Strategy

Colgate-Palmolive's strategy is to increase its market share in key product categories; the company is
organized to achieve this goal. Its management teams function along geographic lines and are
accountable for each region's business and financial results. Colgate-Palmolive points to its geographic
diversity as a way to reduce its risk in any one part of its business. The completion of a major four-year
restructuring helped tighten Colgate-Palmolive's global supply chain and realign its sales, marketing, and
new product organizations to serve both mature and developing markets. This and other cost-saving
initiatives have freed up additional funds to invest in product research and support. (The company's
growth is reliant on the success of its existing product line, as well as the successful development and
launch of new products.)

The marketing strategy is a mix consists of five major modules of communication like advertising,
sales promotion, public relations and publicity, personal selling, and direct marketing (Neumann &
Sumser 2002). An identified Sponsor pay
Advertising 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 product 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 more
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 directly with or solicit a direct response from specific customers and prospects
(Goldberg & Mc Calley, 1992).

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2) Market Targeting:It is a group of customers that the business has decided to aim its marketing efforts 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
Personality characteristic of him. It is a difficult
marketing 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 create an image or identity in the minds of their
target market for its product, brand, or organization.
The Colgate people have tried to sustain themselves through tough competition and hard work.
Media and advertisement are also responsible to create an image of the Company in the eyes of its
customers and competitors.

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4 P's of Marketing
4-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 for:
Product: Product 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 differentiation 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 known 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 currently
Cost recovery Pricing: Cost 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 the
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 decreased
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 skimming: Price 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 location where a consumer can buy the product. It can be a physical
store where the consumer can visit or can be a virtual store like a website on internet .It is often
referred as distribution channel as it actually is the channel through which the product is received by

the consumer (Kotler & Armstrong, 2010). A place can be utilized for direct as well as indirect selling.
And the place can often take the shape of e-commerce altogether.
Promotion: Promotion 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).

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Marketing strategy
NTRODUCTION
As early as 3000 B.C. Egyptians used toothbrushes fashioned from twigs. In
the 20th century a major design advance occurred in 1938 with the launch of
Dr. Wests Miracle Tuft toothbrush, the first nylon bristle brush. Until the late
1970s toothbrushes were widely viewed by consumer as a commodity and
were primarily purchases on price. The involvement remained low and the
companies also treated their toothbrushes as an extension, to get their
consumers to use their toothpastes. Typically in the Indian market the
percentage of toothbrush users has slowly inched upwards. As it has always
been associated by the non-users as a non-essential item more so because
of their fierce loyalty to the margosa twigg(Datun) and the index finger. The
market of late has been the entry of several foreign players and the marketing
game has assumed a totally new dimension. Companies are trying to shift to
PULL strategy of long term returns and the inclination of consumers to shell
out a few rupees extra to ensure a more wholesome care of their teeth and
gum. This has resulted in rapid growth in value terms. Added to this is the
initiative of the companies to focus on expanding the market by bringing the
over 65% non-users in their consumer fold.
COMPANY PROFILE
A household name for paste and tooth powder, Colgate Palmolive (India) was
established on 23rd September 1937 as a private limited company in
Bombay, as a wholly owned subsidiary of Colgate Palmolive Co. Of USA
Initially it started with trading activity and later set up manufacturing
operations in 1949 at Sewry (Bombay). The company became a public limited
company on 5th October 1978. In 1990-91 the company commissioned
facilities for fatty acid and toilet soap at Waluj (Aurangabad). The plants at
Sewri and Waluj manufacture oral care products like dental creams, tooth

