marketing analysis of colgate palmolive pakistan - ravi magazine

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only on brands, which use the words “Colgate” or “Palmolive”.

Mission Statement: To provide the best quality products to

consumers to fulfill their entire household needs.

Corporate Mission: To become the number one consume r goods

company in all the regions it is operating

Colgate Palmolive’s Marketing Environment

Like any other organization, Colgate Palmolive functions in an

environment, which influences nearly every aspect of its operations.

The Macro Environment:

The macro environment consists of elements that affect all firms in

the market. The factors affecting the operations of Colgate Palmolive

has been discussed as follows.

Demographic Environment:

Changes in characteristics regarding human population, affect all

companies, especially marketing firms. Colgate Palmolive being a

consumer product marketing organization has also not remained

unaffected. Rapid urbanization has greatly influenced its marketing

mix. Its products are more focused on the urban market. Similarly it

has also successfully blended the change in the occupational priorities

of our social setup (from small-owned businesses to professional

obs in its promotional campaigns, laying more emphasis on the

working class. Similarly, while promoting Colgate toothpaste, the

company has focused on dental statistics of the population. The

information regarding poor dental health of kids was efficiently usedin Colgate’s advertising campaigns.

Social and Cultural Factors:

Changing gender roles have also affected the company’s marketing

plans. For example the detergents being marketed by the company

include male perspectives in their advertising campaigns, a concept

considered totally unfeasible two decades ago.

Lifestyle, values, and beliefs, all affect the marketing programs of

companies. For Colgate Palmolive, the change in gender roles has had

a great impact on its marketing campaigns. The advertisements aired

on behalf of the company, reflect this change, such as a more casual,family atmosphere, and often two income households, shown in its

ads.

A very important concept of our social setup is the joint family

system. Te relationships within this system are given high importance

in our society, which Colgate Palmolive keeps in mind while adopting

ideas from CP (USA) for implementation in the local market.

Economic Conditions:

Rabbi Shergill (1)

Deepa Mehta (1)

Philosophy (1)

Shoaib Mansoor (1)

NATO (1)

Kamal Uddun Azfar (1)

Shareef Kunjahi (1)

Saeed Anwar (1)

Mohenjo-daro (1)

Jassa Singh (1)

Kasur (1)

Pablo Neruda (1)

Sania Mirza (1)

Shahnaz Begum (1)

Short Stories (1)

Kashmir (1)

IT Sector (1)

Blasphemy (1)

Crime & Law (1)

Aruna Shanbaug (1)

K2 Mountain (1)

English Fiction (1)

Khushal Khan Khattak (1)

Wazir Agha (1)

Ajoka Theatre (1)

Iran (1)

Abida Parveen (1)

Socialism (1)

NADRA (1)

Healthcare (1)

Gurr (1)

Amjad Islam Amjad (1)

Munir Niazi (1)

Habib Jalib (1)

Parveen Shakir (1)

Arundhati Roy (1)

Munshi Premchand (1)

Vikram Seth (1)

Qurratulain Hyder (1)

Asghar Nadeem Syed (1)

Dr. Iffat Shahab (1)

China (1)

Migration (1)

Javed Miandad (1)

Capitalism (1)

Hinduism (1)

Social Issues (1)

MQM (1)

Sikhism (1)

Arab Spring (1)

Junoon (1)

Medicine (1)

Imperialism (1)

Ali Hajveri (1)

GC (1)

PTV (1)

Canada (1)

Mushtaq Ahmad Yusufi (1)

Mansha Yaad (1)

Interview (1)

Hanif Ramay (1)

Basant (1)

Yousaf Sallahuddin (1)

Environment (1)

Market (1)

Cowasjee (1)

1947 (1)

Pyare Abbi Jaan: Eulogy to Muzzafar

Ali Syed

Mevlana Rumi visit Allama Iqbal –

Story narrated by Dr. Javid Iqbal

POPULAR POETRY

Chapter 4. The Martians: Javidnamaby Allama Iqbal

Urdu Ghazal by Farhan Gillani

POLITICAL THEATRE

Three Arguments Against a War – By

U. Raja

Jassa Singh, The Forgotten King of

Punjab – By Sameer

eting Analysis of Colgate Palmolive Pakistan - Ravi Magazine http://www.ravimagazine.com/marketing-analysis-of-colgate-palm

3 Mon - 21 Mar, 2016



The overall economic environment has a major effect on fi rms,

especially those that have maximum consumer interaction, CP being

a prime example. An overall economic boom brings in increased sales

for CP. Since Pakistan has an agro-based economy, the impact of crop

production is quite profound on CP’s sales level. For instance, when

Pakistan had a bumper cotton crop in 1991-92, the sales went up by

leaps and bounds in nearly every category. Managers at CP closely

monitor economic forecasts and plan production level accordingly.

Rising inflation is also another area considered by CP while marketingits products. Introduction of Bonus as an inexpensive detergent,

marketing of Brite in cheap sachet packs and introduction of twin,

Colgate toothpaste and toothbrush packs were some steps taken by

CP to provide affordable products with value to customers.

