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VIVEK COLLEGE OF COMMERCE

CHAPTER: 1 INTRODUCTION
COMPANY PROFILE
Colgate-Palmolive Company is a $16.7 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. A name synonymous with the Indian oral care industry, Colgate ( COLGd.BO,news ) , is the undisputed market leader in toothpastes with over 45% share in the Rs 21 bn(90,000 TPA) oral care segment. The company's parent has a presence in over 200 countries worldwide. In India, Colgate ranks No.1 in top of the mind recall in many consumer surveys. Let's take a look at the company's journey over the years and what's in for it in the future. Promoted by Colgate-Palmolive USA, the parent operates through its 51% subsidiary and has a presence in India since last 50 years. The company's flagship product, Colgate Dental Cream is the largest selling toothpaste in India, with an estimated market share of over 30%. The company acquired Hindustan Ciba Geigy (Cibaca) in the year 1994, which helped it increase its market share. The company also has a significant market share in the toothbrush category. This and shaving brushes accounted for 10% of its FY04 revenues. The toothpaste segment can be divided into two broad categories: White's, which accounts for a dominant share of the Indian oral care market. Gels are estimated to beonly about 15% plus of the market Colgate is considerably Backward integrated. It has captive manufacturing facilities for flavour and other
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ingredients, which yield significant cost savings. It has also set up a world class facility for manufacture of Di-calcium Phosphate, a key ingredient in toothpaste.

HISTORY:
Our long history of strong performance comes from absolute focus on our core global businesses, combined with a successful worldwide financial strategy. This financial strategy is designed to increase gross profit margin and reduce costs in order to fund growth initiatives and generate greater profitability. In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". William Colgate in 1833 suffered a severe heart attack stopping his business from selling. But after a couple of years of recovery he continued with his business. In the 1840s, the firm began selling individual cakes of soap in uniform weights. In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son, who did not want to continue the business but thought it would be the right thing to do. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. In 1896, Colgate hired Martin Ittner and under his direction founded one of the first applied research labs.[4] By 1908 they initiated mass selling of toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee of Colgate University (formerly Madison University). In 2006, Colgate-Palmolive announced the intended acquisition of Tom's of Maine, a leading maker of natural toothpaste, for US $100 million. Tom's of Maine was founded by Tom Chappell in 1970. Today, Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India.
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KEY DATES:
1806: Company is founded by William Colgate in New York to make starch, soap, and candles. 1857: After founder's death, company becomes known as Colgate & Company. 1873: Toothpaste is first marketed. 1896: Collapsible tubes for toothpaste are introduced. 1898: B.J. Johnson Soap Company (later renamed Palmolive Company) introduces Palmolive soap. 1910: Colgate moves from original location to Jersey City, New Jersey. 1926: Palmolive merges with Peet Brothers, creating Palmolive-Peet Company. 1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company. 1947: Fab detergent and Ajax cleanser are introduced. 1953: Company changes its name to Colgate-Palmolive Company. 1956: Corporate headquarters shifts back to New York. 1966: Palmolive dishwashing liquid is introduced. 1967: Sales top $1 billion. 1968: Colgate toothpaste is reformulated with fluoride; Ultra Brite is introduced.

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1976: Hill's Pet Products is purchased. 1987: The Soft soap brand of liquid soap is acquired. 1992: The Mennen Company is acquired; Total toothpaste is introduced overseas. 1995: Latin American firm Kolynos Oral Care is acquired; Colgate-Palmolive undergoes major restructuring. 1997: Total toothpaste is launched in the United States; Colgate takes lead in domestic toothpaste market. 2004: Company acquires European oral care firm GABA Holding AG; major restructuring is launched. 2006: Colgate enters the fast-growing Naturals segment by purchasing Toms of Maine, a leader in that market in the United States. 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.

