Marketing Mix of Colgate

History

In 1806, when the company was founded by 23-year-old William Colgate, it concentrated exclusively on selling starch, soap, and candles from its New York City-based factory and shop. Upon entering his second year of business, Colgate became partners with Francis Smith, and the company became Smith and Colgate, a name it kept until 1812 when Colgate purchased Smith’s share of the company and offered a partnership to his brother, Bowles Colgate. Now called William Colgate and Company, the firm expanded its manufacturing operations to a Jersey City, New Jersey, factory in 1820; this factory produced Colgate’s two major products, Windsor toilet soaps and Pearl starch. Colgate-Palmolive Company’s growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments–oral care, personal care, home care, and pet nutrition–that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy’s oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill’s Science Diet and Hill’s Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States.

Company Overview

Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for over 200 years.

Company Timeline:

• 1806-William Colgate starts a starch, soap and candle business on Dutch Street in New York City.

• 1857-Upon the death of founder, William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son.

• 1896- Colgate introduces toothpaste in a collapsible tube.

• 1911- Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.

• 1953-Colgate-Palmolive Company becomes company’s official name.

• 1956- Colgate opens corporate headquarters at 300 Park Avenue in New York City.

• 1968- Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.

• 1996- Bright Smiles, Bright Futures oral health education program expands to 50

countries, and today reaches over 50 million children annually.

• 1997- Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.

• 2000- Colgate creates, Colgate 2in1 Toothpaste.

• 2007- Colgate launches Colgate Max Fresh toothpaste line.

• 2009- Colgate launches Colgate Luminous.

Marketing Mix

Marketing Mix of Colgate

• Product
• Price
• Place
• Promotion

Product: Product means the goods and services combination the company offer to the target market.

Price: Price is the amount of money customer must pay to obtain the product.

Place: Place includes company activities that make the product available to target customers.

Promotion: Promotion means activities that communicate the merits of product and persuade target customers to buy it.

Marketing Mix

Product:

Product Overview

Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria.

Specifically:

• Toothpaste contains abrasive materials that physically scrub away plaque. In addition, toothpaste abrasives help remove food stains from teeth and polish tooth surfaces.

• Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel weakened by acid attack, making it more resistant to future acid attack from plaque bacteria and food.

• Technological improvements in some toothpaste contain ingredients that chemically hinder the growth of plaque. Colgate’s brands consists of a multitude of unique toothpastes lines, specializing in the preservation and treatment of oral hygiene. Colgate has created an array of 40 different patented toothpastes keeping Colgate competitive in the market place. There are 13 different classifications and varieties of Colgate toothpastes. Colgate’s toothpastes feature; cavity protection, plaque & gingivitis prevention, long lasting fresh breath, tartar control toothpastes, tooth whitening, baking soda and peroxide, enamel strengthening, sensitivity relief and toothpaste designed for children.

Marketing Mix

Product Analysis:

* Colgate Cavity Protection Great Regular Flavor * Colgate Total Advanced Whitening

* Colgate Cavity Protection Winterfresh Gel * Colgate Total Advanced Clean

* Colgate Total Advanced Fresh Gel

* Colgate Tartar Control Whitening Cool Mint Gel * Colgate Total Clean Mint

* Colgate Tartar Control Whitening Crisp Mint * Colgate Total Whitening Paste

Paste * Colgate Total Whitening Gel

* Colgate Total Mint Stripe

Colgate Regular: In over 173 years, Colgate’s original flavored mint

toothpaste has changed very little. It cleans, strengthens, protects teeth and breath.

Colgate’s Original formula uses active fluoride to keep teeth and gums healthy.

Colgate Regular is ADA approved and doctor recommended.

Colgate Tartar Control Toothpaste: One of the top sellers in the Colgate toothpaste line and for good reason. Colgate Tartar Protection fights tartar build up and removes stains to whiten teeth and fight cavities.