Political and legal forces

The political and legal forces operating in our environment also affect

Colgate Palmolive. Colgate Palmolive tries to maintain an active link

with agencies such as, Monopoly Control Authority, and Securities and

Exchange Commission. Similarly regulations by the tax authorities,

and Customs are closely followed. New legislations, especially those

concerning import duties are closely observed.

Colgate Palmolive also supplies products to various government

agencies, so that government policy regarding expenditure has a

direct impact on sales.

Technology:

Technology and innovation, at CP, are focused mainly at providing

better products to its customers. New technological procedures were

incorporated in its manufacturing operations in the recent past, which

made it possible for CP to produce products at competitive prices.

Similarly, adoption of information technology, (IT) tools has ensuredefficiency, and effectiveness of managers at CP.

The Micro Environment

A firm is particularly impacted by its microenvironment in a variety of

ways. The microenvironment can itself be further divided into two.

These include the external and internal environments.

The External Environment

The Market:

The total market according to the definition includes people with

needs to satisfy, possessing purchasing power, and the willingness to

spend. For Colgate Palmolive, the market consists of literate middle

class, and upper middle class people, with average, and above

average income.

Suppliers:

For Colgate Palmolive, the market contains two types of supply

options:

Imports1.

Dr. Waseem Anwar (1)


3 Mon - 21 Mar, 2016



Locally manufactured raw materials2.

Imports:

Locally manufactured raw materials. Most Colgate Palmolive’s

manufacturing needs are, however, fulfilled by local suppliers.

Maximum effort is made to ensure an effective supply chain, and to

avoid shortages.

Marketing intermediaries:

Colgate Palmolive has an efficient market intermediation setup. Good

relations with whole sellers, and retailers, are ensured. Colgate

Palmolive’s strong distribution network is one of its competitive

strengths. This network is maintained through both professional and

personal ties. It is due to this strong distribution, Colgate Palmolive

has a very strong presence in the market, even in small rural areas

where other MNCs have failed to penetrate.

Internal Environment

Colgate Palmolive’s marketing program is also greatly affected by

certain internal forces. These forces make up the internal

environment, which is controllable by the management of the

enterprise. These factors include:

Production facilities:

Colgate Palmolive has a big production setup. It has two

manufacturing plants working at full capacities. These factories are

situated at Kotri, Sindh, and near Swat, NWFP. Clean, hygienic , and

friendly atmosphere is maintained at these factories.

Financial Resources:

In spite of being a marketing oriented organization, a lot of emphasisis laid on efficient financial management. Colgate Palmolive’s financial

department consists mainly of qualified cost accountants. The

financial division is quite active.[4]

Human Resources:

Colgate Palmolive doesn’t have a specific Human Resource or

Personnel department. The administration looks after basic Human

Resource functions, while most of the recruiting, and selection

procedures are handled by senior, and middle level marketing

managers. The company realizes that the absence of a Human

Resource department is a major drawback, and plans to have one

very soon.

Location:

Colgate Palmolive has its head office in Karachi. There are other zonal

offices at Lahore, Peshawar, Hyderabad, Multan, Quetta and

Islamabad. These zonal offices take care of their specific allotted

areas. Thus, for a company with such a wide consumer base, Colgate

Palmolive is ideally located.

Research and Development: Colgate Palmolive has an active R&D

department. Studies are held at a regular basis to encourage the spirit


3 Mon - 21 Mar, 2016



of innovation. Similarly, training sessions are also organized.

Workshops in collaboration with Colgate Palmolive (USA) are also

held.

Company Image:

Colgate Palmolive enjoys a healthy image in the market. The fact that

it is an MNC is a big contributor to its image building exercise.

However, the management of Colgate Palmolive believes in a unique

philosophy. Unlike companies, such as Nestle, and, Johnson &

Johnson, who believe in promoting the products with the company’s

name, Colgate Palmolive believes in creating strong brand names and

a unique image for each product. Colgate Palmolive has largely been

successful in doing so because consumer behavior in the market has

shown that they have come to identify products of Lever Bros and

Proctor & Gamble, with the respective company names more then

with the brand names themselves, which has not been the case with

Colgate Palmolive’s products.

SWOT ANALYSIS

Overall organizational swot analysis

Strengths:

Colgate Palmolive’s strength lies in its strong marketing team. Even

while working within a small budget, the team has delivered and

carved a niche out for itself in the consumer goods market. Its

aggressive strategies are clearly reflected in the marketing

campaigns of Bonus VS Wheel, and Express VS Ariel. Colgate

Palmolive’s marketing efforts have been particularly strong in the

promotional, and the distribution aspect of its marketing mix.

Weaknesses:

Lack of capital, and inadequate financial resources, is a big weakness

for Colgate Palmolive. Facing the onslaught of huge MNCs like Lever

Bros, and P&G, requires a strong monetary backing. Since Colgate

Palmolive, is basically sponsored by a local group (Lakson), their

financial background is comparatively weak.

