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									     BALOCHISTAN UNIVERSITY OF INFORMATION
     BALOCHISTAN UNIVERSITY OF INFORMATION
 TECHNOLOGY,, ENGINEERING & MANAGEMENT SCIENCES
 TECHNOLOGY ENGINEERING & MANAGEMENT SCIENCES




TOPIIC:
TOP C:    MARKETIING RESEARCH ON COLGATE
          MARKET NG RESEARCH ON COLGATE




                          SUBMIITTED TO::
                          SUBM TTED TO           MIISS NADIIA SHAH
                                                 M SS NAD A SHAH

                          SUBMIITTED BY::
                          SUBM TTED BY           ABIIDULLAH KHAN
                                                 AB DULLAH KHAN
                           (A LPHABET C ORDER
                            ALPHABET C ORDER )
                                             )
                          ((ALPHABETIIIC ORDER   AJJMAL KHAN
                                                 A MAL KHAN
                                                 DEEPAK KUMAR
                                                 DEEPAK KUMAR
                                                 MUHAMMAD JAHANGIIR
                                                 MUHAMMAD JAHANG R
                                                 KASHIIF ZAHIID
                                                 KASH F ZAH D
                                                 UMAR DURRANII
                                                 UMAR DURRAN

                          DATE::
                          DATE                   04--06--09
                                                 04 06 09
                                                                                                                                                                 Colgate Palmolive Pakistan

TABLE OF CONTENTS
TABLE OF CONTENTS
COLGATE PALMOLIVE (PAKISTAN):.................................................................................................................... 3


COMPANY HIERARCHY: .......................................................................................................................................... 4

    SWOT ANALYSIS: .................................................................................................................................................... 5
         Strengths: ............................................................................................................................................................... 5
         Weaknesses: ........................................................................................................................................................... 5
         Opportunities: ........................................................................................................................................................ 5
         Threats: .................................................................................................................................................................. 5
    STRATEGIC MARKETING PLANNING: ............................................................................................................................. 5

PRODUCTS: ................................................................................................................................................................... 6

    HARD SURFACE CARE: .................................................................................................................................................. 6
         Max: ....................................................................................................................................................................... 6
    ORAL CARE PRODUCTS: ................................................................................................................................................ 6
         Colgate toothpaste: ................................................................................................................................................ 6
         Freshmint toothpaste: ............................................................................................................................................ 6
         Colgate classic toothbrush: .................................................................................................................................... 6
    PERSONAL CARE PRODUCTS: ........................................................................................................................................ 7
         Palmolive: .............................................................................................................................................................. 7
         Donge:.................................................................................................................................................................... 7
         Protex:.................................................................................................................................................................... 7
    FABRIC CARE: .............................................................................................................................................................. 7
         Express:.................................................................................................................................................................. 7
         Brite: ...................................................................................................................................................................... 8
         Bonus: .................................................................................................................................................................... 8
         Texapol: ................................................................................................................................................................. 8

COMPETITION: ............................................................................................................................................................ 8

    BRAND COMPETITION: .................................................................................................................................................. 8
    SUBSTITUTE COMPETITION:........................................................................................................................................... 9
    GENERAL COMPETITION: .............................................................................................................................................. 9

MARKET RESEARCH ANALYSIS- COLGATE PALMOLIVE:............................................................................ 9

    HOW COLGATE PALMOLIVE COLLECTS DATA FOR MARKETING RESEARCH:................................................................... 10

PRODUCT ANALYSIS: .............................................................................................................................................. 10

    PRODUCT LEVELS:....................................................................................................................................................... 11
         Core Product:....................................................................................................................................................... 11
         Actual Product: .................................................................................................................................................... 11
         Augmented Product:............................................................................................................................................. 11
    THE PRODUCT LIFE CYCLE: .......................................................................................................................................... 11
    POSITIONING AND DIFFERENTIAL ADVANTAGE:........................................................................................................... 12
                                                                                                                                                                                           1
                                                                                                                                                             Colgate Palmolive Pakistan

         Target market: ...................................................................................................................................................... 12
         Market demand: ................................................................................................................................................... 12
         Brand equity:........................................................................................................................................................ 13
         Packaging and labeling: ...................................................................................................................................... 13
    PACKAGING STRATEGY OF COLGATE PALMOLIVE TOOTHPASTE: ................................................................................. 13
    PRODUCT LINE STRATEGY: ......................................................................................................................................... 14

PRODUCT COMPETITION: ..................................................................................................................................... 14


