11/19/2011

COLGATE
TOOTHPASTE

A REPORT OF PROMOTION MANAGEMENT

Suprita Subedi | AceMBATerm5

Table of Contents
Chapter1 ........................................................................................................................................................ 2 Introduction ................................................................................................................................................... 2 Chapter2 ........................................................................................................................................................ 1 Brief History ................................................................................................................................................. 1 Chapter3 ........................................................................................................................................................ 4 SWOT Analysis ............................................................................................................................................ 4 3.1 Strengths: ............................................................................................................................................ 4 3.2 Weaknesses: ........................................................................................................................................ 4 3.3 Opportunities: ..................................................................................................................................... 4 3.4 Threats: ............................................................................................................................................... 4 Chapter4 ........................................................................................................................................................ 5 Market Segmentation and Targeting ............................................................................................................. 5 4.1 Segmentation....................................................................................................................................... 5 4.2 Target Markets .................................................................................................................................... 6 Chapter5 ........................................................................................................................................................ 7 Product Positioning ....................................................................................................................................... 7 Chapter6 ........................................................................................................................................................ 9 Competitor Analysis ..................................................................................................................................... 9 Chapter7 ...................................................................................................................................................... 10 Marketing Mix ............................................................................................................................................ 10 7.1 Product .............................................................................................................................................. 10 7.2 Price .................................................................................................................................................. 11 7.3 Place .................................................................................................................................................. 11 7.4 Promotion ......................................................................................................................................... 12 Chapter 8 ..................................................................................................................................................... 13 Media Plan .................................................................................................................................................. 13 8.1 Media Objectives and target Audience ............................................................................................. 13 8.2 Media Strategy .................................................................................................................................. 13 8.3 Communication Strategy .................................................................................................................. 14 8.4 Budgeting .......................................................................................................................................... 14 8.5 Media Planning ................................................................................................................................. 15

Chapter9 ...................................................................................................................................................... 16 Creative executions ..................................................................................................................................... 16 9.1. Creative Brief ................................................................................................................................... 16 9.2 Creative Strategy ............................................................................................................................... 17 9.2 Final Ad ............................................................................................................................................ 18 Chapter10 .................................................................................................................................................... 19 Conclusion .................................................................................................................................................. 19 References ................................................................................................................................................... 20

Chapter1 Introduction
Colgate Toothpaste is a brand of Colgate-Palmolive, a big manufacturer of a wide range of toothpastes, toothbrushes, dental floss and mouthwashes. Colgate Ribbon Dental Cream was the first toothpaste in a collapsible tube, introduced in 1896, when it had previously been sold in glass jars since 1873. The more famous oral hygiene product line among all is Colgate Tooth paste. It is available with many variations like Colgate Dental Cream, Colgate Total12, Colgate Sensitive, Colgate Max Fresh, Colgate Kids Toothpaste, Colgate Fresh Energy Gel, Colgate Herbal, Colgate Cibaca Family Protection and Colgate Active Salt. Colgate is acknowledged as the world's leader in personal care sales including oral hygiene products such as toothbrushes and toothpastes. It has many subsidiary organizations located in more than 200 countries, but it is publicly in only two, the United States and India. The main goals of Colgate are to better understand consumers behavior, launching new products through innovation, increasing effectiveness and efficiency as well as strengthening the leadership worldwide. Colgate-Palmolive Company 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 New York City, across from the Waldorf Astoria. In India, it operates under the name as Colgate- Palmolive (India) Limited and its head office is at Mumbai.

