Today’s Segmentation Strategies of Colgate-Palmolive Essay
WS1 Case Study Paper
Indiana Wesleyan University
While many companies provide a similar product there aren’t any that share the same perspective when it comes to the sincere appreciation and willingness to provide like that of Colgate-Palmolive. Their mission statement is unique to them and simply states the following: “As a company that strives to be the best truly global consumer product company, we are committed to doing business with integrity and respect for all people and for the world around us. Though there is no mention as to a specific product category or consumer aim, there is a direct and straightforward approach to carrying out their business with integrity, the way they deem necessary. Colgate-Palmolive is a company that started with a multi-faceted approach to delivering health-care products to its consumer. It was all started by a gentleman by the name of William Colgate in 1806. It wasn’t until 1873, that they first introduced oral-health related products such as toothpaste; broached as ‘an aromatic dental cream’ and presented it to the public.
Its packaging has changed a bit over the years; originally it was sold in glass jars (Younger). Strengths of this particular company include their ability to best reach today’s consumers, doing so by engaging integrated marketing communications. These include not only a mix of traditional and new media methods, but the use of very creative promotional activities as well. C-P is very interested in the shopping marketing program on a global level. Their richly focus on in-store consumer behavior; this aids them in being able to identify areas of new growth in their foreseeable future.
Not only for them, but for their retailers as well (GlobalData). Other ways in which they are able to stay ahead of and alongside the market is by continually keeping up with change, one example includes their competence to sufficiently redesign product packaging. This not only speaks volumes to their engrossed supporters, it is a way to better communicate any particular products benefits, but it clearly defines key ingredients for all the label-conscious audiences in existence today (DeArment).
In keeping and developing better business relations with health care professionals, CP has increased and expanded their sales force; thus driving home the importance of each individual who supports and encourages use of their products basis. Regular representative office visits along with integral academic ties are a couple of the ways in which they are hoping to build this aspect of clientele relations (www. colgate. com). Broadcasting their forecast world-wide and not limiting their market to big-business has enabled them to grow expansively.
The open-mindedness of making a product(s) that is affordable by all, required by all, and available to all, regardless of status and global location has catapulted them into being top among their peers. In fact, they have even taken to educating their consumers worldwide; providing free and discounted screenings, treatments and thorough how-to instructions in hopes of expressing the importance of oral-health and how their products can help each individual in achieving an improved overall body health (Drug Store News).
Not only have these strengths proven valuable, but because of them and their ability to adequately carry them out, new opportunities have been made available to them as well as made it possible for them to offer to continue in their growth. It has been found that by revealing and exposing their operations and found research to dental-health professionals they can easily improve upon their business relationships.
Taking advantage of this opportunity has not only solidified current supporters usage, but drawn in new promoters, and improved their revenues and ability to provide in the future (colgate. com). Colgate-Palmolive originated with a broad product basis and has continued that ever since. Another key supporting area of professionals they direct their business toward is that of veterinary medicine. While they may not have foreseen this in the beginning this was indeed an extraordinary way to gain opportune circumstances in the future (www. olgate. com). There are however on the flip-side several downfalls to various tactics and business strategies of Colgate-Palmolive. First is the fact that there is a strong reliance on foreign operations for not only finished product, but raw materials as well. Along with the prominent possibility of material contamination and unsafe production methods (Alexander). These things not only jeopardize the potential for future business they conceivably present future monetary shortfalls and payouts.
There is of course the ever-present and obvious combined threat and weakness of extreme competition in this particular facet of the industry. Toothbrushes have not been around forever, but they have in fact been around long enough to create substantial room for market rivalry and comparison. With the more popular use of electric toothbrushes and increased durability of mechanism components it has decreased the demand and repeat purchases of the paramount items that substantiate this storehouse (Laidler).
A big concern of the public that has developed in recent years is the deep desire to create products that are not only safe for consumer use, but also environmentally friendly and ‘greener’ throughout the manufacturing process. This has changed the way many companies operate everything from advertisement to the final product packaged on store shelves. But all of this comes at a cost, eradicating these issues is not free of charge by any means. All of this has to qualify under industrial as well as governmental standards, which can and usually does require and add to the finish time as well as the investment final dollar (Laidler).
Whether it be a strength that is directly related to an opportunity or a weakness that is similar in fashion to a threat, long-term it is a mandatory that any corporation be willing to keep up with the needs of its audience, change to fit the needs of its consumer, and improve on the already present when it is evident what is already there is a monumental structure to the success of their business. Whether it be a million dollar buyer or a ma and pa shop in the middle of nowhere, it is clear that not only has Colgate-Palmolive made all avenues priority, but they have done their best to stand out in the crowd.
- Alexander, A. (2008). Colgate-Palmolive 3Q sales grow 13 percent, but material costs dent results. Drug Store News, 30(15), 52-58. Colgate van drives dental education, gives free screenings and treatment.
- (2007). Drug Store News, 29(15), 50. DeArment, A. (2008). Colgate performs well worldwide. Drug Store News, 30(9), 36-38. GlobalData (2011).
- Colgate-Palmolive Company Financial and Strategic Analysis Review.
- http://www. marketresearch. com/GlobalData-v3648/Colgate-Palmolive-Company-CL-Financial-6261173/
- http://www. colgate. com/Colgate/US/Corp/AnnualReports/2008/HomePage/ColgaePalmolive2008AnnualReport. pdf
- http://www. colgate. com/app/Colgate/US/Corp/LivingOurValues/Sustainability/HomePage. cvsp
- Laidler, Nathalie. “Colgate-Palmolive Company: The Precision Toothbrush. ” Harvard Business School. 1993. Live demos a biting success for Colgate. (2010). Drug Store News, 32(15), 48.
- Younger, Vicki. “Colgate Palmolive. ” Redgum Soaps. 8 Sept. 2002. http://www. redgumsoaps. com. au/soaphistory/colgate. htm.