Colgate Palmolive's Strategies

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A distribution channel is defined as a set of intermediaries performing a variety of functions. These interdependent organizations are involved in the process of making a product or service available for use or consumption. Marketing channels for a product are considered one of the more important decisions made for a product. It is believed that these channels not only serve the markets that the products move thru, but they make the markets. Distribution channels determine the price thus the profit of any given product. The final stop for any product/service is the consumers, what channels the product move through has many options. One very important decision in the channel is the push verse pull marketing. A company’s push strategy uses a sales force and other promotions to pursued intermediates to carry, promote and sell the product to the consumer (Kotler & Keller, 2009). This strategy is most effective when market share or name recognition is low, when consumers have no brand loyalty and product benefits are well known. In contrast, pull strategies use advertising and promotions to provoke consumers to request the product from intermediaries. The strategy is successful when consumers make a choice prior to purchase and choose based on brand loyalty and name recognition. A company must first identify the types of intermediaries available to assist with distribution to the consumer. When Colgate-Palmolive developed the new Precision toothbrush, they had to determine the distribution channel for the product. Like its other products, the Precision toothbrush would be sub-contracted to Anchor Brush. Anchor Brush would produce the new toothbrush (which required three different types of equipment), warehouse- hold inventories, and handle transport- channel is responsible for ensuring quicker delivery. Precision’s positioning as a niche or mainstream product played a major part in the pricing and production schedules being determined. Each positioning had a...
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