Colgate:

Colgate is an umbrella brand principally used to sell oral hygiene products such as toothpastes,
toothbrushes, mouthwashes and dental floss. Manufactured by American consumer-goods
conglomerate Colgate-Palmolive, Colgate oral hygiene products were first sold by the company
in 1873, sixteen years after the death of the founder, William Colgate.
According to a 2015 report by market research company Kantar Worldpanel, Colgate is the only
brand in the world purchased by more than half of households globally. Colgate has a global
market penetration of 67.7% and a global market share of 45% - despite this, it maintained the
highest growth rate of all brands in the survey, with 40 million new households purchasing
Colgate-branded products in 2014.[3] Its global market penetration is nearly 50% higher than the
second-placed brand in the study, Coca-Cola (43.3% penetration).
History of Colgate toothpaste:
Colgate was the first toothpaste in a collapsible tube, introduced in 1896 in New York City. It had
been sold in glass jars since 1873.
It has been in Singapore since the 1920s. It is in Nepal and India, with manufacturing units based
in India and exported to Nepal. While in the Philippines, it is introduced in 1940's.
In 1992, Colgate established its first factory in India to produce toothpaste for the domestic
market, and by 1999 became the highest selling brand in the world. Colgate products are
marketed in China using the transcription (Pinyin: Golji), which means "high-quality
cleaning gel". As of 2002, Colgate occupied 20% of the market share for toothpastes in China.
As of 2015, it also commanded approximately 70% of the oral care market in Brazil.
As of 2015, oral care products (principally produced under the Colgate brand) were the Colgate-
Palmolive company's largest source of income, making up around US$7.5 billion, or 47% of net
sales globally (with personal care products such as shampoos making up 20%, home care
products such as laundry detergents 19% and pet nutrition products making up the remaining
14%).
It is (as of 2017) the dominant oral care brand in India, with a 55% market share nationwide.
However, it has reportedly been challenged by fast-growing local competitor Patanjali Ayurved,
whose products based on Indian herbal remedies and traditional medicine has caused a 1.5% hit
to Colgate's market share (and forced it to launch a competing herbal ayurvedic toothpaste of its
own).
Mission
To become a fast growing consumer goods industry by developing and delivering innovative
new products to consumers and marketing them more efficiently.
Vision-
Colgates vision is to become the best truly global products company.
Tagline-
Colgate-world of care

Marketing mix of Colgate:

William Colgate, in the city of New York, founded Colgate, an international brand, in the year
1806. Although the company started its products range with candles, starch and soaps, but
presently the brand is associated with products relating to oral care like toothpaste and
mouthwash. The establishment has the distinction of offering products in more than two hundred
countries around the world and at present, the brand occupies the number one position in India.
Colgate has become a household name that helps in fighting germs and bad breath in order to
continue a thorough oral care. The brand has been able to gain the trust of millions of buyers by
providing high quality products at reasonable and affordable prices. Although, it faces stiff
competition from other brands but this healthy competition helps them to improve their own
products to maintain their number one position in the market.
Some of its chief competitors are:
Close Up

Pepsodent

Dabur

Product in the Marketing mix of Colgate

Brand Colgate deals in various products relating to oral hygiene care. Besides its normal variants
used by every genre, it has also launched special products for kids. The product kitty includes
Colgate toothbrush with bristles that are soft and reachable at every nook and corner of the
mouth to fight tooth decay and germs. Colgate toothpowder and mouthwash is one of the very
common products of this brand as they both relate to a different section of the customers. The
mouthwash makes the mouth feel fresher.
The Colgate toothpaste comprises abrasive materials like fluoride that help in scrubbing the
plaque away from the teeth and polishes the surface by removing the food stains. Presently,
thirteen variants of the toothpaste are available in the market that provides protection from
cavities, prevention of gingivitis and plaque, longer duration of fresh breath, controlling of tartar,
and whitening of teeth, strengthening of enamel and sensitivity relief. Some of the various
Colgate toothpaste products are:

