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Marketing Management - I
Colgate Palmolive
Submitted to
Submitted by
Group 5, Section D
Margesh Patel
Navneet Singh
Anup Sharma
Nandini
Kirti Dang
Nidhi Gupta
Table of Contents
INTRODUCTION .......................................................................................................... 3
MARKETING .............................................................................................................................. 3
HISTORY .................................................................................................................................... 4
RECOMMANDATIONS .............................................................................................. 45
CONCLUSION ............................................................................................................. 46
INTRODUCTION
MARKETING
Marketing is a widely used term to describe the means of communication
between the company and the consumer audience. Marketing is the adaptation
of the commercial activities and use of institutions by the organizations with a
purpose to induce behavioral change on a short-term or permanent basis. The
American Marketing Association most recently defined Marketing as "the
activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large."
From a societal point of view, marketing provides the link between a society's
material requirements and its economic patterns of response. This way
marketing satisfies these needs and wants through the development of
exchange processes and the building of long-term relationships.
HISTORY
EARLIER APPROACHES
CONTEMPORARY APPROACHE
MARKETING MIX
The marketing mix was proposed by Professor E. Jerome McCarthy in the
1960s. It consists of four basic elements called the "four P's". Product is the
first P representing the actual product. Price represents the process of
determining the value of a product. Place represents the variables of getting the
product to the consumer such as distribution channels, market coverage and
movement organization. The last P stands for Promotion which is the process
of reaching the target market and convincing them to buy the product. The four
Ps determine how marketing satisfies consumer needs. They are considered
controllable marketing mix factors, meaning that they can change or be altered
as needed. Habits, lifestyle, and diet are all considered to be controllable risk
factors.
In the 1990s, the concept of four C's was introduced as a more customer-driven
replacement of four P's. There are two theories based on four Cs: Lauterborn's
four Cs (consumer, cost, communication, convenience) and Shimizu's four Cs
(commodity, cost, communication, channel) in the 7Cs Compass Model (Co-
marketing).
• Regulatory: This refers to laws and legality (governmental policies) that may
affect the way marketing can be characterized. For example, government
restriction on the importation of a particular product might hinder the
marketers playing in that particular field.
• Social: The social forces refer to the structure and dynamics of individuals
and groups and their behaviors, beliefs, thought patterns and lifestyles,
friendships, etc. When consumers change their needs and wants, this directly
affects marketing strategies.
CUSTOMER ORIENTATION
A firm in the market economy survives by producing goods and services that
persons are willing and able to buy. Consequently, ascertaining consumer
demand is vital for a firm's future viability and even existence as a going
concern. Many companies today have a customer focus (or market orientation).
This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven
approach, the market change identification approach and the product
innovation approach.
Product → Solution
Promotion → Information
Price → Value
If any of the 4Ps were problematic or were not in the marketing factor of the
business, the business could be in trouble and so other companies may appear
in the surroundings of the company, so the consumer demand on its products
will decrease. However, in recent years service marketing has widened the
domains to be considered, contributing to the 7P's of marketing in total. The
other 3P's of service marketing are: process, physical environment and people.
Some qualifications or caveats for customer focus exist. They do not invalidate
or contradict the principle of customer focus; rather, they simply add extra
dimensions of awareness and caution to it.
Taking customer focus with a grain of salt, treating it as only a subset of one's
corporate strategy rather than the sole driving factor. This means looking
beyond current-state customer focus to predict what customers will be
demanding some years in the future, even if they themselves discount the
prediction.
Pursuing new markets (thus new value networks) when they are still in a
commercially inferior or unattractive state, simply because their potential to
grow and intersect with established markets and value networks looks like a
likely bet. This may involve buying stakes in the stock of smaller firms,
acquiring them outright, or incubating small, financially distinct units within
one's organization to compete against them.
The extent to which what customers say they want does not match their
purchasing decisions. Thus surveys of customers might claim that 70% of a
restaurant's customers want healthier choices on the menu, but only 10% of
them actually buy the new items once they are offered. This might be
acceptable except for the extent to which those items are money-losing
propositions for the business, bleeding red ink. A lesson from this type of
situation is to be smarter about the true test validity of instruments like
surveys. A corollary argument is that "truly understanding customers
sometimes means understanding them better than they understand themselves."
