Today, Colgate – Palmolive is a $ 9 billion global consumer products company, tightly focused on Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Soft-soap, Protex, Sorriso, Kolynos, Ajax, Axion, Soupline, Suavitel and Fab as well as Hill’s Science Diet and Hill’s Precription Diet pet foods.
2.2 Four main categories of products Descriptions
In General Colgate-Palmolive had Segment their products into 5 main categories, which is Oral care product, Personal care product, Household care product, Fabric care Product and Pet nutrition product. But in this project since we are analyzing the Colgate-Palmolive product in Malaysia market, and we had discovered that in Malaysia, Colgate-Palmolive Product are base on four main category; Oral care product, Personal care product, Household care product and Fabric care Product.
The main product of Colgate-Palmolive will be oral care products. And the oral products for Colgate-Palmolive consist of ; Toothpastes, Toothbrushes, Kids’ product, Whitening products, floss, and oral first aid product. “ Colgate ” which was the main brand name they emphasis in this category, especially for the Toothpastes, Toothbrushes and Whitening products.
Below are a few sample for Colgate-Palmolive oral care products:
Colgate-Palmolive personal care products are; Anti-per-spirant & deodorant, Bar soap, body wash, liquid hand soap and toiletries product. In Malaysia the main product in this category is “Palmolive” that provide a range of body wash, hand wash liquid, bar soap, shampoo and etc. Beside of the main product of “Palmolive”, in Malaysia “Protex” also is another new brand launch by Colgate-Palmolive for another new range of Body wash product which provide personal care product from body shampoo and bar soap. For Anti-per-spirant & deodorant product “Speedstick” will be the main brand in this field.
Below are a few sample for Colgate-Palmolive Personal products
Colgate-Palmolive products for household care consist of dishwashing liquid, Household cleaners and institutional products. In this category Colgate Palmolive separate their product to a few main brand e.g. GLO, AXION and AJEX. These brand had provide a range of dish washing products , household cleaners. And those brand are well known in Malaysia market.
Below are a few sample for Colgate-Palmolive Household products:
Colgate-Palmolive Fabric care products are Laundry detergent and Fabric softener. For Fabric care products Colgate-Palmolive had breakdown their product to three segments, for the higher quality and price “Dynamo” was the main and pioneer brand for liquid laundry detergent. Follow by “FAB” which offered medium range price product for liquid, powder and laundry bar soap. And “TROJAN” was offer for the power laundry detergent for more economic user for the Fabric care product.
Below are a few sample for Colgate-Palmolive Household products:
2.3 Production and revolution review on Colgate-Palmolive company
Colgate company had started their business with basic production of starch, soap and candle in 18th centuries, then in 1873 year they had start their production on toothpaste which still make them to be the pioneer in toothpaste product nowadays.
Then at 1864 the Palmolive company had success on the soap products, had success in their soap items productions and this had lead Palmolive company to become a more success company in soap production that provide laundry soup,160 different kinds of toilet soap and 625 varieties of perfume.
In 1920s – 1930s , after the merging of Colgate and Palmolive company into the new and strong company Colgate-Palmolive. In the same period the Colgate-Palmolive also had expending their base at oversea countries. This had resulted they had successfully boost their sales to $100 million USD by 1939.
After that from 1930 till nowadays, Colgate-Palmolive keep their focus in expanding base and merge with other companies like Mennen Company, to expand their range of production line, and to market their item to more overseas countries. Nowadays Colgate-Palmolive products can be found around the world. Their global market shares continue to increase, making household names in toothpaste, toothbrushes, shower gels, liquid hand soaps, underarm protection, all-purpose cleaners, bleach, fabric softeners and pet nutrition.
So after the revolution and the development of Colgate-Palmolive company till today they have at lease 95 major companies and main factories through out whole world to produce and market their product. Today, Colgate – Palmolive is a $ 9 billion global consumer products company, tightly focused on Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Soft-soap, Protex, Sorriso, Kolynos, Ajax, Axion, Soupline, Suavitel and Fab as well as Hill’s Science Diet and Hill’s Precription Diet pet foods.
Their main recognized brands in Malaysia are:
Colgate - Toothpaste, toothbrush and whitening products.
Palmolive - Body shampoo, Body soap, hand wash liquid, body soap , shampoo and etc.
Protex - Body shampoo, Body soap, hand wash liquid, body soap and etc.
Code10 - Man Hair gel products.
Axion - Dish washing detergent, Dish washing gel .
