ENDING STUDY REPORT ANALYSIS OF MARKETING STRATEGY OF COLGATE PALMOLIVE ENTERPRISES IN VIETNAM MARKET

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING ENDING STUDY REPORT ANALYSIS OF MARKETING STRATEGY OF COLGATE PALMOLIVE ENTERPRISES IN VIETNAM MARKET Major: MARKETING Speciality: MARKETING MANAGEMENT Subject: PRINCIPLES OF MARKETING Lecturer: Đặng Huỳnh Phương Nguyễn Thị Thanh Nhi - 2021008506 Cao Thị Bích Ngọc - 2021008493 Trương Thanh Thảo - 2021008552 Võ Minh Thức - 2021008561 Class: CLC_20DMA06 Class code: 2021702032611 Ho Chi Minh City, 2021 TIEU LUAN MOI download : skknchat123@gmail.com NHẬN XÉT CỦA GIẢNG VIÊN HƯỚNG DẪN Họ tên sinh viên:Võ Minh Thức MSSV: 2021008561 KẾT QUẢ CHẤM ĐỒ ÁN Điểm số Chữ ký giảng viên (Điểm chữ) (Họ tên giảng viên) TIEU LUAN MOI download : skknchat123@gmail.com JOB DESCRIPTION & THE PERCENTAGE OF CONTRIBUTIONS: ► Job description: 1- Võ Minh Thức: An overview of Colgate Palmolive and the Colgate toothpaste product line Review the overview and propose improvement options in Colgate's marketing strategy 2- Trương Thanh Thảo: Analyze the marketing environment of the business Analyze product strategy (production) in marketing mix strategy 3- Cao Thị Bích Ngọc: Analyze your S-T-P strategy Analyze promotion strategies in marketing mix strategy 4- Nguyễn Thị Thanh Nhi: Analyze price strategy in marketing mix strategy Analyze the place strategy in marketing mix strategy ► Percentage of contributions: Võ Minh Thức Evaluation: enthusiastically support team members, contribute comments to complete the report, complete the assigned tasks on time Work resibly Percentage of contributions: 25% TIEU LUAN MOI download : skknchat123@gmail.com Contents Introduction Company profile Marketing environment in Vietnam 3.1 The Microenvironment 3.1.1 The Company 3.1.2 Supplier: 3.1.3 Marketing Intermediaries 3.1.4 Customer 3.1.5 Competitor: 3.1.6 Publics: 3.2 Macroenvironment 3.2.1 Demographic: 3.2.2 Economic: 3.2.3 Technology: N/A 3.2.4 Natural: 3.2.5 Political 3.2.6 Cultural: 3.3 SWOT Analysis: Colgate Palmolive’s S – T - P Strategy in Vietnam 10 4.1 Segmentation 10 4.1.1 Geographic segmentation 11 TIEU LUAN MOI download : skknchat123@gmail.com 4.1.2 Demographic segmentation 11 4.1.3 Psychographic segmentation 11 4.1.4 Behavioral segmentation 12 4.2 Target markets 12 4.3 Positioning 12 Colgate Palmolive’s Marketing – Mix Stragety in Vietnam: 14 5.1 Product 14 5.1.1 Overview 14 5.1.2 Product Line mix 15 5.1.3 Quality 15 5.1.4 Branding 15 5.1.5 Packaging 16 5.1.6 Colgate’s product life cycle in Vietnam 17 5.2 Price 18 5.3 Place 21 5.4 Promotion 22 5.4.1 Message design 22 5.4.2 Company’s communication activities (Advertising, Sales promotion, Public Relation) 23 Marketing Planning For Colgate 29 6.1 Marketing issues to improve 29 6.2 Brand 30 6.3 The benefits of a strong brand 30 TIEU LUAN MOI download : skknchat123@gmail.com 6.4 Brand Marketing 31 6.5 Distribute 33 6.6 Operation plan 33 References 34 TIEU LUAN MOI download : skknchat123@gmail.com PHOTOS LIST Figure 1: The graph shows the percentage of suppliers for Colgate in each sector Figure 2: The graph shows Colgate’s market share by number of retailers Figure 3: Combination program between Vinmart and Colagte .4 Figure 1: Revenue of Colgate – Palmolive Company 13 Figure 1: Logo of Colgate 16 Figure 2: Chart showing the life cycle of Colgate products in VN 17 Figure 3: Rate of love ang use of Colgate in VN 17 Figure 4: The graph shows the changing in price of one of the types of Colgate toothpaste through its own life cycle 20 Figure 5: Children participate in Colgate festival (Source: Facebook) 29 TABLES Table 1: SWOT analysis Table 1: Colgate toothpaste price list updated in June 2021 18 Table 2: The price comparision between Colgate and P/S 19 Table 3: Prize structure 27 TIEU LUAN MOI download : skknchat123@gmail.com INTRODUCTION The market in general and the toothpaste market in Vietnam, in particular, are always fluctuating, leading businesses to always face opportunities and challenges To be able to survive and develop sustainably, businesses need to research and find ways to improve the competitiveness of their products Colgate's toothpaste product of the consumer goods company Colgate Palmolive is no exception Today, as society and the economy expand, people's living conditions improve, and the demand for high-quality items grows day by day, this is a concern for producers Consumers, like toothpaste producers, are always learning and refining their goods They care a lot about the quality of the product, and they demand a lot from it, Whiten teeth with toothpaste, eliminate