Transcript
COLGATE PALMOLIVE
THINGS TO ANALYZE MARKETING MIX
ADVERTISING BUDGET
COMPANY BACKGROUND
COMPANY BACKGROUNDREUBEN MARK – CP’S CEO
COMPETITORS – P&G, UNILEVER, J&J
SALES-$6.06B GROSS PROFIT-$2.76B
INTERNATIONAL SALES – 64% PROFIT 67%
R&D EXPENDITURE–$114M MEDIA EXPENDITURE–$428M
CURRENT U.S. MARKET SITUATION
CURRENT U.S. MARKET SITUATION
TOOTHBRUSH ACCOUNT FOR 15.5% OF TOTAL ORAL CARE MARKET GROWTH RATE 9.3% / ANNUM
1991-1992
BUT IN 1992 GROWTH RATE – 21% IN VALUE AND 18% IN VOLUME DUE TO INTRODUCTION OF NEW BRANDS
INCREASING PRODUCT SEGMENTS
INCREASING PRODUCT SEGMENTS
VALUE PROFESSIONAL SUPER-PREMIUM$1.29 $2.29-$2.89$1.59-$2.09
INCREASING PRODUCT SEGMENTS
BRISTLE TYPE HEAD SIZE(FIRM, MED, SOFT, EXTRA SOFT) (FULL, COMPACT, CHILD)
INCREASING PRODUCT SEGMENTSTHE SUPER-PREMIUM SEGMENT
VARYING CONSUMER BEHAVIOUR
VARYING CONSUMER BEHAVIOURMORE CONCERNED ABOUT GUM HEALTH.
PURCHASERS WERE UNPLANNED AND UNFAMILIAR WITH PRICES
48% - EVERY 3 MONTHS , 70% TOOTHBRUSH-BRISTLES , 11% AFTER SEEING DENTIST , 3% PURCHASE ON IMPULSE
VARYING CONSUMER BEHAVIOUR
FACTORS AFFECTING BRAND DECISION
VARYING CONSUMER BEHAVIOURINTENSITY OF CONSUMER INVOLVMENT IN THEIR ORAL HYGIENE
FIERCE COMPETITION
FIERCE COMPETITION
ORAL-B JOHNSON AND JOHNSON
PROCTER AND GAMBLE SMITHKLINE BEECHAM
ORAL-B
LAUNCHED INDICATOR BRUSH IN 1992
RELIED ON PROFESSIONAL ENDORSEMENTS – “THE
DENTISTS TOOTHBRUSH”
ORAL-B
MEDIA EXPENDITURE - $11.2 MILLION
$1.00-OFF COUPONS, “BUY ONE GET ONE FREE” OFFERS AND @2.00
MAIL IN REFUNDS.
JOHNSON AND JOHNSONENTERED WITH REACH BRAND
BRUSHING IN EVERY HARDEST TO REACH
PLACE, THEREBY INCREASING
EFFICIENCY OF BRUSHING
GLOW REACH AND ADVANCED DESIGN
REACH
JOHNSON AND JOHNSONENTERED WITH REACH BRAND
60¢ coupons, $1.00 refunds by mail, and “buy-two-get-one-
free” offers
MEDIA EXPENDITURE – $17.1 MILLION
PROCTER AND GAMBLE
ENTERED WITH THE CREST COMPLETE
the ability to reach between the teeth up to 37% farther than leading flat brushes.
PROCTER AND GAMBLE
ENTERED WITH THE CREST COMPLETE
55 cent coupons and $1.99 refunds on toothbrushes purchased from floor stands MEDIA EXPENDITURE -
$6.4 MILLION
SMITHKLINE BEECHAMENTERED WITH AQUAFRESH FLEX
PROMOTED FOR ITS “FLEXIBILITY AND GENTLENESS”
SMITHKLINE BEECHAMENTERED WITH AQUAFRESH FLEX
included $1.99 mail refunds, “buy-two-get-one-
free” offers, toothbrush on-pack with toothpaste,
and a self-liquidating premium offer of towels.
MEDIA EXPENDITURE - $10 MILLION
USE OF ADVERTISEMENT AND PROMOTION
USE OF ADVERTISEMENT AND PROMOTION
WHY ADVERTISEMENT?
