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A PROJECT REPORT ON SEGMENTATION

TARGETING AND POSITIONING OF

Colgate-Palmolive Ltd.

Submitted To:-

Submitted By:-

Dr. Nimit Gupta.

PGDM-Marketing.

Group No. 5.

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Certificate

This is to certify that the project report on the topic


Segmentation,Targeting & Positioning Of Colgate submitted by
Group No. 5 in fulfillment of the requirements of the academics
structure for PGDM-Marketing degree is a bonafide record of the
work done by all of us under the guidance of Dr. Nimit Gupta.

Submitted To:-

Seal Of The Institution:-

Dr. Nimit Gupta.


Signature:Date:- 15th September,2014.

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ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us


immense pleasure to prepare this project report on
SEGMENTATION, TARGETING AND POSITIONING
DONE BY COLGATE.

We would like to thank our project guide, Dr. Nimit


Gupta,

for

consultative

help

and

constructive

suggestion on the matter in this project. We would like


to thank our study group members who have helped us
in making this project a successful one.

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INDEX
S. No.

CONTENTS.

Page
No.

1.

COMPANY PROFILE.

2.

INTRODUCTION.

3.

WHAT IS SEGMENTATION?

4.

HOW COLGATE SEGMENT MARKET.

11

5.

WHAT IS TARGETING.

12

6.

HOW COLGATE TARGET MARKET.

15

7.

WHAT IS POSITIONING.

16

8.

HOW COLGATE POSITION THE PRODUCT.

18

9.

PRODUCT MIX.

20

10.

MARKETING MIX.

21

11.

PRODUCT.

22

12.

PRICE.

23

13.

PLACE.

24

14.

PROMOTION.

25

15.

CONCLUSION.

26

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COMPANY PROFILE
Company Name :-

Colgate Palmolive Ltd.

Date of Establishment:-

1937.

Revenue:-

347.188 (USD in Millions).

Market Capital:-

111160.5286158 (Rs. In Millions).

Corporate Address:-

Colgate Research Centre,


Main Street,
Hiranandani Gardens,
Powai, Mumbai-400076.
Maharashtra.

Website:-

Management Details:-

www.colgate.co.in

Chair Person:- Mr. J Skala.


M.D:-

Mr. R. D Calmeyer.

Directors:- Derrick Samuel, J K Setna, Skala,


K.V.Vaidyanathan, M.Elias, P.K
Ghosh, R.A Shah, V.S Mehta.

Business Operation:-

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Household & Personal Products.

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Background:company.

Colgate-Palmolive is Rs 1,300 Crore


Started in year 1937. In Rs 2,400 Crore
domestic market, it enjoys 50% of markets
share. It spread across 4.5 Million retail
outlets, out of which 1.5 Million are direct
outlets.

Financials:-

Total Income Rs. 20606.60 Million.


Net Profit Rs 4232.60 Million.

Company Secretary:-

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K.V.Vaidyanathan.

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INTRODUCTION

Colgate Palmolive Company is an American


diversified multinational corporation focused on the
production, distribution and provision of household,
healthcare and personal products, such as soaps,
detergents, and oral hygiene products (including
toothpaste and toothbrushes).
Under its Hills brand, it is also a manufacturer of
veterinary products. The companys corporate offices
are on Park Avenue in New York City, across from the
Walder of Astoria.
In India, it operates under the name as ColgatePalmolive (India) limited and its head office is at
Mumbai.
Colgate Palmolive is a $10.6 billion global company
serving people in more than 200 countries and
territories with consumer products that make lives
healthier and more enjoyable.

WHAT IS SEGMENTATION.?
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Market segmentation is a marketing strategy that involves dividing


a broad target market into subsets of consumers who have common
needs and priorities, and then designing and implementing strategies
to target them. Market segmentation strategies may be used to
identify the target customers, and provide supporting data for
positioning to achieve a marketing plan objective. Businesses may
develop product differentiation strategies, or an undifferentiated
approach, involving specific products or product lines depending on
the specific demand and attributes of the target segment.

Criteria for segmenting:An ideal market segment meets all of the following criteria:
It is possible to measure.
It must be large enough to earn profit.
It must be stable enough that it does not vanish after some
time.
It is possible to reach potential customers via the
organization's promotion and distribution channel.
It is internally homogeneous (potential customers in the
same segment prefer the same product qualities).
It is externally heterogeneous(potential customers from
different segments have different quality preferences).
It responds consistently to a given market stimulus.
It can be reached by market intervention in a cost-effective
manner.
It is useful in deciding on the marketing mix.

