Marketing Plan For Colgate-Palmolive Toothpaste Manufacturing Company

Segmentation

Under this report, marketing plan for Colgate-Palmolive Toothpaste Manufacturing Company will be discussed. Colgate Company is situated in USA and it has set up their place in many other parts of the world. Colgate Company’s marketing strategies will be discussed to promote its new products. It was founded in 1806 by William Colgate and he started the company with the name of “William Colgate and Company”. Today this is known in the name of “Colgate Palmolive”. It is situated in more than 280 properties and amongst them 80 are owned by Colgate as well as they are selling their products with rapidly increasing demand in almost 70 countries. Segmentation strategies of the Colgate Palmolive will be discussed to analyze the adequate information regarding the demand of the new product launched. Colgate is a brand and to gain the benefit of the brand name, they have segregated the public into small segments to promote their new products to gain the adequate and effective results. Most important feature of a product is its price and to set adequate price to make the product easily buyable for the all types of customers is a big opportunity. Hence, to deal with this Colgate Company has evaluated various pricing strategies to make it affordable or most number of its existing and new consumers (De Mooij, 2013).

It is a process of dividing the customers into small groups on the basis of age, sex, requirements, etc. by the marketing team for the purpose of advertisement and promotion of the product. Marketing team of the Colgate adapted this technique to gather a set of required information related to customer’s demands so that adequate strategy could be implemented in the market to attract more number of people towards the company’s new products (Patenaude, et. al., 2011). According to the Colgate, they do not need to target any particular segment of the public because generally all age group people, rich, middle class, etc. brush their teeth. And it depends which brand they use for the same process. Hence, marketing team just need to make some efforts to showcase their features included in their new product in such a way so that people who uses other brand’s toothpaste could be forced to switch the brand.

Segmentation Table

This is a strategy which also includes in building marketing plan for the any company and it is a part of the segmentation process. Colgate Company’s marketing team manufactures various types of toothpastes, toothpowders, toothbrushes, etc. for all age group of people (Bergemann & Bonatti, 2011).

Market targeting is also done on the basis of segmentation’s processes i.e.:

• Demographic: In this aspect, target amongst the market is developed on the basis of consumer’s income, their family size, etc. Colgate develops products flexible toothbrush, minerals consist toothpaste, etc. which are beneficial for the different members of the family.
• Geographic: Colgate promotes its products in the area where they have much scope of getting success through promotion of the products. For instance, people of Asian countries get much influenced through advertisements and Colgate takes advantage for the same thing. They have set up strong goodwill in those countries and local brands of those countries are struggling due to variety of products Colgate offers.
• Behavioral: Colgate’s marketing team has analyzed the demand of the products amongst the consumers in terms of their requirements and as per their behavioral aspect. They gather the information that consistent quality of the product, varieties in the product are the main sources through which company can gain much number of consumers.
• Psychographic: Under this aspect of the marketing concept, Colgate has created effective advertisement to change the mindset of the people and advertisement forces them to change their toothpaste brand.

Step 1: Competitive Advantage: This means the product having the competition with the other brands in the market. Colgate has different competitive brands in different areas of the world. Pepsodent is the main competitive brand for the Colgate (De Wit & Meyer, 2010). They both manufacture the same products and both develop advertisement to showcase their product’s feature better than their competitive brand. The main important advantage to the Colgate is they have set up their strong goodwill and better image across the consumer’s mind through delivering qualitative product along with the effective result oriented products (Shakhshir, 2014).

Segmentation Table

Step 2: Positioning Map: This map shows the position of the Colgate Company amongst its competitive brands. Effective position of the brand could be set up through developing effective marketing strategies that could conclude an adequate marketing plan. Same procedure followed by the Colgate Company through developing effective advertisements by hiring celebrities. People generally follow their role models, celebrates and Colgate hire them in the advertisement and promotional campaign to gain more number of consumers (Kuo, et. al., 2012)

Step 3: Positioning Strategy: As Colgate is growing in its field by passing the time and they are developing their good impression within the audience through maintaining the same brad quality from they started even they have improved it. All these measures separate Colgate to stand beside from its competitive brands (Akpoyomare, et. al., 2012).

Step 4: Positioning Statement: Under this approach, Colgate tries to fulfill the demand of their consumers at its optimum so that consumer can again demand for the same product and this will also set good image in the customers’ mind and heart as well. This approach is also linked up with the supply chain of the organization. Consumer prefers the product which is easily available at cheaper price. Supply management of the Colgate has the responsibility of delivering the products such as toothpastes, toothbrushes, etc. to the wholesalers, distributors so that it could be available for the consumers on time. This is very crucial aspect while creating position of the organization in the market.  