Opportunities:

Growing demands for consumer goods, especially branded items,

represent an ideal opportunity for Colgate Palmolive to cash on.

Similarly, positive economic signals, economic growth, and the end of

recessionary periods around the globe present bright economic

marketing prospects for Colgate Palmolive.

Threats:

Continuous onslaught by other FMCG companies, especially Proctor &

Gamble, is a big threat for Colgate Palmolive. Proctor & Gamble has

captured huge market shares from Express, Brite, and the Palmolive

soap. Its aggressive marketing strategies pose an ever-increasing

threat to Colgate Palmolive’s marketing efforts.

Strategic Marketing Planning

Colgate Palmolive Pakistan prepares its strategic marketing plans for


3 Mon - 21 Mar, 2016



all its products categories division. Separate marketing plans are

made for key brands like Express Brite , max and Colgate. These plans

are formulated by the brand management teams and are carefully

reviewed semi annually. Progress reports are regularly submitted to

the top managers.

Products

Colgate Palmolive (Pakistan) has four product categories. Included

under these categories are several brands. The product categories are

as follows

Hard surface care

Oral care

Personal care

Fabric care

Hard Surface Care:

Hard Surface Care category includes some popular brands

Max:

Max is the market leader in hard surface care category. Its majorcompetitor is Vim being marketed by lever brothers

Javex:

Javex is a liquid hard surface care product. It is only marketed in urban

area

Oral Care Products:

Oral Care Product category at Colgate Palmolive includes the three

brands.

Colgate toothpaste:

Colgate toothpaste is the market leader in Pakistan

Freshmint toothpaste:

This is a relatively less popular brand by Colgate Palmolive it was

basically targeted towards people with bad breath problem. To some

extent its marketing mix targeted towards with quite similar to that of

close-up toothpaste

Colgate classic toothbrush:

Colgate classic toothbrush commands a huge market share. It ranks

second after Shield in the branded category of toothbrushes.

Personal Care Products:

Personal Care Category includes various popular soaps

Palmolive:

Palmolive is one of the most popular brands worldwide but failed to

make a big impact in the local market when it was introduced in the

1980’s. Aggressive marketing by Lever Brothers’ brand Lux was one


3 Mon - 21 Mar, 2016



of the reasons for its moderate success. In spite of its failure to gain

the top slot, Palmolive still commands quite a large market.

Donge:

Donge soap is another premium brand by Colgate Palmolive. It is

basically catered to the upper income segment of the market. The

‘niche’ marketing concept has been employed while marketing Donge.

It is only available at top retailers in urban cities. Its competitors

include premium brands imported in Pakistan such as thosemanufactured by Cussons (England)

Protex:

This is another personal care brand offered by CP. It is basically a

semi-medicated soap competing against brands like Safeguard and

Lifeboy gold but unlike these brands this is targeted towards the

middle and the lower class.

Fabric Care:

Fabric care division is the biggest revenue earner at Colgate

Palmolive. In this area the competition amongst brands has

intensified to a great extent over the past few years.

CP markets some well-known Fabric care brands, these include

Express:

Express is the best selling detergent in the country. It’s Express that

introduced the concept of poly bags in Pakistan. It successfully

dislodged Surf from the top position but is facing resistance from

Ariel, being marketed by Proctor and Gamble. Express was changed to

express lemon to compete Surf’s conversion to Surf Excel. Also

included in the Express series is Express bar targeted towards those

who prefer soap to detergents.

Brite:

Brite is another popular brand. For years it was the market leader in

Pakistan. Brite is available in convenient sachet packs and is targeted

more towards the middle class. Brite underwent a similar conversion

process like Surf and Express. It was first changed to double action

Brite and later to Brite total.

Bonus:

Bonus is aimed at the middle and lower middle class. Its main

competitor is wheel being marketed by Lever Brothers.

Texapol:

Texapol is another detergent manufactured by Colgate Palmolive. It is

basically made up of left over scrap and is very cheap. It is marketed

in only rural and semi-urban areas.

Aim:

Aim is another product targeted towards the rural area.


3 Mon - 21 Mar, 2016



Competition

The competitive environment also has a big influence on Colgate

Palmolive’s marketing programs. Colgate Palmolive mainly competes

with two other huge multinationals, namely, Lever Brothers, and

Proctor & Gamble. It also competes in some categories with Zulfiqar

Industries, and Transpak Corporation.

The brand war between these fast moving consumer goods (FMCGs)

marketing companies is especially tough in the detergent and

toothpaste market.

A careful analysis of the competitive environment among these

FMCGs reveals three types of competition, namely: Brand

competition, Substitute competition, and General competition

Brand Competition: brand competition exists between similar

products. For example, in the case of Colgate Palmolive, Colgate

toothpaste with Close Up, English toothpaste, and Macleans. Express

detergent competes with Surf Excel, and Arial in a similar fashion.

Substitute Competition: this competition exists between products

that satisfy the same needs. Incase of Colgate Palmolive, Colgate

toothpaste competes with Dentonic, and Khas tooth powder. Similarly

Express competes with detergent bars and soaps. Donge, Colgate

Palmolive’s premium personal care brand competes with imported

face washes.

