...toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2.76 billion as it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. Colgate-Palmolive’s positioning strategy for its toothbrush line in food stores has aided in capturing heir current dominant market share. Its in-store displays, combining toothbrushes with toothpaste packs and locating the Colgate-Palmolive line of toothbrushes in the middle of the stores’ shelves have contributed to this dominance. This strategy has been successful, as sales through food stores, drug stores and mass merchandising channels have produced the greatest volume and dollar sales historically. Colgate-Palmolive’s secret weapon in the war for supremacy in the super-premium market, Colgate-Palmolive, is proven to be very effective in removing plaque 35% more effective than existing brands – and in preventing gum disease. This advantage can be attributed to the innovative design, high-tech research using CAD and infrared scanning, consumer research and extensive product testing. Although this technology is a strong argument for positioning Precision in the “super-premium” category, Colgate-Palmolive could also use its design aspects to improve Colgate-Palmolive’s existing “professional” and “value” toothbrush lines to increase their respective market shares. Colgate-Palmolive’s patented innovation for Precision also stands as a strength upon which Colgate-Palmolive can lean for...
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...1.0 Introduction Colgate- Palmolive is one of the leading consumer product organizations that have been dealing its products in worldwide. Colgate- Palmolive is an America based company and has many branches all over the world. One of the branches is located in Malaysia. Colgate- Palmolive (M) Sdn Bhd focusing their product segment on toothpaste and toothbrush. Both products are very competitive presently in Malaysia market. At the present, Colgate is implementing Activity-Based Costing (ABC) method. ABC is a system had been practices in many organizations for being a tool to measures the cost and performance of the activities and the cost objects. Hence, the management should look into ABC system which uses to provide more accurate information for decision making in determining costs by cost object such as product, customer, and location and the cost pool of the company. 2.0 Keys Areas for Improvement According to Reuben Mark (2003), Colgate Palmolive has highlighted its strategy of developing and launching innovative new products globally continues to strengthen the company’s market leadership positions around the world. Hence, it does apply to Colgate Palmolive Malaysia. Indeed the implementation of activity based costing by Colgate Palmolive (M) provide information for achieving its plans since the ABC is costing technology that traces cost to products according to activities perform on them. Accurate cost information is produced as to such purposes; focusing company...
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...colgate Meg Carey Max Jayapaul Julie Longmuir Kate Lynch Rani Marom Liz Sansone Marketing 9703 Dr. Chattalas Colgate-Palmolive Case Analysis April 10, 2002 COLGATE-PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH SWOT Strengths ColgateColgate-Palmolive is recognized as the world’s leader in personal care sales which included oral hygiene products like toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2.76 billionand as it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. In the United States, the world’s largest market, ColgateColgate-Palmolive holds the number one spot in toothbrush sales with a market share of 23%. From these statistics, one of Colgate-Palmolive’s main strengths is being the market leader inpersonal oral care products. is one of Colgate ColgateColgate-Palmolive’s extensive overseas reach is another main strength. Based on the data in the case study, ColgateColgate-Palmolivehas introduced 275 new products worldwide and setup manufacturing facilities in China and Eastern Europe, breaching the new emerging economies inof the 21st century. On top of that, international sales accounted for 64% of total sales andand profits from international operations account for 67% of the total profits for ColgateColgate-Palmolive.-Palmolive ColgateColgate-Palmolive hasa very large an...