powder tooth brushes and personal care products like toilet soaps, shampoo,
which are marketed under various brand names such as Colgate, Palmolive,
Halo, Protex and Charmis. The companys distribution network covers 1700
stockists and 4,50,000 retailers with ware house facilities in Mumbai,
Calcutta, Delhi, Hyderabad, Lucknow and Madras ( and a new addition at
Faridabad). The company has its own Research and development facilities
and had also been getting the R&D benefits of the parent company. It has a
well established quality Control Department at Sewri & Waluj. For 40 years,
since inception till 1978, Colgate was carrying on its business in India with a
paid up capital of Rs. 1.5 lakh made up of 1500 equity shares of Rs. 100
each, when it was increases to Rs. 1.96 crore, by a bonus issue in the ratio of
130:1.
SEGMENTATION
The toothbrush industry can be regarded as a component of the Oral Care
industry which broadly comprises tooth paste, mouth wash and floss, besides
tooth brushes and a large unorganized naturally available cleaning mediums
viz. Index Finger, Neem twigs etc. But Colgate Plus need not to bothered
about latter as it operates in a different category.
The tooth brush industry can be segmented in the basis of social class &
income group (Demographic Segmentation ), price (Product segmentation),
benefit (behavioural segmentation), the last being the most important.
TARGETING
Colgate plus has been intelligently targeted at the upper middle class,
towards the lower end of Premium / super Premium category to not only take
advantage of growing consumer affordability but also to provide a pull factor
to family user in standard/popular category to upgrade to higher quality
Colgate Plus.
An implicit assumption about the large segment is that it is decently educated,
hygienic conscious and keenly discerning about the cleaning efficiency of the
toothbrush used. They primarily live in metros, urban areas, big towns, and
have a good standard of living.
At the time of its launch in 1987, Colgate Plus was the first indigenously
manufactured toothbrush in premium segment. Company claims, it built this
segment single handily and obviously has the first mover advantage
exemplified by its No.1 position despite the onslaught of variety of premium
brands from abroad.
Colgate believed that with rising income & increasing westernisation, it could
upgrade the toothbrush market and consumer could be willing to pay a few
rupees more for a quality product.

BRANDING
Colgate is a brand having a cult following. It world wide reach and association
with dental health has made it a brand associated with a caring attitude,
providing quality oral care to masses at an affordable price.
Colgate is No. 1 brand in Indian Market the three consecutive surveys by A &
M magazine. So, while launching the new toothbrush, it was imperative to
keep Colgate as a part of the name and incorporate something that could
justify the increment in price. As modifications in the form of an entirely new
category diamond head was introduced, it was ideally decided upon a name
that promised to deliver something extra, additive, etc. Plus was thus added
on.
PRICING
Generally the most important of all the PS in a developing country like India
where semi-urban and rural population constitutes, a massive portion of the
total market, has to be decided upon after contemplating on all the aspects
related to the market and the product itself.
For a product like toothbrush, the major cost is that of packaging (about 40%
of total), the rest being spread over the bristles, the nickel silver wire holding
the tufts in place and on the body of the brush.
The prices of toothbrushes have taken a quantum leap. The costliest
toothbrush in 1986 was Rs. 4/- which is today in the range of Rs. 25/-. Thus
we have seem a major jump in value sales vis--vis volume sales.
Colgate Plus when it was launched in 1987, was introduced as a champion
product to become the hero of the toothbrush market meant to keep your
smile forever. It promised to deliver more than the rest and was priced
accordingly and soon became a major player in the market. At that time it was
playing against Jordan and Royal, both of which were being imported.
Gradually as the market expanded, with the several new players coming in,
Colgate Plus continued to be the top most brand of the players till Oral - B,
Aquafresh, Forhans Galaxy came in .
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Supply Chain Strategy of Colgate Palmolive Toothpaste

Supply Chain Strategy of Colgate Palmolive Toothpaste
Objective :
1. To know the supply chain strategies used by the Colgate Palmolive ltd.
2. To know the distribution channels of the Colgate Palmolive toothpaste.

