The marketing plan for ColgatePalmolive BUS4005 BA124020-1A Ho Ts !i Cho" #ai $an Ching %a !& Che&ng 'ar (o&n $i)hael 0*-12-2014
The marketing plan for Colgate-Palmolive 1
Content
+ntro,&)tion2 ./e)&tive S&mmar Sit&ation Analsis4 S#T Analsis3 $arketing e)tives* $arketing Strategies6 $arketing Ta)ti)s10 $arketing B&,get12 $arketing Control an, .val&ation $arketing Performan)e1 7eferen)e14
BA124020-1A
The marketing plan for Colgate-Palmolive 2
+ntro,&)tion
Colgate Toothpaste has een fighting a, reath an, maintaining proper oral health for over 200 ears +n the eginning8 #illiam Colgate starts a star)h8 soap8 an, )an,le &siness in 9e" !ork Cit sin)e 1*03 #hen #illiam Colgate passe,8 his )ompan "as )onstantl to intro,&)e ne" the pro,&)t s&)h as perf&me, soap an, perf&me:essen)es As at 1*;8 Colgate intro,&)es first toothpastes in ars The toothpastes have een improve, over 100 ears 9o"a,as8 "e still &se Colgate toothpastes8 "hi)h is a famo&s ran, "ith tooth )are Colgate is )overe, aro&n, 200 )o&nties an, sales s&rpassing US<15 illion Colgate has een "orking )onstantl "ith the retail partners an, provi,es the s&perior )&stomer val&e The are )rate an attentive an, satisfa)tor &siness image to )reate )&stomer ,elight The )&stomer )an & their pro,&)t ever"here s&)h as $anning8 #atson8 s&permarket an, )onvenien)e store et) All their pro,&)ts are the fast moving )ons&mer goo,s8 "hi)h are the essential pro,&)t for everone=s )hil,ren to ol,er So their market segmentation is ver roa, The al"as &se, to ,emographi) segments to ase on age Cons&mers of ,ifferent ages ,&e to phsiologi)al8 personalit8 hoies8 ,ifferent e)onomi) )on,itions8 ,eman, for )ons&mer goo,s is often ver ,ifferent Therefore8 a))or,ing to the age of the market is ,ivi,e, into man ,ifferent )hara)teristi)s of )ons&mer gro&ps8 s&)h as )hil,ren=s market8 the o&th market8 mi,,le market8 the ol, market et)
BA124020-1A
The marketing plan for Colgate-Palmolive 3
Executive Summary
+n toothpaste market8 there is lots of )ompan to )ompetition #ith an arra of 40 ,ifferent patente, toothpastes an, 1 )lassifi)ations of oral )are so that Colgate remains )ompetitive in the market pla)e The Colgate is over one h&n,re, ears ol, Therefore8 it is imperative to keep Colgate>s ran,s fresh &t maintain a ri)h histor of ?&alit pro,&)ts The target market for Colgate toothpaste is high-in)ome parties e)a&se the reall emphasie their health The follo"ing report looks at the Colgate@ Sensitive Pro-7elief an, "ill analses marketing sit&ation an, S#T of Colgate@ Sensitive Pro-7elief This report is a)hieving marketing goals to map o&t strategies an, ta)ti)s +n a,,ition to this8 listing o&t the marketing &,get oth is important in the marketing plan #e intro,&)e the ran, for the histor an, past of the performan)e Also8 "e analsis the marketing sit&ation "ith information on )&stomer nee,s8 target market8 marketing offering an, the like +n terms of the S#T analsis8 this is )larifing the )&rrent sit&ation in areas of internal strengths an, "eaknesses8 highlighting opport&nities an, threats $arketing strateg is marketing mi/ elements an, e/plains ho" ea)h respon,s to the S#T Also8 the marketing ta)ti)s is s&pport marketing strategies estalishing a set of a)tion programs on pro,&)t8 pri)ing8 ,istri&tion8 an, promotion The &,get is essentiall a proe)te,-an, loss-statement astl8 the marketing )ontrol an, eval&ation is o&tline the meas&res that "ill e &se, to monitor progress an, eval&ate the marketing performan)e This is the marketing plan for the Colgate@ Sensitive Pro-7elief The marketing plan is ver signifi)ant of e/e)&tion "ill ring in a lot of &siness