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...through 2010. Their share of total oral care market volume in 2009 was 38%. They were also accountable for 46% of total toothbrush sales in 2009 making them the market leader The Problem Half of all Indians are still not concerned with preventing or curing dental problems, how to increase Indians awareness of oral health care is a big problem and a huge opportunity to engage 500 million customers. Also more than three-quarters of Indians lived on less than 2 dollars a day, how can the products be accepted for Indians. Situational Analysis Cottle-Taylor had several advantages that they used to leverage themselves in the Indian market. First of all, they created a subsidiary of Cottle-Taylor called Cottle India to specifically run operations in India. They had international employees that knew the Indian market that took care of marketing and provided strategic advice. They had a strong commitment to international employees within international divisions that worked together and collaborated with Cottle-Taylor in the US. Cottle partnered with the Indian Dental Association that was designed to “inform, educate and empower” citizens on oral health issues. This gave them a major advantage because this made Indians consider Cottle as an authority on oral care so they held their products in high regard. They had invested in growing toothbrush manufacturing capacity and improving productivity so by 2009 they were able to adjust its product mix to meet demand...
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...Global Adventures of Colgate Palmolive Today there are many firms whose products are widely known and are available in many countries all over the world, but international marketing is not a simple activity that can be successfully applied by very firm. First, to achieve success in international marketing activities, a company should consider economic, social and cultural facts about the countries which the firm plans to expand its activities to. These facts are extremely important because they have a great impact on the demand for a certain product. William M. Pride and O.C. Ferrell states that “the effects of environmental forces on customers and marketers can be dramatic and difficult to predict” (pp.6). This results in the need for a reliable and carefully developed marketing research. A company should conduct marketing researches to bring down the level of uncertainty and risk to minimum, by acquiring true and accurate information about the environmental forces. Thus marketing research, environmental scanning and analysis are crucial for a company which involves in international marketing activities. And finally the choice of the level of commitment plays an important role on the success of international firms. A company considering marketing in a foreign nation may prefer expansion through a joint venture or a trading company rather than direct ownership, if there are many uncertainties about the marketing environment of that country. Colgate-Palmolive is a good example...
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...1. What do you think of John Osher’s process for identifying opportunities and building companies? As a result of observation of the trends in some business, John Osher was able to identify, recognize and exploit opportunities in different business. Remodeling the approach and the access of his products (earring, clothing , innovative product for energy conservation, innovative baby toys), reaching success, he was able to gain and sell the businesses to others. His skills in detecting opportunities were at high level, so as the exploitation of the same in building companies. 2. What is the nature of the opportunity confronting Dr. John’s at the time of the case? Despite of some errors on the manufacturing side, the financial position of the company was satisfying John’s expectations. But mainly due to the high competition John was insecure of the future of the product. His doubts whether to continue by himself and keep on with improvement or selling the business to the large players was a dilemma for him. 3. What can go right? What can go wrong? What can management do to improve the risk/reward ration? Excellent negotiation with the executives of Proctor and Gamble in licensing the product under their brand, will represent a good opportunity. On the other hand is the unrevealed inexpensive electric toothbrush that Crest Division of P&G had been working on, which can take away the market share due to higher brand perception, and destroy Johns product. 4. What value...
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...Gillette Taking it on the chin Apr 16th 1998 | BOSTON From The Economist print edition The launch of a new razor will test whether Gillette deserves to be so admired by management gurus HOW many ways can there be to remove the 15,000 bristles that sprout so relentlessly on the male chin? Gillette, saved from humiliation eight years ago by the launch of the Sensor range, with not one but two blades, this week unveiled an even more revolutionary advance in shaving: the Mach3 (see article). Gillette’s future may not exactly be on a razor’s edge—it has 71% of the North American and European market for razors and blades—but it needs those bristles. The company, whose consumer brands include Duracell batteries, Oral-B toothbrushes and Parker and Waterman pens, is beloved by management consultants. But investors have begun to fret about slowing growth, lacklustre sales and an imminent change in top management. Growth has slowed in the hugely profitable razors division, partly because Schick, its smaller rival, has recently launched a new razor of its own. Last August, the mildest of profit warnings was enough to send the shares tumbling nearly 20%, although they have since recovered. The Mach3 is the company’s biggest and most important new product since the Sensor, and the company hopes it will have a similar effect. Eight years ago, Gillette was losing its grip on the razor market to cheap throwaways and facing the fourth in a succession of hostile takeover bids. Sensor...
