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Global Brand And Analyze Its Marketing And Advertising Campaign Add in library

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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?
 
 

Answer:

Introduction

In today more competitive, challenging and fast growing business era, advertising is one of the most significant and powerful tools for the business organization to promote the product/services, increase sales, and enhance customer satisfaction rate and profit successfully in the global market effectively. Moreover, advertising and marketing strategies adopted by the companies also play a major role in enhancing the positive and true value of the organizations in the mind of current and potential customers effectively. In addition to this, it should also be noted down that, when a particular company or organization adopt an advertising program or camping to an local, global and international audience, it face a lot of serious issues that may impact on the overall marketing and business strategies. For example, in adopting an advertising program to an international audience, the company may face political, legal, cultural, communication, cross-cultural issues or problem directly or indirectly. Distance and time, cultural nuance, issues associated with identifying a true market need etc are the issues that present when adapting an advertising program to an international audience.  

Summary

This paper evaluates the company’s brand competitive position in the market. This paper wants to evaluate the company’s brand remaining competitive position in the market. As a branch manager, your job is reviewing all publically available information related to the company’s brand and the selected product category. This paper is a detailed analysis of the product category and the brand to identify the product/brand competitive position in the market. This research paper conducts market analysis of product category through evaluates the current market situation of the company’s brand. This analysis provides a short review of the current market position of the brand and the challenges facing the brand from its direct competitors in the market. This paper analysis brand of the company through evaluate the marketing strategy of brand, target market and segmentation approach of brand, brand positioning, and evaluates the 4P’s of brand (product, price, place, promotion). At the same time, this paper recommends three key recommendations for improving the distinctive competitive position for the company’s brand on the basis of market analysis and brand analysis. For this paper selects Colgate as a brand that is the world famous toothpaste brand.  Colgate is a sub-brand of Colgate-Palmolive.

 

Market Analysis of Product Category

The Current Market Situation for the Toothpaste of the Colgate Brand:

In recent times, the Colgate is the most trusted brand in the toothpaste category in the worldwide. It is the first brand that it comes to oral case that means many generations grew up with Colgate brand. The Colgate brand has faced competition from time to time, but it has fought back easily and remains its competitive position through sustain market share. In the 1960-70, Forhans was the main competitor brand of the Colgate that is completely forgotten at present time (Colgate-Palmolive Company, 2015). Moreover, Binaca that later became Cibaca also created challenges of brand, but it got taken over by Colgate. The Colgate is the dominate brand in the toothpaste segment and the fewer number of brands available in this category.

Colgate’s was the first introduced toothpaste in a collapsible tube in 1896 in New York. After that, in 1967, Unilever launched the first gel toothpaste in the world that is famous as Close-up. Close-up obtained an important market share that forcing Colgate to introduce similar products and changes their strategies. After the Close-up established its position in the market, the Colgate also introduced Colgate Gel, but it has not beat Close-up in the gel category. Colgate remains its overall market share and maintains its competitive position in product line of toothpastes (Zentes, Morschett & Schramm-Klein, 2008). In recent times, Colgate accounting around 55% market shares in the toothpaste category, while Close-up, Oral-B, and Pepsodent are still attacking the customers in the market.

In addition, Pepsodent and Oral-B has created competition of Colgate in the general toothpaste category. Moreover, brands such as Sensodyne and Paradontax have come in with aggressive marketing strategies as created small sub-categories in toothpaste segment as sensitive toothpaste that impacted on the Colgate position in the market. Colgate responded with Colgate Sensitive, but Sensodyne still has a larger market share in the sensitive toothpaste market. Moreover, for fight the sub-segments, the Colgate brand applied a sub-branding strategy as it has launched sub-brands such as Colgate Gel, Colgate Sensitive, Colgate Herbal, Colgate Active Salt and Colgate Total to maintain its competitive position in overall toothpaste segment (Jain & Jain, 2012). At the same time, other players such as Unilever and P&G are not very keen to take Colgate-Palmolive sub branding strategy that helped the Colgate to head-on in its main product line.