PRICING STRATEGIES: ........................................................................................................................................... 15


DISTRIBUTION: ......................................................................................................................................................... 16


PROMOTION: ............................................................................................................................................................. 16

    THE CAMPAIGN OBJECTIVE: ......................................................................................................................................... 17
    THE PROMOTIONAL BUDGET: ...................................................................................................................................... 17

COLGATE PALMOLIVE’S PROMOTION MIX: ................................................................................................... 18

         Advertising: .......................................................................................................................................................... 18
    SALES PROMOTION: ..................................................................................................................................................... 19
         Free sampling: ..................................................................................................................................................... 19
         Distribution of souvenirs:..................................................................................................................................... 20
         Contests:............................................................................................................................................................... 20
         Conferences: ........................................................................................................................................................ 20
    PERSONAL SELLING: ................................................................................................................................................... 20
    PUBLIC RELATIONS AND PUBLICITY: ........................................................................................................................... 20

CONCLUSION: ............................................................................................................................................................ 20

    QUESTIONNAIRE FOR PRODUCT................................................................................................................................... 21
    PRODUCT SPECIFIC: .................................................................................................................................................... 23
    PACKAGING SPECIFIC: ................................................................................................................................................. 23
    PRICING SPECIFIC........................................................................................................................................................ 23
    PROMOTION SPECIFIC.................................................................................................................................................. 24




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                                                                                   Colgate Palmolive Pakistan

COLGATE PALMOLIVE (PAKISTAN):
Colgate Palmolive started its operations in Pakistan in 1977 as joint venture between Colgate
Palmolive (USA) and Lakson Group. Over the years the company has successfully marketed
some very popular consumer products. Colgate Palmolive (Pakistan) is listed on the Karachi
Stock Exchange with 60% equity with the Lakson Group, 30% with Colgate Palmolive (USA),
and 10% shareholder equity with the general product.1 The Lakson Group is a prominent group
with business enterprises in all-major sectors. The business concerns of Lakson Group include
         Lakson Group
         Premier Tobacco
         Century Papers
         Merit Packaging
         Tritex Cotton
         National Detergent
         Century Insurance
         Clover Foods (local manufacturers of Tang)
         Siza Foods (local franchise of McDonalds)
         Cyber Internet Services (the largest private sector internet service provider)


Colgate Palmolive is one of the largest ventures by the group. With assets of more than Rs. 400
million and a turnover of Rs. 1500 million, it has emerged as one of the largest corporations in
Pakistan.
The introduction of Colgate Palmolive in Pakistan was novel in the sense that unlike other
multinational ventures, the local partners were allowed to introduce and manufacture new brands
under the Colgate Palmolive flagship. However, strict checks on quality were imposed. Colgate
Palmolive Pakistan has an agreement with Colgate Palmolive (USA), under which it pays royalty
to its parent company only on brands, which use the words “Colgate” or “Palmolive”.
Mission Statement: To provide the best quality products to consumers to fulfill their entire
household needs.




1
    Source: Annual report 1997 Colgate Palmolive Pakistan
                                                                                                           3
                                                                                                            Colgate Palmolive Pakistan

Corporate Mission: To become the number one consumer goods company in all the regions it is
operating.2
Colgate Palmolive (Pakistan) Limited




COMPANY HIERARCHY:



                                                               Managing Director


Director Marketing and Sales                      Director Finance                                              Director Productiobn


       Marketing Manager       Accounts Manager   Inventory Manager        Manager Administration   Factory Manager 1          Factory Manager 2


    Product Category Manager


         Brand Manager


    Assistant Brand Manager


2
    Source: Communicated through E-mail with Mr. Omar Qadri, Brand manager Colgate
Toothpaste, Colgate Palmolive Pakistan
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                                                                                Colgate Palmolive Pakistan

SWOT ANALYSIS:
Overall organizational SWOT analysis
Strengths:
Colgate Palmolive‟s strength lies in its strong marketing team. Even while working within a
small budget, the team has delivered and carved a niche out for itself in the consumer goods
market. Its aggressive strategies are clearly reflected in the marketing campaigns of Bonus VS
Wheel, and Express VS Ariel. Colgate Palmolive‟s marketing efforts have been particularly
strong in the promotional, and the distribution aspect of its marketing mix.


Weaknesses:
Lack of capital, and inadequate financial resources, is a big weakness for Colgate Palmolive.
Facing the onslaught of huge MNCs like Lever Bros, and P&G, requires a strong monetary
backing. Since Colgate Palmolive, is basically sponsored by a local group (Lakson), their
financial background is comparatively weak.


