Académique Documents
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PALMOLIVE
PAKISTAN
MARKETING
PROJECT
TABLE OF CONTENTS
PAGE
EXECUTIVE SUMMARY
I CHAPTER 1 THE FIELD OF 1-3
MARKETING
I.1 INTRODUCTION
The marketing stage they are in is market oriented. Colgate is not following product
oriented or sales-oriented stage. They like to satisfy their customers and try their best at
that.
One way that Colgate is using to build relationship with its customers is that it uses
internet communication, and builds relationships with its customers by personalizing
their interactions. They provide different options like customers calling on their toll free
number and having their queries answered. Thirdly they encourage comments on their
products by customers and get a feed back.
Colgate Co. has set the highest standards for the product. They are committed to insuring
that consumers can continue to trust Colgate products for their reliability, quality and
superior performance. In addition, to serve the billions of people in the markets where
business is done, they strive to produce products in the most efficient way possible so that
they are affordable to the greatest number of consumers.
Products sold by Colgate must not only meet all safety standards set by law, but also
often more stringent Company standards. They participate in programs to provide prompt
assistance to consumers in case of product tampering or misuse. Consumer health, safety
and well-being are of paramount concern to them. They are responsive to consumers.
According to them, business is consumer products, so their success depends upon
consumer satisfaction, trust and goodwill. They can best achieve their objectives and
serve the needs of consumers by following a consistent, fair and sensitive program of
consumer communication.
I.3.2.1 QUALITY
Colgate people try to maintain the quality of their products. It is significant to note that
Colgate tooth paste is being used in most of the homes twice a day. Most of the dentists
recommend it to their patients.
Colgate people take a look to recognize what customers demand in a Colgate product.
They see what customers, value in a product. They are aware of their customer desires
and try to offer the best quality and the lowest possible price to its customers.
These two activities are well coordinated.
Colgate is committed to getting better every day in all it does, as individuals and as
teams. By better understanding consumers' and customers' expectations and continuously
working to innovate and improve products, services and processes, Colgate will "become
the best." In more than hundred countries, Colgate has been recognized as the best tooth
paste for its diversity.
Throughout the world, it is the goal of Colgate people to take part in projects to further
the development and welfare of the local community. Such projects include participating
in charitable drives and assuming responsibility for aiding the poor, injured and homeless
at the time of national disaster.
Their primary focus is on young people, particularly the education of young people.
Colgate believes that investments made in children today will benefits them all
tomorrow. That is why the Company sponsors reading programs, mentoring initiatives,
athletic competitions and other youth activities around the world. These efforts foster in
youth a spirit of competition and achievement.
A code of conduct is provided in order to ensure for their employees, consumers, outside
businesses and local communities. They deal ethically with suppliers and customers.
Their aim in conducting purchasing operations is to ensure continuing, reliable sources
of supply. Honest dealing with customers and suppliers is essential to sound, lasting
relationships.
Population 1 mi 3 mi 5 mi
Male population 17,504 321,730 743,504
Female population 15,856 322,953 777,174
% Male Pop 52.54% 49.91% 48.89%
% Female 47.53% 50.09% 51.11%
II.1.2COMPETITION
At local level Colgate has competitors like Signal2, Neem, Close-up, Pepsodent, English
tooth paste and Mac leans, Medi cam and Sparkle. These compete in prices and quality.
For example, English tooth paste is considered to be the cheapest, but offers low quality
as compared to Colgate.
Most of the people lay stress on quality of life rather than quantity of goods sold.
Protecting the world in is a vital concern and a continuing commitment. As a global
company dedicated to consumer products that contribute to the overall quality of life,
Colgate recognizes and constantly reaffirms the value of a healthy and clean
environment.
The health and safety of customers, people and the communities is very important. They
are committed to manufacturing; packaging and selling quality products that meet or
exceed health and safety rules and regulations. They will continue to improve their
products and packaging and invest in innovations that protect the environment.
As far as gender roles are concerned, most of the household shopping is done by women.
Men like to buy electrical equipment, cars, and computers.
II.1.4 TECHNOLOGY
Colgate has its markets in almost more than 25 countries around the globe. These include
USA, India, Belgium, Brazil, Australia, Canada, Denmark, France, Finland, Germany,
Greece, India, Ireland, Italy, Mexico, Malaysia, Netherlands, Norway, Portugal, Spain,
Switzerland and UK.
