The paper "Strategic Marketing for Colgate-Palmolive" is a good example of a case study on marketing. Colgate-Palmolive Company is a personal care product based in the US. Its main competitors are Procter and Gamble, Avon Products and Unilever. The mission of the company to provide products that meet customers’ specifications and expectations within a specified time and place. The key objectives are to establish a market for personal care products that will thrill and interest users. It also evaluates the significance of new markets and retains existing markets. The company also assesses the need for creative and dominant products through innovation and re-engineering.
The company also seeks to solidify certain markets through segmentation and profiling to enable proper market analysis (Boyd & Walker, 1990). To enhance an all-time product that delights and satisfies customers of all ages, gender, and geographical dispositions. The company has consistently studied the external and internal environments to unravel its ability to diversify and enter a foreign market. The company establishes internal strategies such as employees, systems or production processes, organizational structure and culture, materials and financial prowess as key.
The external strategies involve the company’ s relationship with customers, competitors, suppliers, social environment, political cooperation, legal associations and environmental concerns (Boyd & Walker, 1990). These strategies are significant for the company to know how to maximize its internal resources while learning how to handle the turbulent external forces. The mission helps the company to chart the best appropriate organizational direction while objectives guide the company in achieving its goals. Porters’ five forces and strategic fit analysis Colgate-Palmolive fits into the personal care product industry which implies a mass market.
The famous toothpaste company faces high rivalry among existing firms but the low threat of new entrants. The threat of substitute products is moderate (Walker, & Ruekert, 1987). The bargaining power of buyers is also moderate. However, the bargaining power of suppliers is quite low. The growth in this industry steadily increases annually with great price wars. The company’ s survival is linked to ridding any unnecessary expenses. The personal care product company faces a high amount of concentration since people are willing to pay for some specific goods with a quality specialty.
The products have a relatively low switching cost since they are of similar quality and price. The ratio of fixed to variable costs over the past five years averages 0.75 which is lower than the industry average of 0.79. The company is not on excess capacity but acceptable capacity. Exit barriers are not prevalent since the equipment used is highly specialized hence difficult to sell or remove. The threat of new entrants is experienced from a higher degree of concentration making it difficult for new entrants (Miles & Snow, 1978).