General Competition: In a more general sense, Colgate Palmolive

competes with every other company for a share in the consumer’s

budget.

Market research analysis- Colgate Palmolive

Colgate Palmolive believes in not only building i ts differential

advantage over the competitors but also in maintaining it through

constant research and development. The research efforts of Colgate

Palmolive are channeled towards constant improvement of its

product, finding out new and improved ways of reducing its costs , and

exploring new opportunities for promoting its products as compared

to its rival products, such as English, Macleans, and Pepsodent

toothpaste.

In view of the ever-increasing importance of the R&D function in i ts

organization, Colgate Palmolive has increased its research and

development budgets over the last few years.

Why Colgate Palmolive invests in research and

development?

Competitive Pressure: Colgate Palmolive needs to develop and

market new products more quickly than ever before, since new


3 Mon - 21 Mar, 2016



products (such as Close-up’s Ultra whitening Gel), are being

launched by rivals, as well as new brands in the existing product

market are flooding the market (Pepsodent, Ora toothpaste). Thus

research is required to find out what current and potential

competitors are doing.

Expanding Market: Colgate Palmolive realizes the importance of

broadening its market, previously, operating in urban areas only, it

broadened its market in Pakis tan by bringing in various rural and

semi-urban areas under its sales operations

Making a mistake can be very costly: Marketing is expensive and

a failed marketing campaign can be very costly to Colgate

Palmolive. So research is vital for effective implementation of

marketing operations.

Growing customer expectations: with the vast array of new

products in the market such as English, Mcleans, Close-up,

Sparkle, the customers have plenty of variety to choose from and

thus, customer expectations are higher than ever before. There is

thus a need to quickly identify any problems that the customers

are facing with regard to the product, for e.g. if the toothpaste is

causing allergic reactions to some people, then Colgate Palmolive

needs to look into this problem and quickly come up with a

solution.

Colgate Palmolive has a well-established marketing research network

to rely upon. Not only does it utilize information from secondary

sources such as published reports on FMCG companies, but also has

its own Marketing Information System (MKIS) within the organization,

and frequently, Marketing research projects are undertaken.

Marketing Information system has been providing up to date,

information about the competitors sales information, their marketingstrategies, and also pertinent timely information about the market

demographics, the changing tastes and trends, information about the

sales and demand of substitute products, and any product that might

be a threat to the Colgate toothpaste. Soon after its launch,

Pepsodent was spotted by Colgate Palmolive to be a potential threat

to the Colgate toothpaste in the subcontinent market, and thus

Colgate Palmolive intensified it marketing efforts for the toothpaste.

Colgate toothpaste had till then been primarily advertised as a

toothpaste that strengthened teeth, but later advertisements

stressed that Colgate was a toothpaste that fought plague, and

freshened breath, besides making them strong.

Colgate Palmolive has a computerized marketing information system,

whereby the company maintains all sales records, and captures

market data as mostly relayed by the sales people.

Relational databases are maintained, which store data on customers,

suppliers, changing market trends, as well as sales data.


23 Mon - 21 Mar, 2016



Marketing Research Projects are carried out as and when required.

These projects are mostly started at a time when a new product is

‘in-the-pipeline’. Not only does Colgate Palmolive does research to

ensure that it is going to make the right kind of product but it also

likes to make sure that the product is launched at the right time, the

right way, and in the right market. Thus marketing research projects

are carried out to ensure that the launching goes right.

How Colgate Palmolive collects data

for marketing research:

Colgate Palmolive uses both primary , as well as secondary data while

conducting research. Primary data primarily consists of forms filled

out by the customers at the retailer end, as well as retailer feedback

on customer preferences. Usually both of these are utilized whenever

Colgate Palmolive conducts a formal research, such as for the

launching of a new product. When the Colgate Palmolive was

launching the Colgate Palmolive toothpaste in the new packing, both

of these forms of primary data collection were made use of.

Important information regarding competitor performance can also be

obtained through primary and secondary research. Such a practice of

collecting information about competitors in the case of secondary

information is called as Competitive Intelligence. Colgate Palmolive likes

to collect fortnightly data about the sales of its own product as well as

those of competitors by geographical location, in order to keep up

with customer preferences and make any necessary changes in its

marketing mix. Colgate Palmolive’s research department if highly

sensitive to any changes in the sales of rival products; English

toothpaste, Sparkle, Pepsodent, Mc leans.

Important sources for acquiring secondary data for Colgate Palmolive

are the published journals on ‘Fast Moving Consumer Goods

Companies (FMCGs).

Product Analysis

Colgate toothpaste is a star product of the company. With high growth

rate and an equally high market share it is one of the most popular

family product in the world.

Product levels

Core Product: The core product of Colgate Palmolive or the idea sold

through Colgate toothpaste is, ‘something that enables clean, healthy,

strong teeth’. One of the characteristic s stressed the most in all


23 Mon - 21 Mar, 2016



Colgate toothpaste advertisements is, that it leads to strong, healthy

teeth. The presence of calcium in the toothpaste is thus stressed

since it’s widely believed that calcium strengthens teeth.

