MARKET STRUCTURE OF COLGATE-PAMOLIVE

Marketing Director:

He, "Mr. Umar Kazmi" is responsible for the marketing activities for
colgate-Palmolive. He create and manage marketing plan, identify the
short-term and long-term objectives and strategies of business.

Product Manager:

This person is responsible for product research, development, and

promotion. He monitors the market to identify needs and then create
new product accordingly.

Advertising Manager:

The advertising manager of colgate-Palmolive lead the team of

professionals who concept ads, write text and branding messages, and
make sure that the advertisement meet the requirements and
guidelines of the company. They are responsible to ensure that the ads
are created in such way to attract the right buyers.

Public Relations Manager:

This team is responsible for composing and sharing messages regarding

the company and it's products. Whether it's a new release or a
charitable act, public relation manager make sure that the right
information is shared with the world.

Market Segmentation

Colgate-Palmolive target different consumers and needs. The

company's market is segmented into three categories.

1) Demographic segmentation

2) geographic segmentation

3 ) behavioural Segmentation

Demographic segmentation:

Consumer demographics include family life cycle, age, gender etc.

Generally colgate is preferred by people of all groups. Since it is
medicated; trusted by doctors, people of all the ages like to use it. Also
it's not so expensive and is affordable due to which people go for it. It
comes in different sizes with respective prices.

For Example: A single person or a bachelor might use small sized

toothpaste while the family of 7-8 members might choose a jumbo
sized toothpaste and a newly married couple will use a medium sized
packaging.

Race and ethnicity factor doesn't apply on the product.

Geographic Segmentation:
This segmentation is done based on a climatic condition, population,
and region. Colgate-Palmolive does business in over 200 countries.
International operations of company accounts for 75% of the sales. The
company has different products for the different countries while some
products can be found in all countries such as "Colgate Toothpaste".

The company conduct research and surveys to make sure it has the
right product for different market segments.

Behavioural Segmentation:

It consist of two things:

1) The benefits desired from the product

2) The rate at which the customer is using the product.

The concept of behavioural Segmentation is followed by Colgate-

Palmolive.

Example: Colgate launched their "colgate herbal" for masses who stick
to the concept of using "Miswaak".

So, in order to cater different behaviour and choices of customers,

Colgate is coming up with innovation and improvement in their
products.

Pricing Strategy of Colgate-Palmolive

Colgate-Palmolive has it's pricing according to the currency and the tax
inclusive.
Also the price of competitors is being compared with colgate's prices.

Colgate-Palmolive has prices according to different classes;

They have a different product for each class.

Example:

1) 65-70% of people use lemon max bar which caters lower and lower
middle class.

2) while lemon max liquid caters middle class and it's price is higher
than lemon max bar.

3) Then they also have lemon max paste/gel which caters elite class and
is expensive than the other two.
CHALLENGES AND OPPORTUNITIES:

Challenges:

 Economic: As the Dollar increases the cost of raw material is increased

because the company has to import it from Vietnam and Indonesia.
Due to such economic condition the company is facing challenges. Now the
company has decided to build their own Factory in Pakistan.

 New competition and imported products: Due to high competition in

market, It’s getting tough for companies to sustain their position in market.
Similarly there are competitors of Colgate-pamolive such as madicam,
sensodine, Lux, etc.
  Lack of brand loyalty: As there are so many options available in the market.
The customers can’t stick to one brand. So, in order to sustain the
customers colgate-pamolive keep bringing innovation and technology in
their products.

Opportunities:

 Social media: social media platforms has become a great opportunity for
companies, we can reach through masses with least cost. We can directly
interact with the customers. Using social media for promotion is cheap as
compare to any other promotional tool.
For example: A TV commercial cost 1 crore is much expensive as compare
to the ad that can be displayed on social media.(e.g.) there are women who
watch cooking recipes on social media, so Colgate Palmolive can put their
ad of detergent in recipes.

 Rural areas: 80% of our population exist in rural areas which is still
untouched so Colgate Palmolive has great opportunity to enter the rural
market and to capture the market share.

 New trends: As the trend is changing now a days, even in high inflation
people including family go to purchase what they want . Shopping has
become an experience, the buying behavior and habits of consumer has
changed. For example: Even the kid in the family knows what he want and
also take Part in decision making they go to stores and demand their
wanted products.
CUSTOMER RELATED INFORMATION AND FEEDBACK:

Colgate Palmolive collect information from internal and external sources.

 Internal sources: It includes information collected from within an

organization such as customer development department, sales
department, RND, etc. Also the research and surveys conduct by
organization.

 External sources: It includes information collected from outside source that

is “THE CUSTOMERS” Colgate Palmolive get customer related information
through customers feedback and by the direct interactions with customer’s.
It includes customer’s comments, suggestions, complains, etc

HOW COLGATE-PAMOLIVE MANAGES A NEW PRODUCT LAUNCH:

Colgate Palmolive recently launched Colgate total in competition of medicam’s

“5 problems one solution” Colgate came up with “10 problems one solution” for
which they followed all the necessary steps to promote their products.

