1. Executive Summary
Despite enjoying a strong year with sales dollar and volume growth, CP’s Operating and Net Income saw a decrease at the end of 2004 by the combined effect of increased marketing spending and increases in raw material and packing costs. Looking ahead in 2005, Colgate will need to address the cost-effectiveness of adapting its marketing strategies implemented in the developed United States (US) market for the emerging Chinese and Mexican markets, each consisting of distinctly different consumer wants, needs and cultures that Colgate will first need to research on and understand. Consequently, it has to evaluate how it can tailor its marketing strategies and re-align its organizational structure to assess whether and how
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Renaming “breath strips” to “Cooling Crystals (珠子)”, meaning “pearl”, facilitates consumer understanding of the new product feature, a must-have. Increasing sophistication and popularity of new flavors mean that Colgate needs to create new flavors, in particular flavors like tea that fit into consumers’ tastes (Zhou, 2014) and competes directly with Crest Tea Fresh, in order to appeal to consumers and hence improve product acceptance and shelf-life. The cost of flavor-testing had only marginal impact on profits (0.985% of sales, Table 2), but 32 weeks taken for flavor development may mean a later launch date; we argue that it pays to be differentiated in urban markets (Niraj, Dawar and Chattopadhyay, 2002), which holds CMF’s target market of middle class consumers. Hence, the investment to create new flavors are a must-have. However, while spending $7,000 to test “10 different shades of yellow” is minute for Colgate, 4 weeks will delay product launch; with quality only marginally enhanced, it is only a nice-to-have. Producing 3 sizes (50g, 100g, 165g), including a small 50g size, is a typical emerging market strategy catering to consumers with lower ss who tend to experiment with smaller sizes, hence it is a must-have. However, the clear “stand-up tube” to convey CMF’s aesthetics, while attractive to consumers, may not be feasible due to the high cost (11.35% of sales, Table
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Research has proved that humans have been consuming cocoa for over 2600 years from once upon a time being used as currency to becoming serious pirate loot to being the key ingredient along with sugar in producing chocolate today.
Colgate-Palmolive Co (CP) was an international leader in household and personal care product, with the sales of $6.06 billion and profit of $2.76 billion in 1991. CP set up a five-year plan in 1991, pointing out that company needed to focus on new product launching and entry into new geographic markets by improving the manufacturing, distribution and the continuance of the core consumer products. Started from 1984, CP’s CEO awaked the company from “sleepy and inefficient” to profitable. Both gross margin and annual volume growth increased from 1985. Although everything seemed good, CP was facing the worldwide strong competitions from other companies. In order to have some protections, 170 CP’s
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
In Mexico the promotional campaign was completely changed from the U.S. campaign and a third product flavor was introduced. The original two flavors were not changed, reducing costs compared to China. Costs in Mexico were kept low, and in the first two years Colgate saw a net profit in the Mexican market with Colgate Max Fresh. In China, however, many aspects of the marketing mix were changed, increasing costs tremendously. The product was changed by eliminating one of the two original flavors, changing the color of the other, and adding two new flavors. CP China’s management also tried a variety of packaging styles before choosing to use one that would increase the variable cost by 20% per unit. It turned out, however, that the design they chose was not up to CP’s global standards and after spending $1.5 million the idea was thrown out. The advertising campaign was changed to a riskier
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
Tic Tac is one of the largest breath mint market, which has been there in the industry for more than 50 years now. Their product line is far away the most sold in the world due to their bigger and multiple factories and employees worldwide. As stipulated in the article, in 1969, Tic Tac gave to their customers the catchy jingle which was a huge success. In the 1970s, they extended their product line by adding the cinnamon-flavored red mints and the tangerine-flavored orange mints. The Ferrero group introduced their new product with its iconic flip-top packaging. Tic Tac continued to offer more flavors to their customers, which in 1980 introduced the 1 and 1/2 Calorie Breath Mint followed by the spearmint and wintergreen. Last but not least, in the early 2000s, Tic Tac decided to increase the width of their product mix with even more flavors by creating Tic Tac Bold which came in mixed fruit flavors. Although, they have been dominant all through their existence, they recently have been overtaken by other breath mint competitors such as Everest, Cool Chews, Icefresh, Blitz, Ice Chips, Cool Blast, Ice Breakers and Altoids with their the "curiously strong" mints in the metal container from Callard & Bowser-Suchard (Charles W. Lamb, Joe F. Hair, Carl McDaniel, 2011). The Ferrero Group felt the need to overcome their competition by presenting something new to the market, which would attract new and more consumers. They reinvented themselves again with the introduction of new
This market study was based on the well-established Clorox Company which had originally started in 1913. In 2006, after the placement of the new CEO, the company had developed a strategic plan to position them for their 100th anniversary in 2013. The plan was titled “The Centennial Strategy” which focused on long-term accelerated growth and developed metrics to measure the success of the plan. The plan focused on accelerated sales growth which would come from extending existing brands to adjacent categories, entering new sales channels with its existing brands and increasing penetration in countries where Clorox already did business. The Clorox Company developed a “3D” structure consisting of desire, decide and delight. This
Question 3. Suggest guidelines for optimizing new product introductions for Colgate Palmolive worldwide. Provide appropriate justifications……………..……………………………….11
Although the Ferrero Group has been successful with re-inventing Tic Tac 's brand to help meet the needs of consumers and stay a top competitor in the market, it is crucial that Tic Tac reinvent themselves again so that they are able stay relevant as well as top competitor in the breath mint market. As the case study explains, Tic has been re-invented using various strategies, multiple locations around the world and numerous employees to help make each re-launch successful. Launched in 1969 and owned by the Ferrero Group, one of the largest confectionery companies in the world, Tic Tac has been one of the markets leading breath mints. The Ferrero Group has 36 operating companies, 15 factories and almost 20,000 employees worldwide; making
Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?
Seeing the company records of Canadian Mouthwash Market Shares for past three years, I feel that the performance of scope in market was consistent despite the arrival of new products in market.
This is why we decided to focus on the second level of the energy beverages, their name and package. (www.learnmarketing.net/product.htm, 14/09/2004)
The report is about the market segmentation, targeting and positioning of the tooth paste industry in the local market of Mauritius. For a total population size of approximately 1, 2 million, toothpaste represents 80% of the market. This market is being shares which Colgate Palmolive which represents Colgate has 45% of the market share and the rest is being played among Aquafresh 20% and Blendax occupies 14% of the market share. 21 % of the toothpaste market shares are occupied by Signal, Close up, Casino and other make of toothpaste. Nowadays to be able to survive in this fierce competition world, firms need to satisfy the needs of its potential customers, hence keeping the existing and gaining new ones. For this to be