1

Ashish Bhanot (1911172)

University Canada West

MRKT-621

Yuri Taira

11 March 2020
 2

COLGATE-PALMOLVE CANADA: FIGHTING FOR A SHARE OF THE

TOOTHPASTE MARKET

EXECUTIVE SUMMARY

In the year 2013, Colgate- Palmolive tackled umpteen hurdles in their decision mking process

of marketing. The company wanted to expand the growth of their portfolio but desired to make

sure of introducing the value approximately $3 million into their marketing budget as it would

be advantageous or not. Richard Werner who is the vise president of the customer development (

Colgate, Canada) shared various perspectives of their employees in order to evaluate how to

raise the sales for their product in Canada. Moreover, employees gave different suggestions of

targeting the sales and they use the marketing budget of $3 million in different ways. Similarly,

the reader is also providing his own opinion after detailed analysis.

PURPOSE

The growth and market share of the company creates valuable image and helps to assess the

performance in financial terms. Therefore, the main aim of this study is to target the market share

in Canadian market. Richard Werner hold a conference in Toronto where team members share

their views and swayed them not to diffuse dollar in a marketing budget; whereas, others opine

that there should be more concentrated on the sales promotions, advertisement and trade

promotions.

ANALYSIS

In the Canadian market consumers are merely sensitive for their oral care as well as teeth

whiteining. According to the survey 2013, more than half of the population was wanted to use
 2

those products which could make their teeths whiter and shiner. This was a better opportunity for

the colgate company as they offered all these characteristics. As consumers expected to improve

gum problems and dental care at affordable price. In order to influence the buyer process colgate

would use $3 million into their marketing budget for the awareness of colgate products that

could help them to capture more market shares.

TARGET MARKET

The main focus of this company is to target the age group of 18 to 39 who are more sensitive to

their dental caring rather than oral problems. They just want to feel fresh and shine teeth.

Therefore, the company has to provide various features into their product so that this age group

would attract for purchase and helps to gain the market share.

PRCING STRATEGY AND DISTRIBUTION

The company has not to decrease or increase their prices of the product for the sake of

attracting the market. They can stick to the present price range from $1.28 to $ 4.38. But they can

offer any discounts or offs to the customers. Moreover, the distribution channel should be same

which includes Walmart, Sobeys, Metro etc. There should be proper sheling and displayimg of

their products which could attract the customers by using eye-catchy banners or posters. They

also provide coupons and sample product to their customer just for attracting the customers.

COMPETITION IN MARKET

Basically there are four major competitors in the oral care market. All of these hold major

shares in the market approximately 80%. Very company has to face tough competition in the

market . they can only make their product number one if they would provide all features to their
 2

customers and could fulfill their expectations. So the company has to portray their products with

providing various features like teeth sensitivity, fresh breath, shining and whitetining of teeths as

well. The colgate can launch new product with All in one features that could attract the consumer

and helps to gain more market share in Canada.

BREAK EVEN POINT ANALYSIS

If colgate wants to gain one percent share in the market they would gain approximately the

$8,201,000 Million. This would help them to capture the 34% of shares in the whole market.

Whereas, the present break even point of collgate is about 3,615,000 units sold at $2.1

approximately consequently the BEP in sales is $7,627,000. If they want to introduce the $3

million for the marketing budget it would be advantageous this would help them in additional

sale of products units into the market i.e. about 2,000,000.

EXPENDITURE

At present Colgate spends most of the amount into their production as well as marketing of

their product into the market. They would need to use personal selling and sales promotion for

the selling of toothpaste unit so that the breakeven in their marketing budget would increase.

They should spend more in advertising their product into the market.

BENEFITS AND DRAWBACKS

According to Simons, if the company raising their amount of promotional items they could

help in capturing more market. It would be beneficial if there should be promotion at the

enternace of the store and there should be the salesperson who could provide sample and demos
 2

to the consumers. However, the bad impact is that currently every competitor is adopting this

method.

On the other hand, Macros shared that branding of loyal customersplays vital role in capturing

the market. This can only done with the help of making gud relationship as well providing more

benefits to the consumers. Similarly, Christopher suggested that there should be increase in the

advertising of product. Colgate company can utilize different advertising medias such as out

home, television, internet, blogs, radio and newspaper. There should be increase in the frequency

of the advertisement according to the geographical location. But the major drawback is

consumers get annoying by watching frequent ads on televisions and other medias.

RECOMMENDATIONS AND CONCLUSION

According to the reader, I would like to increase the promotion by using different coupons,

providing plethora of offs and discounts to the customers. For children they could utilize the

cartoons on the product packaging. Moreover, the company can provide toothbrush along with

the colgate. This would also help them in attracting more consumers. There should be no extra

expenditure of the marketing budget . the product should be displayed in front by using various

eye- catchy banners and posters on the shelf and aisles. This would also them to encourage the

consumer in buyer that product. The salesperson also provide demos to the customers by live or

direct face to face meeting with customers.