Thus one could argue that the principle of customer focus, or being close to the
customers, is not violated here—just expanded upon.
The extent to which customers are currently ignorant of what one might argue
they should want—which is dicey because whether it can be acted upon
affordably depends on whether or how soon the customers will learn, or be
convinced, otherwise. IT hardware and software capabilities and automobile
features are examples. Customers who in 1997 said that they would not place
any value on internet browsing capability on a mobile phone, or 6% better fuel
efficiency in their vehicle, might say something different today, because the
value proposition of those opportunities has changed.
ORGANIZATIONAL ORIENTATION
In this sense, a firm's marketing department is often seen as of prime
importance within the functional level of an organization. Information from an
organization's marketing department would be used to guide the actions of
other departments within the firm. As an example, a marketing department
could ascertain (via marketing research) that consumers desired a new type of
product, or a new usage for an existing product. With this in mind, the
marketing department would inform the R&D (research and development)
department to create a prototype of a product or service based on the
consumers' new desires.
The production department would then start to manufacture the product, while
the marketing department would focus on the promotion, distribution, pricing,
etc. of the product. Additionally, a firm's finance departments would be
consulted, with respect to securing appropriate funding for the development,
production and promotion of the products. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may
oppose the installation, support and servicing of new capital stock, which may
be needed to manufacture a new product. Finance may oppose the required
capital expenditure, since it could undermine a healthy cash flow for the
organization.[citation needed]
HERD BEHAVIOR
Herd behavior in marketing is used to explain the dependencies of customers'
mutual behavior. The Economist reported a recent conference in Rome on the
subject of the simulation of adaptive human behavior. It shared mechanisms to
increase impulse buying and get people "to buy more by playing on the herd
instinct." The basic idea is that people will buy more of products that are seen
to be popular, and several feedback mechanisms to get product popularity
information to consumers are mentioned, including smart card technology and
the use of Radio Frequency Identification Tag technology. A "swarm-moves"
model was introduced by a Florida Institute of Technology researcher, which is
appealing to supermarkets because it can "increase sales without the need to
give people discounts." Other recent studies on the "power of social influence"
include an "artificial music market in which some 19,000 allegations
downloaded previously unknown songs" (Columbia University, New York); a
Japanese chain of convenience stores which orders its products based on "sales
data from department stores and research companies;" a Massachusetts
company exploiting knowledge of social networking to improve sales; and
online retailers such as Amazon.com who are increasingly informing
customers about which products are popular with like-minded customers.
FURTHER ORIENTATIONS
An emerging area of study and practice concerns internal marketing, or how
employees are trained and managed to deliver the brand in a way that
positively impacts the acquisition and retention of customers, see also
employer branding.
Diffusion of innovations research explores how and why people adopt new
products, services, and ideas.
MARKETING RESEARCH
Marketing research involves conducting research to support marketing
activities, and the statistical interpretation of data into information. This
information is then used by managers to plan marketing activities, gauge the
nature of a firm's marketing environment and obtain information from
suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear
regression, correlations, frequency distributions, Poisson distributions,
binomial distributions, etc. to interpret their findings and convert data into
information. The marketing research process spans a number of stages,
including the definition of a problem, development of a research plan,
collection and interpretation of data and disseminating information formally in
the form of a report. The task of marketing research is to provide management
with relevant, accurate, reliable, valid, and current information.
MARKETING ENVIRONMENT
Staying ahead of the consumer is an important part of a marketer's job. It is
important to understand the "marketing environment" in order to comprehend
the consumers concerns, motivations and to adjust the product according to the
consumers needs. Marketers use the process of marketing environmental scans,
which continually acquires information on events occurring outside the
The market environment is a marketing term and refers to factors and forces
that affect a firm's ability to build and maintain successful relationships with
customers. Three levels of the environment are: Micro (internal) environment -
forces within the company that affect its ability to serve its customers. Meso
environment – the industry in which a company operates and the industry's
market(s). Macro (national) environment - larger societal forces that affect the
microenvironment.