Chapter2 Brief History

1806: William Colgate starts a starch, soap and candle business on Dutch Street in New York City. 1817: First Colgate advertisement appears in a New York newspaper. 1820: Colgate establishes a starch factory in Jersey City, New Jersey. 1857: Upon the death of founder William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son. 1866: Colgate introduces perfumed soap and perfumes/essences. 1872: Peet Brothers establish Soap Company in Kansas City, Kansas where they make Crystal White soap. Cashmere Bouquet, the first milled perfumed toilet soap, is registered as a Colgate trademark. 1873: Colgate introduces toothpaste in jars. 1896: Colgate introduces toothpaste in a collapsible tube. 1898: B.J. Johnson Soap Co. introduces Palmolive Soap. 1900: Colgate wins top honors for its fine soaps and perfumes at the Worlds Fair in Paris. 1902: Stylish Palmolive advertising begins, emphasizing ingredient purity and product benefits. 1906: Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products. 1908: Colgate is incorporated by the five sons of Samuel Colgate. Ribbon opening added to Colgate tube: We couldn't improve the product so we improved the tube.

1911: Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing. 1914: Colgate establishes its first international subsidiary in Canada. 1920s: Colgate begins establishing operations in Europe, Asia, Latin America and Africa. 1926: Soap manufacturers Palmolive and Peet merge to become Palmolive-Peet Company. 1928: Colgate merges with Palmolive-Peet to become Colgate-Palmolive-Peet Company. 1930: On March 13, Colgate is first listed on the New York Stock Exchange. 1953: Colgate-Palmolive Company becomes company's official name. 1956: Colgate opens corporate headquarters at 300 Park Avenue in New York City. 1962: Colgate opens research center in Piscataway, NJ. Fabric conditioner is launched in France as Soupline. 1966: Palmolive dishwashing liquid is introduced 1968: Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities. 1972: Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals. 1976: Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global leader in pet nutrition and veterinary recommendations. 1983: Colgate Plus toothbrush is introduced. 1985: Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley & Hazel, a leading oral care company, which adds strength in key Asian markets. 1986: The Chairman's You Can Make A Difference Program is launched, recognizing innovation and executional excellence by Colgate people. 1987: Colgate acquires Softsoap liquid soap business from the Minnetonka Corporation. 1989: Annual Company sales surpass the $5 billion mark.

1991: Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S. Today, its product portfolio has expanded to include all-purpose cleaners, sprays and wipes. 1992: Colgate acquires the Mennen Company. Today, Mennen products are sold in over 52 countries. Colgate Total toothpaste introduced. 1995: Colgate enters Central Europe and Russia, expanding into fast-growing markets. Colgate acquires Kolynos Oral Care business in Latin America and launches market-leading Sorriso toothpaste. 1997: Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems. 2004: Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community. 2006: Colgate enters the fast-growing Naturals segment by purchasing Toms of Maine, a leader in that market in the United States. 2009: Colgate focuses on four core businesses: Oral Care, Personal Care, Home Care and Pet Nutrition.

Chapter3

SWOT Analysis

3.1 Strengths:
1) Focus on innovative and new product launches. 2) Colgate business planning initiative. 3) Diversified business operations. 4) Strong financial performance.

3.2 Weaknesses:
1) Highly leveraged. 2) Because of high rate of taxes prices are high.

3.3 Opportunities:
1) Emerging market growth. 2) Deploying advance technologies. 3) Implementing new products majorly to attract youth.

3.4 Threats:

1) Competitive landscape from other private label growth. 2) Increasing commodity prices. 3) Political condition is not stable.

Chapter4 Market Segmentation and Targeting

4.1 Segmentation

Colgate toothpaste products can be divided into segments catering to the needs of the consumers. The following is the basic way of segmenting the toothpaste products: COLGATE DENTAL CREAM: It helps cleaning breath and guards teeth from tooth

decay. This is for the general people and for family use.

COLGATE TOTAL 12: This product of Colgate has decay preventing dentifrice,

prevents gingivitis, reduce formation of plaque and tartar above gum line. This is especially helpful for protecting teeth enamel and all round protection of teeth. Focus of this product is upon the hygiene conscious consumers and patients who are suffering from gum problems.

COLGATE SENSITIVE: This product prevents nerve ends; provide effective relief from

pain of sensitive teeth and gently whitens the gums. This product targets the hygiene conscious customers and also the patients who are suffering from serious teeth and gum problems.

