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’
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’
“Art is making something out of nothing and selling it.” - Frank Zappa. Frank Vincent Zappa was born December 21, 1940. He was born in Baltimore, Maryland and famously known for being a Music Producer, Director, Songwriter and most importantly, a Guitarist. His father was a mathematician and a chemist which cause the family to always be moving into new homes frequently, Zappa was all over the place as a child. His father always inspired him to get into the same work and when Zappa was young he always attempted to make new gadgets and become an inventor, but that shortly turned into the build up of his music. When Zappa was in this phase of invention he and his father we’re always exposed to chemicals that may have affected his health, the
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
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
There are numerous ways that women and young girls are impacted by the media and their bias. There are many different types of bias used in the media. These biases are bias by omission, bias by selection, bias by placement, bias by labeling, and bias by spin. Media bias has a great deal of influence on society, but the media has a detrimental amount of influence on women in young girls. Some of these effects are positive, but most of them are negative. Stereotyping, sexuality, and body image are among the most persuaded when it comes to media bias. It is essential that every single person be well informed about the tactics used by the media in these categories not only to keep themselves from being negatively impacted but also protect their children from these tactics.
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,
Canada is one of the first countries in the world that has issued multicultural official policy since 1971. The concept of multiculturalism is referred to academic views about the equality and respect for variant cultures, religions, races and behaviours within a country. This terms has been used to form Canadian identities and strengths for almost a hundred and fifty years. For the past two decades, Canadian population is increasingly diverse and multicultural by the huge wave of newcomers who will adopt and immerse different “cultural practices” in contributing to the national development (Parent & Clydesdale, 2016). It is essential to make sure that all citizens acknowledge both similarities and differences in Canadian diverse society.
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.
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
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.