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Colgate - Palmolive

Canada: Fighting For A


Share Of The Toothpaste
Market

G R O U P 1: JA NA RT H , JU LI E, JO R D AN & M AH N O O R
D ATE : D EC 9, 201 6
C O U R S E: M KT G 3 100 1D
PR O F ESS O R : C AR O L BU R EA U
AGENDA
1. FACTS
2. KEY ISSUES
3. EVALUTION OF ALTERNATIVES
4. RECOMMENDATIONS
5. IMPLEMENTATION PLAN
FACTS
Who: Colgate vice president of customer relationships and Colgate- Palmolive Canada
decision maker Richard Werner.

What (problem statement): Already being a successful company their priority is too widen
their customer base and get consumers with other brands to switch. They need to invest in
marketing activities that will make this goal successful.

Why: They already hold most of the market share within the industry
They want to develop ways to take control of the industry by getting consumers over to
their brand.

When:
- 2013 fiscal year they want to implement these things in order to have them go into
immediate effect.
KEY ISSUES
Probability of Occurrence

Level LOW MED HIGH


of
impac
t
LOW

MED

HIGH
EVALUTION OF ALTERNATIVES
PROS CONS
Alternative #1: Deploy - The Colgate brand is doing - Doing nothing for future
the same budget mix as well with what is currently growth rarely does well. If
2012 and not request an being implemented the company were to decide
increase Although the revenue growth to do nothing, there may be
targets for 2013 have not an increase in sales but it
been finalized, the targets will likely be extremely slow
are expected to increase by
4.5%
Alternative #2: Increase - The company already -Too many advertisements in
the advertising budget by holds the highest market the consumers face can
$3 million, which would share because of their cause a dislike towards the
allow an increased online advertisements. company
presence or and - Previous 75 percent of - Too many advertisements
increased television ad budget towards advertising in the consumers face can
frequency has proven to be successful cause a dislike towards the
for the business company
- Current campaign is - An increased online
extremely successful and is presence may not be as
grabbing the consumer's useful as according to the
attention. research most non-loyalists
make purchase decision in
Evaluation of alternatives cont
Increase the trade promotion budget by $3 million to focus on building
volume with all the major retailers.

Pros : More shelf space in store, A lot of consumers check weekly flyers

Cons: Too many advertisements could cause dislike, More money is an


unnecessary focus on current consumers, likely wont get consumers to switch.

Increase the consumer promotion budget by $3 million to focus on consumer


promotions such as sampling and coupons to encourage product trial

Pros: Many customers are brand loyal to them, will bring old and new
customers all together.

Cons: wont focus on old customers enough, 3 million is a giant expense if


unsuccessful.
Evaluation of alternatives cont
Make major market push with an even larger increase in marketing
budget to fund multiple options.

Pros: All the alternatives listed will bring success to the company. By
investing a portion of the $3 million to each type of promotion, there
will likely be an increase in market share, sales and brand loyalty.

Cons: Focusing on too many promotions and advertising campaigns


can cause the company to lose focus , By investing all around there
will likely be an increase in market share, sales and brand loyalty but
the rate at which they increase will likely not be as significant when
compared to specializing on one specific promotion/campaign.
RECOMMENDATIONS
Alternative #4: Increase the consumer promotion
budget by $3 million to focus on consumer promotions
such as sampling and coupons to encourage product trial
and build better relationships with customers through
rewards.
IMPLEMENTATION PLAN
THANKS FOR LISTENING!!