MARKET SEGMENTATION
Market segmentation pertains to the division of a market of consumers into
persons with similar needs and wants. For instance, Kellogg's cereals, Frosties
are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both
goods denote two products which are marketed to two distinct groups of
persons, both with similar needs, traits, and wants. In another example, Sun
Microsystems can use market segmentation to classify its clients according to
their promptness to adopt new products.
Primary research is often expensive to prepare, collect and interpret from data
to information. Nevertheless, while secondary research is relatively
inexpensive, it often can become outdated and outmoded, given that it is used
for a purpose other than the one for which it was intended. Primary research
can also be broken down into quantitative research and qualitative research,
which, as the terms suggest, pertain to numerical and non-numerical research
methods and techniques, respectively. The appropriateness of each mode of
research depends on whether data can be quantified (quantitative research), or
whether subjective, non-numeric or abstract concepts are required to be studied
(qualitative research).
MARKETING PLAN
The marketing planning process involves forging a plan for a firm's marketing
activities. A marketing plan can also pertain to a specific product, as well as to
an organization's overall marketing strategy. Generally speaking, an
organization's marketing planning process is derived from its overall business
strategy. Thus, when top management are devising the firm's strategic direction
or mission, the intended marketing activities are incorporated into this plan.
There are several levels of marketing objectives within an organization. The
Marketing strategy
The field of marketing strategy considers the total marketing environment and
its impacts on a company or product or service. The emphasis is on "an in
depth understanding of the market environment, particularly the competitors
and customers."
INDUSTRY PROFILE
The report on the personal care market explores the global industry that is
largely driven by increasing consumer disposable income and changing
The research report offers an insight into the size, scope and dynamics of the
personal care market during the forecast period. It identifies key factors that
have led to its present growth, highlights past and future strategies, and
illustrates the industry’s benchmark for success. The report also analyses
leading companies in the market, giving information regarding industry share,
individual strengths and weaknesses, profit and market opportunities. By
dividing the overall market on the basis of various parameters, the report
reviews the largest and fastest growing segments as well as stagnant or slow-
growing areas, factors essential for their success or failure, and their
contribution to the global market.
OVERVIEW
The primary driving force of the global personal care market, as identified in
the report, is rising disposable income which has enabled consumers to spend
on the ever-widening industry. While personal care products for women were
always a strong category, introduction of the men’s line of grooming products
has propelled the market significantly. Even for women, innovative and
improvised products such as multifunctional and cosmeceutical products have
gained popularity. Commodities suited for specific skin and hair types have
flooded the market and are catering to the customized needs of consumers.
Media penetration, advertising and promotional offers have furthered the
growth of the market. In developing countries, factors such as rapid
urbanization, availability of international brands, and rise in spending power
have largely fueled the market.
The market for personal care is highly diversified and can be broadly divided
into two main segments: personal care appliances and personal care products.
Personal care appliances have gained popularity worldwide and innovative
products are penetrating new sections of the market every year. These
appliances include hair clippers, hair setters (blow dryers, flat irons, and
curlers), massagers, trimmers, and electric toothbrushes. The personal care
product segment includes make-up, bath and shower, fragrances, deodorants,
oral hygiene, personal hygiene, hair care, and skin care. The market is also
categorized on the basis of age and gender.
The global personal care market consists of companies that dominate the
products segment and those that lead the appliances segment. The major
competitors of the personal care appliances market mentioned in the TMR
report include Colgate-Palmolive, Johnson & Johnson, Royal Philips
Electronics NV, Procter & Gamble, and Panasonic Corporation. Some of the
top beauty care products companies are L’Oréal Paris, Avon Products,
Unilever PLC, Estée Lauder and Procter & Gamble. Leading companies in the
world hygiene industry are Colgate-Palmolive Company, Unilever, Johnson &
Johnson, Godrej Industries Ltd., Helen of Troy Ltd., and Proctor & Gamble
Company.
North America
Asia Pacific
Europe
Market structure
The global beauty market is usually divided into five main business segments:
skincare, hair care, color (make-up), fragrances and toiletries. These segments
are complementary and through their diversity they are able to satisfy all
consumers’ needs and expectations with regard to cosmetics..
