Strengths
A Colgate-Palmolive Co has a strong customer loyalty as it has become one of the most recognizable products in all 6 continents. Customer in all over the world still preferring to use the products of Colgate Palmolive Co. due to its accessibility, quality and innovation.
Colgate-Palmolive Co is recognized as a leader in sales of oral hygiene products sales. In 1991 the sales of the company exceeded the level of $6 billion and gained profits of $2.76 billion as it brought them 43% of the toothpaste world market. In the world’s largest market, the U.S., the company leads and maintains the number one position in toothbrush sales with 23 % of market share.
Colgate-Palmolive expansion in international market is considered as another strength. The company has introduced 275 new products worldwide and started its production in China and Eastern Europe becoming one of the main companies with outstanding financial stability of 21st century. The international sales reached 64% of total sales and 67% of the total profits for the company.
The Research and Development department has 170 professional employees worldwide. Their innovative approach towards the market has leaded them to a leader position in the international market.
Weaknesses
As the innovation in the company constantly grows and the market is always expecting to have something new, it is becoming hard for the company to come up with new ideas. The company definitely needs new ideas and fresh minds. However, the constant innovation on the products of the company is cutting their ability to gain more profit out of the new products as it would bring the product from the “Star” level to a cash cow immediately. Therefore a company needs to low down presenting their innovat...
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...ny industries, oral care technology has advanced tremendously since its inception. The introduction of the nylon bristled toothbrush in 1938 represents one of the latest quantum improvements for the industry, however it was not the last. The introduction of electronic toothbrushes and water picks are threatening to traditional oral care product’s market share.
One of the factors causing buyers’ bargaining power to grow is when the switching costs for buyers are low. Even if Colgate-Palmolive were to state Precision as the most expensive toothbrush on the market, it is still a relatively inexpensive product, compared to many other daily purchases. Therefore, consumers can shift between brands without giving the decision much thought. To withstand this threat, Colgate-Palmolive can position their product as a superior toothbrush that buyers cannot afford to be without.
Consumers become more interested in what brand they buy, and that what they want does not reflect their needs. While there are different products having the same features, people are still giving attention to the brands’ name. When people go shopping at the mall, they do care how the stores present their commodities, which brands use to target their consumers, especially women, and teenagers because they spend more time at the mall, so they are more likely to spend money on useless features’ commodities. Shopping at home, the salesperson explains the features of the product so that another will offer to buy it. Also, at home is the easiest way to buy useless
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
The Procter and Gamble Company. (2013, November 17). Company Strategy. Retrieved March 22, 2014, from http://www.pginvestor.com: http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821
We have carried out a study on the F.M.C.G Company Heinz. Heinz is the most global U.S based food company, with a world-class portfolio of powerful brands holding number 1 and number 2 market positions in more than 50 worldwide markets. There are many other famous brand names in the company¡¦s portfolio besides Heinz itself, StarKist, Ore-Ida, Plasmon, and Watties. In fact, Heinz owns more than 200 brands around the world and makes over 5,700 varieties.
During 1911, Proctor and Gamble introduced Crisco, the first all-vegetable shortening, beginning what would be the first in a long line of different unrelated products the company would develop in the future. Such products include Tide washing detergent, Crest toothpaste, Charmin toilet paper, Pampers baby diapers, Folgers coffee, Bounce fabric softener, Pert Plus shampoo, and Bounty paper towels, just to name a few. With these products, and the more than thousand others, Proctor and Gamble leads the world in sales in almost all categories of household products. Sales hit the one million mark by 1859, roughly 22 years after the company was formed.
Wiener, R. Constance, Richard J. Crout, and Michael A. Wiener. "Toothpaste use by children, oral
P&G is an international and famous consumer goods founded in United States by Williams Procter and James Gamble both from the United Kingdom since 1837 about 177 years ago. P&G manufactures diversified range of product such as personal care, cleaning items, beauty product, pets food, drugs, & other beverages. Their products are sold in more than 180 countries around the world through grocery and departmental stores and retailers. They are also among the world’s most profitable consumer product company, with highest amount of sales. Their products are recognized in most part of the world. Their company have an organizational strategy to touch the live of its employees which is the major strength and competitive advantage of the company.
...ategic direction of the company of holding the leadership position n the grooming market. Also, this strategy will fit with Gillette's major, sustainable, competitive advantage of being an industry innovator (3). Manufacturing the "Sensor 3 Gel" will add value to the organization, as it will reposition the Gillette Company as the undisputable industry leader.
Alan G Lafley, the former CEO of Procter & Gamble, once said “Let’s execute along this strategy, but know that we’ll probably get some of this wrong, so be open to changing it (AZQuotes.com). Procter and Gamble has undergone many strategic changes in the last 15 years which have had a profound impact on the company’s profits and market share. The strategic changes that Procter & Gamble has undergone have been both positive and negative. While it is important to document the financial impact of the changes under Alan Lafley, it is also important to track the changes and growth under the current CEO David S. Taylor, while also showing Procter & Gamble’s competitive advantage.
In the $1 billion Indian Oral Care Industry, Procter & Gamble faces three main opponents: Colgate Palmolive India, Hindustan Unilever Limited and Dabur India. Colgate Palmolive India had its start in 1937 as an oral care product. SInce then, it has enjoyed 78 years as the leading oral care provider. Currently, it has 41.4% of the toothbrush market, making it the leading brand. Its toothbrushes are marketed towards any and all toothbrush users with a special emphasis towards expanding into rural markets.
Relationships have been in place with two main groups in Singapore long before Proctor and Gamble ever decided to build a plant. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering are the two main groups they have been involved with. Since Proctor and Gamble built these relationships before building a plant in Singapore they have thus established a strategic alliance with Singapore. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering have come together with Proctor and Gamble to share resources and complete a project. Proctor and Gamble benefit from setting up a strategic alliance with A*Star by getting the privilege of looking at IMRE’s innovative research (Moneycontrol.com, 2008). In return for this preferential treatment, P&G shares its new innovations with A*Star’s IMRE (Moneycontrol.com, 2008).
Tanner and Raymond (2014) describe branding activity as “strategies that are designed to create an image and position in the consumers’ minds” (c.6). When branding messages coincide with its offerings’ characteristics, it establishes consumer trust, and brand strength. For example, when first introducing Dove brand in 1957, by labeling its product as a “beauty cleansing bar . . . [with] ¼ moisturizing cream, that rinses cleaner than soap” (Unilever, 2016), we can see that marketers associated the brand to moisturizing and beauty, and disassociated the brand from common soap. Over the years, this consistent message coinciding with product performance has strengthened the Dove brand. Strong brand equity is derived from consistent, strategic branding that establishes perceived quality and emotional attachment (Entrepreneur, 2016); therefore, consumers are more likely to pay higher prices, as well as purchase new offerings connected to the
Service: Unilever works quite closely with the customer to ensure customer satisfaction and also to understand the trending needs of the customer.
In 1991, CP launched new products in the U.S market CP and held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP's oral care products increased 12% to $1.3 billion, accounting for 22% of CP's total sales.
Globalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. The giant companies are now multinational corporations with subsidiaries in many countries. They are no longer national firms with their operations limited to the boundary of just one country. Such companies’ growth and operations are not constrained by any geographical, economical or cultural boundary. One of these multinational corporations is “Nestle”; that has gained world-class recognition in recent times. Nestle has made significant use of globalization in the last decade in the following manner-