USE OF ADVERTISEMENT AND PROMOTION
It was hard to increase primary demand, so new products tended to steal sales from existing products. In the case of toothbrushes, increased advertising and promotion enhanced the category’s visibility which fuelled consumer demand
USE OF ADVERTISEMENT AND PROMOTION
MEDIA ADVERTISING EXPENDITURE OF VARIOUS BRANDS
USE OF ADVERTISEMENT AND PROMOTION
MESSAGE AND TAGLINE OF VARIOUS BRANDS
USE OF ADVERTISEMENT AND PROMOTION
COLGATE ADVERTISING STRATEGY AND TAGLINE
USE OF ADVERTISEMENT AND PROMOTION
ADVERTISING AND PROMOTION BUDGET OF COLGATE
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELSMAJOR DISTRIBUTION CHANNEL
MASS MERCHANDIZERS
INCREASING NUMBER OF SKUINCREASED IN-STORE PROMOTIONAL SUPPORT
AVERAGE MARGIN ON TOOTHBRUSH 25%-35%
DISTRIBUTION CHANNELSRETAIL TOOTHBRUSH SALES
DISTRIBUTION CHANNELSMARKET SHARE OF VARIOUS BRANDS
NOW LETS GET TO THE THINGS WE HAVE TO ANALYZE!!
THE PROPOSED MARKETING MIX
•PRODUCT DESIGN ANALYSIS•POSITIONING•BRANDING•COMMUNICATION STRATEGIES
DECISIONS TO BE MADE ON
PRODUCT DESIGN ANALYSIS
PRODUCT DESIGN ANALYSIS
TRIPLE ACTION BRUSHING EFFECT
SUPERIOR, TECHNICALLY INNOVATIVE, PLAGUE-REMOVING DEVICE
AVERAGE 35% MORE PLAGUE REMOVAL
PRODUCT DESIGN ANALYSIS
POSITIONING
POSITIONING
NICHE POSITIONING STRATEGY
MAINSTREAM POSITIONING STRATEGY
CUSTOMERS CONCERNED WITH GUM DISEASE
CAPTURING BIG SHARE OF THE MARKET
NICHE POSITIONING STRATEGY
MAINSTREAM POSITIONING STRATEGY
RESULT
• SINCE MAINSTREAM POSITIONING STRATEGY IS GIVING MORE RETURNS AND ALSO HELPING COLGATE IN GAINING A HUGE MARKET SHARE IT WILL BE FOLLOWED
BRANDING
BRANDING
PRECISION SYSTEM III ADVANTAGE
CONTOUR SENSATION PROBE
ACCEPTED BY 49% CONCEPT ACCEPTORS
STRESSING “COLGATE” OR “PRECISION”
BRANDING
INCREASE COLGATE PLUS CANNIBALIZATION BY 20%
NO CHANGE IN CANNIBALIZATION
COMMUNICATION AND PROMOTION
COMMUNICATION AND PROMOTION
PRINT- AD
COMMUNICATION AND PROMOTION
SURVEY RESULTS
COMMUNICATION AND PROMOTION
CUSTOMER RESPONSE
VERY DIFFERENT FROM OTHERS
MUCH EFFECTIVE THAN OTHER TOOTHBRUSHES
“You can really feel it working.”
55% 77%
SAMPLING IS NEEDED
COMMUNICATION AND PROMOTION
PROMOTION PLANS
• A FREE 5 OZ. TUBE OF COLGATE TOOTHPASTE (RETAIL VALUE OF $1.89) WITH THE PURCHASE OF A PRECISION BRUSH IN STRONG COMPETITIVE MARKETS; AND A 50%-OFF OFFER ON ANY SIZE OF COLGATE TOOTHPASTE (UP TO A VALUE OF $1.00) IN CONJUNCTION WITH A 50¢ COUPON ON THE PRECISION BRUSH.• ENDORSING AND PROMOTION BY DENTISTS
ADVERTISING AND PROMOTION BUDGET
ADVERTISING AND PROMOTION BUDGET
ADVERTISING CONSUMER & TRADE PROMOTION
$ 9.6 MILLION $ 14.4 MILLION
CREDITS-• Istockphotos.com• flickr.com• Google.com
DISCLAIMERCREATED BY, AYUSH GARG, BITS GOA, DURING A MARKETING INTERNSHIP WITH PROF. SAMEER MATHUR, IIM LUCKNOW
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