Colgate Total Advanced Whitening

Colgate Total Advanced Clean

 Colgate Advanced Fresh Gel

Colgate 2 in 1 Oxygen Whitening

Colgate 2 in 1 Icy Blast

Colgate 2 in 1 Kids Strawberry

Colgate Regular

Colgate Tartar Control Toothpaste

Colgate Total

Colgate Active Salt

Place in the Marketing mix of Colgate

Colgate has always encouraged a strategy that is unique and different so that it stands out. This
helps in creating a new consumer base and in maintaining the interests of the previous customers.
The distribution channel of its products includes manufacturer and from there a quick dispatch to
wholesaler and then the retailer and lastly to the consumers.
The marketing strategy emphasizes on quick delivery and easy availability to the consumer. The
brand has had deals with even dental association that helps in promoting its products. The
dentists and the numerous medical stores have become its chief suppliers along with the
numerous departmental stores, co-operative stores, kirana stores and retail shops. The products
are accessible at every part of the country including rural, semi urban and urban market.
Nowadays, the online market has also helped the company to reach various customers
successfully. The companys official website along with other online shopping portals provides
the products with a single click of the finger. Customers do not have to waste their time by going
to various shopping centers.
Price in the Marketing mix of Colgate:
Colgate has positioned its toothpaste as its mainstream product and has highlighted all its other
oral care products around it. The company has decided on a competitive pricing policy to combat
its various competitors. The prices are at a similar range or at a slightly higher range than other
products. It plays with the purchaser psychology to its advantage by portraying that its products
have a longer duration and far-reaching effects on the oral care of the patrons.
As numerous dentists also recommend the product, the extra costs do not feel a burden to the
buyer. In order to meet the needs of various sections of the society the prices are different for
dissimilar products. For instance, a Visible white toothpaste costs much more than a Max fresh
toothpaste as it provides some extra whitening along with the basic oral care regime. To maintain
its customer base the prices are adjusted in such a way that the consumers do not feel the burden
of it.
The products are available in various pack sizes like 50g, 100g, 200g, 500g, and in combo packs
so that the deals look attractive to the customers. Sometimes the prices are constant but
consumers receive added benefits like extra quantity of product or in some cases another Colgate
product with the main product. This helps in maintaining the sales figure and generating the
revenues. The company has advisors who keep a constant watch on the market and continuously
are revising the pricing policy to maintain its hold on the consumers.
Promotion in the Marketing mix of Colgate:
In order to meet the wants and needs of all its consumers successfully the brand Colgate has
opted for innovative schemes and attractive packing strategies. The standard color red is now
being associated with Colgate and hence the brand capitalizes on this easy familiarity with its
products. They have also benefitted hugely from successful in-store arrangements.
For promoting the sales of its products, the company has encouraged various advertising policies
showcased through the digital media like television, radio and the print media like the
magazines, newspapers and through numerous billboards and hoardings. Internet has also
become a favorite marketing tool for both the buyer and the seller, thus helping in earning
revenues.
The company has its own dynamic website titled Colgate World of Care that helps in providing
all the product related information to the interested parties. The details also include the various
offers and discounts currently offered by the company.
In order to maintain a personal one to one relation with the consumers the brand has a social
networking media page on MySpace, Twitter and Facebook where the consumers are encouraged
to share their experiences.
Various discounted coupons are available in different newspapers and at the official Colgate
website to increase its sale figures. The brand has roped in numerous celebrities at various
intervals to make its products more visible. Its brand ambassadors include film stars like Lara
Dutta, Kareena Kapoor Khan, Sonam Kapoor and Priyanka Chopra.
Competitive advantage in the Marketing strategy of Colgate
Their broad product portfolio & apt differentiation based on the benefits provided by Colgate is
the driving force for them to be competitive. Different segmentation of their products set an edge
for them; moreover, their healthy communication with competitors had contributed positively to
the competition. The other competitive advantage that the Colgate has is its extensive
distribution network in rural & urban markets. It is making the product available as product
availability is the major concern in the highly competitive market. Due to having such large
product line it is helping the company to occupy large shelf space resulting into high visibility &
organic promotions.
Distribution Strategy -in the Marketing strategy of Colgate:
Colgate Palmolive has its own separate distribution company, called Colgate Palmolive Co
Distributors, a subsidiary of Colgate Palmolive. Being a FMCG company it has market access to
nearly the whole world. There isnt one single distributor for the whole business, but a few key
important subsidiaries for each region of operation.
But just because the company has their channels of distribution set, there is still the dirty work of
the actual transportation that also goes on. Colgate Palmolive cooperates with a global shipping
company called Magellan Transport Logistics. In order to make their products available to not
only grocery/departmental stores but also to the Medical stores it work in 3 tier distribution
system i.e. from manufacturer regional distributor sub regional distributor-Retailer-to
Customer.
Brand equity in the Marketing strategy of Colgate:
Colgate is Ranked No.1 in Kantar World panels 2014 Brand Footprint report. Colgate retained
its position as the second most chosen brand globally in a list of the top 50 brands. Colgate has