Colgate Total is the most popular toothpaste under the Colgate brand. It has eight products and flavors within the line that all promote 12-hour protection from:

gingivitis, stains, plaque, whitening, cavities, tartar, weak enamel, tender gums and bad breath. Colgate Total’s products all protect against these unwanted oral issues, but some target specific individual problems in a variety of toothpastes and gels.

Including, Colgate Total Enamel Strength Striped paste, protects from acid wear.

Marketing Mix

for 12 hours. Colgate Total Advanced Whitening uses Dual-Silica Technology to remove tooth stain and helps to prevent new stains from forming. Colgate Total

Advanced Clean is available in both a gel and paste form and contains silica, which is similar to what dentists use to maintain a professional cleaning feel.

Colgate Total

Advanced Fresh Gel contains an added flavor booster to keep breath ultra fresh for up to 12 hours. Colgate Total Clean Mint Paste has a delightful mint taste.

Colgate

Total Mint Stripe Gel is a minty blend of gel and paste that leave the users mouth fresh and clean.

Colgate Oxygen Bubbles Toothpaste: When activated, the product foams to get in between teeth to fight cavities and kill germs that cause bad breath. Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of your teeth.

Colgate 2in1 Toothpastes is a mix of two distinct features in one gel toothpaste. Whitening foaming that gets between teeth to fight cavities and kill germs that cause bad breath and Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of teeth.

Colgate Sparkling White Toothpaste is clinically proven to protection teeth from wear and tear staining. The formula is a patented creation for sparkling, healthy, white teeth accompanied by a unique flavor experience. It is available in the following flavors: Colgate Sparkling Mint Zing, Colgate Sparkling White CinnaMint, and Colgate Sparkling White Caribbean Cool.

Colgate Sensitive Multi Protection fights tartar, removes plaque, promotes healthy gums and whitens teeth for a healthier smile. The sensitive element in the three Colgate Sensitive Toothpastes protects from painful oral sensation. Colgate Sensitive

Enamel Protect helps protect tooth enamel from acid attacks. Colgate Sensitive

Whitening helps restore the natural whiteness of teeth.

Colgate Pro Clinical is relatively new to the market. It comes in three varieties inspired by dentists to create a high quality and satisfaction guaranteed product.

Colgate Max Line established in 2007 consists of three varieties.

Colgate Max

White with Mini Bright Strips freshens breath and helps to bring back the natural whiteness of a persons smile. Colgate Max Fresh with Mini Breath Strips is packed with hundreds of mini breath strips. These breath strips unleash a powerful rush of freshness and are formulated to whiten teeth. Colgate Max Fresh with Mouthwash

Beads contains concentrated mouthwash beads that leaves the users mouth ultra clean and fresh. Colgate has several lines of toothpaste targeting children in regard to packaging, flavor and theme. Including Colgate Dora the Explorer Mild Bubble Fruit, Colgate

SpongeBob Mild Bubble Fruit, Colgate My First Toothpaste and Colgate Pop Stars.

Colgate Luminous is Colgate’s newest brand launched in early 2009. It is manufactured in two flavors, Crystal Clean Mint and Paradise Fresh Colgate. Luminous is a specific formula that safely lifts off yellowing surface stains to restore the natural whiteness to teeth. Using fluoride mineral formulation, ColgateLuminous strengthens weakened teeth enamel.

Marketing Mix

Price

Colgate features products in the oral health isle of almost all stores carrying oral health products. Colgate has a large span of shelf space on nine rows, totaling 35 items per store that illustrates the wealth of variety Colgate offers. It is important to note that Colgate is the first product on display in the toothpaste section of the oral health isle. The subtotal of all of Colgate’s products per ounce is 28.58 equaling $0.81 per ounce, making it the most expensive brand of the three toothpaste category leaders. The most expensive toothpaste per ounce is the Colgate Pro Clinical, which is featured at eye level on the top shelf. The least expensive toothpaste per ounce is the Colgate Regular super tube, which is located on the second shelf from the store floor or shin level of the consumer.