germs, and prevent foul breath Nonetheless, the current scenario of varied food sources increases food consumption; however, concealed beneath delectable meals are hundreds of bacteria that produce foul breath and erode dental enamel, resulting in cosmetic loss There is no end to the demand for toothpaste, so many types of toothpaste products are available everywhere in the market Strong teeth — healthy gums are the leading standard of toothpaste users, so how people care about their health? Besides, every business has to face difficulties in the battle for the market with competitors and the current COVID-19 situation If they know how to take advantage and seize their oportunities, They are capable of standing steadfast in the face of adversity, and it is more important to understand the elements that affect the buying behavior of consumers; If manufacturers research, comprehend, and put those characteristics into practice in their marketing decisions, they will have the opportunity to serve the needs of customers and the capability to earn high profits Due to the current situation, there is information that Colgate toothpaste products have carcinogenic substances, causing confusion among consumers This causes great damage to the reputation as well as the revenue and profit of the business The above effects lead to a decrease in the competitiveness of Colgate toothpaste products and need to take measures to improve TIEU LUAN MOI download : skknchat123@gmail.com Due to the above reasons, our group decided to have a reserch on the topic "Evaluating the current situation and building a marketing strategy for Colgate toothpaste products" COMPANY PROFILE Colgate Palmolive Company could be a $17.1 billion worldwide company that gives trade goods which make people's lives better and more pleasant in additional than 200 countries and territories In its primary operations, this international corporation based in the United States focuses on powerful global brands — Oral care, attention, home care, and pet nutrition are all areas that need attention Colgate's market share growth plan for key goods including toothpaste, toothbrushes, bar, and liquid soaps, deodorants/antiperspirants, dishwashing detergents, home cleaners, fabric conditioners, and specialized pet food is well-defined ("Colgate Palmolive Annual Report 2012,") Colgate-Palmolive Company's growth from atiny low candle and soap manufacturer to at least one of the foremost powerful consumer products giants within the world is that the results of the aggressive acquisition of other companies, persistent attempts to overtake its major U.S competition, and an early emphasis on building a world presence overseas where little competition existed ("Colgate Palmolive Company History,") Colgate may be a brand that sells a range of oral hygiene products it's launched specific items for youngsters additionally to its standard variations utilized by every genre to forestall cavity and bacteria, the merchandise also contains a Colgate toothbrush with gentle bristles that reach every nook and cranny of the mouth Colgate toothpowder and mouthwash are two of the company's most well-known products Colgate toothpaste marked its presence in Vietnam in 1995, with the Son Hai Company, which owns Da lan brand, then Colgate buys 30% stake in Son Hai company in 1998 in the joint venture Then P/S currently accounting for 65% market share, Da Lan has 30% However, nowadays in Vietnam, Unilever leads the way with a market share of over 65%, far behind Colgate's 25%, while P&G with Crest brand is completely lackluster On the world market Colgate Palmolive 45%, Unilever 9%, P&G 15 TIEU LUAN MOI download : skknchat123@gmail.com MARKETING ENVIRONMENT IN VIETNAM 3.1 The Microenvironment 3.1.1 The Company: Colgate Palmolive began operations in Vietnam on March 23, 1996 In Oral Health Care, Personal Care, and Laundry Care, the company has manufacturing and commercial operations in Vietnam Colgate is having available products like toothpaste, toothbrushes, mouth rinse, soap, shampoo, etc Colgate employees in Vietnam and around the world share three essential business values: caring, global teamwork, and always improvement These values are reflected just in both the quality of our products our company's reputation, and their commitment to help the communities that they are operating 3.1.2 Supplier: Overall: Many of the raw ingredients and packaging materials come from other companies and are available in a variety of nations New suppliers for specific materials, on the other hand, may be required to meet industry, government, and