GROWTH AND PROFITABILITY:


Global sales as reported were $15,327 million during the financial year ended December 2009 ($15,330 million in 2008). The operating profit was $3,615 million during 2009, an increase of 16.6% over 2008. At present, Colgate has a market share of 44, 4% in the worlds toothpaste market operating in more than 200 countries and territories. In the United States, one of the world largest consumer markets, Colgate is the market leader in toothpaste sales with a market share at 36.2 % (Colgate-Palmolive Annual Report 2009, p.2-4). Operating in more than 200 countries the company is not depending on one single market. Significantly for the global presence is that over 82% of the company's 2009
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revenues came from outside the United States. The markets in industrialised countries are largely saturated. Because of the strong presence especially in emerging countries such as India and Brazil Colgate takes advantage of the positive consumer trends in these countries and can compensate the sluggish economic growth in industrialised countries.

COLGATE'S CORE VALUES :


Our three fundamental values Caring, Global Teamwork and Continuous Improvement are part of everything we do. They are the foundation for our business strategy and are reflected in every aspect of our work life. Caring The Company cares about people: Colgate people, customers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty and high ethics in all situations, to listen with respect to others and to value differences. The Company is also committed to protect the global environment, to enhance the communities where Colgate people live and work, and to be compliant with government laws and regulations. Global Teamwork All Colgate people are part of a global team, committed to working together across countries and throughout the world. Only by sharing ideas, technologies and talents can the Company achieve and sustain profitable growth. Continuous Improvement Colgate is committed to getting better every day in all it does, as individuals and as teams. By better understanding consumers' and customers' expectations and continuously

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working to innovate and improve products, services and processes, Colgate will become the best.

COLGATE BRANDS
Colgate provides oral care, personal care, home care and pet nutrition products under trusted brands such as: Colgate, Palmolive, Mennen, Softsoap brand, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Toms of Maine, Ajax, Axion, Soupline, Suavitel, Hills Science Diet and Hills Prescription Diet.

COMMUNITY PROGRAMS
Throughout the world, many children do not have access to basic dental care and lack the education needed to achieve a healthy smile. Colgate Bright Smiles, Bright Futures reaches children around the world with free dental screenings and oral health education. Colgates commitment to building a lifetime of healthy habits provides children with burgeoning self-esteem and a foundation for success - that's the Power of a Bright Smile. The cornerstone of Colgate Bright Smiles, Bright Futures is its award winning educational curriculum. Developed by global experts, Colgates multi-cultural education materials help illustrate how to maintain healthy teeth and gums. In the United States, Colgates classroom curriculum reaches nearly 9 out of every 10 kindergarten students each year, 3.5 million children in all 50 states, and more than 750,000 kids through our partnership with the Head Start program. Today, Colgate Bright Smiles, Bright Futures educational curriculum is available in 30 languages and in many countries, have become a part of the permanent school curriculum.

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CHAPTER: 2 INTRODUCTION OF MARKETING MIX STRATEGIES OF COLGATE


MARKETING MIX STRATEGIES OF COLGATE:
Colgate is the world market leader in oral hygiene products. The toothpaste product line consists of strong brands. This is due to a very successful marketing strategy of the company in the past. But especially in a competitive environment like the personal care industry it is essential for Colgate that it upgrades its organizational as well as marketing strategies in order to meet the customers needs and strengthening the leadership. Furthermore nowadays a wide range of different toothpaste products is offered to the customers. This in particular means for Colgate that they must differentiate their products from the competitors products by being innovative and unique. Moreover the toothpaste market is growing constantly which means that more different needs and expectations of the customer will arise. Therefore Colgate must make use of marketing tools such as market segmentation to better identify their needs in order to supply them with the right products. The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand's unique selling point (the unique quality that differentiates a product from its competitors), and is often synonymous with the four Ps: price, product, promotion, and place. PRODUCT: The Colgate has a fairly wide product mix, consisting of dozens of brands that you can trust to care for yourself, your home, and the ones you love`. This mix is organised into five major product lines: oral care, personal care, household care, fabric care and pet nutrition (Amstrong, G. (2009) Marketing: an introduction, p.243). The most recognizable
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product line is oral care, including 31 different toothpaste products. Please see appendix to find all toothpaste products of Colgate. PRICE: There is a combined strategy of price discounts and allowances with the introduction of new products and promotional news and pricing support product differentiation categories. This blend supports all of the categories that Colgate continues to operate in the niche, mainstream, and value category. PROMOTION: Most sources identify the specific promotional objectives or goals of providing information, differentiating the product, increasing sales, stabilizing sales, and accentuating the product's value. Colgates products are sold to millions of people worldwide. Their Marketing Team develops and implements marketing plans that are geared to establish and maintain current and long-range vision for the brands and to increase sales, margin and profitability for the brand. PLACE: Colgate delights consumers around the world with an array of Oral Care, Personal Care, Home Care and Pet Nutrition products. Behind the success of Colgates brands are carefully developed business and marketing strategies Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.