COLGATE MAX FRESH: The gel properties of this product of Colgate gives freshness

along with protection. This product specially targets the young generation who avoids bad breath and inculcate the word freshness. COLGATE KIDS TOOTHPASTE: This product helps to prevent tooth decay of the kids.

This product is specially designed for the kids. COLGATE FRESH ENERGY GEL: This product of Colgate has the freshness which

gives freshness and energy to the user and helps to avoid bad breath. This product targets the young generation who prefers freshness.

COLGATE HERBAL: This product contains herbal ingredients for white teeth and

freshness which removes bad breath and removes plaque. This product is designed for the people who believe in ayurvedic products and avoid using strong chemicals.

COLGATE CIBACA FAMILY: This product is designed as a complete family dental

cream. The product targets all age groups and all types of consumers, basically, the rural and township areas with low per capita income as well as urban areas. COLGATE ACTIVE SALT: This product is popularly known as everyday family

toothpaste, combined with minty taste with a dash of salt for a unique brushing experience. The product is designed for individuals who trust natural element like salt as a tooth care ingredient.

4.2 Target Markets

Colgate has the whole toothpaste market as its target market. Being one of the oldest varieties of toothpaste, the Colgate Dental Cream has been marketed as a synonym for toothpaste. Colgate Total 12 claims to provide a12-hour protection from germs. Hence, this variety of Colgate toothpaste is targeted at the educated, urban people who brush their teeth twice. Colgate Max Fresh, with its multiple flavors, seems to target the youth. It also associate brands like iPod and sports like Kayaking with it through the means of gifts / prizes which further enforces the belief that Colgate Max Fresh is for the youth. Colgate Kids toothpaste is clearly, as even the name suggests, targeted at kids. The advertisements and packing of the toothpaste further suggests that it is meant specifically for the smaller kids. Colgate Fresh Energy Gel is clearly aimed at the youth. Colgate Herbal targets the traditional and the naturalist market which is pretty apparent from the name as well as the tagline Strong teeth, healthy gums naturally and the use of squirrels the central character in its advertisements. Colgate Advanced Whitening specifically targets people with plague problems as the toothpaste claims to provide whiter teeth within14 days. Colgate Active Salt toothpaste targets customers with orthodox thinking who believe that salt is good for teeth. Colgate Cibaca is a product for the economy segment. The target market is basically the rural and township areas with low per capita income as well as urban areas.

Chapter5 Product Positioning

Colgate Dental Cream positions itself as toothpaste that has the necessary calcium and minerals to provide decay protection, strong teeth, germ protection and fresher breath. Lately, with competition from indigenous vegetarian toothpastes, Colgate Dental Cream has also positioned itself as an always 100% vegetarian toothpaste. The tagline of is advertisements, Trusted by generations to make teeth stronger, clearly aims to position the Dental Cream as a toothpaste that has been used over generations and hence creating a kind of emotional attachment with the toothpaste. Colgate Total12 have been projected as the most advanced toothpaste that provides12 hour germ protection even after eating and drinking by building a protective shield around the teeth. It also tries to position itself higher in terms of reliability of its claims by telling the consumers that its formula is a patented one and the toothpaste is the most recommended one by the dentists. Colgate Max Fresh positions itself on the basis of freshness. The tagline A new dimension of freshness explains this very point. Colgate Kids Toothpaste tries to position itself based on emotions which is apparent in its tagline Makes fighting cavities fun. It also provides the names of familiar cartoon characters like Tweety and Bugs Bunny to the various flavors that it markets and hence associating the tastes with the feelings of kids towards these cartoon characters. Colgate Fresh Energy Gel, as the name itself suggests, bases its marketing strategy on the toothpaste providing freshness. It positions itself as a gel (here it tries to differentiate itself from a toothpaste) for fresh breath and strong / white teeth. The emotional positioning of Colgate Fresh Energy Gel is implicit by the way of the photo of the couple on the toothpaste pack and in the advertisements. It obviously wants to strike a chord with the young, and also the budding couples of the country. Colgate Herbal positions itself based on basically only one attribute, i.e. being herbal.