Over the years to come, the cosmetics and personal care industry is predicted
to record gains across the board, with particularly strong growth expected for
sun protection and anti-aging products as consumers become increasingly
aware of the dangers of sun exposure and more concerned with preserving a
youthful appearance. Emerging nations represent huge potential for
international companies, offering better quality products than locally produced
goods to populations with rising income levels. Multinational companies have
begun establishing a strong foothold in countries such as Russia, India and
China.
Rising income means that consumers are more concerned with product
effectiveness and ingredients used than cheap products. Manufacturers are
therefore focused on advertising their products as superior to those of rival
companies, rather than systematically seeking to undercut market prices.
Distribution channels are changing in that cosmetic brands are available not
only in retail outlets like department stores, but also through internet
purchasing, television infomercials, home shopping, airport vending machines
and in spas
India’s personal care industry is composed of hair care, bath products, skin
care and cosmetics, and oral care. The sector is driven by rising income, rapid
urbanization, and celebrity promotions. This industry accounts for 22% of the
country’s fast-moving consumer goods (FMCG), which is the term for
Consumer Packaged Goods in India. Foreign direct investment in this sector
totaled $691 million in 2014.
Within the cosmetics category, India’s most prevalent products are skin
creams, lotions, whitening creams, and makeup. Hindustan Unilever has three
brands that are popular among Indian women—Fair & Lovely, Lakmé, and
Ponds. Fair & Lovely was the world’s first skin lightening cream and is the
company’s leading skin care brand. Colgate Palmolive’s Charmis moisturizer
is also prominent. The majority of the demand for cosmetics comes from
working men and women. L’Oreal Paris develops both skin care and cosmetic
products for India. New York-based Revlon expanded further to smaller cities
in India, generating $40 million in revenues in 2014.
The organic skin care category grows at over 20 percent annually and is
expected to total $157 million in 2020, according to Azafran Innovacion, an
organic skincare group. Large Indian organic skin care companies include
Himalaya Herbals and Biotique. Both specialize in Ayurveda-based products.
The oral care category is the smallest category; less than half of Indian
consumers utilize western-style products such as toothpaste. Colgate Palmolive
dominates more than half of this industry and was named India’s most trusted
brand four years in a row by a brand equity survey. Hindustan Unilever is
another significant player with toothpaste brands Pepsodent and Close Up.
Join professional associations for the health and beauty skin care products
industry
Within the industry, you'll run across several associations you may find
beneficial to join. Not only will they provide valuable information on industry
news, technology, trends and events, they present priceless opportunities for
professional growth and networking.
Learn about different roles of manufacturing in the health and beauty care
industry
PERSONAL CARE
SUBSECTORS
There some small distinction between personal hygienic items and cosmetics,
which are luxury goods solely used for beautification, but in practice such
sundries are most often intermixed in retail store aisles.
PRODUCTS
Hotel application
toilet paper
box of tissue
face towels
Tooth paste
CORPORATIONS
Alberto-Culver
Amorepacific
Beiersdorf
Colgate-Palmolive
Combe Incorporated
Energizer Holdings
Henkel
ITC Limited
Kimberly-Clark
L'Oreal
Reckitt Benckiser
Remington Products
Revlon
Unilever
Garden Química
Purell
COMPANY PROFILE
• Colgate – Palmolive Company is an American diversified multinational
corporation focused on the production, distribution and provision of
household, healthcare and personal products, such as soaps, detergents,
and oral hygiene products (including toothpaste and toothbrushes).
v Headquarter in Mumbai.
v Annual Turnover around 1100 crs.
v Market leaders in oral care.
v Colgate consistently won India no 1 brand of the year award from last
three years.
v Colgate ranked among best employer in India.
v Customer base of more than 8 lacs retailers.
v Serviced by company field force, more than 1800 stockiest & super
stockiest & their field force.
v Colgate is the brand that people trust, for complete oral care protection
for themselves and ones they lov
COMPANY HISTORY
• 1806 - William Colgate starts a starch, soap and candle business on
Dutch Street in New York City.
• 1930 - On March 13, Colgate is first listed on the New York Stock
Exchange.
• 1939 - Dr. Mark L. Morris develops a pet food to help save a guide dog
named Buddy from kidney disease. This breakthrough leads to the first
Hill's Prescription Diet product.
• 1995 - Colgate enters Central Europe and Russia, expanding into fast-
growing markets.