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CHAPTER: 3 PRODUCT STRATEGY


PRODUCT STRATEGIES OF COLGATE
Colgate reorganized its portfolio Introduced a wide range of products but with very clear positioning. In oral care, Colgate identified four categories premium, freshness, popular and economy. Focused on only those products within this category which could give results. Introduced new products in whichever segment the need gap was felt. Wherever sluggishness was felt, a re-launch took place to reposition the product over the product life cycle. To adhere Colgate pulled out 4 variants Colgate double protection Calcigaurd Fresh mint Fresh strips And Launched Colgate Herbal Targeted at semi-urban, rural areas priced cheaper than Colgate dental cream In other segments Battery operated Colgate Act brush Palmolive Naturals Transparent Soap in the premium toilet soap segment Palmolive range of shaving products was expanded Charmin Skin Cream with vitamins was repositioned Colgate Cibaca Top And Revitalized Colgate Dental Cream

SCOPE:
Scope Penetration of oral care products - 50 % Almost 30% of rural households use traditional materials such as neem, banyan tree sticks and ash for cleaning teeth. Only about 15% of Indian toothpaste users brush twice a day. As a whole, per capita consumption of toothpaste in India is only 107gm compared to 300gm in Europe. In this sense, Indian market is an unsaturated one and there is great potential to be exploited. For instance, the toothpaste market is expected to grow at 6% per annum. Growth in the rural areas will be driven by conversion of non-users while in the urban areas by intensity of use. Also, in urban areas, value growth will be higher than volume growth, as more
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consumers switch to value added products. The increase in rural incomes due to abundant rainfall this year will also benefit Colgate due to its high exposure to rural markets.

PRODUCTS
1) Duraphat: Duraphat is a professional strength paste intended for the treatment and prevention of dental caries. The toothpaste is ideal for the management of high-risk patients such as those with rampant, early, existing or recurrent coronal or root caries. The prime constituent is sodium fluoride and it is sometimes prescribed as part of a program of fluoride therapy. It is available as a prescription-only product. 2) Colgate Total: Colgate Total contains the anti-microbial ingredient triclosan, which reduces the bacteria that cause gingivitis, cavities and halitosis. 3) Colgate Cavity Protection: Although most Colgate toothpaste brands use sodium fluoride, the Colgate Cavity Protection variety instead contains sodium monofluorophosphate as the active ingredient. 4) Colgate Simply White: A whitening toothpaste that is "Clinically-proven to whiten in 14 days". Its whitening ingredient is hydrogen peroxide, which gradually bleaches the teeth. Simply White utilizes two separate chambers that contain a whitening agent and cleaning gel.

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5) Colgate My First Toothpaste: A new product launched by Colgate in 2012. The product does contain fluoride, at a lower concentration so that it poses less of a hazard to children. The product was recently awarded a Best New Product Award for 'Best toothpaste' as well as the 'Best in Show'. 6) Colgate Dental Cream: It offers all-around cavity protection, even where a toothbrush cannot reach It's great mint taste freshens breath It protects against root caries It cleans & makes teeth whiter It repairs early decay spots

7) Colgate Active Salt: Salt is well known for its oral care benefits. Colgate Active Salts unique formula fights germs and make the gums healthy and street strong. Refreshing minty taste.

