COLGATE PALMOLIVE
Marketing Strategies and Programs

Introduction
Colgate Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. This American diversified multinational corporation focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food.("Colgate Palmolive Annual Report 2012,")
Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed ("Colgate-Palmolive Company History,").

1. CURRENT SITUATIONAL ANALYSIS
a. Current Products
The company is organized around four core segments: oral care, personal care, home care, and pet nutrition.
i. Oral care products are such as: * toothpastes: colgate total, CDC, optic white, sensitive, CSPR, kids, advavced whitening, kayu sugi etc. * Toothbrushes: colgate 360, Twister, Zig Zag, Slim Soft, Classic, Kids * Mouthwash : Plax ii. Personal care products are such as: * bar soap: Protex, Palmolive * shower liquid: Protex, Palmolive * Liquid hand soap : Protex, Palmolive iii. Home care products are such as: * Fabric wash: Dynamo * Fabric softener: Softlan * Dish wash: Axion, Glo * Liquid cleaners: Ajax, Fabuloso iv. Pet nutrition products:
Under its "Hill's" brand, Colgate is also a manufacturer of veterinary products. Hill‘s markets pet foods primarily lies within two trademarks: Science Diet, which is sold by authorized pet supply retailers and veterinarians for everyday nutritional needs; and Prescription Diet, a range of therapeutic products sold by veterinarians to help manage disease conditions in dogs and cats.

b. Current Target Markets
Colgate Palmolive company’s target markets are middle income and upper income families (Singh, Mishra, Ranjan, Parvez, & Raghvendra, 2010) in more than 200 countries all over the world.
c. Current Distribution Channels
The distribution channels are spread worldwide mainly targeting grocery, drug, convenience, and large retail stores (Pauszek, 2011), such as hypermarkets, supermarkets, minimarkets, provision shops and Chinese medicine halls. Aside from convenience stores and large retail stores, many food stores play a key role in the distribution of oral health care products. “Mass merchandisers gained share due to increased in-store promotional support” (Harvard).

d. Current Competitors
The table below lists the competitors of Colgate and Palmolive products, especially in Malaysia. Products | Competitors | Toothpaste | Darle, Sensodyne, Safi, Fresh & White etc. | Toothbrush | Oral B, Systema etc. | Mouthwash | Listerine, Oral B etc. | Bar soap | Dettol, Antabax, Lifebuoy, Lux, May, etc. | Shower liquid | Dettol, Antabax, Lifebuoy, Lux, Shokubutsu, etc. | Liquid hand soap | Dettol, Lifebuoy, Shokubutsu, etc. | Fabric softener | Downy, Daia, Comfort etc. | Dish wash | Sunlight, Labour, Kuat Harimau,etc. | Liquid cleanser | Dettol, Kiwi Kleen etc. |

e. Current Marketing and Financial Performance
Below is the latest financial highlight of Colgate Palmolive. (Dollars in Millions Except Per Share Amounts) | 2012 | 2011 | Change | Worldwide Net Sales | $17,085 | $16,734 | +2.0% | Unit Volume, Excluding Divested Businesses | | | +3.5% | Gross Profit Margin | 58.1% | 57.3% | +80 basis points | Operating Profit | $3,889 | $3,841 | +1% | Operating Profit Margin | 22.8% | 23.0% | -20 basis points | Net Income Attributable to Colgate-Palmolive Company (1) (2) | $2,472 | $2,431 | +2% | Net Income Attributable to Colgate-Palmolive Company
Percent to Sales | 14.5% | 14.5% | – | Diluted Earnings Per Share (1) (2) | $5.15 | $4.94 | +4% | Dividends Paid Per Share | $2.44 | $2.27 | +7% | Operating Cash Flow | $3,196 | $2,896 | +10% | Number of Registered Common Shareholders | 27,600 | 28,900 | -4% | Number of Common Shares Outstanding (in millions) | 468 | 480 | -3% | Year-end Stock Price | $104.54 | $92.39 | +13% |
("Colgate Palmolive Annual Report 2012,")

