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Home » SWOT » Colgate SWOT analysis – SWOT analysis of Colgate

Colgate SWOT analysis – SWOT

analysis of Colgate
January 15, 2018 By Hitesh Bhasin

If I ask you which is the top toothpaste brand in the world, you will not need
to search around your brain so much. Because, in most brains, the top of
the mind brand for toothpaste is Colgate. However, this brand is not only for
oral hygiene but it has a range of products for personal care as well. Read on
to learn the SWOT analysis of Colgate.

Strengths in the SWOT analysis of Colgate

1. Brand recall & visibility: Colgate being the household name it is, has high brand
recall & visibility. Excellent advertising and brand visibility of products with a
strong customer loyalty for brands had helped the brand to compete with other
players, thereby emerging as one of the topmost brands in the FMCG market.
2. Product line: It offers product categories namely oral care, personal care,
household surface, fabric care and pet nutrition having deep assortments across
the product categories. In FMCG, the more in depth your product line, the more
chances of success increases because the cost of logistics drops further.
3. E icient Supply chain: With extensive distribution network in rural & urban
markets, Colgate ensures that it reaches a wide customer make, thereby making
 the product available. Product availability is the major concern in this highly
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competitive market as brand switching is very easy.
4. Financial position: Being 2 centuries old company and having operations in 200
countries has built a strong inancial base for Colgate. Thus, it is able to take on
the likes of HUL due to its deep pockets.
5. Market share: With high penetration in the market, Colgate has managed to hold
their market share and some products / brand extensions are market leaders in
particular regions.

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Weaknesses in the SWOT analysis of Colgate

1. Saturated market: With large number of local & national players ighting in
personal & oral care segment, the market has become saturated & there is little
scope for growth while all companies are eating each others market share.
2. Commoditized brand name:: The brand’s toothpaste category under Coalgate
brand name was so successful that the name itself has been commoditized and
now it is being used for different brands of toothpaste. This has hampered the
brand recognition of other products of the same brand.
3. Cost control: Majority of its properties have been on rent basis resulting into
high cost of operations due to which its pro its are decreasing. Due to high cost
of operations, Colgate products are also priced higher than the rivals.
 4. Limited brands under different product categories & segments: Colgate have
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limited brands under a particular product category and they have limited
offerings under different segments unlike their competitors like P&G,HUL etc.

Opportunities in the SWOT analysis of Colgate

1. Expanding their product line: By following product line stretching & product
line illing strategies they can increase their sales, create offerings and give
value for different segments.
2. Tapping the rural market in developing economies: It is one of the major
challenges that every FMCG company is facing nowadays. With urban markets
close to saturation, the rural markets are the only hope for reaping pro its for
the company.
3. Strengthening the business through mergers & acquisitions: It’s one of the smart
strategies followed by global companies to sustain and expand in the overseas
market. However Colgate is yet to capitalize the market by use of such
strategies.
4. Usage rate: People need to be made aware about the optimum usage rate for
these products so that the market utilizes the product as forecasted by the
company. This can happen only through advertising /word of mouth /doctor
prescription. Many a times companies forecast wrong because they assume a
higher usage rate in the market.

RELATED TOPIC SWOT Analysis of Jet Airways

Threats in the SWOT analysis of Colgate

1. Competition in the market: With increasing number of local & national players
it’s becoming very hard for the companies to differentiate themselves from
others. There is also threat from counterfeit products destroying its brand
image in the market.
2. Low Margins: As the competition rises, the margins for companies are dropping
and companies ind that they have to give more and more discount to sustain in
the same channel.
3. Price of raw material: Increasing price of raw material will result in further
increase in the price of Colgate. Over a period of time, justifying the high price
compared to competition will become di icult in a saturated market. Further
 increase in price will result in decrease in sales & brand switching by
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consumers.
4. Ethical issues: The “Ethical Consumer Research Association” once
recommended that its readers should not buy Colgate because of its use of
animal testing. In the digital age, information like this will affect the brand
Colgate.
5. Frequent Brand switching: With highly diversi ied personal & Oral care
consumer market where there are lots of brands claiming different sorts of
bene its, it’s very di icult for consumers to stick to a particular brand & hence
results into brand switching where consumer got power to select a brand based
on several factors like availability, reference group recommendation,
preference & price.

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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am
a serial entrepreneur & I created Marketing91 because i
wanted my readers to stay ahead in this hectic business world. You can
follow me on Facebook. Let's stay in touch :)

Comments

yeeyong says

Hi, may i know what is the market opportunity of the colgate and
what is the factor that lead the success of the colgate? Thanks for
the reply.

Reply

sabarri says

need more information

 Reply
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ADIL RASOOL says

Respected Sir,

One word……….only………….INFORMATIVE

Reply

Omkar says

Thank You.
For sharing this information.

Reply

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