Analysis Of Marketing Strategies Of

Colgate Palmolive

Submitted to:
Mr. Syed Munir Ahmed

Course Instructor Strategic Marketing Management

Submitted By

COLGATE PALMOLIVE (PAKISTAN) LIMITED

Company Overview:
Colgate Palmolive (Pakistan) Limited is part of the Lakson Group of
Companies which deal in consumer package goods, such as dental,
personal, surface and fabric care products. Colgate Palmolive (CP) is a
franchise of Colgate Palmolive Co. Incorporated (USA).
Colgate-Palmolive

(Pakistan)

Limited

core

business

is

in

the

manufacturing and marketing of soaps, detergents, toothpaste and

personal hygiene products.
Colgate-Palmolive is one of the three major players in the Fast Moving
Consumer Goods (FMCG) business in Pakistan. The nature of the
products offered by the company, both locally and globally, fall into
four categories: Oral Care, Personal Care, Surface Care and Fabric Care.
The companys principal strength in Pakistan, however, lies in Oral
Care, Fabric Care and Surface Care. Major successes at ColgatePalmolive are attributed to the identification and satisfaction of
consumer needs in various income groups. The company aims to serve
different consumer segments with equal importance by maintaining
consistent levels of quality and price. It does so by adopting a
customer-oriented

approach

that

requires

tremendous

effort

in

identifying consumer needs and coming up with effective and

profitable solutions.

Colgate Toothpaste
CP does not categorizes its different types of dental creams (gel, cream
etc) and treat them under one brand name Colgate. Therefore we

studied Colgate as a whole.

Target Market
The table below shows the current target market as a percentage of
total industry sales in the six major zones of Pakistan. The derivation of
the final current target market in rupee terms is explained in the
following page.
Current Target Market (As a Percentage of Total Industry
Sales)
Total

Annual

Toothpaste

Consumption

(Tonus)
Sales in 6 Major Zones in Pakistan
Current Target Market: 6

Zones

(Tones)
Average Price/ Kg / Year
Current Target Market (Rupees)

3800 Tones
70%
2660 Tones
Rupees 310/ Kg/ Year
Rupees 825 Million

Derivation of Target Market

Derivation of the Target Market For Toothpaste Industry
60 Million

200 Million
People with Income Level of Rupees 8000/

x 80%

Population in 6 major Urban Cities: 30% of

Month or Above
Urban Target Population
Dispersion in Surrounding Rural Areas: 12%
Current Target Market (Population)
Current
Average
Consumption
of

64 Million
4 Million
38 Million
70 grams

Toothpaste/ Person/ Year

Total Current Target Market Consumption

2660 Tones

(Tonnes)
Average Price/ Kg / Year
Current Total Target Market (Rupees)

Rupees 310/ Kg/ Year

Rupees 825 Million

Colgates Target Market

A target market is the relevant market or the portion that firm is most
interested in serving. The process of target market selection results
from the review of market opportunities. Colgate in Pakistan defines its
target market as not only the complete toothpaste market but also the
market for other oral care products. Thus roughly the entire Pakistani
population. They believe that every individual living in Pakistan uses
some means of oral care. Hence there is no sense in dividing the
Pakistani population between toothpaste and non-toothpaste users.
Colgates target market hence constitutes of all individuals using any
form of oral care product, living in Pakistan and earning a substantial
income. Their aim is to make Colgate available, affordable and
desirable to all.
However, for communication purposes the target market is defined
differently. This is done in order to ensure that the advertisement is
direct, specific and tailor made to suit the viewers and achieve their
purpose. The target market definition used for advertisement purpose
thus is an educated housewife who is concerned about her family and
wants to give her family the best within her means and knowledge.
She is responsible for their well-being and is playing the role where her

actions may result in being harm-full or helpful. Hence the current

target market for the Colgate toothpaste as a percentage of the total

industry as can be seen in the above grid is Rs. 825 million. It is
constitutes all individuals earning an income of Rs.5000/- and above,
which are 38 million people. That is 30% of the 140 million urban
population of Pakistan and 12% of the rural population.

The target market of Colgate Toothpaste is:

All Individuals using any form of oral care product living in
Pakistan and earning a substantial income.

Segmentation of Target Market

Segmentation is essentially the accommodation of different consumer
groupings in a marketing plan or strategy. Market segmentation is both
the process of defining the characteristics of various segments in the
marketplace and the allocation of marketing

resources

among

segments. By defining market segments in terms of buyers ideal

combinations of determinant attributes, Colgates brand manager
isolates the key choice criteria used in different segments in order to
design market offerings. He also does so as to determine the potential
sales opportunities of a particular segment and the best way to target

the members of the segment. The 6 Major Zones and their sub-

divisions by means of which Colgates market is segmented in Pakistan

are as follows.

Karachi
Karachi-I
Karachi-II

Sindh
Upper Sindh (Sukkhar)
Lower Sindh (Hyderabad)

Central Punjab
Central Punjab I (Lahore)
Central Punjab II (Faisalabad)

Lower Punjab (Multan)

Upper Punjab (Islamabad)

NWFP

The zones and their sub-divisions vary in potential. The following table
depicts the distribution of the target market sales in the major zones,
based on the Population size.
POSITIONING OF BRANDS
The positioning of Colgate toothpaste is quite unique. Colgate
Palmolive (Pakistan) has been able to capture the original positioning
theme from CP (USA) unlike CP (India) and other local partners in Asia.
This successful theme adoption can be attributed to the energetic
marketing team of Colgate Palmolive. (Pakistan). Colgates image in
Pakistan is that of a family brand with multidimensional advantages. It
has an attractive taste, and is equally good for children and adults.
Unlike its competitors who focus on only one theme like
Pepsodent lays emphasis on dental decay in children
Macleans emphasizes on strong teeth

Close up focuses on shinning teeth and a fresher breath for social

appeal and
Medicam anti toothache formula,

Colgate has been able to evolve all these images into one brand,
Colgate

Toothpaste.

Colgate

toothpaste

because

of

its

multidimensional image is often refereed to as an all rounder brand.

Price and quality are thus major attributes through which Colgate is
positioned. High quality for a complete dental care and premium
pricing are the major positioning theme.
According to CPs marketing tem Colgates differential advantage is its
all rounder capabilities. Its ability to fight tooth decay, eliminate bad
breath and give strong white teeth under one brand label is why its
the most preferred brand in Pakistan.

Strategy:

Further, the positioning is emphasizing on the main benefit of the

product i.e. cavity prevention. Therefore, the basis of positioning is
strong teeth and cavity prevention through which we will be achieving
an image of high quality. The positioning strategy is to create an
association

of

Colgate

Toothpaste

with

cavity

prevention

and

emphasizing cavity prevention and strong teeth in the promotional

campaigns will do this.