The suppliers of the company include the other services it needs from other organizations
in order to run its business. The Colgate Co. has requirements for the products including:
Car Service
Catering
Chemicals
Communications
Computer peripherals
Construction
Consulting
Contract manufacturing
Co-packing
Courier service
Disposal service
Employment service
Flavor and fragrance in ingredients
Graphic design
Information technology
Investment management
Janitorial
Landscaping
Legal services
Market research
Media
Packaging
Printing
Promotions
Training
Transportation
Warehousing
Waste management
Colgate products are generally marketed by a direct sales force at each individual
operating subsidiary or business unit. In some cases, distributors or brokers are used.
All Colgate people are part of a global team, committed to working together across
countries and throughout the world. Only by sharing ideas, technologies and talents can
the Company achieve and sustain profitable growth.
III.1.2 COMPETITION
The international competitors that Colgate has are Pepsodent, Sparkle, Close-up, and Mac
leans. These all compete in quality as well as price.
Many countries in which Colgate or its affiliates do business have their own antitrust
laws. It is Colgate’s policy to comply with these laws. For example, The U.S. imposes
certain trade restrictions under the International Emergency Economic Powers Act, the
Trading with the Enemy Act and the related Executive Orders and U.S. Treasury
Department and U.S. Commerce Department regulations.
The Tariff Act of 1930 and other laws enforced at the border by the U.S Customs Service
provide that certain articles are prohibited importations into the U.S. These prohibited
importations are not limited.
In general, anti boycott laws and regulations prohibit cooperation with certain
unsanctioned foreign boycotts.
III.2.1 RESEARCH
A Colgate research and development criterion supports it in many brands the products for
oral, personal care and household care. Approximately 40% of total Company sales in
2004 came from new products launched within the past five years. These new products
have led to strong market share growth and market leadership in core categories around
the world. For example, in 2004 Colgate Max Fresh and Colgate Simply White
toothpastes not only brought innovation to the category but also are contributing to record
market shares .Colgate people expect to continue keeping the pipeline full, especially in
high-margin categories of Oral Care, Personal Care and Pet Nutrition.
Colgate Co follows principal global trademarks as Colgate, Palmolive, Ajax, Soup line,
Protex and several regional trademarks.
III.2.3 PRICING
Colgate has its pricing according to the currency and the taxes inclusive.
III.2.4 DISTRIBUTION
Colgate products are generally marketed by a direct sales force at each individual
operating subsidiary or business unit. In some cases, distributors or brokers are used.
III.2.5 ADVERTISING
In 2004, Colgate’s advertising spending rose 10% to an all-time record level. In 2005,
they expect commercial spending to continue at competitive levels, including heavy
increases in media.
This spending will be carefully targeted to support new products in the Company’s core,
high-margin categories and in key competitive markets including the U.S., China, Russia,
India, Mexico and Brazil.
Truly global in scope, Colgate operates in over 200 countries and territories.
Approximately 70% of sales come from international operations.
At Colgate, governance is the set of policies, principles and values that guides them
business processes in the best interests of shareholders and employees. At every level, the
principles that guide sound governance guide the actions of Colgate people. Colgate takes
it a challenge to make its customers happy.
Consumer demographics include family life cycle. The stages in the life of a human
being in Pakistan are depicted in consumer demographics. Generally Colgate is preferred
by people of all the groups. Since it is medicated product, people of all the ages like to
use it. Since it is not that expensive and costly, people like to go for it. It comes in
different packs and costs. For example, a single person or bachelor might be going for a
small sized tooth paste. A home where there is family of 8 members living might choose
a jumbo sized Colgate. A newly married couple may go for a medium sized tooth paste.
Race & Ethnicity factor does not apply on the product.
The customer feels like buying a tooth paste. He is moved by a desire. He recognizes the
need for it. He looks for other alternatives for example, a person might think that using
tooth paste powder is better than the tooth paste. He keeps some other options before
himself like SPARKLE, CLOSEUP, MACLEANS and some locally made tooth paste.
