Colgate toothpaste SWOT Analysis

Strengths
[list]
[*]Cost advantage
[*]Effective communication
[*]Loyal customers
[*]ar!et share leadership
[*]Strong "rand e#uity
[*]Strong financial position
[*]Supply chain
[*]$ricing
[*]%eputation management

Weaknesses
&o online presence
'iant competitors li!e Close()p and $epsodent
Opportunities
[list]
[*]$roduct and services e*pansion
*+$%O,+&' A-,AT+S+&'
*+$LEE&T+&' &EW $%O-)CTS A.O%L/ TO ATT%ACT /O)T0
Threats
Competition
Lo1er cost competitors or imports
aturing categories2 products2 or services
$rice 1ars
1. Executive Summary
The Colgate-Palmolive company is acknowledged as the world's leader in personal care. This
report analyse the Colgate's current situation in order to give recommendations on their actual
toothpaste product line.
The report is divided into two parts. The first parts will analysis the current situation of
Colgate. On the basis of a Swot analyse the strengths weaknesses opportunities and threats
of the company as well as of Colgate's toothpaste product line will be analysed. !urthermore
additional information on the company's current market share profitability sales and the
e"ternal environment of Colgate within the scope of the P#ST analysis will be presented. $t
the end of the first part the competitive advantage of Colgate will be mentioned.
The second part includes a suggested marketing strategy of the author using marketing tools
such as segmentation targeting % positioning S&$'T ob(ectives as well as the marketing
mi". To better recommend improvements the actual state of Colgate referring to their
products ob(ectives etc. is in some parts shortly mentioned. $t the end a conclusion is drawn
concerning the current situation of Colgate and suggested improvements for the future.
2. Introduction
Colgate is the world market leader in oral hygiene products. The toothpaste product line
consists of strong brands. This is due to a very successful marketing strategy of the company
in the past. )ut especially in a competitive environment like the personal care industry it is
essential for Colgate that it upgrades its organisational as well as marketing strategies in order
to meet the customer's needs and strengthening the leadership. !urthermore nowadays a wide
range of different toothpaste products is offered to the customers. This in particular means for
Colgate that they must differentiate their products from the competitor's products by being
innovative and uni*ue. &oreover the toothpaste market is growing constantly which means
that more different needs and e"pectations of the customer will arise. Therefore Colgate must
make use of marketing tools such as market segmentation to better identify their needs in
order to supply them with the right products.
3. Situational analysis
The situational analysis attempts to address the *uestion +where is the organi,ation now-' The
situational analysis contains a vast amount of information and as the term indicates is an
analysis of the situation that you are facing with the proposed product or service ./ollensen
S. .01123 &arketing &anagement4 a relationship approach p.5603.
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$le"ander )erger -&arketing Strategy- - 0 -
3.1 Company analysis
3.1.1 Company profile
Colgate founded in 7815 by 9illiam Colgate is acknowledged as the world's leader in
personal care sales including oral hygiene products such as toothbrushes and toothpastes.
Colgate has many subsidiary organisation located in more than 011 countries but it is
publicly in only two the :nited States and ;ndia.
3.1.2 Growth and profitability
<lobal sales as reported were =7620> million during the financial year ended ?ecember 011@
.=76221 million in 01183. The operating profit was =2576 million during 011@ an increase
of 75.5A over 0118. $t present Colgate has a market share of BB BA in the world's
toothpaste market operating in more than 011 countries and territories. ;n the :nited States
one of the world largest consumer markets Colgate is the market leader in toothpaste sales
with a market share at 25.0 A .Colgate-Palmolive $nnual 'eport 011@ p.0-B3. Operating in
more than 011 countries the company is not depending on one single market. Significantly for
the global presence is that over 80A of the company's 011@ revenues came from outside the
:nited States. The markets in industrialised countries are largely saturated. )ecause of the
strong presence especially in emerging countries such as ;ndia and )ra,il Colgate takes
advantage of the positive consumer trends in these countries and can compensate the sluggish
economic growth in industrialised countries. Please see appendi" to find further financial
information on Colgate.
3.1.3 Culture
Colgate's success is linked to its culture which encourages all Colgate people to demonstrate
personal leadership every day. Personal leadership also include three fundamental global
values of the company4 Caring Continuous ;mprovement and <lobal Teamwork .Colgate-
Palmolive $nnual 'eport 011@ p.7@3.
3.1. Goals
The main goals of Colgate are to better understand consumers behaviour launching new
products through innovation increasing effectiveness and efficiency as well as strengthening
the leadership worldwide .Colgate-Palmolive $nnual 'eport 011@ p.B3.
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$le"ander )erger -&arketing Strategy- - 2 -
3.1.! Collaborators
Colgate is working closely with thousands of small shop owners and local wholesalers to
ensure greater availability to their products as well as to provide the right assortment of
products with best visibility in each store. To built credibility among the consumers Colgate
cooperates also with dental professionals.
3.1." Customer
The selling of Colgate's products depends on chain reactions. ;f there is a growing population
rate worldwide or in local markets the need for oral hygiene products increases. Today the
world population is appro"imately 5.86 )illion predicting a world with @.0 people by mid-
century. )ecause of the globally presence of Colgate there will be 0.26 billion new potential
customers until 0161 .:nited Cations world population prospects 01183. /ere is to point out
that the average age of the population is not essential because all people have a need for oral
hygiene products. !urthermore Colgate offers premium products which mean the consumer is
willing to pay a high price for the product in order to receive high *uality products.
3.1.# Competitors
The main competitors are :nilever Procter % <amble and the Cloro" Company. The
personal care industry is mostly controlled by these companies. On the one hand in order to
gain more market share within this industry the only way is to take it away from one of these
competitors. On the other hand Colgate must also be aware of losing market shares to their
competitors. Please see $ppendi" to find a financial comparison of Colgate-Palmolive's
competitors.