Colgate delivered strong performance in 2012. Net sales grew 2.0% to an all-time record level, and global unit volume from continuing businesses grew 3.5%, led by strong growth in emerging markets. They achieved their profit goals, with diluted earnings per share increasing 7%, despite an intense competitive environment, volatile foreign currency exchange and challenging macroeconomic conditions worldwide. All of the Company’s fundamentals are strong and getting stronger. Gross profit margin, operating profit margin and net income as a percentage of sales all increased versus year ago. Advertising spending behind the Company’s brands rose 3%, leading to market share gains across many of our core categories. Notably, Colgate’s global market shares in toothpaste, manual toothbrushes, mouthwash, bar soaps, body wash, deodorants and fabric conditioners all increased during the year. They are also maintained their strong balance sheet and cash flow, which, along with the Company’s positive growth momentum, led the Board of Directors to authorize a 7% increase in the quarterly dividend, effective in the second quarter of 2012 (Cook, 2012).
Mindful of the historical cost run-ups they have seen in the past couple of years, they continue to be very focused on generating savings throughout all areas of the business to fund Colgate’s growth. their traditional ‘Funding The Growth’ cost-savings program, a collection of small initiatives globally, has generated between $400 million and $700 million of pre-tax savings annually over the last several years and that pace is expected to continue (Cook, 2012).
f. Current Marketing Problems
Generally, the marketing problems that Colgate Palmolive company faces are threat of fake products, changes in retail scenario globally and global economic conditions.
A recent marketing problem is a core ingredient of its top-selling Colgate Total toothpaste is suddenly the heart of a public health tempest, but regulators have neither banned the chemical nor deemed it unsafe. There is no well-tested playbook for the scenario, says David Nash, partner at McMahon DeGulis, an environmental law firm based in Cleveland. It complicates matters for Colgate that few products have gotten more mileage out of triclosan than Colgate Total, which won special FDA approval in 1997 for its use of the chemical in a patented formula to prevent gingivitis, a common form of gum disease. In short order, Colgate Total vaulted above competitors to become the top-selling product, and today it remains a big contributor to Colgate’s worldwide 44.4% share of the global toothpaste market and its 35.6% slice of the U.S. market, according to company filings this year. At the beginning of last year, Colgate announced that among its toothpaste varieties, the Colgate Total brand by itself had 16% of the overall market in North America. (Stabile, 2011)
The next problem is, a quick survey revealed that these products had similar names:
- Colgate Whitening with Tartar Control
- Colgate Tartar Control Plus Whitening
- Colgate Sparkling White
- Colgate Platinum Whitening
- Colgate Sensitive Plus Whitening
- Colgate Total Plus Whitening
This product line is confusing and redundant. The first two toothpastes on the list are virtually identical, and the next two seem equivalent as well. Customers feel confused while surveying these products. (Lukas, 2012)
g. Current Company Strengths And Weaknesses
i. Colgate-Palmolive’s extensive overseas reach is a main strength. Colgate-Palmolive introduced 275 new products worldwide and setup manufacturing facilities in China and Eastern Europe breaching the emerging economies of the 21st century. On top of that, international sales accounted for 64% of total sales and 67% of the total profits for Colgate-Palmolive. ii. Colgate-Palmolive has an extensive Research and Development department boasting 170 employees worldwide. Though having a large R&D department does not directly contribute to increased profits, Colgate-Palmolive’s history of innovation in the toothbrush market is linked to its current position as the market leader in the toothbrush industry. Therefore Colgate-Palmolive’s strong commitment to innovation through investment in R&D is a prominent strength. Today’s consumer is very discerning and wants value, and value doesn’t necessarily mean low price. It means offering innovative products that are incremental, breakthrough and transformational. There are nine consumer innovation centers, located close to consumers in different parts of the world. At these centers, marketing and consumer insight professionals identify opportunities based on insights into consumer behavior and work closely with scientists to ensure we have the right technology in place. Another important element of their innovation strategy is their use of external partnerships to complement our strong internal capability.(Cook, 2012).

iii. With an energetic and visionary leader like Ian Cook at the helm of Colgate-Palmolive, the company has transformed itself into a lean and profitable machine, leading to increased profit margins and volume growth. Clearly, having a visionary CEO is strength. iv. Colgate-Palmolive’s positioning strategy for its toothbrush line in food stores has aided in capturing their 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. v. Colgate-Palmolive has a large number of stock keeping units for their toothbrush line. Multitudes of SKUs indicate that Colgate-Palmolive is targeting a broad spectrum of market segments in the toothbrush market, which spreads the risk inherent to carrying any product. Diversification of product types within the toothbrush market is another strength factor Colgate-Palmolive holds. vi. Colgate-Palmolive’s secret weapon in the war for supremacy in the super-premium market, Colgate Precision, 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 other market differentiating advancements. vii. Colgate-Palmolive’s recent infusion of new capital into its manufacturing facilities will bode well as it prepares to battle for market share in the new “super-premium” market segment. Colgate-Palmolive will be able to leverage its existing relationship with its manufacturing partner, Anchor toothbrush, to quickly and cost-effectively product its newest product.("Marketing - Colgate Palmolive
")

