As a marketing consultant, I have prepared this report to provide a detailed marketing plan for Colgate Company’s product- Colgate Strong toothpaste. The marketing plan covers the market segmentation and targeting, perceptual map and market differentiation, marketing mix and the strategic fit. The marketing mix gives a clear description of how the product will be priced, distributed and promoted into the market while the strategic fit has explains the product’s congruence to the company’s strategies, which include sustainability, ethics, and CSR.
As explained by Hassan & Craft (2012), market segmentation refers to the practice of dividing the potential customers into distinct groups, with similar needs. The marketers must always evaluate the buying habits of clients and their specific interests and attitudes about particular products when segmenting the market, (Palmer, Simmons & Mason, 2014). Market segmentation may take demographic, psychological, geographic or behavioral basis.
A market target typically entails a group of individuals with similar market needs that a company intends to satisfy. Market targeting is, therefore, an activity conducted by an entity that aims at directing its capabilities to a relevant market section, (Virani, 2013). A company must evaluate its key competencies regarding the availability of market offer and its ability to distribute the particular market offer to the relevant target market, (Grewal, Levy, Mathews, Harrigan & Bucic, 2015).
The most useful target for Colgate Strong Teeth toothpaste brand would be the 1-12-year-old kids due to the following reasons.
Geographic segment entails people in the same area of residence. This may be same state, country or community, (Buil, De Chernatony & Martinez, 2013). It describes the location of the customers.
The target kids are 1-12 years. They live with their parents, in the rural and urban areas. Their parents are middle-income earners and are entirely concerned with the health of their children’s teeth. Occasionally, the kids drink salty water and suffer from tooth decay. The parents like shopping in the nearby canteens and retail stores. This forms a better segment for the company as Colgate Strong toothpaste will be available in the supermarkets and stores for them to purchase.
Demographic segmentation divides the market according to the nature of the population. The population may consist of the aged, youths or women, (Mintz & Currim, 2013). The life cycle of the population must also be considered, (Mintz & Currim, 2013). The kids stay with their parents. Some of them are currently shedding their teeth and therefore have weak gums and some gaps in their teeth. They are therefore vulnerable to gingivitis and other gum infections. Their mothers are entirely concerned about this. Some also go to school and are occasionally told to do modeling. They put modeling clays in their mouths and sometimes expose them to bacteria. Their mothers are acutely aware of this and are committed to making their teeth look healthier.
This type of segmentation uses the nature of lifestyle and behavior of the population to partition the market. Behavioral segmentation relies on the behaviors of specific consumers, (Jain & Jain, 2012). This can range from purchasing practices to attitudes and status, (Goi, 2015). The acquisition of a product by a consumer could depend on occasions, user rates, and readiness stage.
The mothers of the kids are acutely aware of Colgate Company, and that its products are reputed in the market. They are therefore ready to purchase any of its products provided that it is in congruence with their needs.
Market positioning primarily refers to the consumers’ perception of a specific brand or product in the market about competing goods and brands. It is the process of establishing the identity of a brand so that customers perceive it in a particular way, (Armstrong, Kotler, Harker & Brennan, 2012). Brand positioning, on the other hand, is a strategic process that entails marketing of the particular brand of a product in a certain way so as to create its identity in the market, (Goi, 2015). Market positioning enables organizations to win customer loyalty for their products. When customers develop loyalty to the particular product, it means that they will be motivated to purchase it, (Goi, 2015). The company will, therefore, obtain a competitive advantage over its rivals in the industry.
Colgate Strong toothpaste is a well-established brand which is offered in the market at a discounted price. Its clear quality makes it the consumers’ best option. The company offers special discounts to the customers who purchase this product. It also forms the best toothpaste in eradicating gingivitis, bad breath, and cavities. These qualities make this product to obtain an added advantage against its competing products.
A perceptual positioning map can be used to develop a market positioning approach for Colgate Strong Teeth. Perception maps are always based on the perceptions of the buyer, (Wood, 2012). The following is an illustration of the positioning map for Colgate Strong Teeth toothpaste using two variables- price and quality.
