Independent University, Bangladesh

Term Paper

Principles of Marketing: MKT201

Section: 07

Submitted to:
Mr. Abul Khair Jyote
Senior Lecturer
Department of Marketing
School of Business and Entrepreneurship

Submitted by:
Name ID
Intesar Maruf Apurbo 2022661

Date of Submission- 6th May 2021.

 Acknowledgement

With great pleasure and honor, I want to express my heartiest gratitude and obligation to m
course instructor Mr. Abul Khair Jyote, sir. His valuable guidance and advice have inspired us
greatly to work on this project. His willingness to help and support me throughout the project has
motivated me to work on the project to the fullest.

I would like to thank the authority of Independent University, Bangladesh, for providing the
tools and facilities to complete the project.

Lastly, I am grateful to those who have helped me directly and indirectly for the preparation of
this project, especially my peers and seniors who helped me along.
Executive Summary
This report aims to have a concise insight and perspective on the Colgate brand, which sells oral
care products in the dental industry. We, the team of Colgate, have developed a revolutionary
oral care chewing gum for the dental industry, and our marketing plan proves that we have a rare
ability to enter the new market.

Colgate has been in the business for around 200 years and is based in New York. It sells oral care
products that are intended to keep our mouths clean and damage-free. There are a few
multinational companies and a few smaller niche firms that sell similar kinds of products in the
market. But innovation like our new product can create a massive impact in the market as it has
significant advantages in usability and efficiency.

Colgate has developed a new oral care product called Colgate Sugarfree Chewing Gum for the
dental industry, which is also a new addition to its product line. This product offers the
customers great benefits with quality and mobility. There are related products in the market, but
no chewing gum is exclusively for the oral care sector exist currently in Bangladesh.

The target market for the new product is also mentioned in the report along, with market
segmentation. Colgate also plans to do marketing campaigns through digital marketing,
billboards, and other campaigns. This new product, Colgate Sugarfree Chewing Gum “, aims to
reach consumers concerned about their oral health, hygiene, and disease issues, as well as those
who want more convenience in their everyday lives. The objective of this report is to launch
Colgate Sugarfree Chewing Gum, which is currently not on the market.
Table of Contents
Executive Summary 3

Introduction 5

Current Market Situation 6

Assessment of 4Ps 6
Product 6
Price 7
Place 7
Promotion 8
Market Description 8
Target market 8
Competitive Review 9

New Product Introduction 11

Prospective Target Market 12
Segmentation 13

Targeting Strategies 13

Market Positioning Strategy 14

Product Positioning Strategy 14
Price Positioning Strategy 14
Place Positioning Strategy 15
Promotion Strategy 16

Conclusion 16

References 16
Introduction

Colgate started their journey with the hand of ACI Limited in our country. ACI Limited is one of
Bangladesh’s largest FMCG companies. ACI Consumer Brands also imports internationally
acclaimed home care goods in addition to its own. Colgate is among them, and it is one of the
most popular brands in our country. Colgate Palmolive is one of the world’s current best in the
manufacture and sale of oral care and general hygiene materials. Colgate is a company that
primarily sells oral care products such as toothbrushes, toothpaste, dental floss, and
mouthwashes.

Colgate has successfully occupied the international market with tons of dental products. In
Bangladesh, they have also got immense popularity with the help of ACI Limited, where they
sell their products all around the country through their distribution channels under the brand
name Colgate.

As Colgate Palmolive’s goals expanded, they sorted to introduce more and healthier choices to
their customers. They are adding new flavors and ingredients to make their products more
effective and consumer-friendly. A survey shows that people prefer better health benefits with
mobility in their products than typical flavoring. And that is why Colgate has come up with
Colgate Sugerfree Chewing Gum as the new addition to their product line.

In the later part of the report, there will be a full-proof formula to introduce the newest edition in
the market, and as always, Colgate will deliver the best products for customers. So before diving
into the marketing plan of Colgate Sugarfree Chewing Gum, let’s have an overview of the
current marketing situation of Colgate.

Current Market Situation

Colgate has always been the ideal choice for a healthier and smarter way of life. They have been
able to feed the customers’ needs since day one and still they are consistent with their diverse
product line. Colgate has a strong market reputation for its product quality and variety, making
them one of the most formidable contenders in the oral care market.