Actual Product: The actual or the physical form, in which the core

product is sold, is the white fluoride, and calcium based toothpaste,

contained in a squeezable tube.

Augmented Product: Any additional features to the actual product

(necessary to make the product functional) are augmented part of the

product. Social appeal and attractiveness through brighter teeth and

fresher breath are important augmented features of Colgate

Toothpaste.

The product life cycle

Colgate Palmolive has a large market share, which is increasing at an

increasing rate. Thus it is clearly in the growth stage. The brand

management team feels that its growth stage will continue for at

least another half a decade and then it will approach the maturity

stage.

Positioning and Differential AdvantageThe positioning of Colgate toothpaste is quite unique. Colgate

Palmolive (Pakistan) has been able to capture the original positioning

theme from CP (USA) unlike CP (India) and other local partners in Asia.

This successful theme adoption can be attributed to the energetic

marketing team of Colgate Palmolive. (Pakistan). Colgate’s image in

Pakistan is that of a family brand with multidimensional advantages.

It has an attractive taste, and is equally good for children and adults.

Unlike its competitors who focus on only one theme like

Pepsodent lays emphasis on dental decay in children \1.

Macleans emphasizes on strong teeth2.

Close up focuses on shinning teeth and a fresher breath for socialappeal and

3.

Medicam anti toothache formula,4.

Colgate has been able to evolve all these images into one brand,

Colgate Toothpaste. Colgate toothpaste because of its

multidimensional image i s often refereed to as an all rounder brand.

Price and quality are thus major attributes through which Colgate is

positioned. High quality for a complete dental care and premium

pricing are the major positioning theme.

According to CP’s marketing tem Colgate’s differential advantage is


23 Mon - 21 Mar, 2016



its all rounder capabilities. Its ability to fight tooth decay, eliminate bad

breath and give strong white teeth under one brand label is why it’s

the most preferred brand in Pakistan.

Target market

Ever since its introduction in Pakistan, Colgate has had a consistent

target market. Unlike other brands Colgate has never altered its target

market segment. Though there has been some expansion in recent

years.

Colgate is targeted at middle income and upper income families.

Lower middle and educated families with white-collar jobs are also

included in its target market, Colgate through its advertisements

focuses on its key concept that is toothpaste of the family theme.

A few years back Colgate was introduced in the semi urban and rural

areas. Again educated middle and upper class are targeted here.

Market demand

The marketing team of CP believes that Colgate toothpaste has a lot

of growth potential and the saturation point is quite far off.

management.

Brand equity

Colgate toothpaste enjoys very strong brand equity both

internationally as well as in the local markets. In fact it was this brand

equity that led to the introduction to the Colgate toothbrush in the

country. Regular market surveys conducted by rese arch consultants

hired by CP (Pakistan) reveal that Colgate’s brand equity has been

increasing at a rapid pace. More and more people now have a

favorable image of Colgate and more people place as a first choice

now against the previous trend when the oral care brands like

Macleans, Shield and signal enjoyed very high brand equity as

compared to Colgate.

Packaging and labeling

Colgate toothpaste comes in an attractive, eye-catching red colored

pack. The CP marketing team feels that packaging of product is of

vital importance and the emphasis on this area on this area can be

gauged by packaging innovation such as introductions of polybags in

case of Express, paper wrappers in case of Palmolive against card

packaging of soaps and Max in plastic bags. Similarly Colgate has also

been marketed with user-friendly packaging. A push-up lid replaced

the cap, however no change was made in the tube style. The red packof Colgate is very attractive and eye-catching and consumers find it

easy to trace it from the retailers’ shelf.

The packaging highlights all use instruction and multiple advantages

of the paste. Similarly the claim that Colgate is recommended by

more dental associates in the world as compared to any other

toothpaste is also clearly highlighted. This, the management feels

adds to the brand equity.

One element is however missing out from Colgate’s label of oral care,

products have a customer suggestion or complaint address

mentioned in their packages. This is not present in the case of


23 Mon - 21 Mar, 2016



Colgate.

Packaging analysis of Colgate

Palmolive tooth paste

Colgate Palmolive packages its premier quality toothpaste, keeping in

mind sweat factor. Packaging is intended to sure various purposes: –

Project the product on its way to the consumer: Keeping till

functional especially in mind, CP has untraced Pre “flexi” tube,

which has added durability to the toothpaste package. The flexi

tube protects the tube from breaking and causing product spills,

while still on its way to the consumer. The tube is further

concerned in a cardboard box to protect the paste from

concerning into direct contact with eat, deist, intense sunlight.

1.

Provide protection after the toothpaste is unpacked:2.

Not only does the flexible plastic packaging protect the product on its

way to the consumer, but it also ensures that the tube does not break

and retains its original shape ever after repeated usage, in f act till the

using end.