8) Colgate MaxFresh gel: It is infused with cooling crystals (in strips), which dissolve completely as we brush for a whole new dimension of freshness - freshness that we can see. Colgate MaxFresh gel is available in three very exciting flavors - Peppermint Ice, Spicy Fresh & Citrus Blast. Colgate Maxfresh Peppermint Ice has cooling crystals that dissolve in your mouth setting off an icy wave of minty coolness. Colgate Max Fresh Spicy Fresh: Add spice to your life - Wake up to a feeling of exploding fresh breath.

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Colgate Maxfresh Citrus Blast has strips of cooling crystals that dissolve in your mouth to give a burst of freshness.

Benefits: Contains Menthol for Fresh Breath Whiter Teeth Fights Cavities.

9) Flouride toothpaste: Flouride Toothpaste for kids comes in two exciting flavours with your favorite cartoon characters Strawberry flavor (Barbie) Bubble Fruit flavor (Spiderman) Helps protect against cavities: Contains flouride for cavity protection

Makes fighting cavities fun Sparkling colourful gel

Freshens breath

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CHAPTER: 4 PRICE STRATEGY

PRICING STRATEGIES OF COLGATE:


Current pricing strategies focus on value-added new products across the geographical categories. There is a combined strategy of price discounts and allowances with the introduction of new products and promotional news and pricing support product differentiation categories. This blend supports all of the categories that Colgate continues to operate in the niche, mainstream, and value category. As it determines its price, it determines the demand in each the global area, estimates the costs to produce and deploy the products, and analyzes the competitors costs and pricing. It also reviews any potential promotional and educational programs currently in the market. Product mix pricing is Colgate-Palmolives main influence into the overall pricing strategy. With the introduction of new products at multiple price points the strategy is balanced and this drives market share gains worldwide. As a result of this approach, in the fourth quarter of 2010, Colgate-Palmolives organic sales grew three percent; their gross profit margin increased twenty base points in year over year growth and operating profit increased three percent as well. The pricing structure model reflects variations in geographical demands and costs, market segment requirements, purchase timing, order level and it responds with price adaption strategies of geographical pricing, price discounts and allowances, and promotional, differentiated, and product-mix pricing. (Keller P. K.) Price Strategy introduced a flanking pricing strategy by launch of brands in all price segments. Backward integrated. It has manufacturing facilities for flavour and other ingredients, which yields significant cost savings. It has set up a world class facility for manufacture of Di-Calcium Phosphate, a key ingredient in toothpaste. It has a World Class Technology and Research Centre. The company has implemented SAP to enhance
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operational and supply management effectiveness. The company has set up a wholly owned subsidiary in Nepal for manufacture of toothpaste and toothpowder. Besides, Colgate Palmolive has adopted a Global Raw Materials/Packaging Materials Suppliers System. At the same time, while inventory and debtor days were maintained at levels 28 days and 14 days respectively, creditor days registered a sharp increase from 82 days to 110 days. Operations therefore generated cash of Rs.2 bn.

ORAL CARE SPECIAL OFFERS:


Colgate Total Clean Mint provides 12 hour germ fighting protection. Now, on 12 hour protection get Rs. 12/- off. Mega Value Offer for 'All Around Decay Protection'. Buy 200g + 100g tubes of Colgate Dental Cream in a Value Pack for Rs. 88/- and get a Colgate Extra Clean Toothbrush worth Rs 16 free. Colgate Maxfresh Gel is the first toothpaste infused with cooling crystals giving you a whole new dimension of freshness. Get a toothbrush free with 150g plus a 80g tube.

RECOMMENDATIONS STRATEGIES

FOR

PRICING

AND

PRODUCT

The blended strategy that they have working collectively is the most promising approach based on their global reach into established and emerging markets. For Colgate-Palmolive to maintain the Brand Equity they must have a system of continuous growth, which includes the development of new products. There expanded global focus includes emerging markets in the urban areas, targeting urban youth and urban upper class.

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The branding and pricing strategy also includes packaging techniques based on price points. This pricing strategy has produced consistent, positive growth. Net sales have increase year after year, as have gross profit margin and diluted earnings per share. This diversified pricing strategy and growth continues to produce positive results and should not be changed.