Colgate criteria, which can be costly New suppliers for specialized materials, on the other hand, may need to qualify according to industry, government, and Colgate standards, which may be costly and time-consuming Plastics, pulp, essential oils, tallow, tropical oils, maize, and soybeans are just a few examples of commodities and packaging materials that are price sensitive Colgate's supplier management program includes a comprehensive auditing program of suppliers' buildings and operations Colgate's quality and service excellence standards are accomplished through a thorough audit process and set of tools for assessing and communicating with suppliers The program is used to qualify both current and new vendors TIEU LUAN MOI download : skknchat123@gmail.com Distribution strategy (Location, Logistics, Channels Distribute Market share, Level of service customer, Internet.) Maintain types distribution channels of Human Resource Dep’t Sales Dep’t Promote the above type of Accounting Dep’t advertising Internet via social networks Marketing strategy Promote ads that show (Advertising, Public Relations and the differences of the Accounting Dep’t them, Communication, Sale Human Resource Dep’t product dye Use images of bridges famous players and direct goods, Budget.) singers for communication use of the product 6.2 Brand A brand is a name or symbol used to identify a product Successful brands show that these products have a lasting competitive advantage IBM, BMW, Coca-Cola and Shell are good examples of branded companies, and Coca-Cola, Dulux Paint and FosterLarger are good examples of product brands A brand is an intangible part, but an integral part of a business When a product reaches a level that is almost indistinguishable in nature, the only thing that sets it apart is the personality and branding of the public service The brand speaks of trust and safety 6.3 The benefits of a strong brand - Loyalty to a brand keeps customers going to purchase products and services - Premium prices (brand-based) allow businesses to get high profits - Strong brand creates favorable credibility for further introduction of new products - Strong brand allows bigger shares, more income - Strong brand is a clear, valuable, and sustainable advantage - Strong brand creates transparency and focuses within the business about branding 30 TIEU LUAN MOI download : skknchat123@gmail.com - The stronger the brand, the higher the customer loyalty helps businesses are more likely to have customers' karma makes mistakes.- Strong brand is a lever to attract talents and maintain talents in the business - 70% of customers take the brand as one of the factors they weigh when choosing to buy a product or service 6.4 Brand Marketing - By all ways let customers know that the business you provide quality products and services - Not only provide customers with good service but also provide customers have confidence when they choose you - Show your customers your differences - Highlight the brand with strong advertising, extremely sock promotions if you're not at the top, you have to stand out - Competitive price policy - Try to keep leads - Charity - In the era of information technology, the Internet has grown stronger today, and traditional advertising and marketing methods have begun to become "narrow" Therefore, marketers are also looking for and changing advertising methods that are user-friendly and easy to attract users Old advertising methods, such as e-mail marketing, banner ads, pop-up windows often cause discomfort, they will get bored, and make users feel commercialized Therefore, with the development of technology, traditional marketing methods gradually lose their efficiency and attractiveness Users have become more "smart" and have begun to find ways to directly integrate into Firefox, IE browser, Chrome to care about ads.- In the wake of that fact, many large companies are looking to change the way sharing, friendliness, and engagement marketing to promote your products and 31 TIEU LUAN MOI download : skknchat123@gmail.com customer care Today's ads don't stop at one image common banner images, which have come to integrate with the information and gadgets that attract more users - In reality, in the world, there are many large enterprises that have used the shape to push your brand In a poster placement framework, you'll find a series of image slideshows that you simply can value more highly to view by likes, a fun, engaging video clip about the merchandise, a map instructing to the closest address of your store, an inventory of articles and useful information