The Colgate has started carving smaller segments for themselves with a focused marketing strategy that helped it for managing to remain leaders in their respective sub-segments. Moreover, through a large series of extensions, the Colgate brand has increased its share of the market from around 52.4% in 2011 to approx 54.5% in 2012. The extension strategy looks to have worked for the Colgate brand in retaining and marginally growing its market share. Moreover, in the long run, this brand extension strategy will be effective of the Colgate to maintain its competitive brand position in the market. In some countries Colgate has other brands such as Elmex and Dentagard as well as Cibaca in India after acquired it.

The below graph shown the current trends of the Facebook, YouTube and Twitter analysis of toothpaste brands. The below graph indicates the Colgate masters in the Facebook, YouTube and Twitter. This graph represents that in terms of fan numbers and fan growth, Colgate is way ahead of the rest in the toothpaste brand. Colgate managed to engage the best with its fans or followers in social media sites and the brands uses a good number of engagement oriented posts other than competitors that helped it to maintain their competitive position in the toothpaste segment (Raghupathi, 2013). The Colgate brand and their admin posting content round the clock. The admin is finding the right time to post on social media sites so the fans can view them is another. The Colgate brand has a well spread out posting routine that helped it to maintain their brand reputation in between the people.

(Source: Raghupathi, 2013)

Brand Current Position Analysis

Segmentation and Targeting:

Segmentation: Segmentation is the process to identify different customer segments existing in a particular sector by using various segmentation methods including demographic, behavioral, geographic and psychographic. In behavioral segmentation strategy, the customers are categorized on the basis of brand usage, benefits, price sensitivity, etc., while demographic segmentation is performed by considering various factors such as age, gender, income, occupation; education, social class, etc. to segment the potential customers. In addition, physiographic segmentation strategy is based on the state of mind of customers such as lifestyle, attitude, views, general opinions, beliefs, personality, motives, etc. All these variables should be used by the firm with the combination of other strategies to effectively segment the customer profiles. In geographic segmentation, the company can segment its potential customers as per the geographical units such as nation, cities, regions, etc (Xiao, 2011). 

At the same time, firm can effectively segment its customers on the basis of demographic segmentation strategy. Through this, firm can segment the customers on the basis of their income level into different categories such as high income, mid income and low income people by offering them different types of services and facilities. In addition, age based segmentation can be possible in industry due to its categorization into young and old customers with age limit of up to 35 and 65 respectively. Psychographic segmentation strategy can also be applicable because through this, firm can categorize its customers on the basis of life stages such as single, family (Stone & Desmond, 2007).

Targeting: After segmentation, marketers target segments, which is more effective in perspectives of size, purchasing power and growth potential. Target strategy is related to the selection of potential customers, who are preferred by the company to sell products and services. As per target strategy, it is necessary for the firm to select appropriate customers from the segmented markets to determine and deliver the needs and requirements of a particular segment. Apart from this, on the basis of demographic segmentation, the company can target low and middle income customers for the new brand Colgate (Smith, Fischer, & Yongjian, 2012).

Positioning: Basically, positioning strategy is related to the approaches that are used to develop a brand image among the customers and encourage them for repetitive purchasing of the products and services. In order to develop brand position of the Colgate in the market, the organization can focus on the price-focused positioning strategy to target the low income ad price sensitive customers such as leisure customers successfully. Through this strategy, the organization can provide low priced product in market with the consideration of basic features to develop its brand image. In order to compensate the opportunity loss of low pricing strategy, the organization can use effective distribution strategy by providing registrations services for the regular customers to increase its operational efficiency and profit level and provide effective services (McCabe, 2013).