BA124020-1A
The marketing plan for Colgate-Palmolive 4
Sit&ation Analsis
or the Colgate8 the have man pro,&)ts s&)h as toothpaste8 mo&th"ashes8 an, toothr&sh8 &t the are spe)iall for)e, on the toothpaste an, &n,erstan, the )&stomers> nee,s an, "ants The are offering 25 ,ifferent patente, toothpastes in Hong %ong $an people have ello" teeth8 sensitive teeth or &st teeth "ith )avit prolem Also8 in or,er to attra)t an, more s&itale for )hil,ren8 the have een releasing some spe)ial toothpastes s&)h as ,ifferent taste8 )artoon )hara)ters for )hil,ren The most of toothpastes ran,s have varie, pro,&)t )an effe)tivel solve the )&stomer prolem8 &t the are not spe)ifi) to for)e the ,etail of the prolem Colgate intro,&)es ,ifferent series toothpastes to mat)h the )&stomers> nee,s an, "ants s&)h as opti) "hite8 sensitive pro-relief
Spe)iall8 the sensitive pro-relief series )an for)e ,ifferent sensitive smptom8 "hi)h have 5 toothpastes to ,ivi,e ,ifferent patient or )&stomers Those are e/)l&sive Pro-Argin form&la The series slogan is D o&r sensitive toothpaste makes o& eno the froen taste 14 ,as pro,&)t risk "ith o&r mone a)k g&aranteeE +t is e/press the &ni?&e effe)tiveness of pro,&)ts an, target )ons&mer ps)holog +t is more than other toothpaste ran, e)a&se the &n,erstan, sensitive teeth is ver )ommon in Hong %ong The strengthen the pro,&)t to e more effe)tive mat)h the )&stomer nee,s The are &se, ,ifferentiate, marketing that a )ore of the pro,&)t asi)all the same8 &t the ,ifferen)e in performan)e an, ?&alit to meet the asi) nee,s of the )&stomer to provi,e )&stomers "ith a &ni?&e pro,&)t
riginal toothpaste is asi) sensitive toothpaste for earl patient or )&stomer Sensitive tooth sho&l, e )aref&l to &se a "hitening pro,&)t &t Colgate has een resear)h an, ,evelopment the toothpaste )omines "ith sensitive an, "hitening #hitening toothpaste is a lo" arasive form&la gentl an, effe)tivel removes stains for "ho is a ello" an, sensitive tooth An, other three toothpastes are for)e, on ,ifferent )ommon smptoms .namel 7epair toothpaste is repairs sensitive teeth for long lasting prote)tion against sensitivit that has an enamel prolem )&stomer $<i-prote)tion toothpaste is more effe)tive to )lear the teeth an, the taste more fresh '&ms-prote)tion toothpaste is more for)e prote)ts the g&ms to against sensitivit +t is a pro,&)t a,vantage in similar pro,&)ts
n the other han,8 Colgate>s a,vantage is an e/)ellent ran, an, a high of ,iversifi)ation of the &siness
BA124020-1A
The marketing plan for Colgate-Palmolive This is the pri)e of the sensitive toothpastesF 5
The sensitive toothpastes pri)e is <66 Altho&gh the pri)e e/pensive than other )ompetitor8 the loal )&stomer still & their pro,&)t Besi,es8 Colgate-Palmolive )an thrive in the )ompetitive environment e)a&se the are tho&ghtf&l to ,esign &siness strateg The are a)?&ire, in a parti)&lar pro,&)t )ategor an, markets an, maintain market lea,ership position The gaine, slightl in val&e share to rea)h )lose to 51G in 2018 "hi)h f&rther )onsoli,ate, its lea,ership in oral )are Also8 the are )onsistent "ith the )ompan=s )ore strengths an, )ore )ompeten)ies Colgate positione, several toothpastes so that people "o&l, like the pro,&)ts more like a,,ing a ,ifferent stle or taste to the toothpaste Colgate repositions their pro,&)ts e)a&se "ith the "a the market an, promote their pro,&)ts8 )ons&mers kno" that these pro,&)ts are "a etter than other ran,s an, )ompetition that is o&t there