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CHAPTER: 5 PROMOTION STRATEGY


PROMOTIONAL STRATEGIES OF COLGATE:
Promotional strategy objectives vary among organizations. Some use promotion to expand their markets, others to hold their current positions, still others choose to present a corporate viewpoint on a public issue. Promotional strategies can also be used to reach selected markets. Most sources identify the specific promotional objectives or goals of providing information, differentiating the product, increasing sales, stabilizing sales, and accentuating the product's value. Colgates products are sold to millions of people worldwide. Their Marketing Team develops and implements marketing plans that are geared to establish and maintain current and long-range vision for the brands and to increase sales, margin and profitability for the brand Marketers in general often develop a promotional strategy to differentiate their goods or services from those of competitors. To accomplish this, they attempt to occupy a "position" in the market that appeals to their target customers. Promotions that apply the concept of positioning communicate to consumers meaningful distinctions about the attributes, price, quality, or usage of a good or service. After successful implementation of/for market position, Colgate-Palmolive then works progressively at Integrated Marketing Communication (IMC). IMC is a simple concept that ensures all forms of communications and messages are carefully linked together. At its most basic level, IMC, means integrating all the promotional tools, so that they work together in harmony. Those tools are easily dispersed among six categories; Advertising, Sales Promotion, Event & Experience, Public Relations & Publicity, Personal Selling, and Direct Marketing.

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MULTICULTURAL MARKETING
"Multicultural Marketing is the introduction of products and services to a diverse group of consumers consistent with their cultural and lifestyle preferences in a manner that acknowledges the cultural nuances in a respectful way." General Manager, Multicultural Marketing. At Colgate, we understand that each global market has its own unique purchasing preferences and product needs. Recent U.S. Census data confirms that Hispanic-American, African-American and Asian-American markets are the fastest growing consumer markets in both numbers and purchasing power. The U.S. Multicultural Marketing Organization within Colgate is focused on driving growth in these important consumer markets. Our objective is to know our global consumers and develop products that fit their needs.

ADVERTISING
Advertising is done to promote new products, remind consumers of existing products, and also promote the image of the company at hand. Colgate-Palmolive is generally associated with toothpaste and soap however; it has a broad portfolio which includes pet-food, deodorants, fabric softeners, household cleaners and detergents. Brands include Ajax, Speed Stick, Mennen and Hill's Science Diet, alongside the two products that make up the company's name. Colgate is the world's #1 toothpaste and toothbrush brand; Palmolive soap is the third largest soap brand, now covering a growing range of hair-care products as well as soaps. Colgate-Palmolive is also truly international, deriving more than 75% of its sales outside the US. In fact its biggest region is not in the domestic market but Latin America. Advertising Age estimated global measured advertising expenditure of $887m in 2009, making Colgate the world's #38 advertisers. (AdAge.com)

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On a side note the iconic hand on the Palmolive dishwashing soap label belongs to one Elizabeth Barbour. The image is a highly illustrated photograph taken in 1985 when the Colgate-Palmolive Company updated the image and hired Barbour who was a hand model with the Ford Agency in New York City.

SALES AND PROMOTION


Sales promotion is a variety of short-term incentives to encourage trial or purchase of a product/service. A good example of Colgates sales promotion strategy is the launch of Colgate fresh energy ice blue gel (Colgate India). They discounted the product lowering the overall price of each individual pack. The rice discounts are communicated through POP advertising, window displays, sales people, and advertising in newspapers, magazines and TV ads. To determining the quantum of discount was contingent on the consumers price perceptions; which may be difficult to decide. However, such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and may also encourage unplanned or impulse buying.