Opportunities:
Growing demands for consumer goods, especially branded items, represent an ideal opportunity
for Colgate Palmolive to cash on. Similarly, positive economic signals, economic growth, and
the end of recessionary periods around the globe present bright economic marketing prospects
for Colgate Palmolive.


Threats:
Continuous onslaught by other FMCG companies, especially Proctor & Gamble, is a big threat
for Colgate Palmolive. Proctor & Gamble has captured huge market shares from Express, Brite,
and the Palmolive soap. Its aggressive marketing strategies pose an ever-increasing threat to
Colgate Palmolive‟s marketing efforts.


Strategic Marketing Planning:
Colgate Palmolive Pakistan prepares its strategic marketing plans for all its products categories
division. Separate marketing plans are made for key brands like Express Brite, max and Colgate.
These plans are formulated by the brand management teams and are carefully reviewed semi
annually. Progress reports are regularly submitted to the top Managers.
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                                                                                 Colgate Palmolive Pakistan

PRODUCTS:
Colgate Palmolive (Pakistan) has four product categories. Included under these categories are
several brands. The product categories are as follows
        Hard surface care
        Oral care
        Personal care
        Fabric care


Hard Surface Care:
Hard Surface Care category includes some popular brands
Max:
Max is the market leader in hard surface care category. Its major competitor is Vim being
marketed by lever brothers


Javex:
Javex is a liquid hard surface care product. It is only marketed in urban area


Oral Care Products:
Oral Care Product category at Colgate Palmolive includes the three brands.
Colgate toothpaste:
Colgate toothpaste is the market leader in Pakistan


Freshmint toothpaste:
This is a relatively less popular brand by Colgate Palmolive it was basically targeted towards
people with bad breath problem. To some extent its marketing mix targeted towards with quite
similar to that of close-up toothpaste.


Colgate classic toothbrush:
Colgate classic toothbrush commands a huge market share. It ranks second after Shield in the
branded category of toothbrushes.



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                                                                                  Colgate Palmolive Pakistan

Personal Care Products:
Personal Care Category includes various popular soaps:


Palmolive:
Palmolive is one of the most popular brands worldwide but failed to make a big impact in the
local market when it was introduced in the 1980‟s. Aggressive marketing by Lever Brothers‟
brand Lux was one of the reasons for its moderate success. In spite of its failure to gain the top
slot, Palmolive still commands quite a large market.


Donge:
Donge soap is another premium brand by Colgate Palmolive. It is basically catered to the upper
income segment of the market. The „niche‟ marketing concept has been employed while
marketing Donge. It is only available at top retailers in urban cities. Its competitors include
premium brands imported in Pakistan such as those manufactured by Cussons (England)


Protex:
This is another personal care brand offered by CP. It is basically a semi-medicated soap
competing against brands like Safeguard and Lifeboy gold but unlike these brands this is targeted
towards the middle and the lower class.


Fabric Care:
Fabric care division is the biggest revenue earner at Colgate Palmolive. In this area the
competition amongst brands has intensified to a great extent over the past few years.
CP markets some well-known Fabric care brands, these include:


Express:
Express is the best selling detergent in the country. It's Express that introduced the concept of
poly bags in Pakistan. It successfully dislodged Surf from the top position but is facing resistance
from Ariel, being marketed by Proctor and Gamble. Express was changed to express lemon to
compete Surf‟s conversion to Surf Excel. Also included in the Express series is Express bar
targeted towards those who prefer soap to detergents.


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                                                                                 Colgate Palmolive Pakistan

Brite:
Brite is another popular brand. For years it was the market leader in Pakistan. Brite is available
in convenient sachet packs and is targeted more towards the middle class. Brite underwent a
similar conversion process like Surf and Express. It was first changed to double action Brite and
later to Brite total.


Bonus:
Bonus is aimed at the middle and lower middle class. Its main competitor is wheel being
marketed by Lever Brothers.


Texapol:
Texapol is another detergent manufactured by Colgate Palmolive. It is basically made up of left
over scrap and is very cheap. It is marketed in only rural and semi-urban areas.


Aim:
Aim is another product targeted towards the rural area.

