Holistic or Sustainable Marketing

Holistic or Sustainable Marketing

Sustainable marketing refers to way of marketing which incorporates needs of the customer, the organisation and the society in general over a long term. It means designing and marketing products that can be used universally by all the consumers across the world over extended periods, without causing harm to either the consumers or the environment.

A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities.

Analyzing Business Markets

Analyzing Business Markets


Understand the nature of the business market and how it differs from the consumer market is what is defined by this.Following points which help us understand

•Expand understanding of customer needs
•Compete globally as China and India reshape markets
•Master analytically tools and improve quantitative skills
•Reinstate innovation as an engine of growth
•Create new organizational models and linkages

Colgate is the world market leader in oral hygiene products. The toothpaste product line consists of strong brands. This is due to a very successful marketing strategy of the company in the past. A wide range of different toothpaste products is offered to the customers.

Colgate differentiate their products from the competitor’s products by being innovative and unique.

Moreover the toothpaste market is growing constantly which means that more different needs and expectations of the customer will arise. Colgate make use of marketing tools such as market segmentation to better identify their needs in order to supply them with the right products.

Branding

Branding


A brand is a future generator of cash flows, known for its values and an intangible asset. For a common man it is just a name or a symbol through which he remembers or recalls a particular product or a set of products .A brand enables a consumer to differentiate amongst the available product. A brand is built by the consumer’s perception about the products.

The process involved in creating a unique name and image for a product in the consumers mind, mainly through advertising campaigns with a consistent theme which colgate has done precisely and profoundly.
Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers and of course Colgate is the brand which come to mind first due to its vast active ads and activities.

Segmentation, Targeting and Positioning:

Segmentation, Targeting and Positioning:

Market Segmentation:
                                     Dividing a market into smaller groups (segments) of buyers with distinct needs,characteristics or behavior who might require separate products or marketing mixes.
Basically there are so many ways of defining segmentation.

Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation

Target market: 
                            Evaluating each marketsegment’s attractiveness and selecting one or more of the market segments to enter.Colgate focuses on household women; people who have medium and high income and modern life and like famous brand as well. Every company wants its products to be widely used by most of people. This will make the reputation of the company increase significantly and get the high market share. Colgate is not an exception. Although Colgate distributes its products in both urban and rural areas in most cities in India, there is still a small number of people who live in rural areas don’t use Colgate even though they already knew its brand name. That will make Colgate lose some potential customers in rural areas. In order to solve that problem,

Demographic:
Age: teenagers, adults.
Gender: male and female.



Positioning: 
                             The way the product s defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products.Colgate targets clients who have modern life style and like to use famous brand. Also, people who care about their gum disease are the second targeted customers of Colgate. In fact, they desire products that can bring them many benefits including whitening the teeth along with reduction the gum diseases such as bad breath, stains and plaque. Moreover, Colgate is a popular brand name all over the world, customers who like to use famous brand will choose Colgate as the first choice. Colgate needs to give more promotions to attract those clients.Colgate is ranked one of the products which have the high price and high quality. Thus, the main Colgate’s targeted customers are people who have medium and high income. These people can afford to buy Colgate Total without spending too much time to think before purchasing it.

Promotions

Promotions :

Colgate truly believes in Promotions via Ads and key activities.


                                    

For the loyal customers, they will not spend too much time before buying Colgate’s toothpaste because of their habitual decision making. Therefore, Colgate belongs to low purchase involvement product. However, for other customers, Colgate could be seemed as a middle involvement because clients sometimes compare price and willing to switch another toothpaste brands whenever there is a price promotion.

In this case, Colgate is near to limited decision making because consumers need a little bit time to make decision at the store. Therefore, repeat consumer segment is the battle field of marketers. It is recommended that marketers should focus on more promotions such as outlet price reduction, patronage rewards, etc. and outlet display in the supermarket in order to attract those repeaters form rival commodities. 

Engage 36,000 doctors to recommend their products.

