to reveal a savings amount applicable to the product.Appelbaum, Cara, Colgate Tests Its foremost Deodorant, Irish Spring,Brandweek,April 1, 1991.Segmentation Targeting and Positioning (STP)1) Market Segmentation The process in which the market is divided distinct subsets of consumers with common needs and selecting many different segments to target with a distinct marketing strategyLevels of market segmentation 1. Mass Marketing provides the same product to all consumers like Salt. 2. Segment marketing pr ovides different products to many segments. 3. Niche Marketing provides many unique different products but to sub segments 4. Micro-Marketing it provides product for individual choices.For example, the are different types of shampoo , Colgate is manufacturing including for flat hair , shampoo and conditioner,, dry hair , color treated hair, etc. It shows us that they are implementing segmented marketing concept.2) Market Targeting-It is a group of customers that the businesshas distinguishable to aim its marketingefforts and ultimately its merchandise.Geographic- It depends on region, population, factor, urban conditions etc. On this basis for example, Colgate introduces a sun screen ingredients which protect from sun rays.demographic- It comprise age, gender, income , life cycle of family and education. For example young people do not go for hair color treatment.Psychographic- it depends on persons thinking and what are the constitution singularity of him. It is a difficult mar keting segmentation to implement because sometimes market may not aware of there life style of there people.Behavioral- It consists two things a) The benefits desired from the product. b)The rate at which customer is using product.It can be applied on Colgate, the benefits from there toothpaste product are no plaque, no cavities, fresh breath, very low price , good quality and white teeth.3) Market Positioning-It means the process by which marketers try to relieve oneself an image or identity in the minds of their target market for itsproduct,brand, or organization.The Colgate people have tried to sustain themselves through tough competition and saturated work. Media and advertisement are also responsible to create an image of the Company in the eyes of its customers and competitors.Marketing Objectives and Goals-SMART Objectives-The purposes of SMART objectives includeTo enable a company tocontrolits marketing plan.To help to motivate individuals and teams to reach a common goal. To provide an agreed, consistent focus for all functions of an organization.A simple acronym used to set objectives is calledSMART objectives.SMART stands forSMART Goals-As far as the strategic plan is concerned, the shold be a both kinds of goals like short-term and long term goals. Detailed production, financial and marketing plans usually back these both types of goals.Figure 1.Elements of a strategic plan Short-term goalsFigure 2.SMART characteristic of effective goals and their work4 Ps of Marketing4-P of Marketing(Borden, 1953) is the fundamental base in the Marketing studies. It can be compared to the Einsteins theory of relativity in Quantum Mechanics. 4 P of marketing is often called as Marketing Mix, because it has the right marketing recipe to successfully launch a product. 4 P of marketing stands forProductProduct is any tangible object or any service (intangible) that is manufactured or created to satisfy the consumer needs. It has to have the product variation and the note for different markets. Also the products must be reviewed time to time for its obsolesce and must be discarded with the view of market needs humpn as product elimination. Similarly, with growing market needs and evolving consumer tastes, companies must innovate their products (Kotler Armstrong, 2010).Price Price is the amount of money that is paid by the customer to seller which varies on different distribution channel (Kotler Armstrong, 2010). Several factors have impact while determining the price of the product or service, which are an organizations market share, the number and strategy of the competitors, the raw material costs and most importantly the perception of the product value in the eyes of the customer.There are various pricing methods used by Organizations currentlyCost recovery PricingCost recovery pricing Is the pricing method followed by marketers such that they recover the cost of the product and put a small profit margin on it to finalize the pricing of t he product. For example some firm incurred the cost of $100 per product they would like to have a profit of $20, then the pricing will be $120.Penetration Pricing-Penetration Pricing is the pricing method, in which the price is fall abruptly so to penetrate the market and achieve greater market share. Company with deep pockets when entering a new market often practices this pricing, at times the price may be lower than the cost of the product. The profitability can be achieved later due to monopolistic situation or by cross selling their other products (Kotler, 2003).Price skimmingPrice skimming is the pricing policy adopted by the organization so that they first launch the new product at very high price so that early adopters can buy the product and then they subsequently decrease the price to get late bloomers buying the product. This pricing is practiced mostly by technology firms and is observed with the launch of new products.Place Place represents the jam where a consumer ca n buy the product. It can be a physical store where the consumer can visit or can be a virtual(prenominal) store like a website on internet .It is often referred as distribution channel as it actually is the channel through which the product is receive by the consumer (Kotler Armstrong, 2010). A place can be utilized for direct as well as indirect selling. And the place can often shoot the shape of e-commerce altogether. promotionPromotion is a communication means adopted by the marketer to communicate about the product, brand or organization to the consumers. Promotion has following four distinct elements. Advertising, personal Selling, Public relations and Sales Promotion, which can be used as such or can be used in combination to promote the product (Pride Ferrell, 1983).ConclusionIn Conclusion, Colgate Company is a typical market oriented company, operating in more than 200 countries. They are providing many new employee oriented programs both for senior level and entry leve l people. They are aware of their social and ethical responsibilities. They are managing the consumer and business market in an effective manner. They face their competitors and feel proud to take it as a challenge. They feel pride in making their customers happy. They know how to conduct their business in international communities. They maintain levels of the CRM at the company to ensure good customer support. The way they have proved themselves in consumer, business and international markets, they still have a high aim to attain more and more.Bibliography (with references)-Armstrong G, Kotler P (2010), Marketing An Introduction. 10th end New Jersey.Appelbaum, Cara, Colgate Tests Its First Deodorant, Irish Spring,Brandweek,April 1, 1991.Goldberg Mc Calley, 1992Houghton Mifflin,John Wiley.(Kotler, 2003), Kotler P (2003)Kotler Armstrong, 2010Neumann Sumser ,2002Prentice HallPride W M, Ferrell O.C (1983) Marketing Basic Concepts and Decisions. Texas.Shimp, 2003Schultz D E, Tannenba um S, Lauterborn R (1992) Integrated Marketing Communications. Illinois. 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