Ajax - household cleaners.
Trojan - Laundry washing powder
Fab - Laundry washing powder, liquid and bar soap
Dynamo - Laundry washing liquid detergent.
2.4 Distribution channel of Colgate-Palmolive Product
Colgate-Palmolive is an international company and they had offered a lot of care products to the market though out the whole world. And they have a lot of factory on located around the world. After research I had found out that not all the Colgate-Palmolive product that sale in Malaysia was manufactured at Malaysia.
After the research, I also discovered that Colgate-Palmolive had specialized their product manufactured to different countries different product. For example for those Colgate-Palmolive product sales in Malaysia, “Palmolive” body bath shampoo was manufactured at Thailand Colgate-Palmolive, then import by Malaysia Colgate-Palmolive for marketing. “Colgate toothpaste” was manufactured at Vietnam and imported by Malaysia Colgate-Palmolive for marketing. Malaysia Colgate-Palmolive also had manufactured “Dynamo” laundry detergent for marketing in local and Asia Country.
So Colgate-Palmolive products distribution channel will control by their main base at USA on the distribution of their own products then those product will be locate at a main warehouse of the Colgate-Palmolive company that located in each country then only they distribute to hypermarket, ,mini-market, shops and etc. This distribution channel is good as Colgate-Palmolive will have a better control on their production as they had specialize the product to manufacture in each country to lower down the production cost, then import or export to the other countries for marketing.
This is a comment practice as most of the manufacturer company, as to lower their product selling price they will normally compare the production cost in the selected area for labour , material and other related area to get the exact place for production to lower down their production cost to earn more profit.
3. Management’s Objectives
Colgate-Palmolive Company’s objective is to achieve superior levels of capital efficient profitable growth. To accomplish this, the Company’s management operates the business consistent with certain strategic principles that have proven successful over time. To this end, the Company participates in growth areas in human health care and is committed to attaining leadership positions in these growth segments through the development of innovative products and services.
The company’s system of management operates on a decentralized basis. With operating 200 companies located in hundreds over countries, the Company views this management philosophy as an asset and fundamental to the success of a broadly based business. It also fosters an entrepreneurial spirit, combining the extensive resources of a large organization with the ability to react quickly to local market changes and challenges. Businesses are managed for the long term in order to sustain leadership positions and achieve growth that provides an enduring source of value to shareholders.
Unifying the management team and the Company’s dedicated employees in achieving these objectives is the Colgate-Palmolive Credo. The Credo provides a common set of values and serves as a constant reminder of the Company’s responsibilities to its customers, employees, communities and shareholders. The Company believes that these basic principles, along with its overall mission of improving the quality of life for people everywhere, will enable Colgate-Palmolive to continue to be among the leaders in the health care industry.
4. Marketing Strategy
Strategic Planning Process at Colgate-Palmolive
Executive management of Colgate-Palmolive, with the support and approval of the Board of Directors, has set the fundamental strategic direction of the Company to remain a broadly based human health care company for the consumer, pharmaceutical and medical device and diagnostics markets. Strategic planning is guided by the ethical principles embodied in the Credo, unifying to the people worldwide behind a set of common values and providing a constant reminder of the Company’s responsibilities to all of its constituents.
With over 200 operating companies located throughout the world, Colgate-Palmolive is organized on the principle of decentralized management. Each international company has their exceptions, managed by citizens of the country where it is located. Senior management groups at U.S. and international operating companies are each responsible for their own strategic plans.
On an on-going basis throughout the year, at meetings of the Board and Committees of the Board, management of the Company and Board members discuss the strategic direction and major developments of the various businesses in which the Company is engaged. The process is an interactive on-going dialogue, which provides the Directors with insight into the activities and direction of the Company’s businesses.
4.1 Marketing Mix of Colgate Palmolive Products
The set of controllable tactical marketing tools-product, price, place and promotion that the firm blends to produce the response it wants in the target market.
4.1.1 Product Categories
Colgate-Palmolive is the world’s most comprehensive and broadly based manufacturer of health care products as well as a provider of related services for the consumer, pharmaceutical and professional markets. Colgate-Palmolive has nearly 200 operating companies, which manufacture and market thousands of products in hundreds of categories, all designed to help customer and their family lead healthy, happy lives.
Most people associate the Colgate-Palmolive name with healthy, happy, smiling persons. For more than 100 years, our products have brought comfort and improved the health of infants while encouraging important bonding between parent and child. Children, teenagers and adults enjoys using the skin care and hair care products.
Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, event, persons, place, organization and ideas.
Service is defined as any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
For hundreds years ago, Colgate-Palmolive has become synonymous with great quality products and extreme value for money with their customers. In recent years, the company has implemented numerous methods to improve area in the Research & Development of Health care product. Information gathered from direct customer feedback in Internet, questionnaire paper and so on.
Undergoing the business of Colgate-Palmolive, it is fully aware that the success and the failure of a performance are depending on many factors. The three main critical factors are as follow:
Quality
Searching for Advancements in Science and Technology – Identifying and evaluating advancements in science and technology that parallel our health care interests can uncover exciting opportunities for growing our business and can help us bring innovative solutions to difficult medical problems that effect people around the world.
Price
Price is defined as the amount of money charge for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product service. Pricing may play an important role in helping to accomplish the company’s objective at many levels.
Services
Two key initiatives that serve for examples are innovative approaches Learning Services Group and Process Excellence.
The Colgate-Palmolive Learning Services Group is an internal consulting practice that helps our autonomous operating units around the world address workforce performance issues related to business goals. This group addresses the total performance equation: skills and knowledge, systems and processes, workplace conditions and other factors. The group provides support and solutions that outside firms simply cannot offer.
The Process Excellence initiative was established to help our autonomous operating units achieve world-class levels of performance and results. Its Competitiveness Assessment enables our units to compare their performance against international standards of excellence and identify opportunities for improvement. The Improvement component of Process Excellence adds the proven and powerful improvement methodologies of six sigma, lean thinking and design excellence, which often deliver breakthrough results. The combined impact of assessment and improvement is essential as Colgate-Palmolive strives to be the best and most competitive health care company in the world.
4.1.2 The Market and Demand
Before setting prices, the marketer must understand the relationship between price and demand for its product. The prices, which are offered by the Colgate-Palmolive directly, may be influence the demand of the market, which means low prices, will stabilize and might increase the demand of the market.
Pricing in Different Types of Market
The business is categorized under the oligopsonistic competition where the market consists of a few sellers who are sensitive to each other’s pricing and marketing strategy.
Consumer Perception of Price and Value
Colgate-Palmolive firstly will consider the consumers’ perception of prices and values as it sets a price for the target market. As the consumers buy a particular product, the basic concept that is considered is the value, durable time and satisfaction of the products.
Place Vs Convenience
Place includes company activities that make the product available to target consumers. Then try to forget a distribution channel which is a set of independent organization involve in the process of making a product or service available for use or consumption by the consumer or business user.
Oversea
The location for them to do business is very important. The place must be strategic, which may attract the attention from the consumers or investors. Besides, there are many products sale for agency in Malaysia, such as pharmacy, Guardian, shopping complex and shop.
5. SWOT Analysis
Strength
Colgate-Palmolive and its operating companies are engaged in an ongoing process of selecting suppliers and service providers who share Colgate-Palmolive’s dedication to excellence. Colgate-Palmolive seeks to establish relationships with organizations that share its philosophy on business conduct, particularly as it pertains to Credo responsibilities. Their selection criteria include:
- Leadership within the industry
- High quality, action-oriented management
- Outstanding quality management
- Commitment to superior customer service and customer satisfaction
- Continuous Improvement Philosophy for cost, quality and lead times
- Track record of innovation for product technology, manufacturing processes and business processes.
- Willingness to share and adopt best practices
- Relentless drive to be a low-cost producer
- Managing the business for the long term
- Excellent environment and safety profile
- Proactive member of the community
- A company or organization that we are proud to recommend to others.
Weakness
The main weaknesses of Colgate-Palmolive’s line are as follows:
- Colgate-Palmolive is had limited product offer to market as their market product will be their own manufactured product. Compare to the nearest competitor – UNILEVER with had various range of product and most of the product was direct import from oversea, e.g. THAILAND.
- Colgate-Palmolive needs a unique selling proposition. The current advertising campaign is not particularly creative or exciting.
- Colgate-Palmolive band is priced higher than other brands, but this higher price is not supported by a real perceived difference in quality. The pricing strategy should be revaluated.
The firm has unsatisfactory performance and opportunity exists for improvement. The firm must change or else exit.
Opportunities
- It’s because Colgate-Palmolive is the Company for Households. Today, as always, we are awareness of their vision is to be the company that best understands and satisfies the product, service and self-fulfillment needs of whole globally.
