Colgate Palmolive Case
Colgate Palmolive Case
Problem/Opportunity
Richard Werner has to decide which marketing strategy to use with an increase in marketing budget will grow the market share of Colgate
The marketing strategy/plan needs to increase overall profit for 2013
Analysis
Strengths
Big brand awareness, #1 in the market share (have 32.4% of market)
It is a staple category for most retailers allowing them to get into more stores and offer more promotions as it increases the revenues for the stores
Have very good relationships with distributors already
Leader in the oral care market world wise
Have the greatest product depth and breadth
Weaknesses
Mature market can make it harder to grow your market share
The oral hygiene market is hyper-competitive for brand awareness and getting new customers
New products introductions are easily imitated so it is hard to stay ahead of the trends
Retailers have major bargaining power over manufacturers meaning you need to show your product offers some kind of benefit compared to the other brands (normally through brands awareness, retailer exclusivity and pricing strategies and promotions)
Hard to differentiate products since they are all within the sub segments and technology advancements are limited
Opportunities
The market share gap has started to widen favorably so they can take control of that gap and grow their share even more
Consumers awareness of oral health is increasing which can translate into more future sales - the oral hygiene market had an compound annual growth rate of 4.2% in 4 years
60% of consumer toothpaste brand decisions are made in store which means there is room to gain new customers who don’t have current brand loyalty
Threats
New products are easily imitated
Consumers may stay with brand loyalty to other competitor and not switch since brand familiarity is a key influence
The marketing mix is already delivering favourable results, changing it may not bring in success
Consumer Analysis
Targeting
Problem/Opportunity
Richard Werner has to decide which marketing strategy to use with an increase in marketing budget will grow the market share of Colgate
The marketing strategy/plan needs to increase overall profit for 2013
Analysis
Strengths
Big brand awareness, #1 in the market share (have 32.4% of market)
It is a staple category for most retailers allowing them to get into more stores and offer more promotions as it increases the revenues for the stores
Have very good relationships with distributors already
Leader in the oral care market world wise
Have the greatest product depth and breadth
Weaknesses
Mature market can make it harder to grow your market share
The oral hygiene market is hyper-competitive for brand awareness and getting new customers
New products introductions are easily imitated so it is hard to stay ahead of the trends
Retailers have major bargaining power over manufacturers meaning you need to show your product offers some kind of benefit compared to the other brands (normally through brands awareness, retailer exclusivity and pricing strategies and promotions)
Hard to differentiate products since they are all within the sub segments and technology advancements are limited
Opportunities
The market share gap has started to widen favorably so they can take control of that gap and grow their share even more
Consumers awareness of oral health is increasing which can translate into more future sales - the oral hygiene market had an compound annual growth rate of 4.2% in 4 years
60% of consumer toothpaste brand decisions are made in store which means there is room to gain new customers who don’t have current brand loyalty
Threats
New products are easily imitated
Consumers may stay with brand loyalty to other competitor and not switch since brand familiarity is a key influence
The marketing mix is already delivering favourable results, changing it may not bring in success
Consumer Analysis
Targeting