3. To study the supply process of Colgate Palmolive from supply of raw

materials till supply to retailers.
Introduction:
The distribution strategy is concerned with the product or service placement. Broadly speaking, there are two
categories of issues and decisions which need to be handled while designing the distribution strategy as part of
marketing mix.
These are:
(a) management of marketing channels and
(b) the management of physical supplies. In this unit we will discuss these two areas of distribution decisions.
IMPORTANCE OF CHANNELS OF DISTRIBUTION
Channel decisions refer to the managerial decisions on the selection of best routes or paths for moving goods from
the producer to the consumer. Channels of distribution are concerned not only with the physical movement of goods
but also with their promotion, selling and marketing control.
The term channels of distribution is used to refer to the various intermediaries who help in moving the product from
the producer to the consumer, There area variety of middlemen and merchants who act as intermediaries between
the producers and consumers.
Channels of distribution are the most powerful element among marketing mix elements. Many products which were
intrinsically sound died in their infancy because they never found the right road to the market, On the other hand, by
developing a sound distribution network and launching aggressive advertisement campaigns, a company can carve
out a niche for itself.
Channels of distribution can be grouped under two major headings:
i) Direct Selling by manufacturer and
ii) (ii) Indirect Selling through middlemen.
Distribution Strategies:
Think of a distribution channel as one slice of the overall marketing pie. It is how a company gets its products or
services to the consumers.
Few producers sell their goods directly to the final users. Most use intermediaries to bring their product to market.
Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries
performing a variety of functions. These intermediaries constitute a marketing channel (also called distribution
channel)
How can channel members add value:
-In making products and services available to consumers;
-Gathering key information about potential and current customers, and competitors;
- Promotion Developing and spreading communications about offers;
Physical distribution Transporting and storing goods;
Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) ;
The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the
user of it.
Distribution channels include wholesalers, e-commerce websites, catalog sales, consultants, a direct sales force who
sell over the phone, in person or both, dealers, home shopping networks and retailers.
Each channel member depends on the others.
* For example: Ford Dealer depends on Ford to design cars that meet consumer needs. Ford depends on their
dealers to attract consumers, convince them to buy Ford cars.
The best promotion or marketing wont get the product bought if it is being sold or distributed in the wrong place. For
example, Mercedes-Benz may have problems selling their cars in the poor rural areas of Thailand. The distribution

channel should be matched against its buyers. Once businesses determine where their customers are, they should
make sure to have their distribution channel flow directly there. Mercedes-Benz will have more luck of selling their
cars, if dealer will be located somewhere in central...

Distribution Strategy of Colgate

Product strategies
Colgate has been known to promote their products on a much more enhanced level compared to its contenders and
this has been shown in their dedication and hard work since the early 19th century when they first advertised their
soap and candle products on the New York newspaper. Similarly, the launch of the Optic White series by Colgate was
no different. Optic White is widely regarded as one of Colgates greatest successes of the last ten years and the
brand has extended into mouthwash, toothpaste and other oral care segments. The product has also received
acclaim from media and analysts. The objective for the launch of this series back in 2011 was to position Optic White
as a beauty product and the latest beauty must-have, away from therapeutic angles. The stylish sensation Fazura
was selected as the brand ambassador for the product and just within one month saw it becoming Colgates leading
selling product in Malaysia.
Launching a new product is a critical moment as during that time period no one knows what to expect since it is being
presented to the customer for the first time. To ease this situation what the current chairman Ian Cook did, was to
establish strong relationships with the dental professionals which allowed them to produce the new product in a
familiar and friendly environment. Brand loyalty is another reason why Optic White series was such a hit globally as
since the past 75 years in Latin America and 50 years in Asia, Colgate has been the leading brand in dental care and
oral hygiene. Finally, Colgate also played a huge part in educating people with the benefits of oral hygiene and why it
is necessary in daily life.
Pricing strategies
The Optic White series was an instant success in the market and one of the reasons behind this was due to its
affordable price along with special offers in the commencement stage of the product. For example in modern times,
usually a supermarket in Malaysia sells Optic White products at these...

Pricing Strategy and Channel Distribution

Assignment #3 Pricing Strategy and Channel Distribution
Marketing Management MKT 500
February 15, 2012
Pricing Strategy and Channel Distribution
Determine and discuss a pricing strategy (Skimming and Penetration).
One of the four major elements of the marketing mix is price. Pricing is very important strategic element. The pricing
strategies impinge on featuring products, channel decisions, and promotions. This strategy helps marketers set
prices. (Pride, Hughes, & Kapoor, 2011) There are many ways to price a product. Two commonly known pricing
strategies are skimming and penetration. Lavishness Hair Studio is likely to use one or both of them over a
calculated period of time. Price skimming involves charging the highest price possible for a short time where a new,
innovative, or much-improved product is launched onto a market. The objective with skimming is to skim the cream
off customers who are willing to pay more to have the product sooner. Prices are usually lowered once demand falls.
Penetration pricing is the opposite; it involves the setting of lower, rather than higher price for a new product. The
seller wants to discourage competitors from entering the market by building a large market share quickly. The plan is
to raise prices as soon as the introductory offer is over (Pride, Hughes, & Kapoor, 2011).
Lavishness Hair Studio will use price penetration during the initial opening phase of the business. Penetration
pricing is the strategy of entering the market with a low initial price so that a greater share of the market can be
captured. (Pride, Hughes, & Kapoor, 2011) The penetration strategy is used when an elite market does not exist and
demand seems to be elastic over the entire demand curve, even during early stages of the service. (Iacobucci,

2011).One purpose Lavishness Hair Studio will use price penetration is to quickly attract clients. Management will
research and analyze competitors in the area hair...

