Analysis Of Advertising Strategies For Colgate: Consumer Behavior, Brand Values, And Global Positioning Essay.

Colgate's Advertising Strategies

Question:

Write a detailed analysis on how the advertising for the brand has changed over the years, what marketing and advertising strategies the company uses, how the organization takes into account Consumer behavior, trends and attitudes, what the values and beliefs of the brand are and its consumers, how the brand positions itself against its competitors and how this may vary upon country.

The strategy for advertising is a campaign that can be created to communicate different ideas about the services and products to the target audiences to convince them in buying the services and the products. This strategy is to be developed in intelligent and rational manner as it helps to reflect the business. The key plan behind development of effective advertising strategy is flexible and creative planning that is focused on in-depth knowledge of the target audience. The main reason behind implementing effective advertising strategies are to promote the business awareness of its services and products, increase the sales to attract more customers and competitors and also modify or establish the brand image. This means advertising is all about reminding, persuading and informing the consumers in the market.

This report will be highlighting the advertising strategies that the company-Colgate follows to promote its products, will also understand the behaviour of its target customers and their attitudes towards the brand and evaluate the position of the brand compared to its competitors in the market. The brand will be analysed from global perspective.

Colgate is softening grounding uniting with buyers up non-customary routes, especially by utilizing the Internet and cell telephones. One of the successful strategies is gained by the prevalent utilization of the expression "Colgate Smile" for any awesome smile. Colgate supports individual, enthusiastic association with their image by welcoming shoppers to share their "Colgate Smiles" through photos, stories and features posted on www.ColgateSmile.com and various person to person communication locales, for example, Facebook and MySpace. To best achieve today's customers, Colgate uses incorporated promoting correspondences that incorporate a blend of customary and new media, and additionally innovative limited time exercises. Case in point, as a component of its exceptionally effective marketing campaign- "Feeding Is Believing".

To promote its brand, Colgate mainly uses advertising strategies. Its distinctive products which are intended for diverse sections are focused to the group of onlookers by highlighting its components. Its normal slogan for all products is - "No1 brand recommended by dentist". As such no advancement is done at retail level aside from the suggestion by the businessperson. However in the rural markets Colgate utilizes VAN (van is a versatile advancement station having screen show facilities, slide show and mike reputation).  In India, the researchers of Colgate had submerged themselves in the lives of villagers, watching and examining their oral consideration propensities, how they clean their homes and other every day schedules. A key learning was that moms trust in a superior life for their kids through instruction. In view of this knowledge, Colgate executed an exceptional advertising strategy that helped form mindfulness for good oral consideration propensities and offered grants to kids. Another way Colgate interfaces with today's shoppers all inclusive is by using integrated marketing communications that incorporate a mixture of non-traditional and traditional media.  The launching of Colgate Sensitive Pro-Relief toothpaste utilized numerous computerized touch focuses, including online media, highlighting the powerful testimonials of the consumer and also web sites for informative products. These activities, consolidated with more promotional events and customary media, are adding to more market share (Colgate, 2011). Colgate educates its clients about its new products and also the item that is being utilized by the clients. Colgate-Palmolive induces and persuades its new and additionally old clients to buy its new products. By using an effective advertising strategies Colgate has succeeded to hold its brand image and customers. By this Colgate unequivocally concentrates on distinctive advertising or promotional methods like sale promotion, publicity, advertising, mass selling etc. Colgate has substantiated itself as a sharp onlooker of the business and the way of life all around itself. Colgate has done in the past and as yet doing right now. It is delivering & presenting its products extraordinarily for the children. Colgate is extremely famous among youthful children simply due to its ideal advertising strategies. Colgate promotes the kids products by naming the cartoon characters like Barney, Barbie Looney tunes etc (Berger, 2011).

Target Audience and Consumer Behavior

Colgate's solid associations with experts have added to making Colgate and Hill's the most suggested brands by dental specialists and veterinarians around the world. Proficient supports fabricate validity for Colgate's brands and drive item trial.In the United States, Colgate's new Oral Health Advisor system is building associations with dental hygienists to further commute proficient suggestions for Colgate items and expand tolerant use. Also, In the United States, Colgate worked together with store anchor Kroger to revamp the oral consideration path. In view of a mixture of customer experiences and client information, Colgate's cross-useful business group worked nearly with the retailer to actualize a more customer well disposed path. Colgate endeavors to advance consciousness of good oral wellbeing all through the world. In Malawi, Colgate collaborated with the Malawi Ministry of Health amid Oral Health Month to help teach youngsters and grown-ups about great oral consideration propensities. The battle incorporated an effective broadcast message that advanced solid oral consideration propensities and highlighted the Ministry's backing of Colgate items. The new outline pulled in more customers and expanded class deals. In little rustic shops where space is constrained, Colgate agents work nearly with shop proprietors to accomplish the perfect arrangement of Colgate items with the best perceivability. Unique bundling that serves as a self-show unit, for example, toothbrush allocators and hanging sachets, is only one procedure that gives promoting adaptability to shop proprietors and prevalent perceivability for Colgate items. Giving moment and enduring help from the torment brought on by tooth affectability, Colgate Sensitive Pro-Relief toothpaste is driving boundless piece of the overall industry picks up for Colgate in the critical, quickly developing affectability fragment. Inside only a couple of months of its dispatch in Greece, Colgate picked up business initiative in the affectability section surprisingly. In China Colgate's exceptionally proficient toothbrush plant in Sanxiao, China, is expanding the adaptability and limit of the Company's worldwide inventory network. The biggest toothbrush industrial facility on the planet, the new plant creates 1.4 billion brushes every year and holds fast to the most elevated norms of vitality proficiency furthermore, ecological quality (colgate.com, 2010).