 

Product, Price, Place, Promotion:

Product: the company would provide the different products as well as services related to personal care such as: toothpaste, shaving cream, deodorants, cologne, etc.  But the company would provide the Colgate as a major product to the customers at global level through divided their services in the different areas. Moreover, through divided their services in the different area, the company will be able to easily deliver its services of the different segment customers (Luo, Fan, & Zhang, 2012).

Price: Price of the products and services is majorly play role into the success of the firm. In addition to this, the organization should have an effective pricing policy. According to this, the organization should charges very low cost price for the Colgate product from the customers as compare to others.

Place: In recent time, the company should be established different offices and branches in the different nations in order to fully satisfy all the need of patients and their families in an effective and proper manner. Moreover, it should also uses different tools of information systems to provide services of worldwide customers at 24×7. Use of IT reduce the time and improve the effectiveness of its services that helps it to cover the market and maintain its competitive position in the marke (Kwon & Lennon, 2011).

Promotion: the company should promotes its Colgate brand through the use of different marketing channels, promotional activities and market strategies such as TV or newspaper advertising, sales promotion, internet marketing, social media marketing, public relation, etc. In addition, the organization should also select the marketing strategy or practice for the particular market or region by looking at segment market and target market (Kurtz, Mackenzie & Snow, 2009).

SWOT of Brand:

The below picture shown the SWOT analysis main elements. SWOT analysis is conducted for knowing the market conditions of the Honeywell Company.


(Source: Green Lane Group, 2014)

This analysis included four major things in this about the brand that are as follows:

 Strength

Weakness

·         A strong brand name

·         Market share

·         Good reputation

·         Expertise and skill

  • Low or no market share
  • No brand loyalty
  • Lack of employee experience
  • Inefficient company processes and procedures (McCabe, 2013).

Opportunity

Threats

·         A growing market.

·         Increased consumer spending.

·         Legal changes which make selling abroad (internationally) easier

·         Changes in society such as an increase in birth rates (Kwon & Lennon, 2011).

·         Competitors

·         Government policy

·         Taxation rules which reduce the firm's or consumer income

·         A change in consumer habits which makes the firm's products less appealing to the target market (Stone & Desmond, 2007).


(Source: Colgate-Palmolive Company, 2015)

 

PESTEL Analysis

PESTEL analysis means the analysis of political, economical, social, technological, legal and environmental factors those are the external factors of the business and changes in these factors impacts on the performance and success of the company.

Political:

Colgate brand has been available in many countries that created them political risks. Different countries taxation policies, employment laws and business regulation created risk of Honeywell. Moreover, government instability and high corruption rate of countries created political risk of Colgate brand.

Economic:

Economic low growth rate of the US, UK and several other countries after global financial crisis 2007-08 created economical risks of Colgate brand, so the brand focused on economic booming countries such as Asian region nations.  Moreover, changes in exchange rates of countries in context of US have been created economic risks of Colgate brand (Lovelock, 2008).

Social:

In the US and UK, customers prefers to secure, high quality, sensing, scanning, and mobility products that will be beneficial of the Colgate brand. Moreover, high educated and technology preferred customers of UK and US will play role of improve sales and revenue of the Colgate brand.

Technology:

Changes in technology and innovation of new technologies related to aerospace, automation, performance materials and technologies and transportation system creates challenges of the Colgate brand.

Legal:

The US, UK and other country law needs that without properly followed the copyright and patents law Colgate brand manufactures technologies related products and services that created challenges of the brand.

Environmental:

Changes in global climate, increase temperature of earth, decline in forest and impacts of natural beauty decline tourism activity in all countries that required demand or need of environmentally friendly products and services. Colgate brand invests and manufactures environmentally friendlier refrigerants and materials used in the production of products to manufacture environmentally friendly products and services that will help the company to maintain its position in the worldwide market (Paley, 2006).

(Source: Strategic Consulting, 2013)

So, the PESTEL analysis indicates that all external factors created risks of the Colgate brand but the company wide variety of high-performance or environmentally friendly products, process technologies and automation solutions will be helped it to maintain or improve its position in the global market.