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...Business and marketing strategy fundamentals Course code Course title Business and marketing strategy fundamentals Type of course Compulsory Level of course Graduate Department in charge Graduate School Year of study 1st Semester Fall Number of credits 10 ECTS; 56 hours of class work, 210 hours of selfstudy; 2 hours of consultations Lecturer Benas Adomavičius & PhD. Neringa Ivanauskienė Date of the course XYZ Prerequisites Undergraduate diploma in social sciences Form of studies Friday/Saturday Language of instruction English/Lithuanian Course description Business and marketing strategy are critical components of business success since strategic issues and possibilities arise in all sectors. Important aspects are not only the company’s positioning in relation to its market, but also the technological development, the supply of labour, political developments in society and other factors relevant for how organizations manage their business. 1 2013 Fall semester To a large extend strategic work is about understanding these factors and reinterpreting them so that they become assets rather than restrictions. Business strategy and marketing management concepts and techniques are studied. The course serves as an opportunity to develop skills for environmental and market analysis, understanding of the major business and marketing strategy issues, formulating business and marketing strategies and tactics. Course aim Students are going to discover knowledge...
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...Prince Market Analysis As the sport continues to experience growth due to the younger interest, Prince has created its own death warrant because it fails to see how it can create a positive and lasting strong hold in a market that has seen a recent upswing. One of the things that sticks out the most to me was the amount of time it took for Prince to realize its superior position in the niche market of tennis and other racket designated sports, I can’t grasp the idea that Prince was not already a major contender in the market. As the sports world is going through a makeover with sport phenoms seeking commercial backing, Prince has assured itself through social networking and sponsorship of young talented athletes is a way to snare young and upcoming players, pro or not. But, this very same issue can be seen as a down fall as well, to either the competitor or Prince. If Prince misses one or two up and coming players, no harm; but potentially missing out on millions in sales would devastate a younger company, a younger company must be spot on in their choices. Every match, win or lose, the player is getting recognition from the media, never a down side to branding unless the athlete does not become the star once thought possible; get them while they are young and you will create a devoted consumer (fan). In my opinion, Prince failed to protect itself when they entered into the arena of hosting minor events. I feel this is their biggest mistake. By doing so the competition should...
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... | | | | | | |PROBLEMS | | |LO1: Discriminate between | |23,30,37,38 |49,50,51,54,57 |66 | |relevant and irrelevant | | | | | |information for making decisions.| | | | | |LO2: Apply the decision process | |28,29,39 | | | |to make business decisions. | | | | | |LO3: Construct absorption and |A1,B1 |24,31,32,33, 34,35 |48 | | |contribution-margin income | | | | | |statements and identify their | | | |...
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...Colgate: Focused For Global Growth Speeding Powerful Brands Worldwide ■ Achieving Greater Profitability ■ Succeeding Together ■ 2001 Annual Report Another Year of Strong Performance Dollars in Millions Except Per Share Amounts 2001 2000 Change Unit Volume Worldwide Sales Gross Profit Margin Earnings Before Interest & Taxes (EBIT) Percent of Sales Net Income Percent of Sales Earnings Per Share, Diluted Dividends Paid Per Share Operating Cash Flow Percent of Sales Return on Capital Number of Registered Common Shareholders Number of Common Shares Outstanding (in millions) Year-end Stock Price ■ ■ ■ +5% $9,427.8 55.1% $1,834.8 19.5% $1,146.6 12.2% $ $ 1.89 .675 17.0% 29.7% 40,900 550.7 $ 57.75 $ $ $9,357.9 54.4% $1,740.5 18.6% $1,063.8 11.4% 1.70 .63 16.4% 26.4% 42,300 566.7 $ 64.55 +.7% +70 basis points +5% +90 basis points +8% +80 basis points +11% +7% +4% +60 basis points +330 basis points –3% –3% –11% $1,599.6 $1,536.2 Every operating division participated in the strong 5 percent unit volume growth. Colgate achieved its sixth consecutive year of double-digit earnings per share growth. All key profitability indicators set new records: gross profit margin, EBIT, net income, operating cash flow and return on capital. ■ ■ Continuing sales would have increased 5.5 percent if not for foreign currency translation. The dividend rate was increased by 14 percent in 2001. Colgate-Palmolive is a $9.4 billion global company serving people in more than 200 countries ...