The Colgate Cibaca Family Protection toothpaste positions itself in a very standard way by claiming to provide strong teeth and fresh breath. Colgate Advanced Whitening toothpaste has a very unique positioning as it is very focused on specific attributes like restoring natural whiteness, preventing stains from adhering and fighting plague. The Colgate Active Salt toothpaste positions itself alongside the other toothpastes that claim to fight gums and result in healthy gums and teeth.

Chapter6 Competitor Analysis

Colgate, founded in 1806 by William Colgate, is the world market leader in oral hygiene products. The toothpaste product line consists of strong brands. This is due to a very successful marketing strategy of the company in the past. But, especially in a competitive environment like the personal care industry it is essential for Colgate that it upgrades its organizational as well as marketing strategies in order to meet the customer's needs and strengthening the leadership. Furthermore nowadays a wide range of different toothpaste products is offered to the customers. This in particular means for Colgate that they must differentiate their products from the competitor's products by being innovative and unique. Moreover the toothpaste market is growing constantly which means that more different needs and expectations of the customer will arise. Therefore Colgate must make use of marketing tools such as market segmentation to better identify their needs in order to supply them with the right products. The main competitors of Colgate are Oral-B, Unilever (Close-Up; Pepsodent), Procter & Gamble, Johnson & Johnson and Smith Kline Beecham. The personal care industry is mostly controlled by these companies. On the one hand in order to gain more market share within this industry, the only way is to take it away from one of these competitors. On the other hand Colgate must also be aware of losing market shares to their competitors.

Chapter7 Marketing Mix

The marketing mix (4 Ps) of Colgate Toothpaste is discussed as below:

7.1 Product
Colgate-Palmolive is having different product lines. These product lines consist of personal care, bathroom care, household care and many more products. Various brands of Colgate toothpaste are as follows: Colgate Dental Cream Colgate Total12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Active Salt

A lot of customers purchase the Colgate product for their own consumption to satisfy their daily personal needs. From the marketing point of view, Colgate Toothpaste is an excellent business product. Wholesalers & retailers purchase the Colgate toothpastes from its manufacturer (Colgate-Palmolive) and sell it to the end customer or consumers and earn a good business from it.

7.2 Price
Pricing Strategy- The pricing strategy of Colgate Toothpaste is Competition Based

Pricing Strategy. Discount/Allowances- No promotional discount are allowed. Payment period/credit terms- Being an off-the-shelf FMCG, in line with the category, no

credit is allowed by the company (though the store allows credit on purchase of all items) Competitive positioning strategy adopted by Colgate involves providing the most upscale product and charging a higher price to cover the higher costs. Using superior quality in association with this strategy also symbolizes status and life style. Often the price difference exceeds the actual increment in quality.

7.3 Place
Colgate is sold over almost all the retail outlets viz., Kirana stores, supermarkets, medical shops, etc. It is well-distributed through the supply chain of company distributors to wholesalers to retailers to final consumers. But the various varieties of Colgate are not so easily available other than in the oral care outlets or super markets. The small tubes of Colgate are also available in small road-side shops and from the vendors. Colgate toothpastes are available at every convenience place to facilitate its customers. So, customer purchases it with a very little shopping effort. Colgate use different channel (retailers and wholesalers) to search and delivers the prospective customers. Colgate use the distribution channel which is very efficient, effective and which is not only meets customer needs but also provide them the valuable services.

7.4 Promotion

Advertising of Colgate products is basically done through television commercials. Sales promotion is not done at the retailer level, apart from possible recommendation by the shopkeeper. The company has backed its products with a very strong distribution network. Over the years, Colgate has been able to develop strong brand equity. Adopting a good promotional strategy, Colgate has succeeded to retain its customers and image. By this Colgate strongly focuses on different promotional strategies i.e. mass selling, advertising, publicity and sale promotion etc. Colgate-Palmolive has proved itself as a keen observer of the market and the culture all around itself. Colgate has done in the past and still doing at the moment. It is producing & introducing the products especially for the kids. Colgate is very popular among young kids just because of its perfect promotion. Colgate-Palmolive is promoting kids products by labeling the cartoon Characters like Looney tunes, Barbie, Barney and many more which are being loved by the children.