COMPETITION:
The competitive environment also has a big influence on Colgate Palmolive‟s marketing
programs. Colgate Palmolive mainly competes with two other huge multinationals, namely,
Lever Brothers, and Proctor & Gamble. It also competes in some categories with Zulfiqar
Industries, and Transpak Corporation.
The brand war between these fast moving consumer goods (FMCGs) marketing companies is
especially tough in the detergent and toothpaste market.
A careful analysis of the competitive environment among these FMCGs reveals three types of
competition, namely: Brand competition, Substitute competition, and General competition


Brand Competition:
Brand competition exists between similar products. For example, in the case of Colgate
Palmolive, Colgate toothpaste with Close Up, English toothpaste, and Macleans. Express
detergent competes with Surf Excel, and Arial in a similar fashion.


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                                                                                Colgate Palmolive Pakistan

Substitute Competition:
This competition exists between products that satisfy the same needs. Incase of Colgate
Palmolive, Colgate toothpaste competes with Dentonic, and Khas tooth powder. Similarly
Express competes with detergent bars and soaps. Donge, Colgate Palmolive‟s premium personal
care brand competes with imported face washes.


General Competition:
In a more general sense, Colgate Palmolive competes with every other company for a share in
the consumer‟s budget.

MARKET RESEARCH ANALYSIS- COLGATE PALMOLIVE:
Colgate Palmolive believes in not only building its differential advantage over the competitors
but also in maintaining it through constant research and development. The research efforts of
Colgate Palmolive are channeled towards constant improvement of its product, finding out new
and improved ways of reducing its costs, and exploring new opportunities for promoting its
products as compared to its rival products, such as English, Macleans, and Pepsodent toothpaste.


In view of the ever-increasing importance of the R&D function in its organization, Colgate
Palmolive has increased its research and development budgets over the last few years.


Marketing Information system has been providing up to date, information about the
competitors sales information, their marketing strategies, and also pertinent timely information
about the market demographics, the changing tastes and trends, information about the sales and
demand of substitute products, and any product that might be a threat to the Colgate toothpaste.
Soon after its launch, Pepsodent was spotted by Colgate Palmolive to be a potential threat to the
Colgate toothpaste in the subcontinent market, and thus Colgate Palmolive intensified it
marketing efforts for the toothpaste. Colgate toothpaste had till then been primarily advertised as
a toothpaste that strengthened teeth, but later advertisements stressed that Colgate was a
toothpaste that fought plague, and freshened breath, besides making them strong.


Colgate Palmolive has a computerized marketing information system, whereby the company
maintains all sales records, and captures market data as mostly relayed by the sales people.

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                                                                                  Colgate Palmolive Pakistan




Relational databases are maintained, which store data on customers, suppliers, changing market
trends, as well as sales data.


Marketing Research Projects are carried out as and when required. These projects are mostly
started at a time when a new product is „in-the-pipeline‟. Not only does Colgate Palmolive does
research to ensure that it is going to make the right kind of product but it also likes to make sure
that the product is launched at the right time, the right way, and in the right market. Thus
marketing research projects are carried out to ensure that the launching goes right.


How Colgate Palmolive collects data for marketing research:
Colgate Palmolive uses both primary, as well as secondary data while conducting research.
Primary data primarily consists of forms filled out by the customers at the retailer end, as well as
retailer feedback on customer preferences. Usually both of these are utilized whenever Colgate
Palmolive conducts a formal research, such as for the launching of a new product. When the
Colgate Palmolive was launching the Colgate Palmolive toothpaste in the new packing, both of
these forms of primary data collection were made use of.


Important information regarding competitor performance can also be obtained through primary
and secondary research. Such a practice of collecting information about competitors in the case
of secondary information is called as Competitive Intelligence. Colgate Palmolive likes to collect
fortnightly data about the sales of its own product as well as those of competitors by
geographical location, in order to keep up with customer preferences and make any necessary
changes in its marketing mix. Colgate Palmolive‟s research department if highly sensitive to any
changes in the sales of rival products; English toothpaste, Sparkle, Pepsodent, Mcleans.


Important sources for acquiring secondary data for Colgate Palmolive are the published journals
on „Fast Moving Consumer Goods Companies (FMCGs).

PRODUCT ANALYSIS:
Colgate toothpaste is a star product of the company. With high growth rate and an equally high
market share it is one of the most popular family product in the world.

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                                                                                   Colgate Palmolive Pakistan

Product levels:


Core Product:
The core product of Colgate Palmolive or the idea sold through Colgate toothpaste is, „something
that enables clean, healthy, strong teeth‟. One of the characteristics stressed the most in all
Colgate toothpaste advertisements is, that it leads to strong, healthy teeth. The presence of
calcium in the toothpaste is thus stressed since it‟s widely believed that calcium strengthens
teeth.