- Beside, for more than a hundreds years, Colgate-Palmolive has understood that successful selling is about people connecting with people. That’s their spirit. It’s the motivation behind our unwavering commitment to households of every culture and our belief in transforming for the future while maintaining the best of the past. So that, Colgate-Palmolive has a stable market.
- Colgate-Palmolive quality is demonstrably better than that of competing sets.
In 2002, Colgate-Palmolive had invested in research and development, recognizing the importance of on-going development of new and differentiated products and services. Some major competitors are spending twice less than the Colgate-Palmolive.
Threat
Threat of intense segment rivalry is a segment which unattractive if it already contains numerous, strong or aggressive competitors. It is even more unattractive if the segment is stable or decline, if plant capacity additions are done in large increments, if fixed costs are high, or if competitors have high stakes in staying in the segment. These conditions will lead to frequent price wars, advertising battles and new product introductions and will make it expensive to complete.
Treat of new entrants is a segment’s attractive varies with the height of its entry and exit barrier are low. Few new firms can enter the industry and poor performing firms can easily exit barriers are high, profit potential is high, but firm face more risk because poorer-performing firms stay in and fight it out. When entry and exit barriers are both low, firms easily enter and leave the industry and the returns are stable and low. The worst case it when entry barriers are low and exit barriers are high: here firms enter during good times but find it hard to leave during bad time. The result is chronic overcapacity and depressed earnings for all.
Treat of substitute products is a segment is unattractive when there are actual or potential substitutes for the product. Substitutes place a limit on prices and on the profits that a segment can earn. Colgate-Palmolive has to monitor the price trends in the substitutes closely. If technology advances or competition increases in these substitute industries, prices and profits in segment are likely to fall.
Threat of buyers’ growing bargaining power which buyers will try to force prices down, demand more quality or services and set competitors against each other, all at the expense of seller profitability. Buyers bargaining power grows when they become more concentrated or organized, when the product represents a significant fraction of the buyers’ costs, when buyers are price sensitive because of low profits, or when buyers can integrate upstream. To protect themselves, sellers might select buyers who have the least power to negotiate or switch suppliers. A better might select buyers who have the least power to negotiate or switch suppliers. A better defense consists of developing superior offers that strong buyers cannot refuse
Treat of suppliers’ growing bargaining power while the segment is unattractive the company’s suppliers are able to raise price or reduce quantity supplied. Suppliers tend to be powerful when they are concentrated or organized, when there are few substitute, when the supplied product is an important input, when the costs of switching suppliers are high and when the suppliers can integrate downstream. The best defenses are to build win-win relations with suppliers or use multiple supply sources.
Today, competition is not only rife but growing more intense every year. Many U.S., European, Korean and Japanese companies are setting up production in lower-cost countries and bringing cheaper goods to market.
These developments explain the current talk about “marketing warface”, and “competitive intelligence systems”. Because markets have become so competitive, understanding customers is no longer enough. Colgate-Palmolive Company must start paying keen attention to their competitors. Successful companies design and operate systems for gathering continuous intelligence about competitors.
6. Control of Colgate-Palmolive Company
Financing & Market Risk
The company uses financial instruments to manage the impact of foreign exchange rate changes on cash flows. Accordingly, the Company enters into forward foreign exchange contracts to protect the value of existing foreign currency assets and liabilities and to hedge future foreign currency product costs. Gains or losses on these contracts are offset primarily by the effect of foreign exchange rate changes on the underlying transactions.
Critical Accounting Policies & Estimates
Management’s discussion and analysis of results of operations and financial condition are based on the Company’s consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires management to make estimates and assumptions that effect the amounts reported for revenues, expenses, assets, liabilities and other related disclosures. Actual results may or may not differ from these estimates.
Revenue Recognition
The Company recognizes revenue from product sales when goods are shipped or delivered depending on when title and risk passes to the customer. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns and discounts to customers are provided for as reductions in determining sales in the same period the related provision, are based on estimates derived from current program requirements and historical experience. The Company also recognizes service revenue that is received for co-promotion of certain products. At year-end December 29, 2002, these revenues were less than 2% of total revenues and are included in products sales.
Income Taxes
Income taxes are recorded based on amounts refundable or payable in the current year and include the results of any difference between U.S. GAAP accounting and U.S. tax reporting that are recorded as deferred tax assets or liabilities. The Company records deferred tax assets and liabilities based on current tax regulations and rates. Changes in tax laws and rates that may affect these deferred tax assets and liabilities based are recorded in the future.