Company Description
As a top company in the Household and Personal Products industry
Colgate-Palmolive specialize in producing and distributing
household, health care and personal products including soaps,
toothpaste and detergents.
usiness Industry - Household and Personal Products
The general business activity and principal products or commercial
enterprise of Colgate-Palmolive are categorized as being part of the
Household and Personal Products Industry
Colgate-Palmolive Slogan
A slogan is a short, memorable catch phrase, tagline or motto used to to identify a
product or company in advertisements. The advertising slogan, or business slogan
most associated with Colgate-Palmolive, is:
"Colgate World of Care."
Colgate-Palmolive Mission Statement and/or Vision Statement
Mission Statements and Vision Statements are written for customers and employees of
corporations. A Mission Statement can be defined as a sentence or short paragraph
written by a company or business which reflects its core purpose, identity, values and
principle business aims. The definition for a Vision Statement is a sentence or short
paragraph providing a broad, aspirational image of the future.
Colgate-Palmolive Mission Statement:
As a Company that strives to be the best truly global consumer products company, we
are committed to doing business with integrity and respect for all people and for the
world around us.
Colgate-Palmolive Vision Statement:
"As we plan our strategies to sustain growth for the years to come, our core values of
Caring, Global Teamwork
and Continuous Improvement will continue to drive our future initiatives."

Company

Current Price

Book Value

P/E Ratio

Market
Cap
(Rs. Cr.)

JL
Morison
1,360.00
(India) Ltd.

546.97

79.27

185.64

Paramount
Cosmetics 29.75
(I) Ltd.

46.11

9.62

14.44

Gillette
India Ltd.

4,898.90

197.47

310.45

15,963.17

Procter &
Gamble
Hygiene & 7,212.10
Healthcare
Ltd.

308.96

77.51

23,411.01

My Fair
Lady Ltd.

8.20

9.33

43.48

29.54

Hindustan
Unilever
Ltd.

891.45

15.15

49.86

192,841.2
6

Emami
Ltd.

1,004.00

40.92

57.22

22,787.55

Jyothy
Laboratori
es Ltd.

256.00

48.64

43.67

4,634.20

Dabur
India Ltd.

268.95

10.84

70.29

47,241.39

Marico Ltd. 369.10

30.60

41.24

23,806.29

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Pricing strategy
In a highly competitive oral care market, Colgate holds its own, and maintains a category
leadership position. The company's strategies to category growth are accomplished by longterm, joint planning with retailers; understanding consumers and how they shop; and employing

integrated marketing to demonstrate the benefits of new products. The company has long been
on the voyage to establish the best brush possible, and in doing so, has developed a number of
impeccable products along the way. The introduction of the Wisp portable mini-brush, which was
voted 2010 Product of the Year and marketed through online video and social media, increased
Colgate's market share of the U.S. manual toothbrushes to a record 32.2% last year. In the
toothpaste segment, Colgate took the leadership position with 36.2%. Earlier this year, Colgate
introduced Wisp Plus Whitening with over 15 million impressions in the second quarter. Articles
in Fitness and InStyle magazines and mentions on The View television program and
numerous blogs further promoted awareness of the product, as did sampling at colleges and
conducting a Facebook fan drive. In keeping up with consumer trends, Colgate began to focus
on features, comfort and professional recommendations. Consumers first purchased
toothbrushes without much knowledge or information concerning the products benefits. As new
product development increased, and consumers became better informed about the benefits of
toothbrushes, they began to focus their interest not only on cavity prevention, but also on the
health of their gums, their oral hygiene, and their cosmetic appearance. Because consumer
interest and toothbrush purchases began to increase, advertising and promotion also began to
increase, which lead to the development and addition of the super-premium product class
(McCarthy, 2002). Consumers began to purchase toothbrushes based on the specific benefits
each toothbrush and company had to offer. One study identified...

Executive Management Team

Oral Care

Personal Care

R. Office

Opportunities

R & T Agents

Board Of Directors

Sustainability

Household Care

Shareholding

Career Management

Code Of Conduct

From The Dentist

Equity

Stock

Meet Alumni

Fin. Reports

News

Oral Health Center

Notification

Speakers Corner

Forms

Colgate Cares

Special Offers

Calendar

Photo Gallery

I.Relations

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