viii. Colgate delights consumers around the world with an array of Oral Care, personal Care, Home Care and Pet Nutrition products. Behind the success of Colgate’s brands are carefully developed business and marketing strategies. Colgate is known for having a long history of strong relationships with its retail trade partners. Small stores around the world are just as important to Colgate as large ones. (Cook, 2012). ix. Cost Efficiency: Colgate is becoming ever more streamlined and sustainable as they progress toward a truly global supply chain, providing customers with greater flexibility and increased cost efficiencies. Since 2004, Colgate has reduced the number of manufacturing plants worldwide by over 25%, which includes five new state-of-the-art facilities. These new factories are environmentally friendly, making more efficient use of energy, water, materials and land. By developing the full potential of all Colgate people and demonstrating our commitment to our stakeholders’ health and wellness. By growing consistently and responsibly, continuously meeting or exceeding our financial goals and focusing on product sustainability. By maintaining our commitment to our environmental targets and expanding our focus on water quality and availability.

x. Global Diversity: The rich diversity of the company’s employees, their thinking, their talent and their suppliers is key to their success.
"Recognizing and valuing the many differences that make us who we are is vital to our culture. This diversity includes more than the obvious traits, like nationality, culture, race and gender. Our diversity also encompasses many differences that are not so easily seen, such as life experiences, religion, sexual orientation and family situations, just to name a few. These differences bring a depth and variety of ideas to our business that cannot come from any other source. They are the keys to finding new solutions to business challenges and new opportunities from unique insights. Creating an inclusive environment is absolutely critical to ensure that we can benefit from these diverse viewpoints, diverse ideas and diverse perspectives." — Ian Cook, Chairman, President and Chief Executive Officer. (Cook, 2012)
"Our objective is to live our Managing With Respect principles by fostering an inclusive workplace that mirrors the diversity of the global marketplace. Such an environment will provide all Colgate people with the opportunity to make unique contributions to our overall businesss success."— Eugene Kelly, Worldwide Director, Global Workplace Initiatives (Kelly, 2012)

2. MARKETING OBJECTIVES AND STRATEGIES
Current Marketing Objectives gate people remain sharply focused
Among the Company’s goals for 2012 are to:
1. Remain the undisputed global market leader in Oral Care.
2. Become the undisputed global market leader in Specialty Pet Nutrition.
3. Become a stronger global No. 2 competitor in Skin Cleansing, leading in liquids and successful in other large Personal Care categories.
4. Become a stronger regional leader in selected Home Care categories

c. Current Marketing Strategies and Strengths * Relationships with Retail Trade Partners
Based on consumer and shopper insights, the Company works closely with local merchandisers and shop owners to offer a relevant assortment of products and merchandising services to achieve high visibility in each store. Colgate is sharply focused on aligning its strategies and goals with those of its trade partners in order to achieve mutual success. Colgate people understand that the way they do business is just as important as the results they achieve. Colgate has developed global commercial selling principles that apply to their relationships with all customers, regardless of their size or location. These principles provide specific guidelines on how to achieve business goals, while maintaining Colgate’s commitment to its values and to upholding the highest ethical standards in its business dealings. (Cook, 2012).

* Innovation
Innovation is a cornerstone of Colgate’s strategy to drive profitable growth. While innovation in new product development is key, equally important is innovation throughout all of the Company’s business functions and processes. New product development for products expected to be launched within three years takes place at nine consumer innovation centres strategically located around the world. These enters create new product concepts and ideas based on specific insights into consumer wants, needs and behaviours. For projects extending three to five years into the future, work is focused in three category-specific long-term innovation centres: Oral Care, Pet Nutrition and Personal Care. Supplementing these efforts, Colgate scientists’ conduct early research to establish a scientific foundation for new product ideas generated, and develop robust formulations that deliver new benefits to consumers. Their success in delivering meaningful innovation is evident in several recent introductions. After a very successful launch in the United States, they are taking their breakthrough whitening brand, Colgate Optic White, around the world, offering a full whitening regimen including toothpaste, toothbrush and mouthwash. With the launch of Colgate ProClinical in European markets this past October, they entered the $1 billion-plus rechargeable toothbrush category, a segment that they have not competed in before. The product combines intelligent technology and design for superior oral health and works in a unique way. The speed and direction of the bristle movement adjusts automatically depending on the orientation of the brush, giving users a strong yet gentle clean (Cook, 2012).