Legal & Self Insurance Contingencies
The Company records accruals for various contingencies including legal proceedings and product liability cases as they arise in the normal course of business. The accruals are based on management’s judgment as to the probability of losses, opinions of legal counsel and where applicable, actuarially determined estimates. Additionally, the Company records insurance receivable amounts from third party insurers based on the probability of recovery. As appropriate, reserves against these receivables are recorded for estimated amounts that may not be collected from such third party insurers.
Long Lived and Intangible Assets
The Company assesses changes in economic conditions and strategic priorities and makes assumptions regarding estimated future cash flows in evaluating the value of the Company’s fixed assets, goodwill and other non-current assets. As these assumptions and estimates may change over time, it may or may not be necessary for the Company to record impairment charges.
Employee Benefits Plans
The Company sponsors various retirement and pension plans, including defined benefit defined contribution and termination indemnity plans that cover most employees worldwide. These plans require assumptions for the discount rate, expected return on plan assets, expected salary increases and health care cost rend rates.
Changing Prices & Inflation
Colgate-Palmolive is aware that its products are used in a setting where, for more than a decade. Policymakers, consumers and businesses have expressed concern about the rising cost of health care. In response to these concerns, Colgate-Palmolive has a long-standing policy of pricing products responsibly. For the period 1992-2002, in the United States, the weighted average compound annual growth rate of Colgate-Palmolive price increases for health care products (prescription and over-the-counter drugs, hospital and professional products) was below the U.S. Consumer Price Index (CPI) for the period. Inflation rates, even through moderate in many parts of the world during 2002, continue to have an effect on worldwide economies and consequently, on the way companies operates. In the face of increasing costs, the Company strives to maintain its profits margins through cost reduction programs, productivity improvements and periodic price increases.
Cautionary Factors That May Affect Future Results
This Annual Report contains forward-looking statements. Forward-looking statements do not relate strictly to historical or current facts and anticipate results based on management’s plans that are subject to uncertainty. Forward-looking statements may be identified by the use of words like “plans”, “expects”, “will”, “anticipates”, “estimates” and other words of similar meaning in conjunction with, among other things, discussions of future operations, financial performance, the Company’s strategy for growth, product development, regulatory approval, market position and expenditures.
Forward-looking statements are based on current expectations of future events. The Company cannot guarantee that any forward-looking statement will be accurate, although the Company believes that it has been reasonable in its expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. Furthermore, the Company assumes no obligation to update any forward-looking statements as a results of new information or future events or developments.
Budgets
Sales budget is a conservative estimate of the expected volume of sales and is used primarily for making current purchasing, production and cash flow decision.
Contractual Obligations & Commitments
The Company has long-term contractual obligations primarily lease and debt obligations. To satisfy these obligations, the Company intends to use cash from operations. To satisfy these obligations, the Company intends to use cash from operations. The following table summarized=s the Company’s contractual obligations and their aggregate maturities as of December 29, 2002.
Expenditures
Capital Expenditures
Capital expenditures in 2002 increased to $2.1 billion or 21.3% over 2001 and increased 2.5% to $1.7 billion in 2001 over 2000. The increase in 2002 is due primarily to expansion of manufacturing facilities to support new and existing products, investments in support of research and investment in information systems across all business segments.
Research Expenses
Research activities represent a significant part of the Company’s business. These expenditures relate to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of the consumers and patients.
Selling, General and Administrative Expenses
The Consolidated selling, general and administrative expenses increased 8.5%, 7.3 % and 4.3% in 2002, 2001 and 2000, respectively. Selling, general and administrative expenses as a present to sales were 33.7%, 34.8% and 36.0% in 2002, 2001 and 2000, respectively. As a result of the implementation in 2002 of Emerging Issues Task Force (EITF) Issue No. 01-09 “Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendor’s Products, “the Company reclassified $674 million and $687 million for 2000 and 2000, respectively from selling, general and administrative expenses to a reduction of sales and reclassified $49 million and $45 million of expenses for 2000 and 2001, respectively from selling, general and administrative expenses to cost of products sold. Advertising expenses, which are comprised of television, radio and print media, as well as Internet advertising, were &1.5 billion in 2002, $1.4 billion in 2001 and $1.4 billion in 2000.
