Strategic Marketing : Colgate Essay

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1. Introduction
The concern given to develop a selling scheme which acts as a critical and built-in portion of concern where a fastest turning company like Colgate being taken under consideration concentrating to the basic apprehension and developing chances in gross revenues increase. trade name direction every bit good as to measure and understand the current chances to deduce the best from it as an advantage. The development of selling schemes acts as value added in concern and besides helps the house to turn faster as comparison to the rivals every bit good as to develop competences in customer’s satisfaction should be a chief end for one’s ( Sherlekar 2008 ) .

The concern given to the importance of strategic selling attack which ensures the competitory place of Colgate in the current market topographic point where the importance selling is to develop selling schemes shows the importance in developing competencies. gross revenues. publicity and all selling communicating methods and subscriber to the satisfaction of the client demands and wants. The selling scheme attack acts as a medium to catch the niche in concentrating to the consumer market for Colgate ( David. 2011 ) . Direct selling is done through mail. telephone. facsimile. electronic mail. or Internet ( Joseph H. . D. Ontinau 2005 ) .

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2. COMPANY OVERVIEW
Since 200 old ages Colgate was runing in the whole universe after it was founded in the United States. In more than 200 states people are utilizing the merchandises of Colgate in the trade name name as Colgate. Ajax. Palmolive. Soft-soap. Some Hill’s Science diet merchandises. Colgate is the upper limit used merchandise by the clients and the company concentrate more in the production of Oral attention. Household attention. Personal attention merchandises and many more. Harmonizing to the recent study it was found that Colgate $ 9 billion Company ( Colgate Annual Report 2013 ; Ellen. 2012 ) .

3. Selling OBJECTIVES AND GOALS
Smart Aims: –
The SMART aims of Colgate are as follows:
1. To influence and actuate the squad members and employees so that the common end is achieved.
2. To take part and accept all the major
maps of the organisation.




Smart Goals of Colgate:
Refering to strategic program there are two types ends refering to Colgate. The Colgate has two types of end short term and long term ends. The ends are supported by elaborate production. fiscal and selling programs ( Promo Magazine. 2005 ) .

4. GROWTH AND PROFITABILITY
Refering to Colgate. the entire sale during the fiscal twelvemonth terminal December 2013 was $ 15. 550 million. ( $ 15. 200 million in 2012 ) and the operating net income was $ 3. 900 million during 2013. an addition of approximately 17 % over 2012 ( ( Colgate Annual Report 2013 ) . It was observed that the current market portion was of Colgate about 45 % in the tooth markets of the universe. Concentrating to the toothpaste company in US Colgate has the largest figure of consumers of toothpaste. Colgate is the biggest toothpaste selling company renowned globally with a market portion of approximately 36 % ( Colgate Annual Report 2012. p. 2-4 ) ; ( Chopp. 2006 ) .

5. DIFFERENTIAL ADVANTAGE / COMPETITIVE EDGE ( USP )
Strategy USP ( Unique Selling Proposition ) developed by Rosser Reeves. the advertisement bosom of New York. Madison Avenue which shows importance of the toothpaste in the planetary market acts as pick of the personal attention merchandises which being named as Colgate toothpaste. The concern given to the merchandises with regard to the mark market where there was a application of assorted marketing schemes attacks ( Balakrishnan V. . C. S. Rajkumar. 2006 ) . The initial stage of publicities. Colgate uses telecasting. wireless and newspaper advertizements and many more. The scheme besides supports to advance other merchandises as because of strong trade name image of Colgate in planetary market ( Kurt. 2008 ) .

6. SITUATIONAL ANALYSIS.

The situational analysis of Colgate is done though SWOT Analysis which can convey strategic options. The SWOT analysis determines the strength.
failing. chances and menaces predominating in the concern organisation ( Menon. 1999 ) . The competitory advantage of the house is gained through strength whereas the failing stops it.

6. 1. Strengths: –
Refering strengths. the trade name image of Colgate is really strong. Due to planetary trade name image gross revenues has increased which lead to handiness of hard currency flow for operations copiously ( Gibson. 2008 ) . Further it has observed that Colgate has comparatively really strong market portion in US. Asia and Europe. The increasing wellness consciousness among people sing their dentitions will be a ground for the growing of the company net incomes. The strength concern with the broad facets of developing nucleus competences in planetary concern every bit good as in merchandises selling concentrating to the rivals of colgate ( Colgate 2013 ) . 6. 2. Failings: –