3. Help gain acceptance from the new

dilemma:

The primary concern of the middle mean regarding packaging is that it

should be easy to store, possess attractive packaging to attract

customer and require minimal sales from middle man, possess self

explanations labels and finally the product should possess a high

turnover. Colgate Palmolive keeps these middlemen concerns in mind

and has there desired a suitable packaging.

The Colgate toothpaste is packaged is an easy to store packaging

design and sizes. The labeling itself explanations, since the

toothpaste is the most popular and largest selling toothpaste inPakistan, the turnover rate is also very high.

4. Help persuade consumer to buy the

product:

The red and color of the Colgate toothpaste together with its

convenient flexi tube packaging has proved attractive to the

consumers. The brand loyal customer of CP toothpaste is familiar

with red and white packaging and can easily spots it in the

supermarket shelves.

Packaging Strategy of ColgatePalmolive Toothpaste

When making the packaging decision, the executives must be very

clear as to which packaging strategy needs to be pursued. That

weather family packaging or product line packaging strategy wil l be

followed. CP follows the strategy given below: –

Product Line Strategy

CP packages the CP toothpaste is its distinctive red and white colored

packaging with the familiar Colgate trademark. This packaging color


23 Mon - 21 Mar, 2016



combination is unique only to the product line CP toothpaste. The

different sizes of CP toothpaste are all packaged in the same

packaging. Such a strategy is being followed so that the product is

district not only from the competitors but also from any future

product line in toothpaste that Colgate may introduce.

Also, CP has never hesitated in pursuing the strategy of changing the

package whenever it has felt the red. This occurred when, the new

and improved flexi tube with the flip cap was introduced. The initial

package was the traditional metal tube, then the flexi tube and finallythe flexi tube with the flip cap was introduced.

CP has also made recurrent improvements in the outer cardboard

packaging, making it more attractive and durable over time

Labeling:

Labeling is closely related to packaging. It is the part of a product that

carries information about the product and the seller. A label may be

part of a package (as in the case with CP toothpaste) or it may be a

tag. There exist a very close relationship between labeling, packaging

and branding.

Brand Label:

CP toothpaste carries a brand label which the CP toothpaste name.

Along with the brand name often a tagline is also printed, which in the

case of CP toothpaste is ‘For Stronger, healthier teeth’.

Descriptive Label:

Gives information about the product’s use and performance etc. CP

toothpaste carries instruction that it should be used after every meal.

It also emphasize that CP has calcium, which makes teeth stronger,

healthier.

The plague fighting ability is also highlighted in the descriptive

packaging.

Statutory labeling requirements:

CP keeps in mind, the statutory labeling requirements when

packaging its toothpaste. The size the net weight of the toothpaste,

along with manufacturing date, retail price, sales tax, manufacturer’s

name and origin are clearly printed on the package.

The absence of any of the above information is considered as illegal

practice.

In addition to the above, CP also mentions, the ingredients in the

toothpaste. Further the packaging is environmentally friendly;

whereby the tube as well as cardboard can be recycled.

Good packaging can improve customer acceptance through improved

color, design and style, which give the product a differential advantage

over the substitutes available. Packaging has increased the brand

equity of the product and the CP toothpaste is CP’s star product.


23 Mon - 21 Mar, 2016



Product competition

The competitions in the oral care category especially in the toothpaste

market very intense. For nearly a decade, a cutthroat battle has been

going on between brands belonging to established FMCG companies.

Colgate has captured a huge chunk of the market and its share is

increasing day by day. Some of the major competitors are as follows

Macleans1.

Medicam2.

Close-up3.

English4.

Minto5.

Pepsodent6.

Among all these competitors, Medicam has the largest market share.

It comes very close to overtaking Colgate in terms of sales. The USP

of both the products are however widely different. Colgate is a more

general product for overall dental health while Medicam targets

people with toothaches and those suffering from dental decay. Due to

poor oral hygiene a large number of our urban population suffers from

these problems and hence Medicam has been able to capture a large

chunk of the market. A couple of years back when Medicam’s share

was increasing at a very high rate, there were plans of Colgate to

introduce a similar specialized product with Colgate brand name.

However, the company decided against i t and continued to

concentrate on its original USP.

The introduction of English toothpaste in the market by a competing

group was another challenge faced by Colgate brand management

team. English toothpaste was targeted at the middle class and waspriced at nearly at half the price if existing brands. Its promotional

campaign focused on its cost-leadership strategy and the brand was

successful in the market leader for a brief period. Close-up being

marketed by Lever Brothers is another prominent player in the

toothpaste market. Premiumly priced close-up is targeted at the

upper class. Close-Up’s marketing strategy lays a greater emphasis

on shinning teeth and fresher breath for social acceptance rather than

on dental problems.

Touchme introduced Minto in the market a year ago. Minto adopted a

strategy similar to that of English but laid emphasis on both price and

quality.

Macleans some years back used to be market leaders but have lost

its share mainly due to ineffective promotional efforts. Pepsodent,

Signal 2, Forhans and Ora 3 are other competing oral care products

Colgate has competition with. The shares of this toothpaste have

been declining.

Pricing strategies

When Colgate was introduced in the market skimming pricing


23 Mon - 21 Mar, 2016



strategy was used. The price was higher than most of the brands.