become household name, brands toothpaste category under Colgate brand name was so
successful that the name itself has been commoditized over the period of time.
Competitive analysis in the Marketing strategy of Colgate:
Colgate is surrounded by giant competitors. FMCG giants like HUL, P&G & many others local
players have extensive products in the Oral, personal & Home care category but some companies
are dominant in some category whereas some in others. HUL and P&G are more known for their
detergents and soaps as well as other FMCG products. Whereas, in all of them, for oral hygiene,
Colgate is the leader.
Market analysis in the Marketing strategy of Colgate:
In the highly competitive FMCG market, oral care & personal care product categories are over-
crowded by large number of international & national players. The key factor towards success in
this segment is the right branding strategy as well as the distribution and product quality. In all
these points, Colgate has maintained its lead and hence it is the market leader.
Customer analysis in the Marketing strategy of Colgate:
The typical customer of Colgate differs based on the product category as in oral care Colgate
have products to serve every segment of the society while in personal care & home care their
typical customer is the middle class families.
SWOT Analysis of Colgate:
Strengths in the SWOT analysis of Colgate
1. Brand recall & visibility: Colgate being the household name it is, has high brand recall &
visibility. Excellent advertising and brand visibility of products with a strong customer
loyalty for brands had helped the brand to compete with other players, thereby emerging as
one of the topmost brands in the FMCG market.
2. Product line: It offers product categories namely oral care, personal care, household surface,
fabric care and pet nutrition having deep assortments across the product categories. In
 FMCG, the more in depth your product line, the more chances of success increases because
the cost of logistics drops further.
3. Efficient Supply chain: With extensive distribution network in rural & urban markets,
Colgate ensures that it reaches a wide customer make, thereby making the product available.
Product availability is the major concern in this highly competitive market as brand
switching is very easy.
4. Financial position: Being 2 centuries old company and having operations in 200 countries
has built a strong financial base for Colgate. Thus, it is able to take on the likes of HUL due
to its deep pockets.
5. Market share: With high penetration in the market, Colgate has managed to hold their
market share and some products / brand extensions are market leaders in particular regions.
Weaknesses in the SWOT analysis of Colgate
1. Saturated market: With large number of local & national players fighting in personal & oral
care segment, the market has become saturated & there is little scope for growth while all
companies are eating each others market share.
2. Commoditized brand name: The brands toothpaste category under Coalgate brand name
was so successful that the name itself has been commoditized and now it is being used for
different brands of toothpaste. This has hampered the brand recognition of other products of
the same brand.
3. Cost control: Majority of its properties have been on rent basis resulting into high cost of
operations due to which its profits are decreasing. Due to high cost of operations, Colgate
products are also priced higher than the rivals.
4. Limited brands under different product categories & segments: Colgate have limited
brands under a particular product category and they have limited offerings under different
segments unlike their competitors like P&G,HUL etc.
Opportunities in the SWOT analysis of Colgate
1. Expanding their product line: By following product line stretching & product line filling
strategies they can increase their sales, create offerings and give value for different segments.
2. Tapping the rural market in developing economies: It is one of the major challenges that
every FMCG company is facing nowadays. With urban markets close to saturation, the rural
markets are the only hope for reaping profits for the company.
3. Strengthening the business through mergers & acquisitions: Its one of the smart
strategies followed by global companies to sustain and expand in the overseas market.
However Colgate is yet to capitalize the market by use of such strategies.
4. Usage rate: People need to be made aware about the optimum usage rate for these products
so that the market utilizes the product as forecasted by the company. This can happen only
through advertising /word of mouth /doctor prescription. Many a times companies forecast
wrong because they assume a higher usage rate in the market.
Threats in the SWOT analysis of Colgate
1. Competition in the market: With increasing number of local & national players its
becoming very hard for the companies to differentiate themselves from others. There is also
threat from counterfeit products destroying its brand image in the market.
2. Low Margins: As the competition rises, the margins for companies are dropping and
companies find that they have to give more and more discount to sustain in the same channel.
3. Price of raw material: Increasing price of raw material will result in further increase in the
price of Colgate. Over a period of time, justifying the high price compared to competition
will become difficult in a saturated market. Further increase in price will result in decrease in
sales & brand switching by consumers.
4. Ethical issues: The Ethical Consumer Research Association once recommended that its
readers should not buy Colgate because of its use of animal testing. In the digital age,
information like this will affect the brand Colgate.
5. Frequent Brand switching: With highly diversified personal & Oral care consumer market
where there are lots of brands claiming different sorts of benefits, its very difficult for
consumers to stick to a particular brand & hence results into brand switching where
consumer got power to select a brand based on several factors like availability, reference
group recommendation, preference & price.
Pest Analysis On Colgate:
Colgate-Palmolive Company (NYSE: CL) is an American diversified multinational corporation