links to its social networking sites like Facebook, Twitter, Youtube or perhaps the opinions and comments of the person himself use - In Vietnam today, there are variety of internet sites that have successfully implemented similar ways of promoting brands, like Box products Application of AdMicro, an advertising package that integrates more features, has may be done on AdNetwork websites consisting of over 50 press products and online portals rather than a picture banner big or pop-ups that are annoying and annoying to users, time the ad frame is meant to be very reader-friendly and provides really useful news Ads are often viewed as a part of the web site with an identifying interface, but still don't lose their attractiveness and attractive to users - This type of advertising will help marketers provide information-rich news, in accordance with the content of the web site Copper-designed interfaces as a part of the web site in order that readers will receive information like reading newspapers, not watching ads Sequences of images, video clips help increase viewer attraction and focus Related utilities associated with social networks like Facebook, Twitter, Blogger integrated right in enhances links with the network of users on this social network additionally, features like map positioning system, sharing, exchange, discuss online can get readers to instantly interact with ads fox this is often a goal that the majority marketer wants to realize, but it isn't always easy - When the web may be a marketing channel which will not be ignored with access to lots of leads, but users the net is additionally becoming more and more "smart" in 32 TIEU LUAN MOI download : skknchat123@gmail.com ignoring advertising, then "smart" and friendly advertising methods are a trend necessary 6.5 Distribute - Toothpaste is a consumer item that is not durable so stitching distribution is extremely important Consumers can easily switch to purchase products from other airlines if there are no more products on the shelves of Colgate So always make sure all distribution channels are always full + Maintain programs that support existing distribution channels + Supermarket channels: Continue renting display shelves in supermarkets not display booths in supermarkets must be re-equipped to catch the eye of people's subconscious more + Traditional channels: Implement programs that support distribution channels such as increase discounts Provide swarm cabinets for annual retail outlets to use maximize space in their store and product eye-catching + Open the market as well as distribution channels: - Small urban areas, remote areas - Organizing promotion and marketing activities with local distributors Expand promotion to direct consumption channels such as industrial parks, schools reduce the intermediate channel - E-commerce, door-to-door delivery can be applied to meet new consumer direction 6.6 Operation plan - Enhancing Colgate brand awareness thereby raising the brand level, to help customers feel better about Colgate toothpaste brand and feel found valuable when using Colgate Improving Colgate brand value also helps improve the brand image, helping customers easily recognize Because creating the ability to desire to use Colgate toothpaste products more - Activities to increase brand awareness: 33 TIEU LUAN MOI download : skknchat123@gmail.com Figure 2: Chart showing the life cycle of Colgate products in VN Since entering the oral care market in Vietnam, Colgate has launched a series of toothbrushes and toothpastes and achieved certain successes so far However, in 2014, Colgate encountered scandals with health safety, causing the Colgate brand to go down a bit along with the appearance of other competing toothpastes and toothbrushes But until now, Colgate still maintains its position in the oral care market with a high market share and is correlated with Closeup, PS (of Unilever) In 2021, Colgate ranked 4th in the list of toothpastes and products trusted by people Figure 3: Rate of love ang use of Colgate in VN 17 TIEU LUAN MOI download : skknchat123@gmail.com 5.2 Price Colgate Palmolive has the pricing strategy: - Under their marketing mix approach, Colgate Palmolive has a competitive price policy Compare to its competitors, Colgate products are priced in the same range, if not somewhat higher Because it serves for a certain market, Colgate charges a premium for its specialist goods Colgate Palmolive caters to people from all walks of life, offering goods in variety of SKUs to appeal to a wider audience The weight of the packs varies from 50 to 500 grams - Colgate often