BA124020-1A
The marketing plan for Colgate-Palmolive
S!"T #naly$i$
Strengths
Strengths ,es)rie the internal )apailities8 reso&r)es8 an, positive sit&ational fa)tors of firm8 that is the a,vantages for a)hieving its oe)tive Colgate -PalmoliveI is a m<inational8 "hi)h o"ns the international &siness +ts &siness is r&nning ,iversifi)ation for estalishing a strong )ompetitive position an, in)reasing profit8 s&)h as Palmolive an, Softlan Also8 Colgate is ver )on)ern ao&t the prolems of oral health8 so the ha, een resear)he, an, ,evelope, the pro,&)ts of hgiene an, prote)t Their pro,&)ts of oral )are are most famo&s an, spe)ialie,8 "hi)h )o&l, otain the igger market share &rthermore8 Colgate is a time-honore, )ompan that )o-operate "ith the ,entists for man ears The have a professional team of ,entists for improving the oral pro,&)ts8 so the )&stomers have )onfi,en)e an, faith in their ran, Weaknesses
#eaknesses ,es)rie the internal limitations8 negative internal fa)tors an, negative sit&ational fa)tors of a firm that is the arriers to meet its oe)tive A))or,ing to the report of thir,?&arter earnings8 Colgate-PalmoliveJs net profit "as ,e)line,8 "hi)h fell 05 per)ent to < 4;6 illion That is8 Colgate-Palmolive "ill la)k of )apital to operate in a short term8 an, the are going to reorganie the ,istri&tion of e/pen,it&res As Colgate-Palmolive is a )ompan of The Unite, States8 the nee, to realie the lo)al )<&re efore the tr to e/ten, their overseas market +n or,er to satisf the )&stomers> nee,s an, "ants8 Colgate-Palmolive "o&l, )onstit&te the )&stomie, ,epartment for st&,ing the ,ifferen)e of )iviliation n the other han,8 it is a large e/pense of hiring the professional teams8 "hose are the ,entists an, resear)hers8 et) Colgate-Palmolive has een "orking "ith the ,entists an, resear)hers to improve an, ,evelop the oral pro,&)t that is the main lao&r )ost Opportunities
pport&nities ,es)rie the favorale e/ternal fa)tors of the firm8 that ma trigger the path to a,vantage on its oe)tive .verone kno"s that Colgate-Palmolive is an ol, an, famo&s ran,8 "hi)h has een otaining the goo,"ill an, )&stomer loalt The p&li) "ill )onfi,e in the other pro,&)t of Colgate-Palmolive8 so the )o&l, e/pen, their &siness on skin )are8 esi,es personal )are an, home )are There is no ,o&t that people have more val&e on their personal )are as their health )ognition "as gro"n e,&)ation Therefore8 this is the a,vantage of rolling o&t the s&perior pro,&)ts on ,ifferent lifestle of people C) sho&l, also )onsi,er roa,ening their &siness>s s)ope that )o&l, e/ploit Dateral Sprea,ingE This is one of the "as to e/pan, the e/ternal &siness8 "hi)h ,evelops the relevant &siness &t ,oes not e/ists the )ompetitive relationship of ral Care8 or instan)e8 ,ental )lini) organie, of Colgate-Palmolive Threats BA124020-1A
The marketing plan for Colgate-Palmolive Threats ,es)rie )&rrent &nfavorale e/ternal fa)tors that are the )hallenge of a )ompan>s % performan)e rom the report of TH. (.7USA.$ PST8 the fake Colgate toothpaste "as importe, from China an, Thailan, +t is a serio&s prolem that "ill affe)t the tr&st of )&stomers> p&r)hase an, the ,evelopment of overseas market #hat is more serio&s is that Colgate-PalmoliveJs toothpaste "as ,is)overe, the ingre,ient is in)l&,ing the harmf&l material B&t8 the ha, alrea, )leare, this ,el&sion on me,ia Ho"ever8 there are negative ne"s an, a, image form p&li) +t is kno"n that ral-B is the maor )ompetitor for man ears or the aove reasons8 it "ill e the ,isa,vantage in the )ompetition et"een Colgate-Palmolive an, ral-B