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...PART ONE 1. INTRODUCTION Theoretical knowledge is the product of practical knowledge. However, the extent that the knowledge can understand is greatly limited because it doest not come with experience. The academic knowledge is not well enough to complete with real world. It was a great opportunity to experience of practical related work to an appraisal of Colgate toothpaste Company. 1. Background Though we are the student of school of business in under graduate program (Bachelor of Business Administration) We have to do innovate our potentiality to develop our skill in various sources such as Report making, preparing financial statement of different kinds of organization. It is our academic part to prepare a report on “Factors influencing consumer behavior specially focuses on Colgate toothpaste” that’s why we prepare it. 2. Significance It enhances our knowledge base. It gives us a broad idea about marketing analysis. 1.3. Scope of the report Today's business world is a place of challenge. Challenge and problem can come from anywhere & anytime. Marketing prepare people to cope with the competition. 1.4. Objective of the Report 1.4.1 Broad Objective: To identify the factor those influence the consumer behavior to buy a product or service. 1.4.2 Specific Objectives: The broader objective may be broken down into further specific objectives enlisted as follows: o To know the using time of Colgate tooth paste o To find the...
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...BUS 560 Exam (Chapters 1-5) Study Guide Questions These exam study questions will enable you to see whether you possess the level of knowledge necessary to pass a specific exam prior to actually taking it. Although these sample exam questions do not indicate the full range of difficulty you would find in the actual exam, they will help you assess your knowledge level. They also help you get familiar with the type of questions that may appear during the actual exam, they are built in the same environment as the actual exams. 1. Organizations expand into new products, new markets, and even new industries. In this process, the organization's original purpose may become irrelevant. In these circumstances the organization can be best described as a A. drifting organization. B. functional organization. C. horizontal organization. D. cooperative organization. 2. The core things that an organization does well are known as its A. distinctive values. B. distinctive competencies. C. distinctive ideals. D. distinctive technologies. 3. Which of the following statements about a mission statement is true? A. Even though no one denies the importance of the mission statement, it is the least used of all of the management tools. B. An effective mission statement takes an internal organizational focus. C. It should be focused on the physical product or service that the organization is offering at present. D. It should be focused on the broad class of needs that the organization is...
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...Porter’s five forces Michael Porter developed a framework consisting of five competitive forces, which analyze how industry factors impact a company’s strategy. These factors are: threat of new entrants, power of buyers, power of suppliers, availability of substitutes and competitive rivalry. Threat of new entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and...
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...Hierarchical Analysis of Industries Classes, categories, forms, brands Product hierarchy is a term which defines the way a product is relative to other products in the same industry. It guides the path and process a consumer takes to determine the products we choose and we eventually purchase. To start off we look at a basic need that our ultimate choice serves. After we identify the need and determine which industry will satisfy it we are faced with decisions. Which class of products in that industry will deliver that type of product? The different classes all serve a need that is relative to each other but may not serve the specific need. This is where we identify which category of product we are looking for. Here we will find products that serve similar functions and may be marketed to the same customer groups. To further narrow down our choices we must then select a product form that may serve a specific function. This is where we find the exact product that fills the ultimate need. Finally we make our end choice by choosing the brand of that product that will purchase. The actual number of levels in the hierarchy depends on how much more detailed or defined the need is. For example if someone wants soap and their only need is to clean something generic, they wouldn’t dig deeper into the types of soap they are looking for rather than looking for a specific type of cleaning agent for granite counter tops for example. To further explain and give examples of how a...
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