7. Colgate-Palmolive future plan
At Colgate-Palmolive, they can make a vigorous commitment to creating an environment in which innovation flourishes throughout their companies around the world in all functions. Central the fundamental mission to improving people’s lives, innovation through new products and technologies has a tremendous impact on their growth. Each year, more than one third of sales come from new products introduced during the previous five years, or form existing products launched in new markets.
But their growth plans rely on more than new products; they require innovation in everything their can do. Colgate-Palmolive determined not to miss any opportunities. Some of the areas of innovation can focus on for growth includes:
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Pursuing Research and Development (R&D) to expand their vision beyond the heritage consumer health care products, businesses that can increasingly driven by science and technology.
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Offering Consulting and Other Services by developing close working relationships with dentist and health care systems to create and implement customized, comprehensive strategies that help them achieve a higher quality of health care for patients by improving their performance and reducing their operating costs.
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Maximizing the Potential of the Internet to make sure that customers regard us not only as the most broadly based health care company in the world, but also as the best connected.
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Organizational and Operational Improvements As part of business strategy Colgate-Palmolive can dedicated growing their business by continuously improving the way in organization operates. The goal is to develop each operating unit to function cohesively, contribute to the attainment the business goals and continue to improve its performance over the long term. Beside, to help identify and implement improvements is in contribute business growth and instituted a number of special internal programs.
8. Conclusion
Colgate Palmolive is a international company that start their business since 1800s with candle and soap production, their strong and aggressive marketing plan had lead their business to grown to a giant company that provide wide range of care product ( Oral care, Personal care, Household care, Fabric care and Pet nutrition care )
After this research, I had found out that although Colgate-Palmolive has five main category of care product. But their main marking of their product to Malaysia market was only in four main categories which are Oral care product, Personal care Product, Household care product and Fabric care product.
Colgate-Palmolive had developed quite a complete range of Oral care product to the market, and “Colgate” already develops its own pioneer image for oral care products. For this category Colgate-Palmolive had maintain a good market share position, and the product life cycle of this range of product already come to maturity stage. So off and on Colgate will develop new product ( e.g. teeth whitening product ) to extend their product cycle and the market share as well.
For Personal care product, Colgate-Palmolive had more focus to 2 main brand of “Protex” and “Palmolive”, and recently Colgate-Palmolive is very aggressive on advertise the new range of aroma therapy shower gel product to expanse their market share of the shower gel market. Now they had set-up 2 clear of the market segmentation via concentrated marketing (target marketing) to satisfy the market needs by offer same range of product to customer with different concept. “Protex” for Health and bacteria protection product range. “Palmolive” new aroma therapy series mainly target for relaxation.
Colgate-Palmolive Household care product was not so strong in their business portfolios as if we link it to the BCG growth- Share Matrix , their current position was “DOG” as it produces very litter profit, and it would be prohibitively expensive to attempt to seek market dominance from the current low position. The brand name was not well known or outstanding in the same range of product. And their household product brand e.g. AJAX and AXION are only retained or used by same customer who also use other products offered by Colgate-Palmolive. And they may tried other company products as well
And for Colgate-Palmolive Fabric care was a very good marketing strategy when they launch their product in Malaysia. Colgate-Palmolive had used Differentiated marketing (product variety marketing) as an approach to launch their product to three level, for the higher quality and price “Dynamo” was the main and pioneer brand for liquid laundry detergent. Follow by “FAB” which offered medium range price product for liquid, powder and laundry bar soap. And “TROJAN” was offer for the power laundry detergent for more economic user for the Fabric care product. So in this marketing concept they had build up their brand name with satisfy the different level of consumer, and bring more profit to the company.
So overall Colgate-Palmolive had very successful in their marketing for the three main categories for oral, personal and Fabric care product. And their brand name was well know and even outstanding in same rage of product. They just need to do basic advertisement or develop new related product then they can maintain their growth opportunities via market penetration. Beside this they need to put more effort on advertising to strengthen their brand name for the Household product by diversification grow and gain more share in this field.
Bibliography
1. Reference Book :
Kotler & Armsrong
Principles of Marketing, 2001(ninth edition), Prentice Hall International, Inc.
Philip Kotter
Marketing Management, 2003(eleventh) , Prentice Hall International, Inc.
2. Internet :
http: /marketing
http:
http:
http: /uk/success/customers/casestudies/5colgate.asp
3. Magazines :
CLEO, 2003 November copy
CLEO, 2003 September copy
SISTER, 2003 October copy
Appendix