COLGATE PALMOLIVE COMPANY: MARKETING ANTI-CAVITY TOOTHPASTE.] Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Colgate palmolive company Marketing anti-cavity toothpaste Case Study Solution

The Threat of Substitute: The threat of substitution is said to be high when there are multiple choices for the customer and the customer can switch to a new product at a very low cost. There are many factors which can increase the threat of substitution, such as an increase in prices or decrease in quality. If the price of the products is increased, the customers may switch to other products. There can be manyreasons which are responsible for the rise in the price of the product.

The first reason is the economic environment, in the period of recession the inflation is high, and prices of all the goods increase which might reduce the threat of substitution because the price of all the goodsincrease. If there is political instability in the country, it may increase the rates which can increase the threat of substitution.

In the case of Colgate, these factors appear to be high because there are somesubstitutes which are available for the general public. Two kinds of substitutes such as brand substitute and product substitute are available to the customers. Other brands mainly Procter and Gamble (P&G), increase the threat of brand substitution, and products which are responsible for mitigating dental health issues such as mouthwash, represent a significant threat ofsubstituting products of Colgate-Palmolive. However, the effective strategy of Colgate-Palmolive reduces this threat to a minimum level. Colgate reduces the prices when they perceive the increase in this threat.

The degree of Rivalry: The same prices of products of different brands represent the extent of rivalry. Usually, the prices play asignificant role in capturing the market share. It is a general principle that a decrease in price will result in the increase in the market share. Colgate and the main competitor of Colgate-Palmolive i.e. Procter and Gamble are in a constant battle to capture the market share from one another and i.e. why they charge almost similar prices. However, Colgate typically does not enter into the price competition and consider the price competition as ineffective to position of the brand. The managers of Colgate-Palmolive always want to build a better relation with the main competitors through good and effective communication; they design strategies with mutual consent to stay in the top positions.

Also, another factor which reduces the degree of rivalry is the sophisticated infrastructure of Colgate-Palmolive, the IT system of Colgate-Palmolive is also considered as one of the best systems due to its high level of integration.

SWOT Analysis of Colgate-Palmolive Company:

Strengths:

High Brand Recognition:

It can be said that the brand of Colgate-Palmolive Company is highly regarded in the toothpaste manufacturing industry. It positions itself in a manner which encourages its customers to buy the products of Colgate.

COLGATE PALMOLIVE COMPANY MARKETING ANTI-CAVITY TOOTHPASTE Harvard Case Solution & Analysis

Availability of Financial Resources:

Colgate-Palmolive is the largest company in the industry. Due to its size, it can be said that Colgate has asignificant amount of funds and reserves available for the expansion of its operations. Furthermore, due to its excellent brand recognition, it can quickly obtain new finance in the form of debt or equity. Investors want to invest in the businesses which are established, and where the risk is lowest for them, for those investors,Colgate-Palmolive Company might be the best alternative................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.