BA124020-1A
The marketing plan for Colgate-Palmolive &
$arketing e)tives
#e are here to set &p oe)tives in)l&,e ran, &il,ing8 in)reasing sales t&rnover an, satisfing )&stomer nee,s
The p&rpose of this marketing plan is &il,ing ran,s There is in)re,ile val&e for )ompanies an, )orporations for ran, &il,ing Bran,s )onve a &niform ?&alit8 )re,iilit an, e/perien)e The ran,s are more important to,a than in the past A lot of )ons&mer & ran, even &s premi&m ran,s The est ran,ing is ase, on a strong i,ea to )reate ran, heat an, pro,&)t l&st #hen people have relationship "ith pro,&)ts8 the "ill loal to ran,s Bran,s )an a)tivate a passionate gro&p of people to ,o something Pro,&)ts )an>t reall ,o that
Another p&rpose of this marketing plan is in)reasing 5G sales in 3 months +n &siness8 amo&nt of sales t&rnover is ver important e)a&se t&rnover is ,ire)tl proportional to the profit gaine, The igger the t&rnover of sales means greater profits
inall8 satisfing )&stomer nee,s is one that mostl fo)&ses on "hat the )&stomer nee,s as oppose, to &st his "ants an, ,esires This oe)tive often has more of a long-term positive effe)t on the )ompan in the )&stomer>s ees
BA124020-1A
The marketing plan for Colgate-Palmolive '
$arketing Strategies
Colgate-Palmolive nee,s to form&late the marketing strateg for lea,ing the pro)esses to a)hieve its oe)tive #ith the analsis of the sit&ation an, S#T8 Colgate-Palmolive fo&n, the a,&stment an, improvement for )ontin&ing as follo"s
As for ran, &il,ing8 Colgate-Palmolive sho&l, e/ploit its strength that is the famo&s series of ral Care8 to in)rease the promotion of ran, +n or,er to enhan)e the ran, a"areness8 Colgate-Palmolive )on,&)ts ,ifferent promotion8 for e/ample8 pla)e a,vertisement on so)ial me,ia8 "hi)h )o&l, in)rease the e/pos&re of ran,8 s&)h as a)eook an, internet
The main reason "h Colgate-Palmolive nee,s to reorganie the ,istri&tion of e/pen,it&res is that its reven&e "as ,e)line, So8 the pri)e of pro,&)t ma a,&st for in)reasing the sale vol&me that )o&l, also in)rease the reso&r)es of operation +n a,,ition8 that "ill not ,ist&r the ?&alit of pro,&)t as it "ill not ,e)rease the professional lao&r8 s&)h as ,entist an, resear)her
There is the opport&nities to improve the ?&alit an, roll o&t the ,ifferent tpe of pro,&)t "here goo,"ill an, )&stomers loalt of Colgate-Palmolive To rea)h the oe)tive for satisfing the )&stomers> nee,s an, "ants8 Colgate-Palmolive sho&l, mat)h their lifestle to provi,e the pro,&)t that aims to spe)ial prolem8 s&)h as "hitening8 ,eep )lean an, a, reath
f all the negative ne"s8 Colgate-Palmolive sho&l, ,efe)ate an, ill&strate the rea)tion imme,iatel that "ill e the threats to its rep&tation8 s&)h as an iss&e on ne"spaper an, )ompan>s "esite +t )o&l, avoi, the )&stomers "orr ao&t its pro,&)t an, )onsoli,ate the )ompetitive in the market &rthermore8 Colgate-Palmolive nee,s to in)rease the point of sale that )o&l, enhan)e the ran, a"areness of the )&stomer in ne" markets
M a r k e t
S h a r e -
t o o t h p a s t e
BA124020-1A
The marketing plan for Colgate-Palmolive 1(
$arketing Ta)ti)s