focused on the production, distribution and provision of household, health care and personal
products, such as soaps, detergents, and oral hygiene products (including toothpaste and
toothbrushes). Under its "Hill's" brand, it is also a manufacturer of veterinary products. The
company's corporate offices are on Park Avenue in Midtown Manhattan, New York City.
In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and candle
factory on Dutch Street in New York City under the name of "William Colgate & Company". In
the 1840s, the firm began selling individual cakes of soap in uniform weights. In 1857, William
Colgate died and the company was reorganized as "Colgate & Company" under the management
of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In
1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars. His company
sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. By 1908 they initiated
mass selling of toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee
of Colgate University (formerly Madison University).
Political Factors: Political factors play a vital role for the business prevailing in the country. If
the government is inactive then the company advances at a standard rate but the other way round,
a drastic fall can be seen.
Economical Factors: Another imporatant external force that directly affects our decisions is the
economic variation. If a country experiences inflation then it will have a negative impact on the
businesses running in that country. So our product is directly influenced by this factor.
Socio-cultural factors: The main forces affecting decisions about our product are the social and
cultural factors. Before taking any decision we have to keep in mind the specific religious and
cultural key factors for our survival in the industry because people will repel the product that
their religion or culture do not prefer.
Technological factors: Technolgy is a factor whose value cannot be ignored. Technologies vary
with the passage of time in all industries. We also make our techniques and methodologies up to
date for keeping our product preferable in the market.
Porters 5 Forces Model:
Incumbent Rivlary: Consumers in the consumer-product category enjoy a multitude of choices
for everything from cleaning products to bath washes. While many consumers prefer certain
brands, switching costs in this industry are quite low. Hence, there is also a high degree of rivalry
for colgate.
The Bargaining Power of Suppliers: Consumer-product companies face some amount of
supplier simply because of the cost they incur when switching suppliers. Hence power for both
firms and suppliers is probably limited.
The Bargaining Power of Buyers: Consumer-porduct companies face weak buyers because
buyers are fragmented and have little influence on price or product. But if we consider the buyer
of consumer products to be retailers rather than individuals, then these firms will face very strong
buyer power.
The Threat of New Entrants: Given the amount of capital investment needed to enter certain
segments in household consumer products. The threat of new entrants is fairly low for the
company. The main test is whether the small manufacturer can get its products on the shelves of
the same retailers as its much larger rivals.
The Threat of Substitute Products: Within the consumer-product industry, brands succed in
helping to build a competitive advantage, but even the pricing power of the brand can be eroded
with substitutes such as store branded private-label offerings. Hence, there is a high level of
threats of substitute.
Brand Image of Colgate:
Innovation is a process in which a company always tries to produce and introduce a new and
unique product in the market. Colgate has such kind of nature. It is in a habbit of introducing
stunning products in the market and have an edge from its competitors. Colgate always tries to
create its image as innovators. By introducing new products in a product line , colgate try to
defend its market and create its image as innovator. The adoption is a set of successive decisions
an individual person or an organization make before accepting a new product. Here we are
talking about Colgate toothpaste. As we all know that people are well informed about the brand
of Colgate. Colgate always introduces toothpastes which are new as quality but is used to have a
flavor which is easily adaptable. Customer never compromise on quality. Due to this behavior of
customers, it is easy for colgate customers to adopt any new product without any fear or
hesitation. For the customer, Colgate is a reliable brand. Thats why Colgate introduces any new
product (toothpastes) it easily spread throughout the social system in a short period of time.
Segmentation, Targeting and Positioning of Colgate:
Basic target Market of colgate:
1) Urban youth and urban rich class.
2) Rich and consuming customers of rural India.
Colgate is positioned as the brand itself as of a high quality product with a premium price among
its competitors. Colgate Sensitive Pro-Relief is positioned as the tooth- paste that has the best
effectiveness in solving tooth sensitivity as instantly compared with other toothpastes. This
positioning is well reflected in their advertisements and product packaging.
Besides its good attribute, Colgate positioned itself as toothpaste that offers extra benefits to the
customers. Colgate is the only toothpaste that uses the new technology known as Pro-Argin
technology, which contains ingredients, that giving better protection on oral health. Moreover,
Pro-Argin technology also gives a long-term benefit by removing the problem from its root
(Marketing4u n.d.). Colgate informs the customers about the benefit offered by putting the words
New Pro Argin Technology in the advertisements. Colgates positioning however is observed
to be very close to Sensodyne, as based on the perceptual map. This is deduced from similar ads
from Sensodyne that reads Daily Relief from the Pain of Sensitive Teeth; however, Colgate
avoids direct confrontation with Sensodynes ads by changing the words Daily Relief into Instant
Relief.
Pro-relief target:
Being a product that caters to a very specific need pro-relief targets everyone between 20-40 age
group who suffer from sentivity problems.
This is evident from their advertising TVCs where they have people from all age groups being
shown.

