MBA404 Report: Colgate Toothpaste Market Analysis and Strategy

This report provides a thorough market analysis of Colgate toothpaste, examining its current marketing communication mix and consumer behavior. It delves into Colgate's market overview, including its global market share and consumer attitudes, and analyzes the influence of group dynamics...Read More

Running head: COLGATE: MARKET ANALYSIS
COLGATE: MARKET ANALYSIS
Name of the student
Name of the university
Author Note

1COLGATE MARKET ANALYSIS
Executive Summary
Market analysis that is carried out of a particular product or service helps the marketing
managers of the company to bring out appropriate solutions for effective and efficient marketing
of the respective product. An intensely introspective market analysis of the product “Colgate
Toothpaste” in which the marketing communication mix of the respective product is introspected
and analyzed in the respective paper. After the thorough analysis, certain strategic
recommendations are also provided to maintain and enhance the marketing communication mix
of the respective product for success in its sales.

2COLGATE MARKET ANALYSIS
Table of Contents
Introduction.................................................................................................................................................3
Discussion....................................................................................................................................................3
Colgate toothpaste: Overview.................................................................................................................3
Colgate: Market overview.......................................................................................................................4
Colgate: Current marketing communication mix.........................................................................................4
Critical Analysis of communication mix.......................................................................................................7
Strategic recommendations........................................................................................................................8
Conclusion.................................................................................................................................................10

3COLGATE MARKET ANALYSIS
Introduction
Market analysis of a particular commodity can be defined as the study of the
attractiveness and dynamics of a special market within a special industry. Market analysis is an
integral part of industry analysis and thus, in turn, also becomes a part of global environmental
analysis. Market analysis of a particular product helps the marketing managers of the
organizations to find out the perfect solutions for marketing of that product in the most efficient
and effective way (Anker 2016). The respective paper is a report which produces a thorough
market analysis of the product “Colgate Toothpaste” in which the marketing communication mix
of the respective product is analyzed. After the thorough analysis, certain strategic
recommendations are also provided to maintain and enhance the marketing communication mix
of the respective product.
Discussion
Colgate toothpaste: Overview
Colgate toothpaste is toothpaste or a dental hygiene product that is manufactured and
marketed by the American multinational personal care company, Colgate. Colgate toothpaste
comes at different flavors and in different countries as well. Colgate toothpaste is the most
utilized personal care products in the countries such as India, China, Sri Lanka, Vietnam and
other Asian countries along with other American and European countries (Colgate.com.2019).
Colgate toothpaste is often recommended by the dentists and personal care advisors to the
patients as it is considered to be effective. Colgate is considered as the most influential dental
product all over the world when it comes to the dental care and personal care. From all over the
world, Colgate has been considered as one of the leading toothpastes that have been famous for

4COLGATE MARKET ANALYSIS
its publicity by the media. The oral care products of the company Colgate Palmolive is
considered to be the most important and significant source of revenue for the company which
evaluates of being around US$75 billion per year.
Colgate: Market overview
The net sales of Colgate in the year 2018 have been segmented into two sectors, which
are: Developed markets and emerging markets. It has a market share of 42.1% in the global
toothpaste market and 32.3% in the manual toothbrush market. However, in spite of fiscal
challenges due to rising commodity costs and volatile exchange rates, the company’s net sales
were 4% year over year, with organic sales growth 1% year-over-year in the fiscal 2018. The
Colgate toothpaste has leadership in the worldwide market share and is the brand that is most
recommended by the dental faculties all over the world (Forbes.com.2018). The market share of
Colgate toothpaste on the global portal is that it ranks in the 40th position as the leading
toothpaste brand in the world forum, surpassing other brands such as Pepsodent and Sensodyne.
Colgate: Current marketing communication mix
Attitude of the Consumers
Colgate has often utilized the media in order to influence the consumers in various ways.
The Colgate Company conducts advertisements through various ways, such as newspaper
advertisements and television advertisements. Apart from media, Colgate is also known as the
brand which takes part in social activities and campaigns. The campaigns such as word-of-
mouth campaign by providing Youtube videos with unconventional contents where one
consumer naturally promotes a brand by talking about the brand to the other consumers have
worked well with the Colgate brand and therefore, It has been able to influence the psyche and