+n terms of pro,&)t8 Colgate@ Sensitive Pro-7elief that people &se ever ,a an, have to repla)e fre?&entl There are three ,ifferent tpes of Colgate@ Sensitive Pro-7elief Toothpaste - "ith Pro Argin Te)hnolog ther variants in the range are Colgate Sensitive Pro-7elief #hitening Toothpaste8 Colgate Sensitive Pro-7elief .namel Prote)t Toothpaste an, Colgate Sensitive Pro-7elief $<i-Prote)tion Toothpaste The mo,e of a)tion of Colgate@ Sensitive Pro-7elief is the Pro-Argin te)hnolog pl&gs an, seals open ,entine t&&les "ith a )al)i&m-ri)h mineral laer B the "a8 Colgate@ Sensitive Pro-7elief life ))le stages is mat&rit At this stage of the life))le the pro,&)t "ill e e/perien)ing in)rease, )ompetition an, "ill nee, pers&asive ta)ti)s to en)o&rage )ons&mers to )hoose their pro,&)t over their rivals An ,ifferential enefit "ill e essential to e )learl )omm&ni)ate, to the target a&,ien)e PRODUCT CHARACTERISTICS
PRODUCT BENEFITS
Uni?&e Pro-Argin te)hnolog ase, on nat&ral pro)ess of t&&le o))l&sion
Signifi)antl greater sensitivit re,&)tion "itht"i)e - ,ail r&shing )ompare, to )ontrol toothpaste "ith potassi&m ions
Helps lo)k pain stim&li s&)h as ta)tile8 press&re an, )ol, air
+nstant relief "hen applie, ,ire)tl to the sensitive tooth "ith the fingertip an, gentl massage, for 1 min&te
Clini)al st&,ies p&lishe, in peerrevie"e, o&rnal
Can e &se, after the Colgate@ Sensitive Pro-7elief Kesensitiing Paste
#ith 1450ppm fl&ori,e as so,i&m monofl&orophosphate
Caries Prevention
+n terms of pri)ing8 a )ompan )an a,opt a n&mer of pri)ing strateg8 the pri)ing strateg "ill &s&all e ase, on )orporate oe)tives Pri)ing sho&l, take into a))o&nt the fa)tors into a))o&nt )ontain )ompetition8 )ompan oe)tives8 target gro&p an, "illingness to pa irstl8 Colgate- Palmolive e/ploits Competition Pri)ing to go into the market Competition Pri)ing is setting a pri)e in )omparison "ith )ompetitors 7eall a firm has three options an, these are to pri)e lo"er8 pri)e the same or pri)e higher This pri)ing strateg "ill e ale to attra)t a n&mer of the )&stomers "ho &se the )ompetitors> pro,&)ts to )hange to emplo o&r pro,&)ts Another pri)ing strateg "e &se is Ps)hologi)al Pri)ing The seller here "ill )onsi,er the ps)holog of pri)e an, the positioning of pri)e "ithin the market pla)e Colgate- Palmolive "ill )harge <66 instea, of <40 The reason "h this metho, "ork e)a&se )&stomers "ill still think the p&r)hase, their pro,&)t &n,er <408 even tho&ght it "as a ,ollar a"a Pri)ing is an impe,iment8 "hen the )ons&mer shopping Therefore8 "e m&st &tilie ,ifferent tpe of pri)ing strategies to satisf the market
BA124020-1A
The marketing plan for Colgate-Palmolive +n terms of ,istri&tion8 Colgate- Palmolive sele)ts in,ire)t ,istri&tion +n,ire)t ,istri&tion 11 involves ,istri&ting o&r pro,&)t the &se of an interme,iar for e/ample a man&fa)t&rer selling to a "holesaler an, then on to the retailer )anufactur er
!hole$aler
*etailer
Con$umer
At the same time8 Colgate- Palmolive makes &se of intensive ,istri&tion An intensive ,istri&tion strateg is a plan that pla)es pro,&)ts in man ,ifferent lo)ations for ,istri&tion Colgate@ Sensitive Pro-7elief ma e fo&n, in ,oens of ,ifferent retail o&tlets in an given area The p&rpose of this tpe of strateg is to p&t so m&)h of a pro,&)t in so man lo)ations that a )&stomer "ill )ome a)ross Colgate@ Sensitive Pro-7elief fre?&entl8 making it eas for them to rememer an, & the pro,&)t Colgate- Palmolive of toothpaste )an e fo&n, at the gro)er store8 the ,r&g store8 the )onvenien)e store8 or a retail store #ith s&)h intensive ,istri&tion8 )&stomers are sel,om for)e, to )hoose another ran, +ntensive ,istri&tion )an make o&r pro,&)t a ho&sehol, name