Actual Product:
The actual or the physical form, in which the core product is sold, is the white fluoride, and
calcium based toothpaste, contained in a squeezable tube.


Augmented Product:
Any additional features to the actual product (necessary to make the product functional) are
augmented part of the product. Social appeal and attractiveness through brighter teeth and fresher
breath are important augmented features of Colgate Toothpaste.


The product life cycle:
Colgate Palmolive has a large market share, which is increasing at an increasing rate. Thus it is
clearly in the growth stage. The brand management team feels that its growth stage will continue
for at least another half a decade and then it will approach the maturity stage.




                                                                                                         11
                                                                               Colgate Palmolive Pakistan

Positioning and Differential Advantage:
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). Colgate‟s 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
1. Pepsodent lays emphasis on dental decay in children \
2. Macleans emphasizes on strong teeth
3. Close up focuses on shinning teeth and a fresher breath for social appeal and
4. 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 CP‟s marketing tem Colgate‟s 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 it‟s the most preferred brand in Pakistan.

Target market:
Ever since its introduction in Pakistan, Colgate has had a consistent target market. Unlike other
brands Colgate has never altered its target market segment. Though there has been some
expansion in recent years.
Colgate is targeted at middle income and upper income families. Lower middle and educated
families with white-collar jobs are also included in its target market, Colgate through its
advertisements focuses on its key concept that is toothpaste of the family theme.
A few years back Colgate was introduced in the semi urban and rural areas. Again educated
middle and upper class are targeted here.

Market demand:
The marketing team of CP believes that Colgate toothpaste has a lot of growth potential and the
saturation point is quite far off.
management.
                                                                                                     12
                                                                                  Colgate Palmolive Pakistan

Brand equity:
Colgate toothpaste enjoys very strong brand equity both internationally as well as in the local
markets. In fact it was this brand equity that led to the introduction to the Colgate toothbrush in
the country. Regular market surveys conducted by research consultants hired by CP (Pakistan)
reveal that Colgate‟s brand equity has been increasing at a rapid pace. More and more people
now have a favorable image of Colgate and more people place as a first choice now against the
previous trend when the oral care brands like Macleans, Shield and signal enjoyed very high
brand equity as compared to Colgate.


Packaging and labeling:
Colgate toothpaste comes in an attractive, eye-catching red colored pack. The CP marketing
team feels that packaging of product is of vital importance and the emphasis on this area on this
area can be gauged by packaging innovation such as introductions of polybags in case of
Express, paper wrappers in case of Palmolive against card packaging of soaps and Max in plastic
bags. Similarly Colgate has also been marketed with user-friendly packaging. A push-up lid
replaced the cap, however no change was made in the tube style. The red pack of Colgate is very
attractive and eye-catching and consumers find it easy to trace it from the retailers‟ shelf.
The packaging highlights all use instruction and multiple advantages of the paste. Similarly the
claim that Colgate is recommended by more dental associates in the world as compared to any
other toothpaste is also clearly highlighted. This, the management feels adds to the brand equity.
One element is however missing out from Colgate‟s label of oral care, products have a customer
suggestion or complaint address mentioned in their packages. This is not present in the case of
Colgate.


Packaging Strategy of Colgate Palmolive Toothpaste:

When making the packaging decision, the executives must be very clear as to which packaging
strategy needs to be pursued. That weather family packaging or product line packaging strategy
will be followed. CP follows the strategy given below: -




                                                                                                        13
                                                                                Colgate Palmolive Pakistan

Product Line Strategy:
CP packages the CP toothpaste is its distinctive red and white colored packaging with the
familiar Colgate trademark. This packaging color combination is unique only to the product line
CP toothpaste. The different sizes of CP toothpaste are all packaged in the same packaging. Such
a strategy is being followed so that the product is district not only from the competitors but also
from any future product line in toothpaste that Colgate may introduce.

Also, CP has never hesitated in pursuing the strategy of changing the package whenever it has
felt the red. This occurred when, the new and improved flexi tube with the flip cap was
introduced. The initial package was the traditional metal tube, then the flexi tube and finally the
flexi tube with the flip cap was introduced.

CP has also made recurrent improvements in the outer cardboard packaging, making it more
attractive and durable over time.