In this section, we will address the current market situation of Colgate using a brief assessment
of the 4Ps, target market, and the competitive review to get a better and broader image of the
company.

Assessment of 4Ps

Product

The 4Ps of
Promotion
Marketing
Price

Place

Product
Colgate is a US-based oral care brand aiming to satisfy the needs of customers since day one.
The name “Colgate” is given after the founder of the company William Colgate. It has a great
brand image worldwide, which makes the product more desirable to its customers. The goal of
Colgate has expanded over time, as they have introduced a variety of products over time. Colgate
is a brand that sells a variety of oral hygiene products. It has introduced exclusive offerings for
the children in addition to the standard versions used by all ages. Their product line also features
Colgate toothbrush and mouthwash, which are two of the most popular products.

Toothpaste Mouthwash Whitening Kit Toothbrush

Price
Price what the buyers want to give up obtaining the product. It is one of the aspects of the four
marketing mix elements- the quickest to change. In setting its price, Colgate takes into account
the type of competitiveness in the target market and the overall expense of the marketing mix.
Colgate has developed a wide range of prices for its various products in the market, which gives
them a considerable advantage to stay ahead of the rest of the challengers.

Place
This aspect of the marketing mix is concerned with availing the right product to the target
market. A product isn’t much good to a consumer if it is not available when and where it is
wanted. Hence, through implementing a wide array of distribution, Colgate makes its product
available to the targeted consumers. They distribute and sell products through many channels.
Colgate’s product distribution channel involves the producer, followed by a short dispatch to a
wholesaler, then to a retailer and finally to the customer.

Promotion
The purpose of promotion is to notify the target market about the commodity through proper
channels, including personal selling, advertising, sales promotion, and public relation.
Promotional activities of Colgate covers- Local Availability in Retail Stores, Online E-
Marketing, Newspaper Advertising, Billboard Exhibition, Promotional Exhibition.

The essential tools for the promotion of Colgate are mentioned below:
● Advertisement
● Billboards
● Publicity
● TVC Advertising
● Personal Selling
● Online E-Marketing
● Public Relation through Corporate Sales

Market Description
The method of identifying the target market is known as market description. A target market is a
community of consumers to which a business wishes to sell its goods or services and focus its
marketing activities. Before determining a target market, it is crucial to identify its strengths,
weaknesses, opportunities, and risks. Appropriate analysis and identification of the target market
are critical for market growth and consumer loyalty since the wrong target markets will result in
massive losses.

Target market
Over time, Colgate has introduced different and specific offerings for its targeted customers.
Colgate has successfully created values for its targeted consumers that made vast numbers of
satisfied, delighted, and loyal customers all over the country. They have studied its market place
very well to gain proper knowledge and introduced few specialized products to reach the targeted
customers.
While Colgate products are marketed to a broad public, the majority of its sales come from the
middle and upper class. Also, its usage and benefit-based branding have resulted in making
Colgate a household name across the oral care sector.

Competitive Review
Colgate exists in a pure competition as there are a number of competitors rivaling to get the top
spot in the oral care industry of Bangladesh. There are many brands who sell dental-products,
some the mentionable one are Pepsodent, Close up, Sensodyne, Dabur Meswak, Medi Plus and
etc.

Market Share
Pepsodent:
Pepsodent is one of the biggest rivals of Colgate in the market, which is owned by Unilever. This
brand is a very old player in their oral care industry in Bangladesh. It has the most considerable
grasp over the market as it is seen as a simple quality. It also has a good brand value in the
market which creates a broad customer base. Pepsodent produces many products like toothpaste,
toothbrush and, mouthwash. It is a prominent oral care brand in Bangladesh, although it is an
American brand. Pepsodent is maintaining a remarkable market share.

Close up:
Close up is a toothpaste company that is a widespread name in the oral care industry of
Bangladesh. It is also a brand owned by the American company Unilever. Close up is also ruling
the toothpaste market of Bangladesh, although they lag in other oral care products. Close up is
specially focused on toothpaste products, which they have proved by their market dominance. It
was the first company to bring gel-based toothpaste in the country. However, gel-based
toothpaste was slower to catch on by the market initially. But it received a huge rate of
acceptance with time. Close up is one of the leading competitors for Colgate due to its
popularity.

