Colgate marketing strategy – Marketing strategy of Colgate: Colgate is a top brand in the world and the most trusted brand for Oral hygiene. It has been a leader for decades in toothpaste, toothbrushes, and even hygiene. Colgate has been a leader in the oral hygiene market for many years thanks to its innovative marketing strategies. This includes bringing in dentists to help brand the product. This marketing strategy is available for our readers.
Colgate At A Glance – Marketing Strategy of Colgate
Company : Colgate
CEO: Noel Wallace
Founder: William Colgate
Year founded: 1806, New York, NY
Headquarters: New York, NY
Annual Revenue: US$15.693 billion
Profit | Net income: US$2.527 billion
Number of employees : 34,500
Products & Services: Cleaning agents, Personal care products, Pet food, toothpastes, toothbrushes, mouthwashes and dental floss
Competitors: Johnson & Johnson | Unilever | Kimberly-Clark | Clorox | Procter & Gamble | Crest | Sensodyne | Pepsodent | Close up | Oral-B | Aim | Aquafresh | Dabur
Colgate Fun Facts: Colgate is an American brand principally used for oral hygiene products such as toothpastes, toothbrushes, mouthwashes and dental floss. Manufactured by Colgate-Palmolive, Colgate oral hygiene products were first sold by the company in 1873, sixteen years after the death of the founder, William Colgate.
Marketing Strategy of Colgate
Colgate’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Colgate? Let us discuss.
Segmentation, Targeting, Positioning – Colgate Marketing Strategy
Colgate categorizes its products into Oral, Personal, and Homecare categories based upon demographics as well as psychographics and behavioral factors. Different Deo’s for men and women, different Oral Care products to meet different needs.
While Colgate products are targeted at the mass market, most of its sales come from the middle class. Colgate-Palmolive’s use & benefit-based positioning made them a household name across all product categories.
Colgate Mission Statement
“To become a fast-growing consumer goods industry by developing and delivering innovative new products to consumers and marketing them more efficiently”.
Colgate Vision Statement
“Colgate’s vision is to become the best truly global products company.”
“Colgate-world of care”
Competitive Advantage – Colgate Marketing Strategy
They are competitive because of their broad product range and apt differentiation, which is based on Colgate’s benefits. Their products were differentiated by segmentation. Additionally, they had a healthy relationship with their competitors which helped them to be competitive.
Colgate’s other competitive advantage is its extensive distribution network in rural and urban markets. Because product availability is a major concern in the highly competitive marketplace, it makes the product readily available. It is helping the company to occupy large shelves, which results in high visibility and organic promotions.
BCG Matrix – Colgate Marketing Strategy
The technology and rising awareness about hygiene & sanitation have made Colgate’s personal & home care products stars. However, Colgate’s oral care products are sub-categorized into Stars & Cash Cows. Click here to learn more about the BCG matrix.
Because Colgate toothbrushes are so popular and readily available, the toothbrush market is a cash cow. Although there are many local and national players in this segment, the distribution strength of Coca-Cola provides tough competition to unbranded products.
Colgate toothpaste is a star because of its product offerings for toothpaste cat gory and differentiating advantages. It is a market leader and has been a household name in many developing countries. Other products can be used in place of toothpaste.
Distribution Strategy – Colgate Marketing Strategy
Colgate Palmolive Co Distributors is a separate distributor company that Colgate Palmolive owns. It is a subsidiary of Colgate Palmolive. It is an FMCG company with market access almost around the world. It doesn’t have a single distributor, but there are key subsidiaries that serve each region.
Even though the company has its channels for distribution, the real work of transportation still needs to be done. Colgate Palmolive collaborates with Magellan Transport Logistics, a global shipping company. It works in a 3 Tier Distribution System, i.e. from the manufacturer -regional distributor -sub-regional distributor-Retailer-to Customer.
Brand equity – Colgate Marketing Strategy
Colgate was ranked No.1 by Kantar World’s 2014 Brand Footprint survey. Colgate remained the second-most preferred brand globally on a list that included the top 50 brands. Colgate has grown to be a household name. The toothpaste category of Colgate under the brand name has been so popular that the brand’s name has been commoditized.
Competitive Analysis – Colgate Marketing Strategy
Colgate is constantly being challenged by its giant competitors. The HUL and P&G are the local FMCG giants. However, some companies have a dominant position in certain categories while others are in others. P&G and HUL are well-known for their soaps and detergents, as well as other FMCG products. Colgate is the most popular for oral hygiene in all of these products.
Market Analysis – Colgate Marketing Strategy
The highly competitive FMCG market is crowded with many national players. This segment’s success is dependent on the branding strategy and the distribution and product quality. Colgate is the market leader in all of these areas.
Customer Analysis – Colgate Marketing Strategy
Colgate’s typical customer is different depending on which product category they offer. For example, in oral care, Colgate has products that can be used by every segment of society. However, in personal care and home care, Colgate typically serves middle-class families.
This is the Marketing Strategy of Colgate. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.