Porter's Five Force Analysis

Porter’s five force analysis indicates the potential success and current situation of the industry that helps to assess the effectiveness of Colgate brand. Following is the analysis of Colgate brand five forces of competition:

Competitive Rivalry within Industry: In recent time, the internet reach between the people of all around the world has growth rapidly that attract the competitors to enter in toothpaste and toothbrush industry that enhance competition in the industry. Pepsodent, Close-up, and Oral-B are some of the main competitors of Colgate brand those create rivalry in the toothpaste and toothbrush industry. Other competitors improve their position in the industry through business expansions and enter in several markets that may affect the revenue, market share, and current situation of the Colgate brand in the industry, but large market share in the industry reduce impacts on company of rivalry in the industry (Lehmann & Winer, 2008).

Threats of new entrants: Threats of new entrants are very high in the toothpaste and toothbrush industry due to d few organizations dominating position in the industry on the basis of its strong reputation or brand value in the market (Berger, 2011). In additional, requirement of outstanding distribution channels, huge funds or resources and already established brand in the market also create entry barriers of new entrants, which is beneficial of Colgate brand to maintain its competitive position in the market.

Bargaining power of suppliers: The high market share and high growth rate of Colgate brand offers business that increases its power of other suppliers in comparing to its competitors in the market. In addition, the high bargaining power of the company enhances its ability to deliver services to customers in time.

Bargaining power of buyers: In recent time, individual customer bargaining power is low but due to enter in new global and international companies in the market, customers bargaining power increases that forcing the Colgate brand to provide different products of them at low prices (Nag, 2008). Moreover, it might be affecting the position of Colgate brand in the industry, so it should be more focus on quality of products and product differentiation.

Threats of substitutes: Substitutes treats are high for Colgate brand due to other types of toothpaste such as Gel, Sensitive, and Herbal are also increased in the past some years that impacts on the market of the company in the world (Lehmann & Winer, 2008).

 

Marketing and Advertising Strategies

Colgate brand would be developed marketing and positioning strategy for create and improve its position in the US and worldwide market between the many competitors. The promotion and advertising is an important tool of the marketing strategy to create position and brand value of the company in the global market (Nag, 2008). The promotion can be helpful to make aware about the features and qualities of the products and services to the consumers. Moreover, Colgate brand will be created its position in the global market that it provides the quality products and services at affordable price in the worldwide market.

For promotion of product protect cleans your breath while it cleans your teeth, and   quality products for customers, digital marketing and online marketing is quite significant to increase the Colgate brand image in the market. Colgate brand is used the social media and online sites such as LinkedIn, YouTube, Facebook, etc to maintain proper communication with target customers and improve its position in the market through considered the response or feedback of the customers related to products. Moreover, Colgate brand also creates its position in the market through participates and sponsor of events, support government environmental protection program, create awareness of people to protect nature or environment, fairs and sports (Berger, 2011). This strategy will be created brand image of the Colgate in between the people.

In addition, Colgate brand main important aspect of business is advertising. Colgate integrated all forms of media and promotions forms such as use television ads, news paper or magazine ads, in store display, hidings, internet contests, social media, and event sponsorships. Colgate advertising approach does not have to be crowd-specific, but it has to be target oriented. Colgate has been used famous celebrities at different countries have different celebrities is being used as their spokesperson to promote its brand (O’Guinn, Allen, Semenik & Scheinbaum, 2014). It also used different advertising campaigns to target children and adults. 

