Case study on colgate toothpaste

COLGATE PALMOLIVE

Colgate-Palmolive Company Case
Pavel Garbuz

November 19th, 2016

Colgate Palmolive Company is the global company and well-recognized in many regions of the world. The company is so far leading with sustainability and known for its oral care products. The Company has its branches in 200 countries along with a product line that relates to Oral care, Personal Care and Pet Nutrition. The Company is spreading its operation worldwide by adapting and implementing growth strategy. The major products offered by Colgate Palmolive Company are the toothbrushes, bar, soaps, liquid soups, deodorants, fabric cleaners and toothpastes. The Company has expanded its operations in Brazil in 2013 by estimating and understanding the market situation. The Company introduced CMCP+SAN in Brazil by knowing the demographics and psychographics of the consumers of the targeted segment. The main aim of Colgate Palmolive Company was to enhance the product life cycle by promoting the awareness and consumption for CMCP+SAN Colgate toothpaste in Brazil (Colgate, 2016).

According to Bonecker, Pucca Junior, Costa and Pitts (2012), it has been found that promotion strategy is also known as the marketing communication strategy which includes the advertising the products and services by below the line (BTL) and above the line (ATL) activities. Promotional activities are carried out by the marketers and business companies in order to raise customer awareness for the particular brand and product. Promotional strategies are performed by the business organisations to gain the customer’s attention and increase the customer’s demand whereas; Lovelock and Wirtz (2010) stated that the case of Colgate-Palmolive Company states the promotional activities initiated by the company to enter in Brazil. Colgate entered in Brazil through the awareness programs based on the promotions and oral care by Colgate toothpaste.

As described by Gordon (2012), it has been found that promotion is related to the awareness and how companies spread information about their products and services under the influence of customer care. However, in the case of Colgate-Palmolive Company, the company entered into a huge promotional program to make the customer aware about the oral care. Schools, housing societies and communities were targeted in order to spread awareness about Colgate’s oral care. BSBF operating program helped children in schools and churches to understand the importance of oral care and hygiene.

In the viewpoint of Bernhardt, Mays and Hall (2012), it has been found that strategic alliance and partnerships with the existing (domestic) firms or association helps the business companies to gain the attention in the society or region they are going to operate in. The Company made a strategic alliance with Ministry of Health of Brazil and entered the market with their approval. The oral health education program was designed to educate the 55 million children in Brazil. The main challenge was faced by Colgate-Palmolive was with the positioning and launching of CMCP+SAN toothpaste. The product itself claimed that it is an improved and innovative formula for oral care but unfortunately was not recommended by the dentists. However, Colgate-Palmolive CMCP+SAN was famous among the consumers for fresh breath and pleasant sensation.

In the views of by Gordon (2012), it has been evaluated that pricing is the main factor which influences the customer preference, customer retention and customer loyalty whereas; it has been found that most of the consumer pay higher prices for the sake of quality they are getting. Marketers apply pricing strategies by under the consideration of consumer demographics by targeting the need of the segment. The pricing strategies are applied to get the customer’s attention and maximise the revenue in the long run. However, the case of Colgate-Palmolive CMCP-SAN states that the launching of toothpaste in Brazil with CMCP+SAN was an effective idea. The prices were set for the consumers of all class, as Colgate-Palmolive targeted the 55 million people in Brazil the prices were reasonable and affordable by every household. The main purpose of implementing reasonable and approachable pricing strategy to attract the consumers.

As per the analysis of Hollensen (2015), fair pricing is the concept that falls in the budget of the consumer whereas; it has been found that low prices of the products and services increase the demand in the market. Colgate-Palmolive CMCP+NAS entered the market and made a visible appearance on the shelf. The consumer demand among youngsters increased in the market due to the prices meet their demands and fresh sensation of the toothpaste. Colgate-Palmolive sustained in the Brazilian market due to its pricing strategy along with the provision of reason to believe (RTB) to the consumers.

References

Bernhardt, J.M., Mays, D. & Hall, A.K., (2012). Social marketing at the right place and right time with new media. Journal of Social Marketing, 2(2), pp.130-137.

Bonecker, M., Pucca Junior, G.A., Costa, P.B. & Pitts, N., (2012). A social movement to reduce caries prevalence in the world. Brazilian oral research, 26(6), pp.491-492.

Gordon, R., (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), pp.122-126.

Hollensen, S., (2015). Marketing management: A relationship approach. Pearson Education.

Lovelock, C. & Wirtz, J., (2010). Services marketing: people, technology, strategy. Journal