Chapter 8 Media Plan

8.1 Media Objectives and target Audience Media objectives include reaching the largest proportion of our target market as possible. The target markets are the kids, youth and people having dental problems and those who are freshness and hygiene conscious people. It is very important for the company to have their potential and target customers remember everything they see and hear about the brand and it is as important as a company to emphasize brand recall in its promotion strategy, especially in a situation like Colgates when there are lots of competitors in the market with similar products.

When an advertisement reaches the audience member and when the advertisement is displayed or shown to the customers a number of times, then they have a chance to memorize the advertisement. Therefore, as per the companys objectives, the advertisements must be out for an extended period of time to familiarize with the products. The target audience really should be exposed to the advertising at the points of sales as well because purchases are often made spontaneously for this product category. For Colgate toothpaste, internet advertising can be a lot more cost effective than producing television ads. As our product is a universal product, having a larger demographic audience.

8.2 Media Strategy

The media strategy includes choosing the appropriate media to build advertisements including information of the product. The Colgate should also appear in the advertisements and include the Colgate Logo and Colgate colors of red and white to increase brand recognition. All the communication about the company through various media or channels like TV, print ads, Radio, Newspapers etc. should be uniform and convey the same message to the target audience so that a consumer can recall the brand with the uniformity in its communication through various medias.

8.3 Communication Strategy

8.4 Budgeting

Budgeting the particular campaign is very important part of Media Planning because of cost involved in hiring models, photographers and celebrities for the photo shoot. Also, the cost needed for media buying i.e. where and how often the ad will be shown or displayed should be determined by money.

8.5 Media Planning

The Media that will be used for promoting the products include: Posters Wall paintings Radio advertisement Dental camps Free Sampling Sales promotion Demonstration vans Advertisement in local channels BillBoards Online Advertising Magazines

Chapter9 Creative executions

9.1. Creative Brief

Strategic Approach: Consumer oriented Brand image strategy Lifestyle Positioning Resonance Attitude Affective Strategy

9.2 Creative Strategy

Story Board for Radio Advertisement: A child trying to bite a sugarcane piece hurts his tooth. Rushes up to his mother. Mother gets worried. Takes child to a doctor. Doctor cites out the o Benefits of brushing. o Incremental benefits of toothpaste over natural alternatives. The family takes to brushing. Child bites sugarcane and is happy.

9.2 Final Ad

Chapter10 Conclusion
The strong relationship and the trust of generations of consumers, trade and the dental profession built over decades of operations has made Colgate a trusted household name. The small soap and candle business that William Colgate began in New York City early in the 19th century is now, more than 200 years later, a truly global company serving hundreds of millions of consumers worldwide. The companys over 200- year history reflects the strength and innovation that Colgate people have used to constantly transform the company and identify new opportunities.

With global brands sold in over 200 countries; Colgate, Mennen, Palmolive, Ajax, Softsoap, and Hills Pet Nutrition are among the world's most recognizable household names, trusted and relied upon by consumers everywhere. Colgate People, working around the world, share a commitment to three core corporate values: Caring, Global Teamwork and Continuous Improvement. These values are reflected not only in the quality of the products and the reputation of the company, but also in our dedication to serving the communities where they do business.

As a successful business, Colgate is focused on achieving the consistent growth required to continue their global success and to be an even stronger company through its continuous improvement in promotions, product development and branding strategies.

References
http://en.wikipedia.org/wiki/Colgate_(toothpaste) http://thinking-brands.blogspot.com/2010/09/brand-in-focus-colgate.html http://www.grin.com/en/e-book/173671/a-strategic-analysis-of-colgate-stoothpaste-product-line