Consumer Products in China (Colgate Toothpaste)

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Consumer products in China
(Colgate Toothpaste)

Marketing on regional markets

Table of context
PEST Analysis5
Consumer Survey China10
The growing importance of regional differences10
Cluster map – from city tiers to city clusters12
Position of Brands14
Increased Demand for Premium Products14
Brand loyalty16
Trust in Big Brands17
Importance of focus on the Right brand attitudes17
Customer communication Channels19
In Store Promotions20
Blogs and Online Forums21
Recession impact to Consumer Behavior trends23
Colgate Palmolive company in China27
Subsidiaries of Colgate in China27
Toothpaste market in China28
Colgate toothpaste on market in China29
Strong branding and adaptation30
Entering on Chinese Market31
Advertising and marketing32
Colgate copycats and counterfeits33
Table of exhibit41
Table of figures42


China is a dynamic market that continuously challenges our assumptions and compels us to innovate. As the second biggest economy of the World, it rapidly changes. It has the biggest middle class population with over 300 million people. Economical development started in the seventies and since then China quadruplet output. Similarly to that, Colgate has outsourced their facilities in China and took significant part on Chinese market, as well as Asian regional exporting market. In the first part we made PEST analyze of Chinese market Secondly, we commented market position of Colgate-Palmolive products in PRC. Finally, we made analysis of advertising market and the challenges of products.

PEST Analysis
For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, MAO's successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight. The politics of the People's Republic of China take place in a framework of a single-party socialist republic. State power within the People's Republic of China (PRC) is exercised through the Communist Party of China, the Central People's Government and their provincial and local counterparts. Under the dual leadership system, each local bureau or office is under the theoretically coequal authority of the local leader and the leader of the corresponding office, bureau or ministry at the next higher level. People's Congress members at the county level are elected by voters. These county level People's Congresses have the responsibility of oversight of local government, and elect members to the Provincial (or Municipal in the case of independent municipalities) People's Congress. As it with any other one party state, Chinese political system is inherently unstable and unable to respond to wider changes taking place in Chinese society. Provincial governments often fail to enforce central government directives. Growing corruption, widening inequalities, increasing rural poverty and environmental degradation have lead to an increased in social unrest in recent years. Rising jobless could lead to even greater unrest.

Legal problem can have huge impact on companies in China. A lot of companies have long complained about lack of IPR protections in China. When it comes to the proprietary processes, or the 'secret...
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