EVENTS & EXPERIENCE


Although there are many examples of Colgates experience I found the words of Mr. Mark Reuben to be the most insightful. We are delighted that Colgates strong performance continued in 2006, our 200th year. All of the Companys fundamentals are strong and getting stronger. Global sales rose 7.5% to an all-time record level and global unit volume from continuing businesses grew 7.0% with every operating division contributing to the strong volume gains. Advertising spending supporting the Companys brands rose 11% to an all-time record level on top of double-digit growth in 2005, contributing to widespread market share gains in all of our core categories (Rueben 2006). In todays events however, the company does
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continue to be impacted by currency devaluation in Venezuela, compounded by the fact that the countrys economy remains volatile, a situation that is likely to marginally impact share dividends for the full year. On a regional basis, North America sales represented 20 per cent of the group revenues and rose by 4.5 per cent, driven by sales of new product launches including Colgate Triple Action, ProClinical and Max White toothpaste. In Latin America sales represented 28 per cent of total revenues and grew by 0.5 per cent, a figure that was significantly impacted by the Venezuela market. (Pitman 2010) Combined this all has an effect on what the proper promotional strategy should be employed for Colgates world and domestic sales.

Colgate conducts oral care awareness camp for under-privileged children as part of the Colgate Scholarship offer
Municipal Commissioner of Vijayawada shares basic oral care tips with the children to spread the message of good oral hygiene Vijayawada, May 28, 2010: Colgate-Palmolive (India) Limited, the market leader in oral care, as part of its Colgate Scholarship offer, conducted an oral care awareness camp for children in Vijayawada, to increase awareness about basic oral care hygiene. Conducted for under-privileged, the camp is an initiative undertaken by Colgate as part of the Colgate Scholarship offer, where consumers who learn the 5 basic oral care tips get an opportunity to earn scholarships worth Rs 10,000/- each. Launched with an aim to reach out to consumers, not only to educate them about basic oral care habits but also to support them in their educational endeavors through scholarships, the offer is one more initiative by Colgate towards its mission of generating oral care awareness and raising oral hygiene levels in the country.

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To initiate the camp, Dr. Gaurav Uppal, Joint Collector - Krishna district, Vijayawada, flagged-off a mobile dental van, which will conduct oral care awareness camps in underprivileged areas, across the city. He also interacted with the children and shared basic oral care tips. The initiative aims at reaching out to children and teaching them healthy oral hygiene habits. To make the learning session more engaging and fun, there was a special screening of the Dr. Rabbit World Tour video wherein the fun-loving oral care mascot Dr. Rabbit shared some easy tips to maintain good oral hygiene. Dr. Uppal, said at the flag-off, I believe that it is very important to inculcate basic oral care hygiene habits in children at a very young age as it goes a long way in not only influencing their friends and family but also helps them to have good overall health. The Colgate Scholarship offer is a very interactive and engaging platform to reach out to children to make them understand basic oral care better. I was very happy to see the children participating with such enthusiasm. Mr. Rajesh Krishnamurthy, VP Marketing, Colgate-Palmolive (India) Limited said, Colgate has always been committed and at the forefront of raising oral care awareness in the country. We have been working ceaselessly towards our commitment through programs like Bright Smiles, Bright FuturesTM. Colgate partners with the Indian Dental Association to reach out to 10 million children through primary schools spreading the message of basic oral care hygiene through this program. The Colgate Scholarship offer leverages the equity of all the efforts undertaken by Colgate to take the awareness drive further. It engages with the consumers directly to educate them about good oral care and its importance to overall health.

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PUBLIC RELATIONS & PUBLICITY


Public relations and publicity is a variety of programs designed to promote or protect a companys image/individual products. Colgate currently employs a vast variety of public outreach that increases the promotional impact of the corporation. One of these programs is Colgates Bright Smiles, Bright Future program, for children who can't afford dental care. Another great example of public relations and associated publicity would be the Oral Health Month in India. In partnership with the Indian Dental Association (IDA), the Company conducted its annual Oral Health Month during October 2005 with an intensive month-long oral health awareness campaign to promote the importance of good oral hygiene and regular dental check-ups. Dental checkups and oral health care education by almost 3,600 dentists were affected in 50 cities and in over 2000 schools covering 1 million children.

PERSONAL SELLING
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. Colgate has introduced villagers in India to the concept of brushing teeth by rolling into villages with video vans that show half-hour infomercials on the benefits of tooth-paste. The company received more than half of its revenue in that nation from rural areas in 2006. Until recently, the rural market was virtually invisible, due to the lack of distribution (Lamb, Hair, McDaniel 2008).