He compares the price & quality of the products. He tries to find out which one is the best
choice. OK, Colgate is good. It’s affordable and qualitative. I’ll buy this. After buying the
product, the consumer thinks that his decision was right. This is his post purchase
behavior. If he has used the product many times and is satisfied with it, he will neglect
any alternatives and simply go for Colgate. This shows his level of involvement with the
product.
For example, BEST PRICE in Islamabad is offering good prices and services. Its location
is good. There is crowd of customers all of the time. As compared to this, whole sale
shops at Karachi Company offer very reasonable prices, but the service is slow and in
efficient. A customer has to wait for about 10 minutes to get his bill. This at times
irritates the customer. SALESDAY is offering good service but very high prices. Colgate
costing Rs. 40 would cost Rs. 60 there. The patronage motive behavior is reflected in this
way.
Well, the information and purchase decisions are usually the commercial one. Very little
social information is considered in case of Colgate. The commercials, retailers and
advertisements tend to influence a lot.
Well in case of the product, all the 4 groups of classes use the product. Only the lower-
lower class, where there is low family income and a single person is earning and
supporting a big family, the product is not used. Colgate is being offered in many
packages.
However, the reference groups that come for the product might include the celebrities on
TV or any other film star. Reference group is a group of people who influences a
person’s attitude, values and behavior. For example there was an AD of Colgate where
they showed a popular MTV vee-jay as a school teacher. She was teaching the students
( in the advertisement) and telling them how to recognize colors. She asked them what
the color of her teeth was. The small kids replied” yellow”. She was embarrassed. She
started using Colgate and asked from her students the same question again. This time,
their answer was “White”. This is how advertisements and media people influence our
personalities.
A family is a place where different people live together with a blood group relationship.
A household is a place where 2 or more people live together, but do not have a blood
relationship. For example, campus of YWCA is a house hold. Definitely, the product is
used by both the categories. A family buys the product and a two students living in the
same hostel room might be using it.
For a marketer, Five levels of Maslow are too general. There are certain products to
which these strategies do not apply. For example, buying a house would come under the
first need, as it is associated with psychological level. But when a person wants to make a
farm house, extending on an area of 10 canals, it comes under the esteem stage. A
product like Colgate can not be placed into any of the levels of hierarchy. However, it can
help the marketer get a picture of the consumer’s mind. But these five levels are too
general and vivid for a certain product.
IV.10.1 PERCEPTION
BAD BREATH!!!!!! THAT PERSON HAS A BAD BREATH PROBLEM. This is what
we perceive. Research on every day odors has found that scents like vanilla. Cedar and
lavender create comforting associations and psychologists have found that good smells
have a nice effect on consumers. Hence Colgate is offering new varieties like COLGATE
fresh breath, COLGATE lemon & mint, Colgate tingly Red, Colgate tingly Blue. and
many more.
IV.10.2 PERSONALITY
IV.10.3 ATTITUDE
The way we react towards things. Our approach, our thoughts and our mind set all come
under this. A consumer attitude do not always show purchase behavior. A person may be
having a great likeliness for the product and still not buying it. There certain reasons for
it. He might not be wishing to buy it on the same time. He might not be wising to buy it
the same day. He might be having a stock of the product at home. He might not be
having any money to buy the product. Purchase behavior at times contradicts attitudes. It
might not be a metric for a marketer.
Obviously, when people are in a hurry, they do not like to shop. People like to buy the
Colgate tooth paste when they need it. When they think that the one they are using now is
not satisfying their needs properly.
These include the buying motives of the customer. A family might be consuming a 100
pack tooth paste in a month. The other family might be consuming it in three months. The
time dimension many implications on purchase behavior. Messages or Ads must reach
consumers when they are in a state of decision making process.
The consumer’s mood in buying the product also matters. When a consumer is ill or not
in a good state of mind, he might not spend much time in asking questions about the
product or waiting in a line.
“We are carefully targeting increased commercial investment to support our priority
businesses in key high-potential markets around the world. Our stepped-up advertising
spending is already paying off in higher market shares and new category leadership
positions around the world. With our sharp focus on new products, we remain dedicated
to accelerating innovation and furthering our leadership positions worldwide.”
This is how Colgate people manage to enter a business market and do a business there.