5COLGATE MARKET ANALYSIS
attitude of the consumers towards the product. The other campaigning includes Opinion market
campaign where the consumers are influenced by providing them with popular opinions from
eminent personalities regarding the product. Such opinionated campaigns often make the
consumers, especially from the second world and third world countries, intrigued regarding the
product. The consumers feel confident enough to try out the product due to which many
consumers feel compelled to buy the product (Hbr.org.2019).
Group influences
Group influence on consumer behavior can be defined as influencing the consumers
based on the group of identity from where he/she belongs to. Each consumer in a society is
considered to be member of different groups depending upon their culture, occupation, age and
gender (sometimes beyond binaries). A group can be formed when two or more persons share
common attributes, characteristics and beliefs (Malhotra 2014 pp 1). Colgate influences groups
by:
Age: According to the marketing surveys carried out by the marketing experts of the respective
company, the Colgate has targeted all kinds of age groups, beginning from toddlers, children to
adolescents, adults, middle aged and the senior citizens. They have also introduced and marketed
products for both girls and boys. Colgate has utilized powerful communication techniques such
as creating awareness of family members, especially the children who should be given utmost
care by their mothers, bringing in persuasive techniques of communication that creates an
obligation for parents to buy colgate for their children, such as “its a mother’s responsibility to
buy Colgate”(Anker 2016). With the help of visual communication techniques, such as

6COLGATE MARKET ANALYSIS
creating and posting pictures of the popular cartoon characters, the company has utilized the best
communication possibilities in the changing consumer behavior scenario.
Social class: According to the market surveys carried out by the marketing experts of the
respective company, the communication processes harnessed by the company to influence
various social classes are multidimensional and multifaceted. They have often utilized the
concepts of communicating their marketing procedures through radio broadcasts. It has to be
taken into consideration that the economically well to do and upper- middle/ middle class
population tends to cluster around the cities, townships and metropolitan areas. In order to
influence the well to do, urban, elite and socially improved urban class of customers, the
company has made efforts to market their products with the help of radio broadcasting as well as
social media./ digital broadcasting (as most of the well to do customers possess a premium
mobile phone is taken into consideration) (Malhotra 2014, pp 1). Good public relations are also
maintained by the Colgate Company by making proper public relations strategies and policies.
Colgate maintains its public relations by harnessing the talent pool of social media by getting
into campaigns such as water conversation awareness. Such awareness, as expected, are the
reasons for which the rural as well as the urban population of the countries get attracted to (it has
to be considered that the urban and rural population of the world are more or less literate and
educated). Therefore, with the help of such awareness campaigns, the educated masses of both
the urban and rural social classes have been successfully targeted and there have been positive
results. According to the research conducted worldwide, it has been proved that the organizations
that work for a cause are well received by the consumers, even though little is considered
regarding the purchasing behavior of the consumers in the market, especially in the third world
and second world countries (Sayadi, Mobarakabadi, and Hamidi 2015, pp 101). Therefore, it can

7COLGATE MARKET ANALYSIS
be estimated and speculated that Colgate might as well be famous for its sustainability
campaigns in the European and American countries rather than Asian and Latin American
countries.
Culture and lifestyle: The Colgate Company has taken up different techniques to penetrate and
uphold the culture and tradition of different countries where it has been marketing. For example,
in India, the Colgate Company has marketed and advertised about the Ayurvedic Colgate
Toothpaste with the help of word- to- mouth campaigns where the company has provided a
spark to the traditional emotions of the consumers (here, in India). Through various audio and
visual communication techniques such as traditional graphics and music which has
subsequently touched the cultural sentiments of the Indian customers deeply and there has been
increase and improvement in the buying patterns. Location based targeting, such as targeting the
hindu pilgrims of Kumbh Mela through voice based communication through mobile phones to
promote their products, Colgate has targeted cultural groups creatively and shrewdly to influence
their psyche to buy their products. There have also been evidences of influence of lifestyle and
culture/ subculture of the customers with the help of eminent marketing techniques of the
product. For instance, the introduction of family packs and compelling the people, through
various persuasive communication techniques where the company makes customers to believe
that buying the products would ensure good to take care of the family might as well encourage a
family culture in a society which would also indirectly help the product to be famous (Lazur,
2016).
Critical Analysis of communication mix
The respective communication mix provided by me about the product Colgate toothpaste
is aligned moderately with the findings of my market research in the Assessment 1 and