Colgate strong toothpaste is particularly different from other products. It has a uniquely attractive packaging which makes customers to identify it quickly from the shelves of supermarkets and retail stores. It also has a strong branding which makes the customers to just imagine the quality. Its name “Colgate Strong toothpaste” actually demonstrates its augmented function, which is to ensure consumers obtain the strong teeth they desire. Differentiation enables a firm to be easily identified by its potential customers, (Khan, 2014)
Dear parents, Colgate Company, provides your kids, aged 1-12 with high-quality toothpaste that truly ensures they have strong teeth, free from cavities and gingivitis, than any other company in the industry. We do this by offering discounts, ensuring the continued quality of our products and matching any other prices in the industry.
A marketing mix explains how the product will look like, the value attached to it, how it will be sold and where it will be sold. It consists of 4ps- place, price, promotion and product, (Grewal, Levy, Mathews, Harrigan & Bucic, 2015).
Product refers to what a company offers to the customers in the market. It may be informed of a good or a service, (Goldsby, 2015). After carrying out the whole process of manufacturing and making the product ready for the market, a company would always formulate strategies that would enable it to sell the product adequately, Shimp & Andrew, 2012). A product may be identified in three levels- augmented commodity, actual product and core commodity.
Augmented product: This consists of the nonphysical part of the commodity. Usually, it entails the added value for which a customer would be willing to pay a premium, (Khan, 2014). The inclusion of additional features ensures that the product has an added value against its competitors, (Singh, 2012). For example, Colgate Company has produced the Colgate Strong toothpaste, which has a strong capability of protecting the tooth against plaque, cavities, and gingivitis. It is not just toothpaste but toothpaste with unique capabilities of ensuring healthy teeth. This differentiates it from other toothpaste which cannot offer dental treatment. The customers will, therefore, be willing to pay additional amounts to obtain this product.
Core product: This is the hidden value of the product that makes it valuable to the consumer. The core product is not tangible but refers to the actual benefit the consumer is buying, (Sharma & Lambert, 2013). The core product of this company is something that ensures clean, strong and healthy teeth. The customer is, therefore, purchasing for the safety of teeth and mouth.
Actual product: this is the tangible physical product. It is the Colgate toothpaste that the client goes to the supermarket to buy. Colgate Company offers several brands of toothpaste. One of them is the Colgate Strong. Toothpaste brand. The customer can, therefore, walk into any supermarket or retail shop and pick a Colgate Strong toothpaste.
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Product attributes |
Colgate Strong toothpaste |
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· Quality |
The product is of high quality and provides proper dental care. |
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· Design |
It has been uniquely designed to for kids who may have weak teeth, brown teeth, and dental problems. |
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· Features |
It has a unique taste and Colgate smell which acts as its identity. |
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Branding |
It has a strong brand name enshrined on its packaging. The brand name is so conspicuous that customers cannot leave them on the shelves unnoticed. |
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Labeling |
The package has been accurately labeled to avoid any confusion. |
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Packaging |
It has been packed in a biodegradable box. The box is also large enough and unique making the customers to identify it quickly from a group of other toothpaste. |
Price is the value attached to a product. A company may use different approaches so as to set appropriate prices for their products, (Chikweche & Fletcher, 2012). These methods depend on whether the product is new in the market, whether there is competition or whether a company needs to penetrate the market value the quality of their products, (Shimp & Andrew, 2012).
A relationship based pricing mainly majors on creating long-term relationships with the customers. Firms which adopt this pricing technique offer a lot of promotions geared towards improving the relationship with their clients, (Moideen & Screeranganadhan, 2013). Long-term relationships are gained through adopting this strategy. This may lead to customer loyalty.
Cost based pricing majors on reducing the cost of the products to make them more affordable to the customers. In this case, customers derive satisfaction from their ability to purchase more for less, (Goi, 2015). Companies that adopt this strategy are always price leaders in the market, (Khan, 2014). This approach may be achieved by adopting cost leadership strategy.