Brand Recommendations for Focal Brand

In the current time, different kinds of ways, strategies and methods are used by the organizations in order to improve the brand. For example, in order to improve the brand Colgate, the organizations should be analyzed the need and requirement of the customers and then focus on the demand of target customer. The organizations should design the brand according to the market need and customer requirement to provide proper care of the customers and enhance their revenue. At the same time, it can be said that, the organization should use also several marketing, promotional and strategic strategies should be used in order to create brand image to meet the demand of target customer. It is because these strategies would help the organization in achieving competitive advantages in an effective and more significant manner. Moreover, the organization should also focus on providing better environment and infrastructure in its organizations and open new branch offices to attract the customers and increase its market share significantly (Dawson, Larke, & Mukoyama, 2006).

Moreover, the organization should also emphasize on the quality aspects of its brand products and services significantly to influence the buying behavior positively towards its products. At the same time, marketing department of the Health care organization should increase its presence on online business/services and include integrated marketing communication such as social media, website promotion, personal relationships, etc. to develop awareness about its new brand Colgate and build its brand image in premium segment effectively to generate revenues and profits extensively. Apart from this, the organization would also need to use different steps of new product development process in developing a brand image of Colgate in the market. It is because the development of the new brand Colgate is significant and innovative process of bringing a new brand in the market place in an effective and proper manner (Carayannis, 2010).

Moreover, the organization should also attain its important market domination with the help of its clever marketing strategies and product innovation.  On the other hand, it should also be noted down that, marketing and promotional strategies as well as efforts should be designed by the organization to appeals those customer who never used the new brand Colgate of organization.  At the same time, it is also found that, organization should also design its brand to generate the impact unlike its competitors. It means organizations should use a unique design patter with a lot of different features that assist organization in creating a unique image of the brand Colgate in the mind of patients in an effective and proper manner.  Moreover, the organization should mainly focus on the customers focused marketing because it would help it in creating a unique brand identity in the global market. Additionally, it should also be noted down that organization should also focus on the developed market because in these markets purchasing power of the consumer plays a significant role in the success and growth of the organization (Capon & Hulbert, 2007).

At the same time, the use of effective and competitive STP (Segmentation, targeting, positioning) strategies will be beneficial for the organization to increase the brand competitiveness in the market, but, in order to increase demand of its online services. The organization should adopt effective practices to reduce the negative impact of the external factors such as social, demographic, economical, technological, etc. on its organizational operations. Hence, organization should adopt better marketing and strategic strategies to recall the existing problems related to decreasing demand of online booking. On the other hand, online promotion strategy should also be used by the organization as an innovative strategy to promote its new brand Colgate in the market by using online tools including social media and its website. In the same manner, with the effective use of digital technology, organization can effectively promote its brand among the customers with fast access that can generate more business for the organization (Amason, 2010).

Apart from this, healthcare organization should also consider some other marketing aspects such as marketing mix, market analysis, marketing auditing, etc. in creating the image of new brand. It is because this strategy would to bring innovation and improvement in its promotional practices. It should focus on price sensitive patients in market due to adverse impact of economic slowdown on the income level and purchasing power of people. In addition, organization should also adopt an innovative branding strategy because it would focus on the basic features with quality at low price to attract patients. In addition, marketing management of organization should offer the better and quality brands by maintaining quality standards at low price to positively influence the buying behavior of people (Bischoff, 2011).

The organization should also develop good relationship with the different external parties to support the marketing department in order to increase creditability.  This would be more beneficial for the organization to develop relationship with others and to create more opportunities in the target market for the new brand Colgate. Apart from this, the organization should also focus on other communication channels such as social media, telephone line services, etc. for improving the services conveniently.  In addition to this, through this, organization can be enabled to target the customer, who does not know how to use the internet or online process. Moreover, the organization should also develop good relationship with the customers by using feedback system on social media and its website to know the perception of the people about the performance of about the new brand Colgate for future betterment (Bidgoli, 2010). On the basis of this information, the organization can develop its services and improve them significantly to generate good customer or patients experience as compared to the competitors. In addition, the organization should include new trends of marketing such as cyber marketing, green marketing, digital marketing, etc. that will be helpful to avoid any negative impact of technological threats in future. On the other hand, the company should also use loyalty schemes such as membership cards and loyalty cards to develop customer loyalty towards the new brand Colgate.