Presently, consumers are additional requesting of what they esteem in brand decision priceless and are influenced by a developing exhibit of new influencers. Connecting with to build Colgate Brands means expanded engagement with their buyers, clients, the calling and different influencers with effective incorporated marketing campaigns that exploit online networking sites and digital technologies. They are likewise concentrating on distinguishing more profound, more significant bits of knowledge to build up more grounded associations with the majority of their voting demographics and make a more profound level of duty to their brands. The Net Sales of the company grew to 7.5% and continued growing for 4%.

Due to better response of the customers Colgate have rose the advertising expenditure to 5% and market share has grown across many of the core categories. In 2011, developing markets embodied more than a large portion of their worldwide deals have been an essential part of growth strategy of Colgate for quite a while. By focusing effectively and timely, they have developed driving business sector and strong consumer loyalty positions in a number of key categories. Today, these business sectors have vigorous GDP development, a huge populace with low penetration of product and even lower utilization, lower consumers, growth rates and growth categories. The growth strategy of Colgate, in these businesses concentrates on driving utilization. For example, they teach customers about the advantages of good health care of oral and give products to test as samples, for example, "Bright Smiles, Bright Futures". With this worldwide activity, Colgate has come to more than 650 million youngsters, and consistently they cooperate with dental experts and their retail accomplices to support an oral wellbeing month in each of their topographies (Semenik and O'Guinn, 2012).

Brand Values and Beliefs

In North-America, in the year 2011, the sales declined by 0.5% and the volume of the unit grew by 2%. The operating profit had reduced by 11%. Brands like Colgate Senstitive Pro-Relief and Colgate Optic White toothpastes and also the re-launching of the Colgate Total toothpaste have contributed towards the oral health care. Similarly in the year 2011 in Latin America, the sales of Colgate had increased by 12% and the unit volume grew by 4.5%. There was decrease in the operating profit of the company by 9%. Additionally, in South Pacific or Europe, the unit volume and sales grew by 5% and 9% respectively in the year 2011. 4% was added by Sanex acquisition to the unit volume and sales. However, the Operating profit declined by 4%. In Africa and Asia, unit volume grew by 6.5% and sales by 9.5%. The acquisition of Sanex added extra 0.5%. The operating profit increased by 5%. In Hill’s Pet Nutrition, the Veterinary recommendations are high and operating profit was similar to 2010. The sales have increased by 4.5% (Colgate, 2011).

Brand Positioning techniques can be considered and grew in a mixture of ways. It is developed from the applications, competition, object attributes and consumer types included, or the attributes of the product class. Every one of these traits speak to an alternate approach in creating situating procedures, despite the fact that every one of them have the regular goal of anticipating an ideal picture in the customers' mind. Colgate mainly uses positioning approach based on its competitors. In this positioning strategy an explicit or implicit reference frame is one or more rivalries. Now and again, reference competitor(s) can be the overwhelming part of the positioning methods of the firm, the firm either utilizes the same of comparative situating procedures as utilized by the contenders or the promoter uses another system taking the contenders' technique as the base. Initially when Colgate entered the market, concentrated on to protection of the family however when Pepsodent went into the business with spotlight on 24 hour security and essentially for children, Colgate transformed its center from family assurance to children teeth assurance. This is positioning strategy based on the strategy of competitor (Hackley, 2005).

Other than the Pepsodent direct attack, section of a substantial worldwide player like Oral B has further escalated rivalry in the general toothpaste class. Brands, for example, Paradontax and Sensodyne have come in with forceful advertising procedures and have made little sub-segments for themselves, potentially at the expense of Colgate. Colgate reacted with Colgate Sensitive yet Sensodyne still has a bigger offer of the sensitive toothpaste market. Colgate has over the course of the years attempted to battle the sub-fragments through a sub-marking procedure and has dispatched sub-brands, for example, Colgate Total, Colgate Active Salt, Colgate Sensitive, Colgate Gel and Colgate Herbal. It is clear that alternate players, other than P&G and Unilever, are not extremely quick to take Colgate head-on in its principle product offering. Thus, they have begun smaller segments portions for themselves and, with an engaged system, are figuring out how to remain pioneers in their separate sub-fragments. Their endeavours are along these lines to gradually develop these classes and additionally their shares in the business (Irani, 2012). While bigger players, for example, Unilever are attempting to develop the business sector and catch offers, players, for example, GSK have made a corner for themselves in the market of delicate toothpaste. Through a progression of augmentations, Colgate has expanded its share of the business to 54.5% in 2012 from 52.4% in 2011. As per the extension strategy appears to have worked in marginally and retaining developing its share, analysts think that this technique will be powerful. In India Colgate had followed the single-brand strategy and also acquired Cibaca, however in different nations Colgate has different brands, for example, Dentagard and Elmex (KUILA, 2014).