It identifies the target customer(s) (surrogate(s)).


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It provides supporting data for a market positioning or sales


approach.

Methods Of Market Segmentation:Geographic Segmentation:-

Marketers can segment according to geographic criterianations,


states, regions, countries, languages, cities, neighborhoods, or postal
codes. The geo-cluster approach combines demographic data with
geographic data to create a more accurate or specific profile.With
respect to region, in rainy regions merchants can sell things like
raincoats, umbrellas and gumboots. In hot regions, one can sell
summer clothing. A small business commodity store may target only
customers from the local neighborhood, while a larger department
store can target its marketing towards several neighborhoods in a
larger city or area, while ignoring customers in other continents.
Geographic Segmentation is important and may be considered the
first step to international marketing, followed by demographic and
psychographic segmentation. The use of national boarders is the
institutional use of geographic segmentation, although geographic
segments may be classified by identified geological regions.
Demographic Segmentation:Demographic segmentation is dividing markets into different groups
according to their age, gender, the amount of income, the ethnicity or
religion of the market and the family life cycle.
Behavioral Segmentation:Behavioral segmentation divides consumers into groups according to
their knowledge of, attitude towards, usage rate or response to a
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product. There is an extra connectivity with all other market related


sources.
Psychographic Segmentation:Psychographic segmentation, which is sometimes called Lifestyle.
This is measured by studying the activities, interests, and opinions
(AIOs) of customers. It considers how people spend their leisure, and
which external influences they are most responsive to and influenced
by. Psychographic is highly important to segmentation, because it
identifies the personal activities and targeted lifestyle the target
subject endures, or the image they are attempting to project. Mass
Media has a predominant influence and effect on Psychographic
segmentation. Lifestyle products may pertain to high involvement
products and purchase decisions, to speciality or luxury products and
purchase decisions. Lifestyle segmentation reflects on how the target
subject identifies themselves, or how they desire to identify
themselves in society. By identifying and understanding consumer
lifestyle, businesses can develop promotional mixes and product
lines, which tailor to their needs.
Segmentation according to occasions relies on the special needs and
desires of consumers on various occasions - for example, for products
for use in relation with a certain holiday. Products such as
decorations or lamps are marketed almost exclusively in the time
leading up to the related event, and will not generally be available all
year round. Another type of occasional market segments are people
preparing for a wedding or a funeral, occasions which only occur a
few times in a person's lifetime, but which happen so often in a large
population that ongoing general demand makes for a worthwhile
market segment.

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HOW COLGATE SEGMENT MARKET.?


Colgates market segmentation is very broad because all their
products are of need to most people so those people share a
similar interest in product needs.
Colgate uses a segmentation bases by knowing that certain
groups of people need Colgate toothpaste for a specific similar
reason like yellow teeth, sensitive teeth or just teeth with
cavities.
Colgate also uses the family life cycle because they make
toothpaste that could be used for grownups and children.

Also, toothbrushes are made to attract young children with


cartoon characters and different tastes and are less strong so
that it wouldnt damage their gums.

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WHAT IS TARGETING.?
A target market is a group of
customers towards which a business
has decided to aim its marketing
efforts
and
ultimately
its
merchandise. A well-defined target
market is the first element to a marketing strategy. The marketing mix
variables of product, place (distribution), promotion and price are the
four elements of a marketing mix strategy that determine the success
of a product in the marketplace.
Target Markets:Target markets are groups of individuals that are separated by
distinguishable and noticeable aspects. Target markets can be
separated by the following aspects:
Segmentations - addresses (their location climate region).
Demographic/socioeconomic segmentation - (gender, age,
income, occupation, education, household size, and stage in the
family life cycle).
Psychographic segmentation - (similar attitudes, values, and
lifestyles).
Behavioral segmentation - (occasions, degree of loyalty).
Product-related segmentation - (relationship to a product).

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In addition to these segmentations, market researchers have


