Colgate-Palmolive Company Is a Global Leader

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A Colgate-Palmolive Co has a strong customer loyalty as it has become one of the most recognizable products in all 6 continents. Customer in all over the world still preferring to use the products of Colgate Palmolive Co. due to its accessibility, quality and innovation.
Colgate-Palmolive Co is recognized as a leader in sales of oral hygiene products sales. In 1991 the sales of the company exceeded the level of $6 billion and gained profits of $2.76 billion as it brought them 43% of the toothpaste world market. In the world’s largest market, the U.S., the company leads and maintains the number one position in toothbrush sales with 23 % of market share.
Colgate-Palmolive expansion in international market is considered as another strength. The company has introduced 275 new products worldwide and started its production in China and Eastern Europe becoming one of the main companies with outstanding financial stability of 21st century. The international sales reached 64% of total sales and 67% of the total profits for the company.
The Research and Development department has 170 professional employees worldwide. Their innovative approach towards the market has leaded them to a leader position in the international market.

As the innovation in the company constantly grows and the market is always expecting to have something new, it is becoming hard for the company to come up with new ideas. The company definitely needs new ideas and fresh minds. However, the constant innovation on the products of the company is cutting their ability to gain more profit out of the new products as it would bring the product from the “Star” level to a cash cow immediately. Therefore a company needs to low down presenting their innovat...

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...ny industries, oral care technology has advanced tremendously since its inception. The introduction of the nylon bristled toothbrush in 1938 represents one of the latest quantum improvements for the industry, however it was not the last. The introduction of electronic toothbrushes and water picks are threatening to traditional oral care product’s market share.
One of the factors causing buyers’ bargaining power to grow is when the switching costs for buyers are low. Even if Colgate-Palmolive were to state Precision as the most expensive toothbrush on the market, it is still a relatively inexpensive product, compared to many other daily purchases. Therefore, consumers can shift between brands without giving the decision much thought. To withstand this threat, Colgate-Palmolive can position their product as a superior toothbrush that buyers cannot afford to be without.

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