Positioning against Competitors

Colgate is strongly emphasised around linking its objectives and strategies with those of its trade partners keeping in mind the end goal to accomplish common success. Colgate individuals comprehend that the way they work together is pretty much as critical as the outcomes they accomplish. Colgate has created worldwide business offering rule that apply to their associations with all clients, paying little heed to their size or area. These standards give particular rules on the best way to accomplish business objectives while looking after Colgate’s responsibility to its values and to maintaining the most astounding moral principles in its business dealings. Development is a foundation of Colgate's method to drive beneficial development. While advancement in new item improvement is key, similarly essential is development all through the greater part of the Company's business capacities and procedures (O'Guinn, Allen and Semenik, 2003).

The innovation extends at Colgate in latest products to all business capacities. Colgate added to an online exclusive apparatus that aides arrange the timing and consistency of the marketing messages of the company over all media channels. Colgate has made a creative, movement construct instructional class that centers with respect to the key part that store network coordinated effort plays in conveying against client desires. Members, who incorporate supply chain staff, customer service and customer development through group practices how to address supply chain network and other business difficulties and still convey best-in-class administration to Colgate's retail accomplices at the most reduced expense. Cultivating open communication among all Colgate individuals, the Company keeps workers included by coming to profound into the association consistently by means of e-mails, webcasts, messages, tutoring and giving an assortment of online and classroom training classes to reinforce aptitudes (Rijkens, 1992).

Conclusion

In conclusion, the brand Colgate has been a standout amongst the most trusted brands for quite a long time. It is not just the more established era which grew up with Colgate, it is a first brand, notwithstanding for the youthful, in the matter of oral consideration. The brand has confronted blasts of rivalry occasionally and has battled back successfully to recover market share. Colgate's development is started by the creative items we acquire to market their key item classes, and we keep on being exceptionally centered around verifying they have advancement at all value focuses. This system offers shoppers a decision of items from passage level to super premium and permits them the chance to exchange up as extra cash levels rise. This report highlights that advertising plays a vital role in the improving the brand image of Colgate. Various advertising strategies and positional strategy based on the competitors have helped the brand to capture the market. Strategies like recommendations from the dentists and acquisition of Sanex have helped the brand to position itself uniquely. Efficiency and effectiveness remain a key need, mirroring the significance of changing the way Colgate cooperates to produce new supports for development. By concentrating on various particular zones, for example, valuing greatness and rearrangements, and investigating new regions, they will keep on growing stores to put resources into their new items and the advertising exercises behind them.

References

Berger, A. (2011). A Strategic Analysis of Colgate ́s toothpaste product line: Marketing Strategy. GRIN Verlag.

Colgate, (2011). Annual Report. 2011. [online] United States: Colgate. Available at: https://www.colgate.com/us/en/annual-reports/2011/#Home [Accessed 9 Jun. 2015].

colgate.com, (2010). Colgate: Global Strategies, Local Strength. [online] Available at: https://www.colgate.com/Colgate/US/Corp_v2/Annual-Reports/2010/HomePage/ColgatePalmolive2010AnnualReport.pdf [Accessed 9 Jun. 2015].

Hackley, C. (2005). Advertising and promotion. London: SAGE Publications.

Indiainfoline.com, (2015). Express Idea: Colgate – BUY. [online] Available at: https://www.indiainfoline.com/article/research-recommendation-equity/express-idea-colgate-%E2%80%93-buy-115022500372_1.html [Accessed 9 Jun. 2015].

Irani, D. (2012). Most Trusted Brands 2012: How Colgate has managed to retain the top-most ranking - The Economic Times. [online] The Economic Times. Available at: https://economictimes.indiatimes.com/magazines/brand-equity/most-trusted-brands-2012-how-colgate-has-managed-to-retain-the-top-most-ranking/articleshow/17099487.cms [Accessed 9 Jun. 2015].

KUILA, V. (2014). CASE STUDY: Will Colgate’s branding strategy beat the competition?. [online] The Hindu Business Line. Available at: https://www.thehindubusinessline.com/on-campus/case-studies/case-study-will-colgates-branding-strategy-beat-the-competition/article6317514.ece [Accessed 9 Jun. 2015].

O'Guinn, T., Allen, C. and Semenik, R. (2003). Advertising and integrated brand promotion. Mason, Ohio: Thomson/South-Western.

Rijkens, R. (1992). European advertising strategies. London, England: Cassell.

Semenik, R. and O'Guinn, T. (2012). Advertising and promotions. Mason, Ohio: South-Western/Cengage Learning.