 First of all they went for attractive packaging because now a days packaging
place an important role and encourages customers to purchase the
product.
  They also launched a TVC in which they endorse Asim azhar because now a
days he is popular in teenager’s.
 They also play their ads on radio because there are people who listen radio
in morning as their Habits. Colgate’s motive is to hit and remind the
customer about there products as much as they can.
 They also went ahead with print Media.
 They also gave trade offs to distributors to give their product preference as
compare to competitor’s product.
Example: Colgate give Rs. 5 off to retailer while medicam give Rs. 2 off to
retailer, the retailer will obviously sell Colgate total.
 They also give incentives to customers (example, free toothbrush with the
purchase of toothpaste)

Colgate-Palmolive Positioning

 Colgate Palmolive have tried sustain themselves through tough competition

and hard work. Media and advertisements are also responsible for creating
an image of the company in the eyes of its customers and competitors.
 According to the words of a top-level person at colgate.
 "It's my pleasure to welcome you to the world of Colgate-Palmolive.
Colgate is a truly global company doing business in more than 200
countries."
 Another person at Colgate-Palmolive says:
  "Our long history of strong performance comes from absolute focus on our
core global businesses and determination to our successful worldwide
financial strategy."
 This is the way Colgate-Palmolive people have positioned themselves. The
company has got certain awards for the best performance throughout the
world.

Colgate Societal Marketing Concept

 Throughout the world, it is the goal of Colgate-Palmolive to take part in

projects for further development and welfare of the local community. Such
projects include participating in charitable drives and assuming
responsibility for aiding the poor, injured and homeless at the time of
natural disasters.
 Their primary focus is on young people, particularly the education of young
people. Colgate-Palmolive believes that investment made in children today
will benefit them all tomorrow. That's why the company sponsors reading
programs, mentoring initiatives, athletic competitions and other youth
activities around the world. These activities encourage a spirit of
competition and achievement in youth.

Colgate-Palmolive Ethical Behaviour

A code of conduct is provided in order to ensure for their employees,

consumers, outside businesses, and local communities. They deal
ethically with suppliers and customers. Their aim in conducting
purchasing operations is to ensure continuing, reliable sources of
supply. Honest dealing with customers and suppliers is essential for
long lasting relationships.

Employment Opportunities at Colgate-Palmolive.

Colgate-Palmolive is offering jobs to many people in the following field:

 1) Engineering & manufacturing

 2) Finance
 3) Human Resources
 4) E-commerce
 5) Information Technology
 6) Legal
 7) Research & Development
 8) Marketing
 9) Sales
It's offering several development programs for undergraduate students
in many of these disciplines.

A number of people is already working in these departments of

Colgate-Palmolive.

"Revamp strategy for Colgate-palmolive"

Palmolive Shampoo: Colgate-palmolive has vide range of shampoos

having different features, claim to have 100% Natural origins.
 Competitors:
 Clear shampoo
 Dove shampoo
 Sunsilk
Palmolive shampoo is newly launched in the Market. Many brands such as Head
and shoulders, Dove, Sunsilk and Clear has catered most of the market enjoy high
market share. Due to Its competitors Palmolive shampoo is having a difficult Time
to cater the market. Colgate-palmolive Company continuously trying to Get its
desired Market Share.

Recommendations:

New Offers:
Palmolive needs to attrack the Market that can be possible by providing offers to
its target Audience such As distributing Free samples in the Market Or Introducing
Sample size packaging of its shampoo so people could test the shampoo more
easily.

Marketing of the product:

As the competitors of Palmolive shampoo has higher Market Share, The company
needs to do Vast Marketing of its product "shampoo" to get into people's mind
and get attention. Marketing at All the channels print Media and also electronic
media.

A Good eye catching advertisement of the shampoo should be made so that

maximum number of people get the awareness of the product. That would drag
the attention of consumers towards the shampoo.

Pricing:
Palmolive shampoo has high competition in the Market to capture the Market the
Company should set a Lower price of the shampoo as compared to its
competitors to capture the market.

The company also has to give a Good Margin to its retailers, To make them sale
the product.

Colgate Sensitive:
It is a whitening toothpaste recommend by dentist for sensitivity relief and help
teeth by preventing from cavities

Competitor:

Sensodyne
Sensodyne is considered as the number 1 brand in the Market, top selling product
and number 1 brand recommended by dentist it is best selling product for
sensitive teeth.

Sensodyne was launched quite earlier than Colgate sensitive . Therefore

sensodyne has most of the market share the market share of sensodyne is 22%
while Colgate sensitive Market Share is 18%.

Recommendations:
Colgate sensitive has the potential to grow more in the More. And capture the
higher Market share that can go above than 18% (its current market share)

The company is already working great on the product and increasing its growth in
the market every Year.

Advertisement:
The Colgate Palmolive company is currently doing its vast marketing of Colgate
sensitive creating More awareness about the advantages of the product through
advertisements at all the mediums can create more awareness in people.

Gap Analysis:
Expected Actual Gap
performance performance
25% 18% 7%

Conclusion:
In the end, I conclude that Colgate-Palmolive is a typical market
oriented company, operating in more than 200 countries. They
feel pride in making their customers happy. They are applying
the societal way of marketing. They are aware of their social
and ethical responsibilities. They are providing many new
employee oriented programs, both for senior level and entry
level people. They are managing the consumer and business
market in an effective manner. They encourage innovations and
have introduced new products which have played a vital role in
getting a market share for them. They face their competitors
and feel proud to take it a challenge. They are well aware of the
psychology of the people in different markets. They know how
to conduct thier business in international countries. The way
they consider different factors like demographics, customer
location, geographical distributions and many others. They
maintain levels of Customer Relationship Management (CRM)
at the company to ensure good customer support. The way
they proved themselves in consumer, business, and
international markets. They still have a high aim to attain more
and more.