Sensodyne:
Sensodyne, a well-known brand of toothpaste and mouthwash, caters to those who have sensitive
teeth. GlaxoSmithKline owns this oral care brand and throws a fair competition to Colgate. This
brand is the No.1 dentist recommended and best-selling for sensitive teeth. Sensodyne has
products like toothpaste, toothbrush in the market for a target customer. The brand’s core asset is
the detection of a previously unnoticed need in the oral care industry. Due to Sensodyne’s
primary focus on sensitivity, they gain a significant boom in the market share.

New Product Introduction

It is a common tendency of humans that, we want to do all of our work easily and quickly. This
nature of our, has led us to significant innovations which have made our lives easier than ever.
But when it comes to dental care, we have been following the same trend of brushing for
decades. We are still following the traditional way of keeping our mouth clean and healthy by
brushing with toothpaste.

Colgate took this problem in their concern and has come up with an easy solution. It has decided
to introduce a new, easy, and more specifically engineered alternative to brushing teeth to clean
mouth for customers. We, the team of Colgate, proudly present you our latest product that will
change your lifestyle, which is the Colgate Sugarfree Chewing Gum

Colgate Sugarfree Chewing gum has zero sugar in it, as the name says and also it contains zinc
acetate, which helps to fight harmful bacteria that cause teeth decay, and bad breath. Although it
is not a complete substitute for our regular brushing with toothpaste, but it is a go-to for everyone
concerned about a healthy oral life. As dentists prescribe us to clean our mouth after every meal,
our new product will help you to freshen your mouth everywhere and anytime.
As our product contains zero sugar, it may seem that it’s pretty pale in taste. But Colgate has
always come up with the best products, and this time we have also launched our new oral care
chewing gum with mint flavor consisting of xylitol in it. Xylitol is a naturally appearing carb that
replaces sugar. Its structural properties are similar to sugar but have some unique abilities that
help prevent plaque and cavity.

Colgate Sugarfree Chewing Gum has a competitive advantage over its competitors by lower
price values and more excellent attributes. For instance, our product has one-of-a-kind
ingredients which makes the product unique and useful. It also offers customers greater value by
better and healthier product quality while associating with specific product use and application.

Prospective Target Market

Colgate has already occupied a significant portion of the market due to its brand value and
product quality. But for the newly launched product, Colgate should focus on a few market
segments for a better consumer reach.

Because of the ease of cleaning mouth, Colgate will target diverse age customers ranging from
kids to adults. Colgate Sugarfree Chewing Gum will primarily target office employees, medical
individuals, travelers, and other busy people because they are always on the go. This product will
help to keep their mouth healthy and save their time. Colgate can also target college or
university-going students as they do not have time to clean their mouths every time after having
anything. Since it comes pocket-size packaging, people can easily carry it and use it anytime in
every place. People from the urban areas will initially be the target market for this new product.
As Colgate always prioritizes health and quality, people who are aware and health-conscious will
be the prospective customers. A brief overview of the market segmentation is shown below,

Segmentation
As mentioned earlier, Colgate Sugarfree Chewing Gum is a close alternative to traditional mouth
cleansing. There are no brands in Bangladesh that produce zinc acetate-containing, sugar-free
and healthy chewing gums; although there are a few sugar-free gums but the majority of them
are higher at price. As a result, Colgate has opted to segment its product based on health
consciousness, availability and affordability among the target market.

Demographic Segmentation:
Age: Adults and Kids
Gender: All
Income: Middle Class to Upper Class

Geographic Segmentation:
Urban Area

Psychographic Segmentation:
Lifestyle: Healthy and Active
Personality Trait: Aware and Health Conscious
Values: Brand Status, Quality

Behavioral Segmentation:
Purchasing Habits: People who buy convenience goods on a daily basis.
Benefit Sought: Health benefits, Time-efficient
Spending Habits: Consumers who spend money on healthy and high-quality products.

Targeting Strategies
Colgate Sugarfree Chewing Gum will follow a Differentiated Marketing Strategy after
segmenting and developing its target group.