* Leveraging The Internet And Mobile Phones
In marketing, Colgate is breaking ground in connecting with consumers in non-traditional ways, particularly by leveraging the Internet and mobile phones. One successful program is capitalizing on the popular use of the term “Colgate Smile” for any great smile. Colgate encourages a personal, emotional connection with our brand by inviting consumers to share their “Colgate Smiles” via photographs, stories and videos posted on www.ColgateSmile.com and numerous social networking sites, such as MySpace and Facebook. To best reach today’s consumers; Colgate uses integrated marketing communications that include a mix of traditional and new media, as well as creative promotional activities. For example, as part of its very successful “FEELING IS BELIEVING” Marketing campaign.

* Restructuring Program announced in October 2012
Accelerating growth and staying ahead of the competition will require being smarter and faster in everything they do. They have chosen to undertake this Global Growth and Efficiency Program now when their business is strong in order to capitalize on their growth momentum. One of the key objectives is to become even stronger on the ground through the expansion of proven global and regional commercial capabilities, such as the use of commercial hubs and shared service centers. Commercial hubbing drives smarter and faster decision-making by strengthening the resources available to the smaller operations in the region. This allows the local operations to focus more on building market share, professional recommendations and retailer engagement to drive growth. Hubbing also improves cost structure by reducing redundancies. Simplifying and standardizing how work gets done will also lead to being smarter and faster on the ground. In Europe, their financial shared service centre in Warsaw, Poland, has significantly reduced structural costs for the region by first lifting and shifting transactional work to a central location, then standardizing those processes. They have also seen an increase in the speed and value of services provided to subsidiaries. Together with the expansion of these already successful programs, Colgate people remain sharply focused on the Company’s four strategic initiatives: Engaging to Build their Brands, Innovation for Growth, Effectiveness and Efficiency, and Leading to Win. As outlined in this report, these initiatives continue to power Colgate’s global growth (Cook, 2012). * Advanced Information Technology
Advanced information technology has clearly increased the amount and quality of data available for companies like Colgate and makes analytics that are aligned with key business priorities an essential competency in order to stay ahead of the competition. They rely on a whole range of tools from the fundamentals of basic analytics, such as reporting of market data, pricing and new product tracking, to more advanced business analytics, everything from marketing mix modelling and shelf assortment optimization to shopper loyalty data. In Mexico and Brazil, for example, after an analysis of their marketing mix, they reworked the way they spend our traditional media money. Specifically, media spending was shifted to productive print and digital vehicles, and we changed the scheduling and lengths of our television commercials. As a result, they doubled their rate of return on investment. As they make these analytics a global strategic and tactical core competency, they are becoming more and more successful in driving profitable top-line growth (Cook, 2012). * Fostering Positive Colgate Image
In order to gain favorable PR and keep Colgate in the light of the media, this plan suggests a campaign that will donate a 1% of specially marked packages to a charity of ones choice. Partnering with www.charitynavigator.org to create a micro list of charities and their information. Purchasers will be able to choose and track the donations via the Colgate website by answering several demographic questions and entering a unique code Facebook will feature a separate page that will promote Colgate, describe the donation campaign and charities offered by charitynavigator.org. Also, a downloadable iphone application will be created to track contributions. This marketing tactic will foster a positive image of Colgate, create an increase of sales in specific Colgate brands, harvest demographic customer information, and draw added consumers to the Colgate website and more of a presence on Facebook.