The brands Colgate is dealing with in the business and international markets include:
These include:
Colgate total
Colgate Max Fresh
Colgate luminous
Simply White
Sparkling white
Tingly Red
Colgate sensitive
These include:
Floor cleaners
window cleaners
dish washers
wood cleaner
Obviously the agriculture market has little to do with the Colgate. The Government
market has little to do with the Colgate Company. Also the company has nothing to do
with a non profit organization.
As far as the demands of the products are considered, it is elastic in case of some of the
products and in elastic in case of some of the products. The buying behavior is affected
by the elasticity of the demand. As the fluctuations in demand of the Colgate products are
concerned, it might rise for some products and might fall for some products. For
example, a trend emerges that instead of using a Colgate Palmolive Soap, a hand wash
will be used. This reduces the demand for soaps and increases the demand for the hand
wash.
The business buying Decision process is almost the same as the consumer buying
decision making process. The only difference comes in the variety of the products and
brands. For example, instead of evaluating the alternatives for one product, different
needs are identified and different alternatives are identified. Then those different
alternatives are evaluated and a final decision making is followed. The products Colgate
is manufacturing is more than 100, so for each and every one of the products, this process
can not be written.
Colgate people believe in keeping its customers satisfied and develop a tong term
involvement with their products. The Colgate goes for operational CRM when it tells its
customers not to hesitate to give a call on toll-free number. They maintain a list of current
data, historical reports and some annual reports to implement analytical level of CRM.
They have maintained a list of annual reports 2001, 2003 and 2005. They use the data
from these reports and manage to maintain an analytical CRM. They provide their
customers brochures and catalogs about their different products in order to ensure
collaborative CRM. Different pamphlets are given to their customers.
Well, the e-commerce has played a major role in the development of many products over
the internet during the past few years. On line shopping is made possible. Different firms
ask you to see their product and place an order via their credit card. Colgate asks its
customers to do so. It first asks its customers to have a look at a particular product, rate it
and place an order for it if they feel pleased with it, and they think that it can satisfy their
needs appropriately.
The market segmentation involves dividing a bigger market into a smaller one and
similar one. This process is valid for very big target markets and doing the marketing
there. The Colgate people are implanting this concept in most of their products. Market
segmentation is a typical market oriented approach. It is typically based on a customer
satisfaction approach. It is done where different wants of the same group of customers are
satisfied in a diverse way. For example, Colgate is making Soft Soap 100 gms for a
person, who lives in small family home, 125 gms for a large family, and 80 gms for a
single person. Palmolive natural is especially for kids. In market segmentation, the needs
of all the customers in different target market and with the similar needs are satisfied. In
the context of business and international marketing, markets are always segmented.
Different age groups and different sizes of segmented markets are always there. It
depends on the intelligence of the marketer to decide how to segment the market. There
are different types of Soaps with “oil control”, “greasy skin” “aloe Vera” treatment.
There is a variety of shampoos that Colgate is manufacturing. These include ”flat hair”,
“extra shine”, “dry hair”, “damaged hair”, ”color treated hair”, “shampoo plus
conditioner”, “extra shiny treatment” and many more like these. We see variety in body
wash and shower gel products as well. Some people like lavender, some people have a
taste for fruit scented shower gels. Some people go for light smells, whereas some have a
taste for heavy smells. Some have a favor for floral scented shower gels. All this comes
under market segmentation. The variety in the products of Colgate shows us that they are
implementing a segmented marketing concept.
The geographic segmentation is done on the basis of region, population factor, urban or
climatic conditions. It means segmenting the markets on these bases. For, example, for
very hot areas, Colgate has included a sun screen ingredient in its soaps to prevent from
sun rays. On geographic basis, the climatic condition population factor and regional
distribution matter a lot.
These comprise age, gender, family life cycle, income, and education. For, example, the
need of a 13 year old teen age would be different from that of a retired army officer.
A teen age girl likes to use soap, where as an earning lady might think that she has to take
care of her skin, she should finally go for a deep cleansing face wash. It is generally
assumed that a person below the age of 25 does not go for a “hair color treatment”
shampoo. A person above this age has applied some hair color and would go for a “hair
color restoring” shampoo. Income might matter in the same way. As gender is
considered, beauty and personal care products are used more by females.