On the other hand, value-based pricing ensures that consumers derive the value for their purchases. Colgate Company is old-established. Its product Colgate is also established in the market. Therefore, cost-based pricing is not the best as the company has stabilized and did not need penetration strategies. It, therefore, uses value-based pricing, whereby, the product is of high quality, and the clients purchase it at a relatively high price and derive satisfaction from obtaining quality products. Value based pricing enables customers to obtain the value of their purchases, (Wood, 2012). It is mostly appropriate for real income earners, who tie value to price, (Shimp & Andrew, 2012). Some consumers always view highly rated products to be of great value. These are the primary targets of Colgate.
This encompasses how the particular products will reach the customers. It is the mode of distribution that would ensure consumers get the goods at the right place, time and in a desirable condition, (Sigh, 2012). Colgate toothpaste is a commodity that is used daily by the clients. For this reason, the company may use an extensive distribution. A distribution channel should be flexible and economical, (Armstrong, Kotler, Harker & Brennan, 2012). Colgate product can be distributed to supermarkets like Wal-Mart, Walgreens, and Albertsons. The product is also physically located in the oral health isle storage points. The product is well distributed via a supply chain of the entity’s distributors, to the wholesalers to retailers and finally to the final consumers as shown:
According to Virani (2013), conflicts among marketing channels are always generated when a channel member action prevents other avenues from attaining its objective. To avoid this Colgate follows the traditional distribution channels which do not involve the overlapping of different intermediaries. This ensures that there are fewer channel conflicts.
Development refers to the strategies used by the marketing team of a company to ensure they persuade their potential clients to purchase a particular product. It encompasses using effective means to communicate the benefits of a particular commodity, (Shimp & Andrew, 2012). When conducting promotional activities, the marketing team always aim at convincing the clients that their products are better than those of their rivals, (Wood, 2012).
The promotional strategies for Colgate Strong toothpaste would involve advertising, product giveaways and branded promotional gifts.
Advertising may involve the use of print media, televisions, radios internet, and the social media. Facebook forms an extensive advertisement areas for companies as most youths operate it, (Shimp & Andrew, 2012). This, therefore, forms an appropriate forum for the company to advertise the products.
Branded promotional gifts refer to giveaways that are tied to a particular brand. In conducting brand promotional giveaways, the company may give specially branded gifts to its customers whenever they purchase Colgate. This would entice the customers to buy more of the brand.
Product giveaways are in-store promotions conducted by companies. The companies give these samples to entice their clients to purchase the specific products, (Chikweche & Fletcher, 2012). Colgate Company may use this strategy to market its brand. Samples of Colgate Strong toothpaste may be given to customers to make them buy the brand regularly.
In this approach, the company promotes its products while supporting a cause or a community event. For example, the company may initiate community development programs and use these programs to promote their product, (Chen, 2012). The main benefit of this strategy is that the members of the community feel cared for and therefore develop loyalty to the company’s products, (Sigh, 2012). Colgate Strong toothpaste may be marketed using this method to realize sales increment.
This mainly entails obtaining feedback from the customers. Customers who are delighted by the company’s product would give positive testimonies, (Goldsby, 2015). These declarations may be used for future advertising with the permission of the customer, (Mintz &Currim, 2013). In the case of Colgate, the company may call its clients through telephone, and ask for their feedback. This also forms a basis for future improvement of the product.
Colgate-Palmolive Ltd is fully committed to doing its business with respect and integrity. The company’s long-term sustainability approach is focused on three main areas: performance, people, and the planet. For years, the company has been dedicated to ensuring production of high-quality goods that delight its clients and have clear strategies in place to enhance oral health in the societies, to increase effectiveness and reduce energy use. The company’s values of global teamwork, caring and improvement entirely coincides with the idea of sustaining both the planet for generations and the business as a whole. In line with this, it, therefore, provides high-quality brands so that their customers may derive value from their purchases.
In line with its CSR report, Colgate offers high-quality brands so as to improve customer satisfaction. Customers, therefore, get delighted by its products. Colgate Strong toothpaste is a high-quality brand that enables customers to achieve more than just satisfaction, but a full value of their purchase. It is also enclosed in a biodegradable package that ensures conservation of the environment.
References
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