Colgate is introducing this new product for those looking for a quick mouth cleansing in any
place, and that is why it has a broad range of consumers as everybody wishes fast service in all
aspects. Colgate Sugarfree Chewing Gum will use a differentiated marketing strategy as it is not
for a niche or mainstream market as customers still choose the traditional way of mouth
cleansing. But with high-quality product and variety, Colgate Sugarfree Chewing Gum has the
potential to establish as a mass-market product. As Colgate is adopting a differentiated or
segmented targeting strategy, they will focus customers with the following characteristics:
● People who value higher quality at a lower price
● Health-conscious
● Customers seeking a quick and easy solution for oral care
● People who value brand status

Market Positioning Strategy

The positioning of a brand’s product is a strategic process that involves selling the product in a
certain way to build and develop an image or presence in the minds of prospective target market
customers. It is essential to sustain the product’s marketing positioning over the life of the
product or brand. Similarly, Colgate Sugarfree Chewing Gum plans to position itself in the
minds of the customers. The market positioning of Colgate Sugarfree Chewing Gum through
marketing mix is discussed below,

Product Positioning Strategy

The key goal is to provide a product with all the ability of instant oral care while also having the
essential characteristics of chewing gum on the market. This can be a go-to commodity for
everyone who cares about oral health. Colgate Sugarfree Chewing Gum will be available in
strips of 6gm, containing 6 pellets.

Price Positioning Strategy

Colgate always provides high-quality products at a decent cost.

This product will be available at a reasonable price which will attract more customers. It is one
of the unique products in the market with few substitutes available, so consumers will be willing
to buy Colgate Sugarfree Chewing Gums in this price segment.

Colgate will offer actual value to its customers. It will also give a 9-10% margin to retailers and
12-14% margin to the wholesalers. The product will be available in 6 pack strips at BDT. 25
Place Positioning Strategy
Colgate has opted for an Indirect distribution channel for its product. Colgate will be
distributed through indirect distribution channels such as retailers, wholesalers, and online stores.
Colgate Sugarfree Chewing Gum will be available in various supermarkets such as Meena
Bazaar, Agora, Swapno, Unimart, Mehedi Mart, and other e-shopping websites such as
Chaldal.com, Evaly.com, Daraz, Pathao, etc. As a result, many customers will be attracted,
leading to an increased sale, brand equity, and an overall positive brand image.

Promotion Strategy
In today’s world, digital marketing is the most crucial aspect of marketing. As a result, Digital
Marketing is our top priority. In the existing market, we will introduce our product in several
steps. Colgate has decided to use Billboard so that our customers would see our offering. We are
going to position our product in the market by using these strategies.
The final stages in the marketing strategy are differentiation and positioning. A firm brand
positioning policy is critical to a company’s long-term growth. The sooner we create, the better
off our company will be. That’s why Colgate has also planned to begin a campaign in prestigious
colleges and universities during fair times. This will allow us to gain media attention as well as a
public trust.

Conclusion

Colgate Sugarfree Chewing Gum is going to be the talk of the town in the modern market. It
performs a variety of functions for a diverse range of customers. Our product will be “THE”
product in everyone’s pocket just like mobile phones and keys because one packet of our product
serves 3 things: Freshens Breath, Fights Cavities and Whitens Teeth. The availability of our
product would also be a game-changer for both our company and the market as a whole.

References
⮚ https://www.scribd.com/document/446597827/Colgate-marketing-assignment
⮚ http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8995/13304070_BBA.pdf?
sequence=1&isAllowed=y
⮚ https://spoonuniversity.com/lifestyle/ohio-universitys-ultimate-campus-food-guide
⮚ https://www.aci-bd.com/our-businesses/international-brands.html
⮚ https://www.dailymail.co.uk/health/article-66419/Chewing-gum-makes-teeth-
healthier.html
⮚ https://www.colgate.com/en-us/products/toothpaste
⮚ https://www.campaignlive.co.uk/article/analysis-gum-dental-care-mix-p-g-colgate-set-
launch-chewing-gums-dental-care-benefits-will-brands-affect-market-tania-mason-
reports/76831