Colgate –Palmolive is a well-known brand that served more than a billion of people all around the world in different country. This company is founded in 1806 and the founder is known as William Colgate. For now, Colgate is running in a multinational consumer products company that focused on the production, distribution and provision of household, health and personal care products. Meanwhile, the mission and goals of Colgate is by reducing total delivered cost, extending technology resources and developing excellence in purchasing, logistics and sourcing processes to provide Colgate with a significant competitive advantage (Colgate World of Care, 2014). Product Overview
Nowadays, Colgate provides oral care, personal care, home care and pet nutrition product under different trusted brands like Colgate, Palmolive, Speed Stick, Protex, Ajax, Axion, GLO, Softlan and Lady Speed Stick. In our opinion, Colgate should come out with a new production line extension for kid’s toothpaste by adding more different flavor. As what we know, nowadays most of the parent will let their kid’s to choice their own toothpaste, so that they will more likely to brush their teeth daily with using their favorite toothpaste. Besides, this new product line extension will also provide Colgate to have a more competitive advantage in the market. Competitor Analysis
The major competitor for this new product line extension is Kodomo Lion. This company is the leading company in Malaysia for kid’s toothpaste as they are the specialist in this region (Kodomo Lion, 2014). Next, the strength of this strong competitor is they are specialist in producing kid’s toothpaste for many years, their brand is well-known by a lot of customer that have children and the consumer have bigger confidence for Kodomo kid’s toothpaste against other competitors as the toothpaste that produce by Kodomo contain ‘Xylitol’, which is something that could reverse early formation of tooth decay in teeth (Shen Li, 2014). But, there is also a weakness of this strong competitor. Kodomo Lion is not often to have an advertisement for their product, therefore, Colgate have a very big chance to increase their market in this region by attracting more new customer like new mother and father that just have their kid’s.
Target Market and Positioning Strategy
By using the bases for segmenting consumer markets, demographic segment is the most suitable segment for this new product line extension by dividing the market into groups based on variables such as family size, family life cycle and age. On the other hand, the consumer in this target market must have the characteristic as the consumer household must have at least a kid`s and have the knowledge to maintain the health of teeth for kid`s. Example, parent and guardian; that both of them have the highest consumption of the product as there are the one that decide to purchase which brand of kid`s toothpaste even though they are the non-user in the product category. Then, when come to the positioning strategy, this new product could use the benefits, needs or solution positioning strategy. With adding more new flavor to this product that the competitor do not have, it will give the product a distinctive edge and this will also help the product to differentiate from the competitor as there is only a single company is producing this kind of flavor for kid`s toothpaste.
The core product is the intangible product that cannot be touched (Cuccureddu, 2011). It is the benefits of the product that makes it valuable to the customers, which determine customer’s decision (Friesner, 2014). Therefore, when Colgate comes out with the kid’s toothpaste, it will emphasizes on the benefits that it enables clean, strong, and healthy teeth as well as the prevention of tooth decay for kids. It will also point out in all Colgate kid’s toothpaste advertisement that the calcium contain in its kid’s toothpaste is able to lead...
Boundless (2014) Sales promotion
Colgate World of Care (2014), Global Procurement Mission & Goals. Available from: http://www.colgate.com/app/Colgate/US/Corp/ContactUs/GMLS/MissionAndGoals.cvsp [Accessed 10th May 2014].
Cuccureddu, G. (2011). Co-creation And The Impact On The Three Levels Of Product. [online] Business Insider. Available at: http://www.businessinsider.com/co-creation-and-the-impact-on-the-three-levels-of-product-2011-9?IR=T& [Accessed 13 May. 2014].
Emily, W (2014) Marketing Mix - Promotion and Promotional Strategies. Available from: http://www.learnmarketing.net/promotion.htm [Accessed 9 May 2014]
Levens, M. (2012) Marketing. International edition. Peason Education.
Shen Li (2014), Why You Should Use Kodomo Toothpaste for Kids. Available from: http://figur8.net/baby/2008/07/23/why-you-should-use-kodomo-toothpaste-for-kids/ [Accessed 10th May 2014].
Please join StudyMode to read the full document