Colgate has persisted with its premium pricing concept ever since.

Emphasizing on quality for product differentiation it has never used

price cuts to increase its sales. Colgate’s price throughout the country

has been the same.

Though it has never decreased its prices in times of stiff competition

the CP management have used discount offering like two in one pack,

toothbrush packs and extra volume packs. This tact was however

employed in face of increasing competition. The main pricing concept,

however, has revealed around premium pricing. Today, Colgate is sold

at Rs 27/- (75 gms), which is way above the competition considering

that one of the main competing brand; English is sold at Rs.10.

Like other products of CP, retailers and wholesalers are given quantity

discounts, price discounts regularly.

Distribution

Colgate Palmolive has one of the most effective networks in the

country. Its deep penetration even in the far-flung areas isremarkable. It is because of this effective system that Colgate

toothpaste is widely available and occupies a substantial place on the

retailer’s shelves. All over the country CP unlike its competitors P&G

and Levers does not rely on external distribution agencies but has an

internal distribution subsidiary by the name of Express. This provides

the company wit an administrative VMS while its competitors have a

contractual VMS. Colgate’s toothpaste distribution takes place

through various channels. In the urban areas the chain is:

Colgate Palmolive Express distributors Retailers

Consumers

In certain semi-urban areas the company follows a slightly different

route. For areas like Hyderabad, Sukkur, Sialkot, Gujaranwala etc the

company involves agents wholesalers for the expertise in these

areas. The chain therefore expands into:

Colgate Palmolive Express distributors Agent wholesalers

Retailers

Consumers

However, in purely rural areas, Colgate in directly sold through agent

wholesalers:

Colgate Palmolive Agent wholesalers

Retailers consumers

No matter where Colgate is marketed, the parent company has a lot

of influence on the other members of the distribution chain and thus

sufficient channel power.

Intensity of distribution

Since Colgate toothpaste is a convenience product, the management

at CP wants it to be available to every retailer I the market where

consumer might reasonably look for it. Thus, an intensive distribution

policy is followed.


23 Mon - 21 Mar, 2016



Changes in the distribution environment.

The Colgate Palmolive management realizes that the distribution

environment will undergo a huge change in the coming period.

Colgate toothpaste is a convenience good with huge dependency on

the retailers. The retail outlet in Pakistan is going through a big

change, new chains, and large supermarkets are replacing old

neighborhood grocery stores. Rajani’s, TesMart and select stores are

important examples. CP plans to enter into exclusive contracts with

these outlets to gain effective sales management.

Promotion

Promotion is the most important element of the marketing of any

consumer good item especially if it’s a convenience good.

Since competition in the all care area is extremely intense, it is

promotion, which brings out the differential advantage of a product.

The management at Colgate Palmolive realizes the importance of

promotion and huge efforts are made to ensure effective promotional

planning and the success of all promotional campaign. All majorproduct of Colgate Palmolive is heavily promoted including Max,

Palmolive, Express, Brite and Colgate toothpaste.

Colgate’s success over other oral care brands can be attributed to its

high and effective promotional campaign. The promotional mix of

Colgate consists of the following activities:

Advertising1.

Sales Promotion2.

Personal selling3.

Publicity4.

Public relations5.

On an overall basis a push strategy is applied. This is directed towards

the ultimate consumers with the intention to motivate them to ask

retailers for their product. In turn the retailers, would request the

product from the wholesaler and distributors.

The campaign objective:

Colgate toothpaste is presently in is growth stage. Keeping this in

mind, the Colgate management has outlined two major objectives of

its campaign. S ince the product has been in the market for quite some

time, and has crossed its introduction stage, the management feels

there is no major need for informative promotion rather the focus

should be on

Persuasive promotion1.

Reminder promotion.2.

Persuasive promotion basically aims at convincing people that

Colgate toothpaste should be their first choice amongst all the other

toothpaste. On the other hand reminder promotion aims at constantly

reminding people that the products widely available in the market.

According to Colgate’s brand management team reminder promotion

is of vital importance in case of all fast moving consumer goods and

especially toothpaste’s. Many good products have failed just because

their parent companies failed to focus on reminder promotion. Binaca


23 Mon - 21 Mar, 2016



and Natural toothpaste were pushed out of the market because if this

reason. The decline of Sparkle and Signal 2 both market leaders a few

years back can be attributed to the same factor.

The Promotional Budget

Promotional budgets at Colgate Palmolive are usually established at

the beginning of the year but the management I always ready to

adjust them, if such a need arises. The overall budget is set after

analyzing after analyzing the long-term strategic marketing plans and

their implementation.

The basic budget is set in line with some objective or overall goal in

mind. Revisions are usually made keeping in view the competition

and promotional expenditure made by the competing firms.

Colgate Palmolive’s promotion Mix:

The promotion mix at CP. consists of the following in order of

significance.

Advertising1.

Sales Promotion2.

Personal selling3.

Public relations and publicity4.