PRODUCT COMPETITION:
The competitions in the oral care category especially in the toothpaste market very intense. For
nearly a decade, a cutthroat battle has been going on between brands belonging to established
FMCG companies.
Colgate has captured a huge chunk of the market and its share is increasing day by day. Some of
the major competitors are as follows
1. Macleans
2. Medicam
3. Close-up
4. English
5. Minto
6. Pepsodent


Among all these competitors, Medicam has the largest market share. It comes very close to
overtaking Colgate in terms of sales. The USP of both the products are however widely different.
Colgate is a more general product for overall dental health while Medicam targets people with
toothaches and those suffering from dental decay. Due to poor oral hygiene a large number of
our urban population suffers from these problems and hence Medicam has been able to capture a
                                                                                                      14
                                                                               Colgate Palmolive Pakistan

large chunk of the market. A couple of years back when Medicam‟s share was increasing at a
very high rate, there were plans of Colgate to introduce a similar specialized product with
Colgate brand name. However, the company decided against it and continued to concentrate on
its original USP.
The introduction of English toothpaste in the market by a competing group was another
challenge faced by Colgate brand management team. English toothpaste was targeted at the
middle class and was priced at nearly at half the price if existing brands. Its promotional
campaign focused on its cost-leadership strategy and the brand was successful in the market
leader for a brief period. Close-up being marketed by Lever Brothers is another prominent player
in the toothpaste market. Premiumly priced close-up is targeted at the upper class. Close-Up‟s
marketing strategy lays a greater emphasis on shinning teeth and fresher breath for social
acceptance rather than on dental problems.
Touchme introduced Minto in the market a year ago. Minto adopted a strategy similar to that of
English but laid emphasis on both price and quality.
Macleans some years back used to be market leaders but have lost its share mainly due to
ineffective promotional efforts. Pepsodent, Signal 2, Forhans and Oral 3 are other competing oral
care products Colgate has competition with. The shares of this toothpaste have been declining.

PRICING STRATEGIES:
When Colgate was introduced in the market skimming pricing strategy was used. The price was
higher than most of the brands.
Colgate has persisted with its premium pricing concept ever since. Emphasizing on quality for
product differentiation it has never used price cuts to increase its sales. Colgate‟s price
throughout the country has been the same.
Though it has never decreased its prices in times of stiff competition the CP management have
used discount offering like two in one pack, toothbrush packs and extra volume packs. This tact
was however employed in face of increasing competition. The main pricing concept, however,
has revealed around premium pricing. Today, Colgate is sold at Rs 27/- (75 gms), which is way
above the competition considering that one of the main competing brand; English is sold at
Rs.10.
Like other products of CP, retailers and wholesalers are given quantity discounts, price discounts
regularly.

                                                                                                     15
                                                                                Colgate Palmolive Pakistan

DISTRIBUTION:
Colgate Palmolive has one of the most effective networks in the country. Its deep penetration
even in the far-flung areas is remarkable. It is because of this effective system that Colgate
toothpaste is widely available and occupies a substantial place on the retailer‟s shelves. All over
the country CP unlike its competitors P&G and Levers does not rely on external distribution
agencies but has an internal distribution subsidiary by the name of Express. This provides the
company wit an administrative VMS while its competitors have a contractual VMS. Colgate‟s
toothpaste distribution takes place through various channels. In the urban areas the chain is:
Colgate Palmolive         Express distributors         Retailers       Consumers
In certain semi-urban areas the company follows a slightly different route. For areas like Quetta,
Hyderabad, Sukkur, Sialkot, Gujaranwala etc the company involves agents wholesalers for the
expertise in these areas. The chain therefore expands into:
Colgate Palmolive               Express distributors           Agent wholesalers            Retailers
Consumers
However, in purely rural areas, Colgate in directly sold through agent wholesalers:
Colgate Palmolive       Agent wholesalers          Retailers              consumers


No matter where Colgate is marketed, the parent company has a lot of influence on the other
members of the distribution chain and thus sufficient channel power.

PROMOTION:
Promotion is the most important element of the marketing of any consumer good item especially
if it‟s a convenience good.
Since competition in the all care area is extremely intense, it is promotion, which brings out the
differential advantage of a product. The management at Colgate Palmolive realizes the
importance of promotion and huge efforts are made to ensure effective promotional planning and
the success of all promotional campaign. All major product of Colgate Palmolive is heavily
promoted including Max, Palmolive, Express, Brite and Colgate toothpaste.
Colgate‟s success over other oral care brands can be attributed to its high and effective
promotional campaign. The promotional mix of Colgate consists of the following activities:
1. Advertising
2. Sales Promotion
                                                                                                      16
                                                                                Colgate Palmolive Pakistan

3. Personal selling
4. Publicity
5. Public relations
On an overall basis a push strategy is applied. This is directed towards the ultimate consumers
with the intention to motivate them to ask retailers for their product. In turn the retailers, would
request the product from the wholesaler and distributors.