It comprises examine attributes relating to way how a person thinks and what are the
personality characteristics of a person or customer. Personality means persona, behavior,
traits and quality. Also, our life style matter in market segmentation. How a person
spends his time, what are his activities, interests and opinions. The life style affects
greatly products a person buys and the brands he prefers. Some of the Colgate products
depict a lifestyle strategy. But this is a difficult strategy to be used while going for
market segmentation. A marketer may not be aware of the different life styles of the
people in target markets. Psychographic marketing segmentation is difficult to
implement.
It consists of two things. The benefits desired from the product and the rate at which the
customer is using the product. Well, behavioral segmentation concept is applied on
Colgate. The benefits from the tooth paste product are no plaque, fresh breath, no
cavities, low price, good quality and white teeth. The usage rate can also be determined
from the data. If the records of a certain shop or general stores are checked, if they show
that most of the tooth pastes bought were Colgate. This type of analysis makes a marketer
know the usage rate of the product. He is aware to implement behavioral market
segmentation.
Colgate people know in what markets they are doing their business. And how many
markets they are dealing in. They know the location of their customer It is doing its
business in many countries. Colgate has its markets in almost more than 25 countries
around the globe. These include USA, India, Belgium, Brazil, Australia, Canada,
Denmark, France, Finland, Germany, Greece, India, Ireland, Italy, Mexico, Malaysia,
Netherlands, Norway, Portugal, Spain, Switzerland and UK. A segmented marketing
concept is also applied for these countries. Some of these countries are pre-industrial
countries. Some of these are Post-industrial countries. Some of these are less developed
countries and some of these are industrializing countries. Business market segmentation
is done on these bases.
The transaction conditions include the buying situations, usage rate and order size. This
concept does not apply to Colgate. However, the usage rate applies on Colgate. It is
heavy user product.
The Colgate people have tried to sustain themselves through tough competition and hard
work. Media and advertisements are also responsible for creating an image of the
company in the eyes of its customers and competitors.
According to the words of a top level person at Colgate,
“It's my pleasure to welcome you to the world of Colgate-Palmolive. Colgate is a truly
global company doing business in over 200 countries.”
Another person at Colgate says,
“Our long history of strong performance comes from absolute focus on our core global
businesses and dedication to our successful worldwide financial strategy.”
This is the way the Colgate people have positioned themselves. The company has got
certain awards for the best performance throughout the world.
Colgate is capitalizing on strong top-line momentum as they enter 2005. This very
positive trend combined with a new global restructuring program bodes well for strong
profitable growth going forward. Colgate People remain focused on their high-margin
core businesses and believe they are taking the right measures to invest strategically for
profitable growth. Colgate achieved strong sales and unit volume growth in 2004.
Colgate’s sales and volume did grow very strongly in 2004. Global sales increased 7.0%
and global unit volume from continuing businesses grew 6.5%, the strongest unit volume
growth in six years.
They firmly believe that the fundamentals of their business are very strong and their
business strategy is sound. The top-line growth momentum seen in 2004 is continuing
and market shares are growing stronger and stronger around the world. They remain
extremely focused on new product innovation in the core categories and are prepared to
continue to spend aggressively to support their global brands. With the expected savings
from the 2004 Restructuring Program and ongoing “Funding the Growth” programs, they
are optimistic that they will reach their profit expectations in 2005, and they believe they
are back on track to return to double-digit earnings per share growth in 2006.
CONCLUSIONS
In the end, I conclude that Colgate Co. is a typical market oriented company, operating in
more than 200 countries. They feel pride in making their customers happy. They are
applying the societal way of marketing. They are aware of their social and ethical
responsibilities. They are providing many new employee oriented programs, both for
senior level and entry level people. They are managing the consumer and business
markets in an effective manner. They encourage innovations and have introduced new
products which have played a vital role in getting a market share for them. They face
their competitors and feel proud to take it a challenge. They are well aware of the
psychology of the people in different markets. They know how to conduct their business
in international communities. The way they consider different factors like demographics,
customer location, geographical distributions and many others. They maintain levels of
CRM at the company to ensure good customer support. The way they proved themselves
in consumer, business and international markets. They still have a high aim to attain more
and more.