 
Marketing Mix

Place

Colgate’s product distribution is immense. Almost all super markets, discount chains and pharmacies such as Wal-Mart, Albertsons, Target, Walgreens and CVS carry Colgate Toothpaste. Colgate toothpaste is physically located in the oral health isle of stores. Colgate toothpaste can sometimes be found in more prominent locations when on sale or launching new products into the market. Colgate is sold over almost all the retail outlets of India viz.,Kirana stores, supermarkets, medical shops, co-operative stores, etc. It is well-distributed through the supply chain of company distributors to whole sealers to retailers to final consumers. All the products are available in the all-India market, including semi-urban and rural markets which are their primary focus areas. But the various varieties of Colgate are not so easily available other than in the oral care outlets or super markets. The small tubes of Colgate are also available in small road-side shops and from the vendors.

Promotion

The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of mediums. The advertisements and promotions are located in a targeted media selection that appeals to the target consumer.

• Website: Colgate has a dynamic website with the title, “Colgate World of Care,” that details products, oral care, company history, e-newsletter and special offers.

The website also has a social networking page called Colgate Smile to engage the consumer to get involved with their oral health and the Colgate-Palmolive Company. Colgate also has social media pages on Facebook, Twitter and MySpace.

• Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section of the website. Colgate coupons can also be found as cutouts in the weekend coupon sections of 500+ newspapers around the country.

• Television: Colgate and its advertising agency produce several television advertisements a year using humor and pseudo-scientific displays to appeal to consumers.

• Magazines/Outdoor: Colgate’s marketing campaigns have been known to use historical, sexual, cultural and social inferences in their advertisements.

• Donations: Colgate donates millions of dollars annually to the ADA’s “Give a Kid A Smile.” Colgate is a direct partner with this ADA program.

 Coupons are the largest form of promotion offered by the home product giant P&G. Coupons can be found online via the Crest and Oral-B e-newsletter. Sent out monthly, the E-mail newsletter includes updates, latest advances, new products and exclusive offers at

P&G. Crest also sends out the P&G Brand Saver found in over 500 local SundayNewspapers nationally. This coupon booklet provides discounts on P&G products that are redeemable at purchase. Colgate normally gives out small product samples at annual events like ³Oral Health month´ to remind target consumers, especially kids to take better care of their teeth after eating sweets. This method does not drive strong results as most consumers tend to forget the message, even if they have collected the samples. Now, instead of giving away product samples, Ice cream and cotton candy were given out. The stick carrying the ice-cream and cotton candy carries a hidden message. Once consumers are done the message printed on the tip of the stick shaped like a toothbrush reveals ³Don’tforget´ with the Colgate logo. This simple message effectively reminded consumers to brush their teeth.

Marketing Mix

Colgate Mission:

Based upon Colgate and its competitor’s situation analysis, a comprehensive strategic plan has been compiled with goals, rational, insights and initiative. These elements are in accordance with the three fundamental values stated in the Colgate Mission statement. The three fundamental values of Caring, Global Teamwork and Continuous Improvement are the foundations for Colgate’s business strategy and are reflected in every aspect of work life.

Caring: The company cares about people; Colgate employees, customers, shareholders and business partners. Colgate is committed to perform with compassion, integrity, honesty and high ethics in all situations and to listen with respect to others and to value differences. The company is also dedicated to protect the global environment and to enhance the communities where Colgate users live and work. It is also committed to be compliant with government laws and regulations.

Global Teamwork: Colgate is part of a global team that is committed to working together across countries and throughout the world. By sharing ideas, technologies and talents, the company can achieve and sustain profitable growth. Continuous Improvement: Colgate is committed to improving every day in all it does, as individuals and as teams. By better understanding consumers’ expectations and continuously working to innovate and improve products, services and processes, Colgate will “become the best.”Marketing Mix