8COLGATE MARKET ANALYSIS
Assessment 2. Both of the assessments consisted of having an in-depth primary survey of the
consumer behavior of the respective product. The outcome of the assessment included the factors
that influenced the consumer behavior of the respective product, which included demographic,
psychographic, group and individual differences, culture, attitude, consumer perception and
motivational factors. Each and every factor that had been taken into consideration exhibited the
purchasing behavior and psyche of the society when it comes to buying consumer goods. The
surveys have aptly noticed and researched on the delicate and sentimental factors such as
ethnicity and indigenous culture of a particular consumer nation/ society along with the
intriguing aspects about how lifestyle changes of the consumers had been influenced with the
help of powerful advertisements and media campaigns in the market with the usage of
innovative communication mix digital media, public relations, advertisements and promotions
via interpersonal communication. The findings that give insights such as consumer affinity
towards culturally optimized products, such as Ayurvedic Toothpaste, affinity towards Colgate
brand due to its quality and an unusually positive perception of the product due to its massive
social media influence can be aligned with the marketing communication mix of large scale,
persuasive and powerful advertisement strategies such as word- of- mouth and opinion market
campaign stated. The communication mix has aptly and accurately caught the strategies behind
the influences that have been penetrated throughout the market about the product which is
exhibited in the findings. Therefore, it can b said that communication mix is strongly aligned
with the findings of the assessment 1 and 2.

9COLGATE MARKET ANALYSIS
Strategic recommendations
The Colgate Company can also inculcate certain strategies in the communication mix for
their marketing procedures about how they can improve their communication mix to maintain
the brand image which are provided hereafter:
1. Communication for “brand purpose”: According to the surveys, digital media
campaigns by Colgate have average to above average influence on the consumers.
However, it seems as if the company needs to exploit the digital resources more. “Brand
purpose” can be achieved by separating the product or the brand from the rest of the
market through effective advertising and make the employees deliver distinguishing
experience to the consumers (Malik et al. 2013, pp 117). Precisely, the mechanism of
brand purpose is defined by which a brand makes the product completely differentiated
and premium in nature so that consumers are intrigued about it. However, the
advertisement techniques which the Colgate Company follows might as well lack in
“brand purpose” because Colgate is considered as a part of a moderately oligopoly
market. In order to become the highest selling toothpaste all over the world and be
ambitious enough, the communication techniques that the company, especially the digital
media strategies should be premium so that the customer attributes are influenced at the
highest level and customers are intrigued and compelled to buy the product and make it
the most happening product in the market (Severi and Ling 2013 pp 125). A follow- up
should also be considered as a part of communication mix for brand purpose in order to
understand how the product worked with diversified customers and the customers’
feedback regarding the product. The follow up would not only help the company but also