According to several reports 53% of the people worldwide suffer from sensitivity realted
problems. Suddenly the proucts dosent sound too niche, considering 1 in every two is your target
audience.
Sensitivity problems do not come until the age of 18 so children and teenagers and not covered
but all age groups above 18 are targeted.
The target audience for Colgate is derived from Demographic, Psychographic and Benefit
segmentation. Demographic segmentation for Colgate considers the variables of age, gender,
income and education. The group includes both male and female, aged 20-39 years old,
belonging from a lower income and up and equipped with literacy abilities. This demo- graphic
of people tend to be sufferers of sensitive teeth.
Psychographic segmentation considers the lifestyle, social class and personality type. The
identified psychographic characteristic covers all social class, and based on the VALS lifestyle
framework would be people who are motivated by ideals of which consists of Thinkers and
Believers. These people are motivated by knowledge and principles, therefore when trying a new
product with medical qualities, these group are better won over through stimulating their
cognitive senses.
Benefit Segmentation considers the specific problems that can be solved by the product. The
benefit sought would be Relief from Sensitive Teeth. This segmentation refers to people suffer
from sensitive teeth, therefore would look for a product that cater to this need.
Usually toothpastes like Colgate targets the parents via the children but pro-relief required a
different style of advertising and targeting and hence the realistic ads.