packages its toothpastes with toothbrushes and other by-product in order to make the deals appear more attractive to customers, beside that Colgate also sets a bundle pricing for combo of product, that is a more reasonable price for customer to select instead of choosing buy separate products For instance: Colgate Maxfresh Mint toothpaste (230G) bonus Colgate toothbrush price 31.000-43.000 VND (https://www.sosanhgia.com) Combo tubes Colgate Maxfresh Mint toothpaste (230G) bonus toothbrushes price 149.000 VND-159.000 VND (https://www.sosanhgia.com) - Colgate Palmolive now has main categorises of toothpaste with the price levels TIEU LUAN MOI download : skknchat123@gmail.com outstanding Colgate toothpastes were statistic in june, 2021 in VietNam (Table 5.2.1) Colgate Toothpaste Products List Colgate Total Toothpaste (181G) Colgate Total Activated Charcoal (190G) Colgate Maxfresh Green Tea (200G) Colgate Optic White Plus| Volcanic Toothpaste (100G) Colgate Kids Cavity Protection Toothpaste (80G) Table 1: Colgate toothpaste price list updated in June 2021 18 TIEU LUAN MOI download : skknchat123@gmail.com Any product’s pricing reflects its quality to some extent Despite the fact that Colgate toothpaste has the highest quality in the toothpaste category globally, the toothpaste’s price is set only after a thorough examination of the pricing of other leading toothpaste that are currently on the market or will be launched shortly This pricing model helps to market the toothpaste as a traditional product -In comparison to competitors such as Unilever, a huge company that produce many types consumer goods, particularly with two brands P/S and Closeup, Colgate Palmolive determine competitive prices in different segments of market Similar to competiors like P/S, Colgate has prices covering market However, in general, the prices of Colgate still higher than that of P/S in VietNamese market Low price segment Brands Colgate 14.000-27.000 VND Example:Colgate Vitamin C toothpaste (170g);Colgate Maxfresh toothpaste (160g) P/S 12.000-25.000 VND Example: P/S Cavity toothpaste (180g); P.S Protection Charcoal 123 toothpaste (230g) Table 2: The price comparision between Colgate and P/S TIEU LUAN MOI download : skknchat123@gmail.com 19 - Beside factors like competitors, customers and markets, manufacture cost also plays an essential role that determine prices of Colgate Palmolive One of the main targets of Colgate Palmolive is to maximize profit Therefore, Colgate assesses a high price when publicing a new product such as Colgate Optic White toothpaste They estimate TIEUdemandsLUANandMOIexpensesdownloadaccompanyby: skknchat123@gmaileperateprices,thentheychoose.comaprice that gets a maximum profit gets a maximum profit to Being a brand leading in product’s quality of market, Colgate Palmolive has assess a high price for Colgate Optic White as a consequence, the production cost as well as customer care service also increase The marketing target of Colgate Optic white affects to the price of product considerably - In order to build customer loyalty and customer satisfaction, Colgate Palmolive always have discount policies appealing customer at direct stores or in commercial online channel such as Shopee, Tiki, Lazada The discount codes was supplied by the official store or Colgate Palmolive on Shopee: https://shopee.vn/colgate.palmolive_vietnam On Tiki, the enterprise also organises fascinating discount programs: https://tiki.vn/cua-hang/colgate-palmolive-store - The price of products alter through their life cycle from initial stage till decline stage At different stage, Colgate has seperate price strategy toward a specific product so as to ensure the consumption and stable profit The line graph below indicates the changing in price of one of the types of Colgate toothpaste through its own life cycle Figure 4: The graph shows the changing in price of one of the types of Colgate toothpaste through its own life cycle 20 TIEU LUAN MOI download : skknchat123@gmail.com ... S-T-P strategy Analyze promotion strategies in marketing mix strategy 4- Nguyễn Thị Thanh Nhi: Analyze price strategy in marketing mix strategy Analyze the place strategy in marketing mix strategy. .. improvement options in Colgate' s marketing strategy 2- Trương Thanh Thảo: Analyze the marketing environment of the business Analyze product strategy (production) in marketing mix strategy 3- Cao Thị Bích... packaging are no longer in use 5.1.6 Colgate? ??s product life cycle in Vietnam Figure 2: Chart showing the life cycle of Colgate products in VN Since entering the oral care market in Vietnam, Colgate