Colgate palmolive company Marketing anti-cavity toothpaste Case Study Solution
Executive Summary:
In 1806 William Colgate formed a company which later became Colgate-Palmolive. The primary business of Colgate-Palmolive is the manufacturing of Toothpaste which cures cavities of the teeth and other dental diseases.
The business of Colgate-Palmolive grew rapidly in its early years and is still growing to this date. However, by running an efficient marketing campaign, Colgate-Palmolive can further increase its business. It can position its product more efficiently to stay ahead of its competitors.
Currently, the revenue and profits are increasing but, the competition is also increasing. In the modern business environment, if Colgate-Palmolive wants to enjoy further growth in its income and profits, it will have to incorporate some differentiation in its products. It can be argued that all the brands in the toothpaste manufacturing business are producing almost similar products.
It is recommended that Colgate-Palmolive Company should focus on differentiation, but Colgate-Palmolive should not have to increase the prices drastically.
Competitive Strategy of Colgate Palmolive:
Cost Leadership: Under this strategy, the organization wants to capture the market share by offering extensively low prices to its customers. This policy is commonly followed by the large organizations because they have the resources available to obtain economies of scale; they also charge minimum markups which make it difficult for the competitors to compete with organization. Colgate can market its products under this strategy, but it is likely that this approach will not suit Colgate because the customers might perceive that the quality of their goods has been reduced.
Differentiation:In this strategy the companies’ offer something unique in its products which would differentiate them from its competitors. However, the companies who follow this strategy might charge a premium to their clients because they are providing unique features in their products. This strategy might suit Colgate, but they have to charge reasonable prices for it.
Low-Cost Focus:This strategy is similar to cost leadership, but the primary factor which distinguishes this strategy from cost leadership is that in this strategy the organization just concentrates on a particular segment of the market. This might be a disastrous strategy for Colgate-Palmolive because Oral health products are sold in such a manner that puts them in the reach of all segments of the market.
Differentiation Focus:This strategy is similar to Low-Cost Focus, but the primary element which distinguishes both strategies is that in this strategy the products of the organization are not the cheapest but are innovative and different from the products of the competitors and are marketed to a niche segment. This strategy is also not beneficial for Colgate-Palmolive because the products of Colgate-Palmolive are by default of this nature and this strategy is used by almost all segments of the market.
COLGATE PALMOLIVE COMPANY MARKETING ANTI-CAVITY TOOTHPASTE Harvard Case Solution & Analysis
Segmentation of Colgate Palmolive:
To serve its customers,Colgate-Palmolive extended itself into broad segments. They still serve its customers through a very wide range of segments such as Geographic segments, Demographic segments, and Psychographic segments.....................
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