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DIRECT MARKETING
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. Colgate shows a strong presents in direct marketing. Examples can be seen in every Sunday new paper, health magazines and even your local super market. Even their website gives a large selection of Direct Marketing examples. You can even sign up through this web-page and receive mail and e-mail discounts/coupons from them.

RECOMMENDATION FOR IMPROVEMENT


It is essential that the management team and the organization should be open minded in considering changes so as to cope and adapt to the latest development that are happening within and outside their environment. By differentiating a product, it creates a difference that sets certain products apart from other products, and also targets certain market segments. Colgate will need a product differentiation strategy that will make their products unique from all other products already available on the market. The company will also need a strategy that will appease to certain consumer segments. By coming up with this strategy, it in return will cause Colgate-Palmolive to increase profits and market share. This strategys focus should be placed on the design and packaging of the individual product. Additionally Colgates should be cognitive of the individual customers needs/wants. With Colgate being a world leader they need to treat each of their customers with a tailored regional response. Customers needs and wants in one area or the world will differ from region to region. One way to show this is by positioning the product in such a way that it is viewed as having more qualities, at the same cost, then their competitors.
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CHAPTER: 6 PLACE STRATEGY


PLACE STRATEGIES OF COLGATE:
Colgate delights consumers around the world with an array of Oral Care, Personal Care, Home Care and Pet Nutrition products. Behind the success of Colgates brands are carefully developed business and marketing strategies. Known for having a long history of strong relationships with its retail trade partners. Small stores around the world are just as important to Colgate as large ones. Based on consumer and shopper insights, the Company works closely with local merchandisers and shop owners to offer a relevant assortment of products and merchandising services to achieve high visibility in each store. Colgate is sharply focused on aligning its strategies and goals with those of its trade partners in order to achieve mutual success. Colgate people understand that the way they do business is just as important as the results they achieve. Colgate has developed global commercial selling principles that apply to their relationships with all customers, regardless of their size or location. These principles provide specific guidelines on how to achieve business goals, while maintaining Colgates commitment to its values and to up holding the highest ethical standards in its business dealings. Innovation is a cornerstone of Colgates strategy to drive profitable growth. While innovation in new product development is key, equally important is innovation throughout all of the Companys business functions and processes. New product development for products expected to be launched within three years takes place at nine consumer innovation centers strategically located around the world. These centers create new product concepts and ideas based on specific insights into consumer wants, needs and behaviors. For projects extending three to five years into the future, work is focused in
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three category-specific long-term innovation centers: Oral Care, Pet Nutrition and Personal Care. Supplementing these efforts, Colgate scientists conduct early research to establish scientific foundationfor new product ideas generated, and develop robust formulations that deliver new benefits to consumers.

COLLABORATORS
Colgate is working closely with thousands of small shop owners and local wholesalers to ensure greater availability to their products as well as to provide the right assortment of products with best visibility in each store. To built credibility among the consumers Colgate cooperates also with dental professionals.

CUSTOMER
The selling of Colgates products depends on chain reactions. If there is a growing population rate worldwide or in local markets, the need for oral hygiene products increases. Today the world population is approximately 6.85 Billion, predicting a world with 9.2 people by midcentury. Because of the globally presence of Colgate, there will be 2.35 billion new potential customers until 2050 (United Nations world population prospects 2008). Here is to point out that the average age of the population is not essential because all people have a need for oral hygiene products. Furthermore Colgate offers premium products which mean the consumer is willing to pay a high price for the product in order to receive high quality products.

DISTRIBUTION STRATEGIES
The major distribution strategies involve the use of dentists, chemists or pharmacies, large retail stores, grocery stores and convenience stores Colgate Palmolive Company (2007). With the increased demand for oral care products, most consumer stalls have shelves only

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for oral products which in return widened the products supply in the stores. Other distributors include the dentists whose works cant go unnoticed.