As per SWOT analysis it has been observed that the merchandise line of Colgate is really humdrum. Further the purchases is really high of Colgate ( Colgate 2013 ) . This might be due to really less invention in the merchandises. There is nil new in the bing production line which might take to diminish the net incomes border of company ( Humphrey. 2005 ) . 6. 3. Opportunities

By SWOT analysis. it has been observed that the unwritten attention market is globally really strong for Colgate. US has lesser Spanish people. It is chance for Colgate to increase their Numberss. The company can concentrate on presenting more and more personal attention merchandise to turn in India and other Asiatic states. The increasing wellness consciousness in add-on provide chances to Colgate to spread out its concern activities with new merchandises in other parts of universe besides ( Hill. 1997 ) . 6. 4. Menaces

The menace refering Colgate. increasing competition in the planetary market is major hurdle in present market scenario. Second. Colgate is in private owned label growing. Third. the turning monetary values of merchandises introduced by Colgate are besides a large menace.

7. PEST Analysis:
Concentrating to Colgate after measuring and analysing the external environment and its impact concern. the external factors are categorised into 4 major types by utilizing the PEST or PESTLE Analysis.

7. 1. Political Factors
The political factors affect the manner in which the concern was performed. The political issues may in signifier of trading policies of the authorities. political stableness of the state. revenue enhancements and labour Torahs ( David. 2011 ) . All these are imposed by the authorities. There may be many ordinances that are put by the authorities which will impact Colgate’s production. selling or merchandising activities ( Colgate 2013 ) .

7. 2. Economic Factors
These factors affect the economic growing of the state and operation of concern ( CIPD. 2014 ) . It is the responsibility of the senior direction of Colgate to measure the economic system of his place state and should follow the tendency of altering revenue enhancement of merchandise and services. Furthermore if the company is involved in foreign trade so the duties. exchange rates. import-export ratio should besides be considered ( Colgate 2013 ) . This altering exchange rate might be a menace to Colgate net incomes.

7. 3. Socio-Cultural Factor
The Socio-Cultural factors implies to the point of position of the general populace or society. It is besides really of import that the populace has a good sentiment and thought towards the Colgate because it is really helpful in making the trade name image of the merchandise. The company should be straight attached to the media. imperativeness. etc. socio-cultural factors are besides related to advertisement and promotion as it is really of import to construct trade name image ( CIPD. 2014 ) . Hence it is really of import that the company should esteem the aged subdivision of the society and should take attention of the minority involvement an introduce merchandises consequently ( Maxine N. Lurie. Marc Mappen. 2004 ) .

7. 4. Technological Factors
These factors affect the technique of runing the concern. Technology plays a critical function in the betterment of the concern thereby increasing the
productiveness and research and development ( Jana F. Kuzmicki. 2007 ) . The engineering concern with application and deduction of Just-In-Time ( JIT ) engineering every bit good as Six Sigma’s with regard to the rivals which helps to increase the production capacity by maintain the quality for Colgate ( Colgate 2013 ) . 8. PORTER’S FIVE ANALYSES

The Porter’s five force analysis constitutes five factors that are as follows: 8. 1. Dickering Power of Suppliers
Concentrating to Colgate. this factors was designed by Porter to organize a competitory advantage for the company. Performing concern globally and big figure of assets has enabled the company to pull big figure of investors and stakeholders ( Porter. 2008 ) . Although the concern schemes of Colgate is non really strong still the menace of dickering power of providers is low due to partnership. supply concatenation direction. preparation. and dependence ( Rajkumar. 2006 ) .

8. 2. Dickering Power of Customers
Customers are the biggest strength of every concern organisation. Colgate has more than 200. 000 fabricating units all over the universe and is supplying its merchandise to over more than 26 million clients per twenty-four hours ( Del 2007 ; Porter. 1980 ) . The illustration concern with the client pick to purchase Colgate because it is easy available everyplace. it is cheaper with high quality. good engineering. etc. moreover the clients were satisfied by its public presentation.

8. 3. Menace of New Entrants
Concentrating to the place attention and unwritten attention industries. the company has to confront many jobs as new entrants because there are immense rivals in the market with similar merchandise scope and with high quality ( Gibson. 2008 ) . On the other manus due to the advanced engineering these can be put at par with other entrants. The engineering promotion of Colgate has enabled it to be different from other rivals ( Promo Magazine. 2005 ) . The illustration may considered as edifice repute concentrating to both touchable and intangible like engineering. merchandises. attachment to concern moralss. and codification of behavior. and corporate societal duty that encourages consumers to trade name trueness ( Coyne. 1996 ) .

