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  • Essay / Colgate-Palmolive - 866

    WS1 CP PaperColgate-Palmolive is a leader in household and personal care products. In 1991, the company planned to launch new products while considering venturing into new markets (Quelch & Laidler, 2011). The company's plan worked, and the company now offers products ranging from oral care products to dish soap to dog food. This article will discuss the company's mission. This article will also discuss a SWOT analysis which, according to Kotler and Keller (2009), is “the overall assessment of a company's strengths, weaknesses, opportunities, and threats.” Mission A mission statement should be clear and thoughtful. A mission statement should also give employees purpose and direction (Kotler and Keller, 2009). According to Colgate (2011), the company's mission is to "provide Colgate with a significant competitive advantage by reducing total delivered costs, expanding technology resources, and developing excellence in purchasing, logistics and supply”. The company succeeded in its mission and achieved its objectives. StrengthsColgate-Palmolive is a significant force in the oral care industry. The company has many strengths that have contributed to its success. The company has become a global leader with seventy-five percent of its sales coming from international operations (Colgate, 2011). The company has gained strong brand awareness over the years. According to Sekar and Thomas (2008), “brand differentiation is now becoming an important tactic to combat competition in a hostile market”. While price is important, brand also has an important influence for consumers (Chain Drug Review, 2010). Another influence is product positioning. Colgate-Palmolive has managed to position its products in stores and display more references than other brands. The company focuses on new product development and innovation. Products range from oral care products to pet food. The company sells high margin products that it is able to manufacture at low cost to the company (Datamonitor, 2011). Colgate-Palmolive's financial strategy has helped the company achieve great success. Weaknesses Although the company has many strengths, it does have some weaknesses. Although the company remains the market leader in Ireland (Checkout, 2008), it has experienced a decline in sales in other European countries (Datamonitor, 2011). This decrease could be the result of lower advertising spending compared to the company's competitors (DeSanto, 2010).