RECOMMENDATIONS FOR DISTRIBUTION STRATEGIES


In the case of consumers emphasizing on oral health matters or hygienic health, the dentist is the most promising distribution strategy. The use of grocery can be dropped as not many people buy high price products from such outlets. The dentist is recommended because they will be consulted for dental care hence distributing the product and selling its benefits to the patients.

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CHAPTER: 6 SWOT ANALYSIS OF COLGATE TOOTHPASTE

SWOT Analysis of Colgate Toothpaste.

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A SWOT analysis is a technique specially designed to help identify suitable marketing strategies for a company to follow. It encompasses both the internal and external environments of the firm. SWOT Analysis of Colgate Toothpaste, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The aim of any SWOT analysis of Colgate Toothpaste is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories: Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. SWOT analysis of Colgate Toothpaste is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is really important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.
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STRENGTH: 1. Colgate Dental Cream offers all-around cavity protection, even where a toothbrush cannot reach. 2. Its great mint taste freshens breath 3. It protects against root caries 4. It cleans & makes teeth whiter and repairs early decay spots 5. Extremely popular brand and high brand awareness due to advertising.

WEAKNESS
1. High dependence of the company on a single category i.e. Oral Care. 2. Reduction in advertisement expenditure in order to maintain growth

OPPORTUNITIES
1. Leverage on fact that Colgate has been ranked as the most trusted brand in India from 2003 2007 2. Focus on innovation and new product launches by deploying advanced technologies 3. Growth in emerging markets rural and semi-urban

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THREATS
1. High competition from competitive brands like Pepsodent from HUL Pepsodent Oral B Anchor 2. Increasing commodity prices for manufacturing. 3. Threat of fake products 4. Changes in retail scenario globally 5. Global Economic Conditions

COMPETITORS
The main competitors are Unilever, Procter & Gamble and the Clorox Company. The personal care industry is mostly controlled by these companies. On the one hand in order to gain more market share within this industry, the only way is to take it away from one of these competitors. On the other hand Colgate must also be aware of losing market shares to their competitors. Please see Appendix to find a financial comparison of ColgatePalmolives competitors.

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CHAPTER: 6 CONCLUSION
Colgate-Palmolive (NYSE: CL) is one of the world's largest Consumer Products companies by market share with commercial presence on six continents. Since its 1806 founding, Colgate has grown into a multinational corporation known for its toothpaste and oral hygiene products. As of 2011, the company holds a staggering 44.7% global market share with its flagship toothpaste line. Colgate's major advantages are the strength of its brand and its strong, global presence: over three quarters of its revenue comes from outside the United States. About half of sales came from rapidly growing emerging markets, with Latin America representing Colgate's single largest source of revenue in 2010. Colgate's brand strength in foreign markets allows the company to command impressive market share and high profit margins. Colgate has been steadily expanding its operations throughout Latin America, Africa, and Asia, maintaining consistent positive sales growth in these regions. Colgate's most recognizable products are in oral care, including Colgate-brand toothpaste, toothbrushes, mouth rinses and dental floss. As of 2011, the company holds a staggering 44.7% global market share with its flagship toothpaste product line. Growth in this product line is highly dependent on rebranding and new product introduction. Colgate also produces pharmaceutical products for dentists and other oral health specialists. Colgate is working closely with thousands of small shop owners and local wholesalers to ensure greater availability to their products as well as to provide the right assortment of products with best visibility in each store. To built credibility among the consumers Colgate cooperates also with dental professionals.

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The basic message for the people is that the product is good for the health of the teeth's, and fight against germs and remove smell from the mouth The message will be simple and straight-forward. It will focus only on this basic benefit to the tooth paste and where the toothpaste can be purchased. In this project I have given a study on Marketing Mix Strategies of Colgate using 4 Ps of Colgate and SWOT analysis. The Company focuses on strong global brands in its core businesses Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Colgate has many competitors then also because of its strength and brand it is still on top. Product strategy, Place strategy, Price strategy and Promotion strategy has been explained in this project.

BIBLIOGRAPHY
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WEBSITE: www.colgate.co.in www.docstoc.com www.wikipedia.com www.scribd.com

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