* Increase Brand Share

Colgate is one of the most recognized brands in the United States and the world. Colgate is popular among the consumer target and beyond. It has an amazing 93% penetration while only retaining 35% of the market. In terms of the product life cycle, Colgate toothpaste is beyond the mature stage. Some brands have declined with regard to sales, profits, customer interest and market share.
This idea will be retrofitted to print ads as well by using the same twenty images with the smiling, foamy face and underneath the images will appear the Colgate slogan, “Colgate A World of Care.” This marketing campaign has the ability to touch a vast consumer base. There is universality to the idea. The concept relates and is identifiable with people because “everyone brushes their teeth in the their pajamas.” Maslow’s hierarchy of needs dictates that the identifiably social component of the commercial will appeal to the subconscious of viewers creating the added value necessary to enhance the image of Colgate and gain added market share. Choosing actors specifically by gender and racial profile can appeal to start-up and young bustling families. This commercial will attract potential users and reaffirm current consumers. The investment in a revitalizing campaign to improve the image of Colgate will inevitably increase market share by 1.00% or $11,141,377 at a minimum.(Firestein, 2012)

* Demand For Oral Care Products
Because of the increase in the demand for oral care products, stores began shelving more oral care products. This was a big advantage for Colgate-Palmolive because there would be more room in the stores for them to market the new Precision toothbrush. Dentists also play a big role in the distribution of oral care products (Pauszek, 2011).
Current Marketing Weaknesses i. The impending release of Colgate-Palmolive’s new toothbrush, Precision, may affect sales of its existing toothbrush lines. This may lead to a “cannibalization” of the Colgate Plus and Colgate Classic market of up to 60%. Since the existing toothbrush lines are the “cash cows” of the company’s oral care division, a dismal performance by the new Colgate-Palmolive Precision might drain the “cash cows” of their resources altogether. ii. Colgate-Palmolive’s media expenditure layout is very small compared to its rivals. It has spent only $7 million dollars on its Colgate-Palmolive Plus marketing efforts and has only 19% of the share voice. Since media exposure fuels consumer demand for a new product, this is one area where Colgate-Palmolive needs to have its expenditures equivalent to that of its rivals. iii. Another marketing weakness that Colgate-Palmolive faces are its lack of professional dental endorsements, with less than half that in market share and dollar sales than that of their largest competitor, Oral-B. Similar to Colgate-Palmolive’s lack of professional endorsement, the Precision toothbrush does not have the fullest endorsement from the American Dental Associations (ADA). Although the ADA issued its seal to the product, the seal alone stands for little more than recognition that the toothbrush works. In fact, only when the ADA issues its seal and an official quote stating that a product is superior to similar product types, does a product receive the fullest support possible. Not having the full backing of the ADA is a weakness which Colgate-Palmolive may have to overcome to gain the professional endorsement they seek. (Firestein, 2012) iv. Product recalls is a weakness where unsold and damaged goods are returned to the company. ("Colgate Palmolive Company," 2012)

3. MARKETING PROGRAM
3.1 discuss company’s current 4 P’s * Product
Colgate continues to improve its product quality and innovation.

* Promotion
The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of mediums. The advertisements and promotions are located in a targeted media selection that appeals to the target consumer. Website: Colgate has a dynamic website with the title, “Colgate World of Care,” that details products, oral care, company history, e-newsletter and special offers.
The website also has a social networking page called Colgate Smile to engage the consumer to get involved with their oral health and the Colgate-Palmolive Company. Colgate also has social media pages on Facebook, Twitter and Myspace. [Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section of the website. Colgate coupons can also be found as cutouts in the weekend coupon sections of 500+ newspapers around the country.
Television: Colgate and its advertising agency produce several television advertisements a year using humor and pseudo scientific displays to appeal to consumers. Magazines/Outdoor: Colgate’s marketing campaigns have been known to use historical, sexual, cultural and social inferences in their advertisements.
Donations: Colgate donates millions of dollars annually to the ADA’s “Give a Kid A Smile.” Colgate is a direct partner with this ADA program.
(Firestein, 2012)

In addition, Colgate-Palmolive continues to lead the effort to promote better children’s oral hygiene and dental care with its “Bright Smiles,Bright Futures” programme. In Malaysia, this programme has achieved 100% penetration of public primary schools throughout the country, giving every child in the public school service a strong foundation for superior oral health. “Bright Smiles, Bright Futures” reaches children in schools through educational materials and interactive activities, both for educators to use in the classroom and for parents to use at home. Since 1991, this programme has reached more than 500 million children and their families worldwide. ("Malaysia's Strongest Brands,")

Driving growth and building our brands requires * Distribution
The distribution channels are spread worldwide mainly targeting grocery, drug, convenience, and large retail stores (Pauszek, 2011), such as hypermarkets, supermarkets, minimarkets, provision shops and Chinese medicine halls. Aside from convenience stores and large retail stores, many food stores play a key role in the distribution of oral health care products. “Mass merchandisers gained share due to increased in-store promotional support” (Harvard).