The campaign objective:
Colgate toothpaste is presently in is growth stage. Keeping this in mind, the Colgate management
has outlined two major objectives of its campaign. Since the product has been in the market for
quite some time, and has crossed its introduction stage, the management feels there is no major
need for informative promotion rather the focus should be on
1. Persuasive promotion
2. Reminder promotion.
Persuasive promotion basically aims at convincing people that Colgate toothpaste should be their
first choice amongst all the other toothpaste. On the other hand reminder promotion aims at
constantly reminding people that the products widely available in the market. According to
Colgate‟s brand management team reminder promotion is of vital importance in case of all fast
moving consumer goods and especially toothpaste‟s. Many good products have failed just
because their parent companies failed to focus on reminder promotion. Binaca and Natural
toothpaste were pushed out of the market because if this reason. The decline of Sparkle and
Signal 2 both market leaders a few years back can be attributed to the same factor.


The Promotional Budget:
Promotional budgets at Colgate Palmolive are usually established at the beginning of the year but
the management I always ready to adjust them, if such a need arises. The overall budget is set
after analyzing after analyzing the long-term strategic marketing plans and their implementation.
The basic budget is set in line with some objective or overall goal in mind. Revisions are usually
made keeping in view the competition and promotional expenditure made by the competing
firms.




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                                                                               Colgate Palmolive Pakistan

COLGATE PALMOLIVE’S PROMOTION MIX:
The promotion mix at CP. consists of the following in order of significance.
1. Advertising
2. Sales Promotion
3. Personal selling
4. Public relations and publicity


Advertising:
Advertising forms a single most important promotional tool as far as Colgate toothpaste is
concerned. Its advertising campaign can be classified as
a. A consumer advertising effort and not Business-to-Business advertising.
b. Product advertising for indirect action i.e. it is designed to stimulate demand for over a
   longer period of time.
c. Selective demand advertising i.e. it is directed towards stimulating demand for an individual
   brand. i.e. Colgate toothpaste and not a generic category of product.
d. Competitive advertising since its advertising campaign is basically against other competing
   brands and focus is on its special features and differential advantage.


Campaign Development and Implementation:
An advertising campaign consists of all tasks involved in converting a basic theme
Into an advertising program for achievement of a specific organizational goal relating to a
particular product.
At CP., the brand management team initially comes up with an overall objective of the
campaign. This is discussed in detail with middle management consisting of marketing
managers. After this a budget is established from the overall promotional budget, decided at the
beginning of the year. After this budget has been approved the brand management team gets in
touch with the advertising agency, which is spectrum communications, and the basic message of
the campaign is created. Spectrum Communication is one of the largest advertising agencies in
Pakistan and has some blue-chip accounts of top MNCs and national companies. It also has
affiliation with world-renowned advertising firms. The campaign message is decided after active
consultation between
1. Brand management team
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                                                                                Colgate Palmolive Pakistan

2. Client service executives of Spectrum Communications
3. Creative department team at Spectrum. Communications


After the campaign message has been decided and approved by the CP. top management, the
brand management team decides over the media required to execute the campaign. The media-
planning department helps in making this decision. For Colgate toothpaste, television is the most
prominent media. Some advertising is also done through newspapers, magazines and on very
small scale through outdoor media like billboards.
Timings of advertising especially those that are aired on television are of great importance. The
local television scene has undergone a huge change with multiple channels and large number of
productions. This makes the placement of advertisement more difficult. Colgate Palmolive uses
the services of certain advertising agencies like AD Track, which provides information regarding
view ship and timing of advertisement.
Similarly, Aftab Associates, a leading research firm also provides relevant data necessary to
gauge the effectiveness of the advertising campaign.


Measurement of effectiveness:
Once advertisements have been developed and aired, the company tries to evaluate the
effectiveness of these advertisements. Recall the company conducts tests. One drawback as far as
the total advertising campaign is concerned, is that Colgate Palmolive does not have its own
advertising department like its competitors. Due to this the company has to rely on its agency.


