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Colgate In Argentina
Colgate In Argentina

Colgate In Argentina

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  • Pages: 8 (3934 words)
  • Published: October 17, 2018
  • Type: Analysis
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Introduction

Colgate was founded in the United States in 1806 and for the first 100 years, its business focus was only there. However, in the very early 1900's, the Company began a very aggressive expansion program that led to the establishment of Colgate operations throughout the world. Today, Colgate-Palmolive is a $9 billion company, marketing its products in over 200 countries and territories under such internationally recognized brand names as Colgate, Palmolive, Ajax, Fab, and Mennen as well as Hill's Science Diet and Hill's Prescription Diet.

Colgate Total is considered the greatest evolution in toothpaste since the introduction of fluoride. This highly effective formula, containing fluoride and the antimicrobial ingredient, Triclosan, has been demonstrated clinically to help prevent gingivitis, plaque, cavities and tartar. And, its unique patented formula, containing the co-polymer, Gantrez, continues to be active between brushings. It continues to work fighting plaque, gingivitis, tartar and cavities after you stop brushing, even if you eat or drink. No other toothpaste manufactured in the US contains Triclosan or has been cleared to make claims for gingivitis and plaque reduction. Since the announcement of the FDA clearance of Colgate Total on July 14, 1997, retailers have expressed unprecedented enthusiasm and interest.

Dr. Sigmund S. Socransky, Associate Professor of Oral Biology, Harvard School of Dental Medicine, and Senior Member of the Staff and Head, Departments of Microbiology and Periodontology, Forsyth Dental Center, said, Colgate Total represents one of the most remarkable oral therapeutic achievements in the last 20 years.

Colgate Total will benefit the oral health of all users. The most common non-contagious diseases are

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periodontal diseases such as gingivitis. In fact, 63% of Americans suffer from gingivitis. As the only toothpaste with this formula, Colgate Total will help Americans take greater care of their teeth and gums than ever before and will help younger people prevent these dental problems.

Since Colgate Total was introduced internationally in 1992, over half a billion tubes have been purchased by millions of consumers in 103 countries. However, before permitting it to be marketed in the US, the FDA conducted an extensive review of data in Colgates clinical tests. These included five major studies that supported the safety and efficacy of the toothpaste.

Independent dental associations in 30 countries, including the American, Canadian and British Dental Associations, have awarded seals of acceptance to Colgate Total. Colgate Total will begin shipping to food, drug and mass merchandisers nationwide on December 15, 1997, and will have a suggested retail price of $2.49, $2.99 and $3.49 for 4.2, 6.0 and 7.8 ounce tubes, respectively.

Colgate-Palmolive is a leading global consumer products company tightly focused on Oral Care, Personal Care, Household Care, Fabric Care and Pet Nutrition. In the U.S., Colgate sells its quality products under such nationally recognized brand names as Colgate, Palmolive, Mennen, Ajax, Irish Spring, Softsoap, Murphy Oil Soap, Ultra Brite, Baby Magic and Fab, as well as Hill's Science Diet and Hill's Prescription Diet pet foods.

Executive summary

Successful international marketers possess the ability to identify with and adapt to different cultural environments. International marketing requires that one actively anticipate the effects both foreign and domestic uncontrollable environments exert over the marketing mix, and then

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adequately adjust the marketing mix to minimize potential negative effects. Often times an international marketers self-reference criterion impede his or her ability to accurately assess and properly respond to foreign operating environments. Rather than rely on their own self reliance criteria, international marketers must conduct far-reaching, comprehensive cultural and economic analyses of potential foreign markets in order to develop more effective and responsive marketing mixes that improve the success potential of their market-development strategies.

Argentina certainly represents a viable market-development opportunity for Colgate Total toothpaste. U.S. companies intending to export to Argentina should consider economic, demographic, as well as cultural characteristics that differentiate it from other Latin American countries.

Having the highest per capita gross domestic product and the second highest total gross domestic product and life expectancy in Latin America, as well as low rates of population increase and illiteracy rates, Argentina attracts many business opportunities.

The population and economic activity are highly concentrated in the Greater Buenos Aires area. The population is largely of European descent and continues to have strong ethnic, cultural, as well as business ties with Europe. Consumer preferences tend to resemble more those of Europeans than those of other Latin America nationals. However, revenues are highly dependent on MERCOSUR trade, especially with Brazil, and the regional economic situation.

In many sectors, European competitors of U.S. firms are already present in the market, and may be well entrenched. Nevertheless, the U.S. is Argentinas single largest trade and investment partner and many U.S. firms have been very successful. U.S. lifestyle and consumption habits are increasingly influential. U.S. products have a strong reputation for quality and technological innovation, but U.S. firms are sometimes seen as lacking commitment to the market. It is important to be prepared for a competitive market environment.

As in many countries, personal relationships are fundamental to doing business in Argentina. Success requires taking the time to develop a close personal relationship with your representative, agent or distributor. Marketing U.S. products and services in Argentina requires the same level of research, preparation and involvement--if not more--as domestic marketing.

U.S. firms handicap themselves if their product literature, labels, manuals and other written materials are not in Spanish. When preparing Spanish-language materials, care should be taken to ensure the meaning is consistent for all Spanish-speaking markets in which they will be used. Argentine Spanish differs for example, from Mexican or Chilean Spanish, with unintended - and sometimes embarrassing - meanings resulting when a translator is not familiar with variations in the language from market to market.

After analyzing the product and its uses and establishing who the potential customers are, U.S. companies intending to export to Argentina should identify the geographical areas where the major users of the product are. It should be born in mind that 80 percent of the Argentine population is concentrated in urban areas, with over 35% living in Buenos Aires and its suburbs, and almost 10% in three cities Cordoba, Rosario and Mendoza and their suburbs.

Argentina experienced a boom in economic growth in the early 1990s as a result of its structural reform (privatizations, trade liberalization, etc) and monetary stability. Real GDP growth averaged over 6% for the

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