Marketing mix is a set of techniques that helps the company to influence the customers to purchase their products. These factors are price, product, place and promotion of the product which is also as the 4Ps of marketing mix. Marketing team of the Colgate Company follows this strategy to cover up the large area of the market to promote their products (Peter & Donnelly, 2011).

Following are the 4 factors of marketing mix technique:

• Product: In this factor of the marketing mix approach, main and unique features of the product are described along with its importance. Colgate is planning to launch a new toothpaste containing minerals, lemon which helps to avoid the most of the dental problems.

• Price:Setting adequate price of the product is very necessary to influence the large number of public to purchase the product. As Colgate is launching new toothpowder and it is a product that will be useful in daily routine of people. Hence price should be set up considering people’s requirements (Huijts, et. al., 2012).
• Cost-based pricing: In this approach, price is fixed on the basis of the cost of the product plus a certain rate margin. This would be best for Colgate as they charge only a certain rate of profit while establishing any product in the market (Eminovi?,  et.al., 2010).
• Value-based pricing: In this approach, marketing team does not need to put many efforts to promote or for advertisement of the product, a small advertisement along with its banners and holdings are enough for those products. Such as Louis Vuitton and Rolex are brands where no buyer asks for the cost price, these are luxurious items and they are sold on exclusive price to maintain the standard.
• Relationship pricing: In this approach, price is set up as per the types of purchases made by the buyer. This is generally used by the banks to set up the rates for different loans and for other services.
• Competition-based pricing: Under this approach, Colgate analyzes competition of the product in the market is analyzed and then price of the product is being set up for the particular market.
• Place: This describes the platform though which customers could get the product for their consumption. Previously it was done through the retail shops only but in the modern era, people can purchase variety of products under one roof i.e. supermarkets. In this approach, different levels of marketing and distribution exist.
• Three Levels: In this approach, manufacturer, distributor, wholesaler and retailers exists till the product reaches to the consumer. This leads to increase in the price of the product and burden of increased price imposed on the consumer only. Hence, this is not suitable for Colgate Company for distributing its products in the market. This approach will increase the price of the product and it will also consume more time to reach to the consumer.
• Two Levels:In this approach, manufacture, wholesaler and retailers exist. This could be partially used by the Colgate to distribute the products amongst the market. This approach will also increase the price of the product because more number of parties’ involvement will affects the price as all will include their margin of profit and the burden will be imposed on the buyer directly.
• One Level:In this approach, manufacturer directly sells the products to the supermarkets, shopping malls, etc. and from those stores customers can purchase the products as low cost. This approach is trending and accepted by the large area of buyers because this has reduced the number of parties involved in the process of selling and with these removals, their margin of profits also gets reduced hence, the buyer is able to buy the toothpaste at the reasonable rate (Rosenbloom, 2012).
• Promotion: It is a strategy which is used for bringing awareness of the product amongst the public. Colgate Company uses various approaches for promoting and advertising its new product in the market and amongst them trending mediums for promotion are print and electronic medium (Ottman, 2011). As the product launched by the Colgate is a product used in daily routine life hence, it should be marketed and distributed within the market through one level and two levels of distribution channel

In electronic medium of promotion, Colgate Company’s marketing team advertises its products through social media, holding or sponsoring an event, internet marketing strategies etc.

In print medium newspapers, magazines, pamphlets and board hoardings are included. This medium of advertisement and promotion is bit traditional in nature whereas digital medium of promotion has taken place over this medium. But this is also very effective generating demand of the product in the market. Newspapers and magazines are the first choice of the consumers and they also get information regarding every important issues and regarding any incident or for any product launch, etc.   

According to the sustainability report of the Colgate of 2015, they have work on the three major aspects of the world i.e. people, performance and planet. For promoting the health conditions of the people, they have started and promoted initiatives taken by the government of the certain countries. To reduce the chances of dental problems, Colgate has set up camps for free dental checkups in many countries.

For improving performance of the company, they have introduced advanced and crucial amendments in their products for the success of the organization. This success is based on the consumer satisfaction and that satisfaction will only come when company will deliver satisfactory goods. Colgate has delivered qualitative products and this also proven as per the latest sustainability report of the organization. They have also improved from their last performance compared to the report of 2014 (West, et. al., 2015).

Market Targeting

For saving the planet as well, Colgate and their supporters have started many campaigns in relation to the prevention of trees and natural things, animals, etc. Colgate was the first organization who started testing on animals for their inventions and this was then allowed by the government under certain rules and regulations. Colgate has promoted campaigns like less usage of vehicles to decrease pollution. They also started submitting the report of checkup of their factories’ extracted pollution that also affects the environment.

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