Sales promotion:
After advertising, sales promotion is the most effective tool used at CP. as afar as Colgate
toothpaste is concerned. Some of the common sales promotional techniques used by the brand
management team include:


Free sampling:
Free small sized samples of toothpaste are given to doctors, dentists and general consumers. The
per head cost of sampling, according to the management, is high but results are much more
positive if compared to advertising.


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                                                                                Colgate Palmolive Pakistan

Distribution of souvenirs:
Free souvenirs and momentous like pens, key chains, T-shirts etc are distributed to consumers,
especially students.


Contests:
Sales contests are organized amongst retailers and prizes are distributed amongst the winners.


Conferences:
Annual conferences are held. Doctors, dentists and the Colgate‟s sales team attend these
conferences. These conferences not only enhance sales but also help in image building.


Personal Selling:
Regular presentations are arranged for dentists and medical students. Workshops are also
frequently organized in medical colleges. The aim is to convince future dentists that Colgate is
the best toothpaste as far as quality is concerned.


Public Relations and Publicity:
The public relations activities are undertaken as regard as Colgate toothpaste is concerned focus
on creating a healthy image of the brand. Sponsorship of community events, distribution of
customer newsletters among the dental community are important examples. Publicity for Colgate
toothpaste usually takes place through mention in newspapers, medical journals and other
magazines.




CONCLUSION:
Colgate Palmolive is one of the top multinationals operating in Pakistan. Colgate toothpaste is
one of the leading brands. It is the largest selling oral care product in the country and its market
share is increasing day by day. The team managing the brand is dynamic and in spite of limited
resources, has been able to come up with new innovative marketing strategies, giving Colgate a
competitive edge over other oral care products.


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                                                                                Colgate Palmolive Pakistan




Appendix:


                Following Questionnaire was used to make this report.




Questionnaire For Product


In order to study the product strategy for the specific firm, we have again used the questionnaire
strategy. The following questions were designed


What is the core benefit being served by your product?


What is the product at physical level?


What value added features does the product offer?


What various forms of the product are available?


At which stage do you think the product is currently at? (Intro, growth, maturity, decline)


How do you classify your products?


Which product earns the maximum profit for the organization?


Which product attracts the highest market share?


Do you focus on promoting the product brand name or leveraging the corporate brand name?


What positioning strategy is being followed for the brand?


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                                                                                Colgate Palmolive Pakistan

What different packages of offering are available?


What is the promotional objective of the organization?


What part of organizational resources is spent on promotional activities? (Please specify the
percentage or the dollar amount)


Is promotion function mastered in house or out sourced to specialized firms?


What are the various communication tools used for promotion?


Who is the main target audience of the promotional and communication activities?


Which strategy is focused in promotional activities?
____ Push Strategy
____ Pull Strategy


What criteria are used to analyze the results of promotional activities?


How often sales promotion programs are employed?


What is general purpose focus of sales promotion?


How are relations with key stakeholder and influential groups managed?


What is the objective of the placement and distribution strategy?


Is the distribution done through direct channel or an indirect channel?


If indirect channel is followed then what is the concentration of intermediaries?


What type of flow is managed by intermediaries?
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                                                                               Colgate Palmolive Pakistan




What are the types of intermediaries?


Are the forward and backward distribution ever integrated in to the organization as a core part of
the organization?


What is your marketing department organizational chart?


Product Specific:
   1. How do you differentiate your product from that of your competitors?
   2. How do you ensure product quality?
   3. What steps have you taken to ensure an efficient production process?
Packaging Specific:


   1. Packaging decisions:
           o product type
           o ease of use
           o attractiveness
           o copy able
           o size and cost
   2. Do you think your packaging is easy to handle? Why?
   3. How do you differentiate your package from that of others?
   4. How do you ensure that your package is not copy able?




Pricing Specific


   1. What are the different pricing approaches used in the industry?
           a. cost plus pricing
           b. competitive pricing
   2. Do you consider low entry barriers?


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                                                                                Colgate Palmolive Pakistan

Promotion Specific


   1. How do you arrive at your promotional budget?
   2. How do you select the appropriate media for your target market?
   3. Is there a scientific basis for estimating promotional budget?
   4. Do you conduct a pretest and monitor your advertising program?
   5. If you outsource promotional activities, how do you take this decision?
   6. What sales promotional technique do you use and how have you organized your sales
      force?
   7. How do you conceive your sales promotions?
   8. What are the bases for hiring your sales force?
   9. Is customer service part of the promotional schemes?




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