8. 4. Menace of Substitutes
Refering to this factor. the clients is likely to choose for utility merchandise due to several external and internal factorsIf the company raises the cost of its merchandise so the client is forced to choose for his preferable following option ( Porter. 1979 ) . The monetary value cost of the merchandise is increased due to societal and political factors. which is a menace to the company like Colgate.

8. 5. Competitive Rivalry between bing participants
In every concern it is a common pattern that in order to pull the client the monetary value should be lesser. If the monetary value is less than the house is able to pull more client as compared to the monetary value of the competition rivals. Colgate uses assorted schemes to market their merchandise and achieve competitory advantage with regard to selling ( Stentor. 2009 ) . Colgate besides organized promotional runs for advancing the merchandises every bit good as it uses famous person indorsements to heighten its image in comparing to other rival companies ( secdatabase. com. 2012 ) .

9. SEGMENTATION TARGETING AND POSITIONING ( STP )
Market cleavage refers to selling scheme which involves segregating broad mark market into subsets of clients who possess widespread wants and precedency. and later meaning and using policies to take them. Market cleavage policies might be utilised to recognize the targeted audience. and offer prolonging information for positioning to achieve a advertisement program thought ( Gupta. 2005 ) . Market Segmentation is a procedure in which the market is divided harmonizing to the demands of the consumers as per their demands and demands. Furthermore different sections are besides targeted by utilizing assorted schemes ( Goldstein. 2007 ) . Concentrating to the Target Marketing. Colgate purpose to aim the client group concentrating to their concern development and selling attempts which finally categorized as follows – Geographic

Demographic
Psychographic
Behavioral
10. 4 P’S OF
Harmonizing to Borden ( 1965 ) . 4-Ps are the base of the selling direction. Concentrating to Einstein theory of relativity the comparing is made with Quantum Mechanics. The 4-P are instead called as selling mix as it is a right manner to establish new merchandises in the market by using selling schemes ( Stentor. 2009 ) . The 4-Ps of marketing includes merchandise. monetary value. topographic point and publicity. This tool is used by direction of Colgate to back the merchandises and increase the gross of the company by using appropriate selling schemes.



10. 1. Merchandise:
Merchandise of the company may be in a signifier any touchable substance or an intangible service that are industries by the company to fulfill the demands of the clients. The merchandise should hold fluctuation and distinction depending upon the different market sections ( Kerin. 2001 ; Kurt. 2008 ) . .

10. 2. Monetary value:
Monetary value refers to the sum of money paid by the client to the marketer in exchange of goods and services. This is done through the assorted distribution channels ( Kotler. 1997 ) . There are several factors that help in monetary value arrested development these factors are market portion of the house. the figure and scheme of the rivals. the costs of natural stuff and most of import thing is the position point of merchandise pick in the eyes of the client ( Nate. 2006 ) . At present the organisation uses assorted types of pricing methods: Penetration Pricing: – Harmonizing to Kotler ( 2012 ) . the house can achieve monopoly in the market by making this type of pricing scheme. Initially they may hold to bear loss but subsequently they may gain immense net income. Price skimming: In this scheme the sellers first increase the monetary value of the merchandise and sell in the market and subsequently diminish the monetary value so that everybody grab the merchandises believing that the monetary value have decreased ( Kotler. 2006 ) . 10. 3. Topographic point

Topographic point refers to the finish where the clients buy the merchandise. As per Kotler ( 2012 ) . topographic point is the manner of distribution through which the merchandises are reached really to the clients. Through topographic point both direct and indirect merchandising can be done. The mark state and market entry methods concern with foreign direct investing every bit good as direct selling in the state market acts as a critical tool for the concern like Colgate.

10. 4. Promotion
Promotion implies to the method of communicating used by the sellers to allow the client be cognizant about the merchandise. The advertisement concern with stigmatization of the merchandises which include famous persons engagement for branding the merchandises. The application of incorporate selling communicating besides plays a critical function to advance the merchandise like Colgate toothpaste.

CONCLUSION AND RECOMMENDATION
Though Colgate is one of the biggest toothpaste fabricating company but yet it does non hold the best quality toothpaste in the market. As per the current scenario the clients are utilizing more advanced merchandise and they have non found anything advanced in Colgate ( secdatabase. com. 2013 ) . – With regard to the 4P’s. it can be assumed that the absence of this promotion is due to the deficiency of engineering promotion. Colgate is selling rather a big figure of tooth pastes because the monetary value is cheaper. Refering to the merchandise development it can be assumed that the merchandises in market today have come up with the latest engineering don’t have such a high sale. The increasing promotional candidacy by utilizing famous persons has lead to increase in the costs of advertisement for the company which need to be reduced for increasing overall net incomes. In malice of all Colgate is keeping rather a good figure of portion in the market and moreover it is an internationally recognized tooth paste trade name. The new merchandises are non cognizant about Colgate at present but it is sue that they must hold usage Colgate in the yesteryear ( secdatabase. com. 2005 ) .