• 2004 - Colgate acquires the GABA oral care business in Europe, with its
strength in the important European pharmacy channel and its ties with
the dental community.
• Today …
Today, with sales surpassing $15 billion, Colgate focuses on four core
businesses: Oral Care, Personal Care, Home Care and Pet Nutrition.
Colgate now sells its products in over 200 countries and territories
worldwide.
As the Muslim market continues to grow, the demand for halal products
increases too and many companies are beginning to tap into this growing
market. According to a Thomson Reuters report, the global halal (‘permissible’
or ‘lawful’) market, which includes products and services complying with
Islamic laws and regulations, was valued at $1.7tn in 2012; growing faster than
other consumer markets despite the recent global recession. Despite the most
common belief that the term ‘halal’ is limited to meat and poultry,
opportunities in the halal market go way beyond this and include cosmetics,
personal hygiene products, retail, banking, travel, clothing amongst many
more. As discussed in the MarketLine case study, Colgate-Palmolive: leader in
oral hygiene; the company has a number of toothpaste products that are
certified halal. Of particular interest is Colgate-Palmolive’s miswak toothpaste.
Miswak is a teeth cleaning twig made from the Salvadora persica tree, and the
practice of using it is predominant in Muslim inhabitant areas. It is often
mentioned that the Islamic Prophet recommended the use of miswak. The
company has marketed its product strategically; the advertisement highlights
the benefits of miswak and then demonstrates how this is now in a paste form
making it easier to use for consumers; particularly younger consumers who
may have difficulty using a miswak twig for cleaning their teeth. Innovation is
MARKETING MIX
PROD
UCT
PLACE
PRODUCT CONVIENCE TO BUY
PRICE COST TO SATISFY
CUSTOMER WANTS
COMMUNICATION
AND NEEDS
PLACE
PROMOTION
PRODUCT:-
• It should also add utility, and meet the wants and needs of targeted
consumers.
• The product should be unique and different from all similar products that
are already available on the market.
4P’s
PRICE:-
COLGAT 20g 40g 50g 75gm 80g 100g 150g 200g 300g
E ms ms ms s ms ms ms ms ms
Dental 5rs ---- 14rs ---- ---- 30rs 45rs 56rs 86rs
cream
Max fresh --- --- 15rs --- 32rs 35rs 55rs ---- ---
Total ---- ---- --- 35rs --- --- 65rs --- ---
Sensitive --- --- 35rs --- --- 60rs --- --- ---
Kids --- 26rs --- --- --- --- --- --- ---
Advance --- --- --- 27rs --- --- 53rs --- ---
whitening
Active salt ---- --- 14rs ---- ---- 30rs ---- 54rs ----
Cibaca --- --- --- --- --- 18rs --- 28rs ---
Herbal --- --- 14rs --- --- 30rs --- 55rs ---
Fresh --- ---- ---- ----- --- --- 55rs 60rs ---
energy gel
PLACE:-
• The most important part of marketing is how a product will get from
the seller to the buyer.
PROMOTION :-
BCG MATRIX
• The BCG matrix or also called BCG model relates to marketing. The
BCG model is a well- known portfolio management tool used in
product life cycle theory.
SWOT ANALYSIS
INTERNAL FACTORS:-
(1) STRENGTH:-
• It cleans & makes teeth whiter and repairs early decay spots.
EXTERNAL FACTORS
(3) OPPORTUNITIES:-
• Leverage on fact that Colgate has been ranked as the most trusted brand
in India.
(4) THREATS:-
STP ANALYSIS
SEGMENTATION :-
• Colgate also uses the family life cycle because they make toothpaste
that could be used for grownups and children.
TARGET GROUP:-
• COLGATE 2in1 :- People who want both strongness and fresh breath
are targeted.
POSITIONING:-
• Colgate repositions their products because with the way they market
and promote their products, consumers know that these products are way
better than other brands and competition that is out there.
RECOMMANDATIONS
• They should also increase their CSR activities because they have very
good image in the market.
CONCLUSION
Finally, it should note that the company may have to face lot of
threats in coming years like political threats, legislation threats ongoing
economic crisis, changing life style of the people etc. If the company is
able to overcome all the threats and can prepare themselves for facing
the problems in advance it can achieve a good growth for “COLGATE”.