There are t"o maor promotional "as of Colgate@ Sensitive Pro-7elief A,vertising is a main promotion tool "hi)h is an non personal pai, form of )omm&ni)ation &sing an form of mass me,ia Colgate- Palmolive &tilies & marketing )reate opinion lea,ers to serve as ran, amassa,ors8 "ho sprea, the "or, ao&t Colgate@ Sensitive Pro-7elief ColgatePalmolive al"as fin,s the ,ental e/perts e)ome an opinion lea,er e)a&se ,ental e/perts are a&thoritative The )&stomers are "illing to a,mit the s&ggestion of ,ental e/perts A,vertising in)l&,e TL8 the internet an, the like Apart from a,vertising8 the +nternet $arketing is also ver important Promoting an, selling o&r servi)es online &sing vario&s forms of online marketing te)hni?&es s&)h as anner a,vertisements8 vi,eos or so)ial me,ia Colgate- Palmolive set &p the "esite for Colgate@ Sensitive Pro-7elief There are vi,eos an, me,i)al report to give the information ao&t the teeth The "esite not onl has &ser share their e/perien)e8 &t also a))or,s opport&nit visitor to appl the test of teeth ColgatePalmolive also ,esigne, the slogan J#or, of Care> All in all8 )ons&mers )an otain instant information on o&r pro,&)ts to ai, them in their )r&)ial p&r)hase ,e)ision
BA124020-1A
The marketing plan for Colgate-Palmolive 12
$arketing B&,get
BA124020-1A
The marketing plan for Colgate-Palmolive
$arketing Control an, .val&ation $arketing Performan)e
13
+n the marketing )ontrol8 "e have three si,es to )ontrol an, improve or the sales )ontrol8 "e nee, to in)rease the sales vol&me sin)e "e have to keep o&r market share in the ma/imie share So "e )an rene" the monthl o&r )&stomer>s p&r)hase "hi)h )an keep on )o&nting o&r )&stomer flo" rate #e )an a,, &p the )ost of sales per)entage in total of sales8 "hi)h )an )ontrol o&r pri)es in market
or the a,vertising effi)ien) )ontrol8 in or,er to improve the effi)ien) of a,vertising managers8 "e )an eval&ation of the )&stomer "ith o&r a,vertising )ontent an, effe)ts The )&stomer )hanges attit&,es efore an, after the a,vertising that )an more &n,erstan, the )&stomers> nee,s an, "ants
Besi,es8 the promotion effi)ien) )ontrol )an analsis o&r promotion effe)tive or e/ample8 "e )an analsis o&r promotion sales per)entage in total of sales to eval&ate o&r sales promotion The )olle)t rate of )o&pon )an analsis o&r pro,&)t attra)tive for the )&stomers
BA124020-1A
The marketing plan for Colgate-Palmolive 14
7eferen)e
Colgate professional httpF::""")olgateprofessional)omhk: #h ran, &il,ing is important httpF::"""fores)om:sites:marketshare:2012:05:2;:"h ran,-&il,ing-is-important: Ho" to +n)rease Sales T&rnover httpF::ariasenalogspothk:2012:02:ho"-to-in)rease-sales-t&rnoverhtml Colgate professional httpF::""")olgateprofessional)omhk: earnmarketingnet httpF::"""learnmarketingnet Kistri&tionstrategorg httpF::""",istri&tionstrategorg:+ntensive-Kistri&tion-Strateghtml 高露潔棕欖營收下降
httpF::ne"ssingtao)a:toronto:2014-10-25:finan)e1414213335,526362html ake Colgate toothpaste from ar .ast )a&ght Health $inistr httpF::"""post)om:Breaking-9e"s:ake-Colgate-toothpaste-from-ar-.ast-)a&ght-Health-$inistr-*514 Ann&al 7eports httpF::investor)olgate)om:ann&al)fm Colgate-Palmolive Compan 200* Ann&al 7eport httpF::""")olgate)om:app:Colgate:US:Corp:Ann&al-7eports:200*:Kear-ColgateSharehol,er)vsp
BA124020-1A