 

References

Amason, A. (2010). Strategic Management: From Theory to Practice. UK: Taylor & Francis.

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

Bidgoli, H. (2010). The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management. UK: John Wiley & Sons.

Bischoff, A.L. (2011). Porter's Value Chain and the REA Analysis as an Accounting Information System. Germany: GRIN Verlag.

Capon, N. & Hulbert, J. M. (2007). Managing Marketing in the 21st Century: Developing and Implementing the Market Strategy. Wessex Publishing.

Carayannis, E. (2010). Strategic Management of Technological Learning. USA: CRC Press.

Colgate-Palmolive Company. (2015). Our Company. Retrieved from: https://www.colgate.co.in/app/Colgate/IN/Corp/HomePage.cvsp

Dawson, J.A., Larke, R. & Mukoyama, M. (2006). Strategic Issues in International Retailing. NY: Routledge.

Green Lane Group. (2014). Regional SWOT analysis. Retrieved from: https://www.ruraldevelopment.org.uk/northwoods/projects/completed-projects/ben/regional-swot-analysis/

Jain, V., & Jain, A. K. (2012). The Mantra of Branding-A Case Analysis of Colgate Toothpaste in Dehradun, India. Asian Journal of Business and Economics, 2(2.1).

Kurtz, D.L., Mackenzie, H.F. & Snow, K. (2009). Contemporary Marketing (2nd ed.). US: Cengage Learning.

Kwon, W. S. & Lennon, S. J. (2011). Assessing college women's associations of American specialty apparel brands. Journal of Fashion Marketing and Management, 15(2), 242-256.

Lehmann, D.R. & Winer, R.S. (2008). Analysis For Marketing Planning (10th ed.). USA: Tata McGraw-Hill Companies Inc.

Lovelock, C. (2008). Services Marketing People, Technology, Strategy (5th ed.). USA: Pearson Education, Inc.

Luo, J., Fan, M., & Zhang, H. (2012). Information technology and organizational capabilities: A longitudinal study of the apparel industry. Decision Support Systems, 53(1), 186-194.

McCabe, M. B. (2013). US Hispanics Go Mobile: Adoption And Marketing Engagement Trends. International Journal of Mobile Marketing, 8(2).

Nag, A. (2008). Strategic Marketing. USA: Macmillan.

O’Guinn, T., Allen, C., Semenik, R. & Scheinbaum, A.C. (2014). Advertising and Integrated Brand Promotion (7th ed.). USA: Cengage Learning.

Paley, N. (2006). The Manager's Guide to Competitive Marketing Strategies. USA: Thorogood.

Raghupathi, R. (2013). Colgate Masters Both Facebook And YouTube While Oral-B Takes Custody Over Twitter. Retrieved from: https://www.business2community.com/social-media/colgate-masters-both-facebook-and-youtube-while-oral-b-takes-custody-over-twitter-unmetric-report-0564273

Smith, A. N., Fischer, E., & Yongjian, C. (2012). How does brand-related user-generated content differ across YouTube, Facebook, and Twitter?. Journal of Interactive Marketing, 26(2), 102-113.

Stone, M.A. & Desmond, J. (2007). Fundamentals of Markets: A Critical Evaluation, New York: Taylor & Francis.

Strategic Consulting. (2013). PSE Strategic Consulting. Retrieved from: https://www.psestrategicconsultants.com/#!pestel-analysis/zoom/mainPage/image130h

Xiao, J. (2011). The Research of Development Strategies about Henan Textile Industry Cluster Based on SWOT Analysis. Shandong Textile Economy, 12, 006.

Zentes, J., Morschett, D., & Schramm-Klein, H. (2008). Brand personality of retailers–an analysis of its applicability and its effect on store loyalty. The International Review of Retail, Distribution and Consumer Research, 18(2), 167-184.

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