advocated a needs-based market segmentation approach to identify
smaller and better defined target groups. Some approaches to these
smaller groups are:
Select the target audience the customers are grouped based on
similar needs and benefits sought by them on purchase of a
product.
Identify clusters of similar needs demographics, lifestyle,
usage behavior and pattern used to differentiate between
segments.
Apply a valuation approach market growth, barriers to entry,
market access, switching, etc. are used.
Test the segments A segment storyboard is to be created to
test the attractiveness of each segments positioning strategy.
Modify marketing mix expanding segment positioning
strategy to include all aspects of marketing mix.
Strategies for Reaching Target Markets:Marketers have outlined four basic strategies to satisfy target
markets: undifferentiated marketing or mass marketing, differentiated
marketing, concentrated marketing, and micromarketing/ niche
marketing.
Mass Marketing:A market coverage strategy in which a firm decides to ignore market
segment differences and go after the whole market with one offer. It
is the type of marketing (or attempting to sell through persuasion) of
a product to a wide audience. The idea is to broadcast a message that
will reach the largest number of people possible. Traditionally mass
marketing has focused on radio, television and newspapers as the
medium used to reach this broad audience.
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Differentiated Marketing Strategy:One where the company decides to provide separate offerings to each
different market segment that it targets. It is also called multi segment
marketing and as is clearly seen that it tries to appeal to multiple
segments in the market. Each segment is targeted uniquely as the
company provides unique benefits to different segments. It increases
the total sales but at the expense of increase in the cost of investing in
the business.
Concentrated Marketing:A strategy which targets very defined and specific segments of the
consumer. It is particularly effective for small companies with limited
resources as it does not believe in the use of mass production, mass
distribution and mass advertising. There is no increase in the total
profits of the sales as it targets just one segment of the market.
Direct Marketing:For sales teams, one way to reach out to target markets is through
direct marketing. This is done by buying consumer database based on
the defined segmentation profiles. These database usually comes with
consumer contacts (e.g., email, mobile no., home no., etc.).

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HOW DOES COLGATE TARGET.?


MAX FRESH:- Colgate targeted youth with the introduction of
this toothpaste, as this helps in refreshes breath.
ACTIVE SALT:- Elder people are targeted in this segment as it
makes teeth stronger and provides protection from cavities.
COLGATE TOTAL:- Colgate Total contains the anti-microbial
ingredient triclosan, which reduces the number of bacteria that
cause gingivitis, cavities and halitosis. Basically, its for kids
but Mothers are targeted as they are very concerned about their
kids. This toothpaste safeguards teeth for 12 hours.
COLGATE SENSITIVE:- People who have sensitive teeth are
targeted in this segment who have problem in their gums.
KIDS TOOTHPASTE:- Often small children dont like to
brush teeth, so for them this toothpaste was launched. Colgate
had focused on taste aspect to encourage kids to brush teeth.
COLGATE WHITENING:- A whitening toothpaste that is
"Clinically-proven to whiten in 14 days. Its whitening
ingredient is hydrogen peroxide, which gradually bleaches the
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teeth. Focus is given on group of customers in this segment


those who are already suffering from plaque in their teeth.
COLGATE 2 in 1:- People who want both strongness and fresh
breath are targeted.

WHAT IS POSITIONING.?
Positioning is the marketing activity and process of identifying a
market problem or opportunity, and developing a solution based on
market research, segmentation and supporting data.
Positioning may refer the position a business has chosen to carry
out their marketing and business objectives. Positioning relates to
strategy, in the specific or tactical development phases of carrying
out an objective to achieve a business' or organization's goals, such
as increasing sales volume, brand recognition, or reach in
advertising.
Brand Positioning Process:Effective Brand Positioning is contingent upon identifying and
communicating a brand's uniqueness, differentiation and verifiable
value. It is important to note that "me too" brand positioning
contradicts the notion of differentiation and should be avoided at all
costs. This type of copycat brand positioning only works if the
business offers its solutions at a significant discount over the other
competitors.
Generally, the brand positioning process involves:
1. Identifying the business's direct competition (could include
players that offer your product/service amongst a larger
portfolio of solutions).

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2. Understanding how each competitor is positioning their


business today (e.g. claiming to be the fastest, cheapest, largest,
the #1 provider, etc.).
3. Documenting the provider's own positioning as it exists today
(may not exist if startup business).
4. Comparing the company's positioning to its competitors' to
identify viable areas for differentiation.
5. Developing a distinctive, differentiating and value-based
positioning concept.
6. Creating a positioning statement with key messages and
customer value propositions to be used for communications
development across the organization.
Product Positioning Process:-

Generally, the product positioning process involves:1) Defining the market in which the product or brand will compete
(who the relevant buyers are).
2) Identifying the attributes (also called dimensions) that define
the product 'space'.
3) Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes.
4) Determine each product's share of mind.
5) Determine each product's current location in the product space.
6) Determine the target market's preferred combination of
attributes.
7) Examine the fit between the product and the market.

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HOW DOES
PRODUCT?