* Pricing

Another area they are increasingly focused on is making pricing more of a strategic competence. It’s all about balancing profitable growth with the health of their brands. They are building pricing excellence into their culture in several ways. They have developed global guidelines with performance measures against those guidelines that are reviewed regularly throughout the year. They have also developed a standardized training program, which includes interactive workshops to share ideas and best practices, and have launched a new pricing web site accessible throughout the Colgate world. These efforts have helped manage the right balance globally between unit volume growth and higher pricing, which drives gross margin expansion (Cook, 2012).

3.2 Discuss Current Strengths and Weaknesses in the 4Ps
Strengths
1. Strong financial performance Focus on innovation and new product launches Colgate business planning initiative
2. Strategic Planning and Thinking Strengths · Company’s presence in 200 countries is its biggest strength · Strong Corporate image of Colgate Palmolive · Strong Financial Position · Worldwide research and excessive emphasize on technology. · Strong social image of the Company · Well-established and renowned distributors
3. Colgate has a history of producing quality products and a stellar reputation for oral health products. Colgate has strong channels of distribution not only on a national scale but also globally. Thereby, Colgate is the number one selling toothpaste in the world. Colgate is accepted by the ADA as effectively helping to prevent and reduce tooth decay. Within Colgate’s website is a social network that asks consumers to get involved with the brand called “Colgate Smile.” Colgate has 40 product facings in stores, which is the most out of any toothpaste brand. Colgate has 93% product penetration.

Weaknesses
1. Highly leveraged Product research
2. Only emphasize on urban market while suburban and rural areas are neglected to some extent. Colgate promotion budget is very less as compared to its competitors.
3. Within the product life cycle most of Colgate products are either mature or declining, creating the need for Colgate to keep introducing new products. Colgate’s product line is broad with over 40 different products varying in tube size, quantity, and flavour and desired effect. Toothpaste promotion is cut throat. Products are frequently on sale, which appeals to price buyers and potential brand switchers. This may also cost the company profits due to regular users taking advantage of the discounted price.

4. FUTURE BUSINESS AND MARKETING CHALLANGES
A. Identify And Evaluate The Future Business And Marketing Challenges Facing The Company
1. Intense competitive environment, volatile foreign currency exchange and challenging macroeconomic conditions worldwide.
2. Retailers Perception. The retailers have always given the feedback as consumers often buy the medicated toothpastes only after the recommendation of a dentist. An example is Thermoseal. They cannot convince the consumers to buy a different product even after it is associated with lack of awareness in consumers. Many people are not known about Colgate sensitive. During the survey it was found that still there are 80% people who have not tasted Colgate sensitive. Colgate as a brand has created an image of a normal toothpaste and not as medicated toothpaste. Brand awareness with respect to its competitors Colgate Sensitive has low brand awareness as most of the customers purchase the toothpaste on the recommendation of the dentists and currently not doing well in the market as it is often seen as a normal toothpaste. (Singh et al., 2010)

B. Discuss What Measures the Company Can Adopt To Deal with These Challenges
Competitor’s Analysis One of the best sources of information is to investigate competing businesses. These businesses can provide a wealth of information that can be used in evaluating the potential for your business. By evaluating how a company markets its business, it is possible to determine the markets it is targeting.
For example, if competing businesses are advertising in Southern Living, they are targeting affluent, middle age females. However, if they are advertising in the sports section of a metropolitan newspaper, they are most likely targeting males. In addition to collecting information on the markets they are targeting, a competitor analysis can reveal packaging preferences, target market information, pricing strategies, distribution channels and marketing strategies. Simply evaluate the products and services your competitor is providing. Are they producing family packs or individual serving sizes of their processed food product? How are they getting their products to their customers? Are their products value prices or are they priced for the high-end market? Are they focused on convenience, quality or quantity? What type of packaging material are they using?

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Stabile, T. (2011). Controversial Chemical Poses Challenge for Colgate-Palmolive [Electronic Version]. Business Ethics: The Magazine of Corporate Responsibility, from http://business-ethics.com/2010/12/21/5050-controversial-chemical-poses-disclosure-challenge-for-colgate-palmolive/