Principles of Marketing: Colgate Brand Extension Report Analysis

This report provides a comprehensive analysis of Colgate's marketing strategies. It begins with an introduction to marketing principles and background information on Colgate, an American oral hygiene brand. The report then delves into Colgate's marketing campaign, focusing on creative packaging and its message. It explores the company's growth strategy, particularly its diversification strategy using the Ansoff matrix. The report examines the STP (Segmentation, Targeting, Positioning) model as it relates to Colgate, including demographic and psychographic segmentations. A PESTLE analysis is conducted, examining political, economic, social, technological, legal, and environmental factors influencing Colgate. The report also identifies Colgate's main competitors and analyzes the company's strategies to gain a competitive advantage. Finally, it concludes by summarizing the key findings and emphasizing the importance of marketing principles in achieving organizational goals and objectives.

Principle of marketing

Table of Content
 Introduction
 Background on the chosen brand
 Marketing Campaign: Creative Packaging with a Strong Message
 STP
 PESTLE
 Competition
 Visual Image of the Brand
 Conclusion
 References

Introduction
 Marketing is one of the vital functions of management. It is vital to note that it is vital for
each and every organization to take care of all the principle of marketing as it helps to
achieve the goals and objectives effectively (Chaffey and Smith, 2017). This report is
based on Colgate which is an American Brand that deals in oral hygiene products.
 The company established in 1873. In this presentation there is discussion related to market
share and size of the brand.
 The strategy used by the company to launch new product. STP model in relation to the
brand is mentioned in presentation. Along with that PESTLE analysis and how it will help
the company to gain advantage is also discussed.

Background on the chosen brand
 It is seen that Colgate is used by various number of
people. It is vital to note that people prefer Colgate
over other brands. The company targets the
customers group.
 It is seen that the company is able to be on the top
and serve the customers by earning huge profits. It is
noticed that the sales of the organization is showing
a positive trend. The company is able to enhance its
sales by launching new products and services.

Marketing Campaign: Creative Packaging
with a Strong Message
 When it comes to product packaging, Colgate is a
mastermind. The package looks really fresh,
colorful, and respectable, appealing to a wide range
of people while yet conveying the correct message
(Hollensen, 2018).

Growth strategy the brand is
adopting
 It is a strategy that is used by an organization to help
them to grow. Market penetration, market
development, product development, and
diversification are the four strategies that should be
decided using the Ansoff matrix (Malhotra, and et.
al., 2017).
 Colgate would use their diversification strategy
because they are constantly developing new products
for their market, and the risk associated with this
strategy should be raised.

STP
 It is vital to decide the target market by an organization. There are various criteria
through which an organization can select the option. The basis of segmentation
varies from company to company (Behrens, 2017).
 In relation to Colgate the company uses demographic and psychographic
segmentations. The focus is on targeting middle class and lower class families
through advertisements. It is seen that those advertisements are family based.

PESTEL Issues
 Political: The condition of UK is stable and that helps the
company to enhance its sales and work on product
development.
 Economic: It is seen that Colgate takes care of a place where
it operates and contributes to the GDP of the nation. It is a
multinational organisation the currency exchange rates also
have impact on its working.
 Social: The company always focuses on the moral values and
try to serve the needs and wants of its customers (Kotler,
Kartajaya, and Setiawan, 2021). The company formulated
new toothbrush by taking care about the needs and wants of
the customers.

Continue…
 Technology: It is vital to note that Colgate always tries to use the latest technology that
help them to produce the product in short period of time and maintain quality
 Legal: There are various laws and regulations that are vital to be followed by an
organisation and it is seen that Colgate follows all the legal requirements.
 Environmental: It is important to take care of environment as all the resources used by a
business from environment.

Competition
 The main competitors of Colgate are Pepsodent and close up.
 The company formulates strategies and makes product in such a manner to gain
advantage over the competitors (Gommans, 2020).

Visual Image of the Brand

Conclusion
 From the presentation it can be concluded that marketing plays a vital role in success of
an organization.
 A company should focus on principles of marketing as that help them to achieve goals
and objectives to stop company should select best strategy for growth through analysing
the market trends.
 In the presentation there is discussion related to competition as well as pestle analysis is
done.