COLGATE

POSITIONS

ITS

Colgate dental cream positions itself as toothpaste that has the


necessary calcium and minerals to provide decay protection,
strong teeth, germ protection and fresher breath.
Colgate positioned several toothpaste so that people would like
the products more like adding a different style or taste to the
toothpaste.
Colgate repositions their products because with the way they
market and promote their products, consumers know that these
products are way better than other brands and competition that
is out there.

Lately with competition from indigenous vegetarian


toothpastes, Colgate dental cream has also positioned itself as

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an always 100% vegetarian toothpaste. The tagline of its


advertisements, trusted by generations to make teeth
stronger.
Colgate Total-12 have been projected as the most advanced
toothpaste that provide 12 hour germ protection even after
eating and drinking by building a protective shield around the
teeth.
Colgate Max Fresh positions itself on the basis of freshness.
The tagline new dimensions brings home this very point.

Colgate Kids toothpaste tries to position itself based on


emotions which is apparent in its tagline makes fighting
cavities fun.

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PRODUCT MIX

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MARKETING MIX

PRODUCT

CUSTOMER WANTS
AND NEEDS

PRICE

COST TO SATISFY

CONVIENCE TO BUY

PLACE

COMMUNICATION
PROMOTION

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1. Product : The product, the Precision toothbrush, is a


product that should add value to a buyers life.
It should also add utility, and meet the wants and needs of
targeted consumers.
The product should be unique and different from all similar
products that are already available on the market.
The strategy is to differentiate the products design and
packaging, which in return will cause the toothbrush to stand
out.

VARIOUS TYPES OF COLGATE:-

2. Price:PGDM-Marketing.

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The price of a product says something about the quality.


Even though the quality of the Precision toothbrush will be significantly
higher than other leading toothbrushes, the price of the toothbrush will
be determined by the prices of the other toothbrushes already in the
market.
This pricing strategy is a result of positioning the toothbrush as a
mainstream product rather than a niche product.

COLGA 20g
ms
TE

40g
ms

50g
ms

75gm 80g
s
ms

100g
ms

150g
ms

200g
ms

300g
ms

Dental
cream

5rs

----

14rs

----

----

30rs

45rs

56rs

86rs

Max fresh

---

---

15rs

---

32rs

35rs

55rs

----

---

Total

----

----

---

35rs

---

---

65rs

---

---

Sensitive

---

---

35rs

---

---

60rs

---

---

---

Kids

---

26rs

---

---

---

---

---

---

---

Advance
whitening

---

---

---

27rs

---

---

53rs

---

---

Active salt ----

---

14rs

----

----

30rs

----

54rs

----

Cibaca

---

---

---

---

---

18rs

---

28rs

---

Herbal

---

---

14rs

---

---

30rs

---

55rs

---

Fresh
energy gel

---

----

----

-----

---

---

55rs

60rs

---

3. Place:PGDM-Marketing.

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Place represents the location where a product can be purchased.


The most important part of marketing is how a product will get
from the seller to the buyer.
Many products go through a channel of distribution, which
involves manufacturers, wholesalers, retailers, and consumers.
The distribution strategy proposed for the Precision toothbrush
is through dentists, plastic surgeons, drug stores, grocery stores,
large retail stores, and department stores.
The product is available in the all India market, including semi-

urban & rural markets which are their primary focus.

4. Promotion : Product promotion is communication spread through


advertising, Publicity and sales promotion.
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Promotion represents all of the communication that


marketers use in the market.
We suggest that Colgate-Palmolive advertise their
products by using commercial, magazine ads, the radio,
ads that are to be placed in dentist offices, billboards,
and the sides of buses.
Advertising is done to promote new products, remind
consumers of existing products, and also promote the
image of the company at hand. We also suggested that
Colgate offer special coupons and rebates through their
other products, and also food products.
Also, Colgate could benefit from the usage of in-store
displays.
Most of the promotional activities would be T.V. media.
T.V., FM radio for urban population.
Promotion towards rural population also.

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CONCLUSION

By the Detailed study on the product and market of


COLGATE it was able to get a clear picture of the past and
present of the products and was able to get in to the
assumptions about the future of the product.

The Brand COLGATE has been sold successfully and has


created a good demand all the time.
It is also holding a good place in the toothpaste market with a
share of around 10% - 15%.

As like for all other products Colgate is also facing a tight


competition in the toothpaste Market.

Since the competition is too strong the company has to keep


on watching market closely for avoiding any sudden collapse
for the product.
Finally, it should note that the company may have to face lot
of threats in coming years like political threats, legislation
threats ongoing economic crisis, changing life style of the
people etc. If the company is able to overcome all the threats
and can prepare themselves for facing the problems in advance
it can achieve a good growth for COLGATE.

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