Positioned Colgate dental white cream and toothpowder towards rural rich segment.

Positioned CDC consistently in the germ fighting platform. 

It had the famous " suraksha chakra "platform from where it had built its brand to this level. 

Colgate even Promote though Contest and parties.

Integrated Marketing Communication

Integrated Marketing Communication



Various types of Channel for Colgate :

Wholesalers, retailers, transportation companies, ad agencies , e-commerce.

Colgate uses both push and pull strategy effectively.

How Colgate Chooses its Distribution Channel.. 

Retailing, wholesaling and logistics


There are many indirect channels like:


PRODUCER DISTRIBUTOR  to RETAILER to CONSUMER

PRODUCER to CONSUMER

PRODUCER to DISTRIBUTOR to CONSUMER

PRODUCER to DISTRIBUTOR to STOCKIST

CONSUMER to RETAILER

and

PRODUCER to E-COMMERCE to CONSUMER

Pricing

Pricing

The list price of the product is RS 12.50 for 50g pack. the product is in the popular segment which is priced higher to only the economy segment and lower than the gel and premium segment in the toothpaste market.

Discount/Allowances- No promotional discount are allowed. Payment period/credit terms- Being an off-the-shelf FMCG, in line with the category, no credit is allowed by the company (though the store allows credit on purchase of all items) place Colgate toothpastes are available at every convenience place to facilitate its customers. So, customer purchases it with a very little shopping effort.

Setting Product Strategy

Setting Product Strategy

There are five product levels : Core benefit, Basic product, Expected product, Augmented product, Potential product.

Core Benefit : The core benefit the product will provide to consumers is total health care. The loyalty towards its customers provide satisfaction to them and will profit to the brand also.

Basic product : A fundamental good or service that can be provided by a business and sold to consumers that need or desire it. For a manufacturing company, a basic product might be a rather simple good that experiences relatively consistent consumer demand and so helps the business cover its costs while a greater diversity of products are developed.For colgate its the ingredients of manufacturing.

Expected product : These are attributes expected by the consumer from the product. In case of Colgate, there is nothing as such.

Augmented product : It is a differentiated product that is made to exceed a consumer's expectations. Colgate gives such a product which not only satisfies customers but also is premium to have with low cost.

Potential product : This is where the company looks for innovate ways to satiate the consumer.

Competition

Competition

             Market Leaders In This Industry:  Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market.

Of course Colgate is the leading Brand in India with a market share of 85 % with Rs. 22,427 crores reported by The Economics Times. With at least 10 extensions to the flagship Colgate Dental Cream (including a kids' toothpaste and a whitening product), one mouthwash (Plax) and a wide range of toothbrush extensions (including one with a flexible head and a cheek and tongue cleaner as well as battery toothbrush), Colgate has been able to make oral care account for over 80 per cent of its total sales.

Understanding Consumers & Consumption

Understanding Consumers & Consumption


Every company wants its products to be widely used by most of people. This will make the reputation of the company increase significantly and get the high market share. Colgate is not an exception. Although Colgate distributes its products in both urban and rural areas in most cities in Vietnam, there is still a small number of people who live in rural areas don’t use Colgate even though they already knew its brand name. That will make Colgate lose some potential customers in rural areas. In order to solve that problem, Colgate needs to give more promotions to attract those clients. For instance, Colgate should create more programs like “Colgate Month” which are celebrated monthly in rural areas. In addition, in that program, there are many dentists to check customers’ teeth and recommend people to use Colgate Total to prevent common oral health conditions. As a consequence, people will have better perception about Colgate’s benefits. In addition, more and more people will purchase Colgate and its market share will certainly continue increasing in the future.



Occasions: The purchasing of Colgate happens monthly.
Status: Customers who have loyalty and habitual purchasing will trust and choose Colgate as the best toothpaste to care their family’s teeth heath.