Advertising

Advertising forms a single most important promotional tool as far as

Colgate toothpaste is concerned. Its advertising campaign can be

classified as

A consumer advertising effort and not Business-to-Businessadvertising.

1.

Product advertising for indirect action i.e. it is designed to

stimulate demand for over a longer period of time.

2.

Selective demand advertising i.e. it is directed towards

stimulating demand for an individual brand. i.e. Colgate

toothpaste and not a generic category of product.

3.

Competitive advertising since its advertising campaign is basically

against other competing brands and focus is on its special

features and differential advantage.

4.

Campaign Development and Implementation An advertising campaign consists of all tasks involved in converting a

basic theme

Into an advertising program for achievement of a specific

organizational goal relating to a particular product.

At CP., the brand management team initially comes up with an overall

objective of the campaign. This is discussed in detail with middle

management consisting of marketing managers. After this a budget

is established from the overall promotional budget, decided at the

beginning of the year. After this budget has been approved the brand


23 Mon - 21 Mar, 2016



management team gets in touch with the advertising agency, which

is spectrum communications, and the basic message of the campaign

is created. Spectrum Communication is one of the largest advertising

agencies in Pakistan and has some blue-chip accounts of top MNCs

and national companies. It also has affiliation with world-renowned

advertising firms. The campaign message is decided after active

consultation between

Brand management team1.

Client service executives of Spectrum Communications2.

Creative department team at Spectrum. Communications3.

After the campaign message has been decided and approved by the

CP. top management, the brand management team decides over the

media required to execute the campaign. The media-planning

department helps in making this decision. For Colgate toothpaste,

television is the most prominent media. Some advertising is also

done through newspapers, magazines and on very small scale

through outdoor media like billboards.

Timings of advertising especially those that are aired on television areof great importance. The local television scene has undergone a huge

change with multiple channels and large number of productions. This

makes the placement of advertisement more difficult. Colgate

Palmolive uses the services of certain advertising agencies like AD

Track, which provides information regarding view ship and timing of

advertisement.

Similarly, Aftab Associates, a leading research firm also provides

relevant data necessary to gauge the effectiveness of the advertising

campaign.

Measurement of effectiveness

Once advertisements have been developed and aired, the company

tries to evaluate the effectiveness of these advertisements. Recall

the company conducts tests. One drawback as far as the total

advertising campaign is concerned, is that Colgate Palmolive does not

have its own advertising department like its competitors. Due to this

the company has to rely on its agency.

Sales promotion

After advertising, sales promotion is the most effective tool used at

CP. as afar as Colgate toothpaste is concerned. Some of the common

sales promotional techniques used by the brand management team

include:

1. Free sampling:

Free small sized samples of toothpaste are given to doctors, dentists

and general consumers. The per head cost of s ampling, according to

the management, is high but results are much more positive if


23 Mon - 21 Mar, 2016



compared to advertising.

2. Distribution of souvenirs:

Free souvenirs and momentous like pens, key chains, T-shirts etc are

distributed to consumers, especially students.

3. Contests:

Sales contests are organized amongst retailers and prizes are

distributed amongst the winners.

Conferences:

Annual conferences are held. Doctors, dentists and the Colgate’s sales

team attend these conferences. These conferences not only enhance

sales but also help in image building.

Personal Selling:

Regular presentations are arranged for dentists and medical students.

Workshops are also frequently organized in medical colleges. The aim

is to convince future dentists that Colgate is the best toothpaste as

far as quality is concerned.

Public Relations and Publicity:

The public relations activities are undertaken as regard as Colgate

toothpaste is concerned focus on creating a healthy image of the

brand. Sponsorship of community events, distribution of customer

newsletters among the dental community are important examples.

Publicity for Colgate toothpaste usually takes place through mention

in newspapers, medical journals and other magazines.

Colgate Palmolive: A Good Corporate

Citizen:Despite of being a capitalistic concern, Colgate Palmolive as an

organization is aware of its social duties and responsibilities. Realizing

this, it has launched several programs for its community welfare. One

of these programs is the “School dental care” program. Being

sponsored by the company, dental surgeons along with Colgate’s

brand management team visit schools frequently and organize dental

clinics on a regular basis for complete checkups.

These programs, the company feels are not part of their promotional

efforts since these programs are not advertised nor are the products

promoted through these events.

Conclusion:

Colgate Palmolive is one of the top multinationals operating in

Pakistan. Colgate toothpaste is one of the leading brands. It is the

largest selling oral care product in the country and its market share is

increasing day by day. The team managing the brand is dynamic and

in spite of limited resources, has been able to come up with new

innovative marketing strategies, giving Colgate a competitive edge

over other oral care products.


23 Mon - 21 Mar, 2016



Tags: Reports & Studies

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[1] Source: Colgate Palmolive website USA

[2] Source: Annual report 1997 Colgate Palmolive Pakistan

[3] Source: Interview with Mr. Omar Qadri, Brand manager Colgate

Toothpaste, Colgate Palmolive Pakistan

[4] Source: Mr. Shahid Iqbal, Director Finance, Colgate Palmolive

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