Further the recommendation gives a visible radiation in the truth that a client wants advanced merchandises. The company can concentrate on developing merchandises as per geographical location where the merchandise will be sold. the demand of people shacking at that place every bit good as age group of people. Refering old people. the toothpaste must be concerned with jobs of sensitiveness and refering minor it must be beef uping teeth musculuss. At present the market is concentrating on the merchandise through educative advertizements by utilizing tooth doctor and alveolar consonant and unwritten attention professionals. The motivation is to go celebrated in assorted markets by presently being a provider of a high terminal merchandise. Furthermore this will increase the market portion keeping in the plus market but the traditional market’s sale will non be affected by this. The concern of modern-day selling must be taken under consideration as the competition for toothpaste is higher in market and the importance of modern-day selling plays a critical function and helps to develop competences in the current market scenario. The attack of modern-day selling includes relationship selling which helps to develop better relation with the clients where several factors like monetary value price reductions. offers. stigmatization of the merchandise which helps to construct client trueness. Colgate must concern on the societal selling which promotes the merchandises to society. in merchandise. production and acts as a best methods.

Beside these. stigmatization of the concluding merchandises plays a critical function for consumer merchandises like toothpaste which besides losing for Colgate and a strong concentration over stigmatization and advertisement is recommended. The importance of relationship selling helps to develop good customer’s relation for Colgate. The construct of marketing scheme as per STP is a mixture of five major factors of communicating where importance given to the advertisement. gross revenues publicity. public dealingss and promotion. personal merchandising. and direct selling. Ad is a formal presentation of thoughts. goods and services. The application of media as per recommendations extracted by marketing mix Acts of the Apostless as a good beginning to catch the current market where advertisement through Television and wireless Acts of the Apostless as great beginning for Colgate promotion. The concern on niche market seems more of import as it helps to develop competences for the planetary client base. As the toothpaste is a FMGC based sectors focus on niche market acts as a nucleus competencies development for the house. Gross saless publicity is a technique to advance the merchandise for a shorter span of clip.

The importance besides need to develop concern selling every bit good as industrial selling helps to develop better relation in between the administration and the importance plays an critical function for the merchandise lies on industrial goods or capital goods with regard to the consumer merchandises where the factors like communicating. advertisement and publicity plays a critical tool concentrating to the modern-day selling which need to develop for Colgate. For accomplishing the marks. advertisement is best possible method between the others since it manipulates consumer behavior headed for the specific merchandise. As per recommendations of STP. Technology can be used in production activities every bit good as research and development activities of the company to supply more advanced every bit good as healthy merchandises to the consumers of every age group. Therefore. the advertizement should be inventive and attention-getting to capture consumers’concentration. In add-on that. sellers should forever make study and larn refering the psychological nucleus of clients to appreciate the demands of clients and detect manner to carry through them. Harmonizing to marketing mix there should be uninterrupted invention in the merchandises manufactured by the company in order to service in this competitory universe.

The concern given to the broad facet of developing merchandises by keeping the quality where the concern given to the application and deduction of engineerings like JIT. Six Sigma’s to develop stable merchandises for planetary market. The recommendation to Colgate as per STP is to capitalize on the advertisement prospective of traveling communal. The major attending obtained by imperativeness that Colgate is traveling to obtained in approaching clip before the new merchandises or stocks which will be launched are sold to the community will take part a important duty on how good they perform in premature months of being a openly traded concern. It is non rare for concerns to hold an tremendous addition in turnover and returns right one time they discharge their stocks in market place.

If Colgate sorts some new manner to bind together this chance. they must make exceptionally good. They will necessitate at least minimal clip of one or two months in expectancy of the stock is basically sold. as they instantly publicised the release a few yearss earlier. At the same clip the decision ; sellers need to construct many labors to vouch that their goods are competent to congregate the maximal gross revenues. With the purpose of accomplishing the marks set. promotion is the most first-class manner amongst the others since it pull strings client behavior toward the specific merchandise the chiefly. For this ground. the classified ads have got to be imaginative every bit good as eye-catching to capture consumers’ concentration. In add-on to this. sellers ought to constantly make surveies and look into with mention to the emotional nucleus of clients to grok the demands of clients and detect behavior for fulfilling them.

Mentions
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