For the loyal customers, they will not spend too much time before buying Colgate’s toothpaste because of their habitual decision making. Therefore, Colgate belongs to low purchase involvement product. However, for other customers, Colgate could be seemed as a middle involvement because clients sometimes compare price and willing to switch another toothpaste brands whenever there is a price promotion. In this case, Colgate is near to limited decision making because consumers need a little bit time to make decision at the store. Therefore, repeat consumer segment is the battle field of marketers. It is recommended that marketers should focus on more promotions such as outlet price reduction, patronage rewards, etc. and outlet display in the supermarket in order to attract those repeaters form rival commodities. 

Marketing Mix

"Marketing mix" is used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps comes under marketing mix, and was first expressed in 1960 by E J McCarthy.

• Product:  Colgate try to position some innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive. Focusing toward rural rich and consuming class by endorsing the development of 'Colgate Ayurvedic Toothpowder'.They would come up sachets of these tooth powder and position toward rural population who buy in smaller lots. For Urban population, they would come up with the products suiting to young generation.For Urban rich and consuming class, they would come up with the products on the basis of functional benefits.
             Eg: 1.They launch different toothbrushes for different age groups. 2.They launch a special toothpaste and toothbrush for kids in the age group from 4-10 years.

• Price: Based on the competitors price .Charging higher premium which focused on consuming and lower income classes.Pricing done on the basis of price points.Packaging would be customized on the basis of price points.
•  Promotion: Colgate positioning as a dental white crème and toothpowder towards rural rich segment.For rural consuming class they endorsing Cibaca toothpaste.Advertisement through T.V. media, Print media.FM Radio for Urban population & MW and SW radio for Rural population. Hoarding on National highways.
• Place: Colgate is trying to increase product penetration to rural population. Colgate is increasing the wholesalers to smaller towns. they are tracking the distribution path so that they are covering all the village areas around the towns.

Product Life Cycle_Colgate

•  Pre-launch or Development: In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son. In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
  

• Introduction: Colgate company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896 and that's how colgate has started selling its toothpaste in tubes. In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company

•  Growth: In 1992, Colgate established its first factory in China to produce toothpaste for the domestic market, and by 1999 became the highest selling brand in that world. 

• Maturity: To the present day, Colgate has been in the maturity phase. Using the establishment of the product, range of products was then launched to increase the profit making stage in the curve.

• Decline: Though the brand is very strong and may not show a downfall, it constantly needs to be active and fight with its competitor to stay out of out decline.

Customer Value

Colgate has three fundamental values — Caring, Global Teamwork and Continuous Improvement.

There are three ways a company can establish customer value to its customer base:

Provide the consumer with the best cost. Companies can choose to focus their efforts on providing a reliable product at a reasonable price. The low price helps to increase the value of their offering to their consumers even if it is weighed against a low benefit.

Provide the consumer with the best product. Companies that offer top quality products increase the customer value of their offerings to their consumers by providing a high benefit which exceeds the high cost.

Provide the consumer with the best service. Companies that provide a high level of service to their consumers increase the customer value of their services by providing a high benefit which exceeds the cost for many consumers. Consumers who buy from these companies are willing to pay more to be treated with exceptional service.

Total Customer Benefit

Product benefit: Colgate consistently won India no 1 brand of the year award shows its proof for the honesty and loyalty to its consumers.

Service benefit: Colgate has available, affordable across all the cities and remote areas which varies with the classes and convenience.

Image benefit: Loyalty towards the customers truly shows that colgate never compromise with the image. colgate with the market share of 51% shows that it has a high image in its industry.



Total Customer Cost

Monetary cost: Colgate ranges from Rs.40 to Rs.120

Time Cost: Due to its easy availability, minimal time is spent on getting the product from either a store or even online.

Energy cost: Due to its easy availability, minimal energy is spent on getting the product from a store.

Psychological cost: Colgate means trust and customer never think twice about the quality of the product. Also, as a brand, Colgate has evolved over the years with various precise action their toothpaste fight against.