10COLGATE MARKET ANALYSIS
give a picture of “sense of responsibility” of the respective brand and enhance the brand
image (Saad, Hassan and Shya 2015).
2. Enhancement of brand promotion for better performance in the market: The
concept of commercial logo has changed from just a brand identification sign to a non-
verbal and graphic communication altogether. Colgate toothpaste, as it is known by all, is
famous for its universal and effective advertisement techniques. However, as it is known
that innovation and creativity rules the market and society, therefore, Colgate can also
make certain changes (innovative, creative and imaginative changes) in the way it
presents the products, such as its logo and the message it depicts in a graphic form on the
product (Terkan 2014, pp 239). Such aspects are indirect forms of communication that
influences and enhances the purchasing behavior of the consumers to a certain extent
(Katke). With different, innovative and attractive commercial logos and tagline through
various social and digital media, Colgate toothpaste company can influence the aesthetic
mind of the consumers and manipulate their buying (Milovanovic and Ivanisevic 2014,
pp 266).
3. Influencing attitude for product marketing: The Company Colgate has been able to
influence the psyche of the consumers through effective premium digital media content
and strategies. However, Colgate can always make room for developing new kind of
attitude and perceptions among the consumers towards the product, with different
persuasive trickeries and psychological manipulations (Danciu 2014, pp 591). Colgate,
with highly optimized branding and advertisement techniques such as social marketing
and diversity marketing, can help consumers develop differentiated feelings towards the
brand and increase its sales (Rucker, Petty and Briñol 2014, pp 27).

11COLGATE MARKET ANALYSIS
Conclusion
The respective paper concludes to be a report which produces a thorough market analysis
of the product “Colgate Toothpaste”. in which the marketing communication mix of the
respective product is analyzed. After the thorough analysis, certain strategic recommendations
are also provided to maintain and enhance the marketing communication mix of the respective
product.

12COLGATE MARKET ANALYSIS
References:
Anker, T.B., 2016. Truth in Marketing: A theory of claim-evidence relations. Routledge.
Behe, B.K., Zhao, J., Sage, L., Huddleston, P.T. and Minahan, S., 2013. Display signs and
involvement: The visual path to purchase intention. The International Review of Retail,
Distribution and Consumer Research, 23(5), pp.511-522.
Colgate.com.2019. Available at: https://www.colgate.com/en-in
Danciu, V., 2014. Manipulative marketing: persuasion and manipulation of the consumer
through advertising. Theoretical and Applied Economics, 21(2), p.591.
Forbes.com.2018. Available at: https://www.forbes.com/sites/greatspeculations/2018/09/20/how-
is-colgate-palmolive-likely-to-grow-in-the-next-two-years/#33a0b094755d
Hbr.org.2019. Available at: https://hbr.org/2019/02/how-global-brands-can-respond-to-local-
competitors
Katke, K., GUERRILLA MARKETING FOR EFFECTIVE MARKETING
COMMUNICATION: A SPECIAL REFERENCE TO SOCIAL MEDIA MARKETING.
Lazur, F., 2016. The Benefits of Generational Marketing. A Research Proposal. GRIN Verlag.
Malhotra, S., 2014. A study on marketing fast moving consumer goods (FMCG). Intenational
Journal of Innovative Research and Development Vol 3 (1), pp.1-2.
Malik, M.E., Ghafoor, M.M., Iqbal, H.K., Ali, Q., Hunbal, H., Noman, M. and Ahmad, B., 2013.
Impact of brand image and advertisement on consumer buying behavior. World Applied Sciences
Journal, 23(1), pp.117-122.

13COLGATE MARKET ANALYSIS
Milovanovic, D. and Ivanisevic, L., 2014. Infographic as a marketing communication tool. In
2014 New Business Models and Sustainable Competition Symposium Proceedings (pp. 266-273).
Rucker, D.D., Petty, R.E. and Briñol, P., 2014. Social psychological foundations of social
marketing. The handbook of persuasion and social marketing, 1, pp.27-60.
Saad, N.M., Hassan, S.H. and Shya, L.M., 2015. Revisiting the relationship between internal
marketing and external marketing: The role of customer orientation. The Journal of Developing
Areas, 49(3), pp.249-262.
Sayadi, M., Mobarakabadi, H. and Hamidi, K., 2015. Sensory Marketing and Consumer Buying
Behavior. Advanced Social Humanities and Management, 2(4), pp.100-104.
Severi, E. and Ling, K.C., 2013. The mediating effects of brand association, brand loyalty, brand
image and perceived quality on brand equity. Asian Social Science, 9(3), p.125.
Terkan, R., 2014. Importance of creative advertising and marketing according to university
students’ perspective. International Review of Management and Marketing, 4(3), pp.239-246.