(TIỂU LUẬN) ENDING STUDY REPORT ANALYSIS OF MARKETING STRATEGY OF COLGATE PALMOLIVE ENTERPRISES IN VIETNAM MARKET

2 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".. Colgat

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

Nguyễ n Th Thanh Nhi - 2021008506 ị

Cao Thị Bích Ngọc - 2021008493

Trương Thanh Thảo - 2021008552

Võ Minh Thức - 2021008561

Class: CLC_20DMA06 Class code: 2021702032611

Ho Chi Minh City, 2021

NHẬN XÉT CỦA GIẢNG VIÊN HƯỚNG DẪN

Họ và tên sinh viên:Võ Minh Thức MSSV: 2021008561

JOB DESCRIPTION & THE PERCENTAGE OF CONTRIBUTIONS:

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

Seriously and well engaged

Percentage of contributions: 25%

Assessment:

enthusiastically support team members, contribute comments to

complete the report, actively support the remaining members, work resibly

Percentage of contributions: 25%

Assessment:

Enthusiastically support team members, contribute comments to complete the report, complete the assigned tasks

on time Work resibly

Percentage of contributions:25%

Contents

1 Introduction 1

2 Company profile 2

3 Marketing environment in Vietnam 3

3.1 The Microenvironment 3

3.1.1 The Company 3

3.1.2 Supplier: 3

3.1.3 Marketing Intermediaries 4

3.1.4 Customer 5

3.1.5 Competitor: 5

3.1.6 Publics: 6

3.2 Macroenvironment 6

3.2.1 Demographic: 6

3.2.2 Economic: 7

3.2.3 Technology: N/A 7

3.2.4 Natural: 7

3.2.5 Political 8

3.2.6 Cultural: 8

3.3 SWOT Analysis: 9

4 Colgate Pal molive’s S – T - P Strategy in Vietnam 10

4.1 Segmentation 10

4.1.1 Geographic segmentation 11

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

5 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

6 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

6.4 Brand Marketing 31

6.5 Distribute 33

6.6 Operation plan 33

7 References 34

PHOTOS LIST

Figure 3 1: The graph shows the percentage of suppliers for Colgate in each

sector 4

Figure 3 2: The graph shows Colgate’s market share by number of retailers 4 Figure 3 3: Combination program between Vinmart and Colagte 4

Figure 4 1: Revenue of Colgate Palmolive Company – 13

Figure 5 1: Logo of Colgate 16

Figure 5 2: Chart showing the life cycle of Colgate products in VN 17

Figure 5 3: Rate of love ang use of Colgate in VN 17

Figure 5 4: The graph shows the changing in price of one of the types of Colgate toothpaste through its own life cycle 20

Figure 5 5: Children participate in Colgate festival (Source: Facebook) 29

TABLES Table 3 1: SWOT analysis 9

Table 5 1: Colgate toothpaste price list updated in June 2021 18

Table 5 2: The price comparision between Colgate and P/S 19

Table 5 3: Prize structure 27

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 do 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

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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"

2 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

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3 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

Figure 3 2: The graph shows Colgate’s market share by number of retailers

In April 2019, Colgate and Coopmart collaborated in making minigame for

general clients when buying Colgate products In March 2020, Colgate and Vinmart

collaborated in giving vouchers to their clients to buy Colgate products

Figure 3 3: Combination program between Vinmart and Colagte

Furthermore, for several years, Vietnam has had more resellers than supermarkets, a phenomenon known as the "grocery store." Because Vietnamese people prefer to travel to these businesses to buy small items like toothpaste, toothbrushes, and soap instead of going to the supermarket, this sort of client has contributed to an increase in the amount of Colgate products consumed

3.1.5 Competitor:

Colgate's biggest competitor in Vietnam is Unilever, the world's largest FMCG group Colgate's biggest competitor in Vietnam is Unilever, the world's largest FMCG group Unilever, in particular, invests heavily to deliver its products to rural and distant areas, which is expected to be Vietnam's most lucrative market in the future years Colgate has to fight with certain indigenous firms, such as Dai Viet Huong and Aloe, in addition to overseas competitors Colgate, on the other hand, confronts competition not just from Unilever but also from a wide range of worldwide brands and specialized care products in metropolitan regions, where individuals are prepared to spend more on dental problems (Sensodyne)

Foreign toothpaste makers imported by Vietnamese firms are smaller rivals The market penetration strategy is the primary approach employed by these businesses Their primary objective is to grow the market rather than to maximize profits To do this, most of these businesses begin by focusing on market niches where large rivals

3.2 Macroenvironment

3.2.1 Demographic:

Until December 31, 2020, the population of Vietnam is estimated at 97,757,118 people, an increase of 876,475 people compared to the population of 96,903,947 people the previous year In 2020, the natural population growth rate is positive because the number of births exceeds the number of deaths by 945,967 people Due

to migration, the population decreased by -69,492 people The sex ratio in the total population of 0.997 (997 men per 1,000 women) is lower than the global sex ratio The global sex ratio in the world in 2020 is about 1,017 males per 1,000 females Population data by age (estimated):

- 23,942,527 adolescents under 15 years old (12,536,210 boys / 11,406,317 girls)

- 65,823,656 people aged 15 to 64 years (32,850,534 boys / 32,974,072 female)

- 5,262,699 people over 64 years old (2,016,513 men / 3,245,236 women) Life expectancy:

- The average life expectancy of men is 71.4 years

- The average life expectancy of women is 79.6 years

Literacy: 94.52% of the adult population (aged 15 years and over) in Vietnam can read and write

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3.2.2 Economic:

Gross domestic product (GDP) in the fourth quarter of 2020 increased lowest among 4 quarter of the years in the period 2011-2020 The Covid-19 epidemic has been strictly controlled, the economy has gradually returned to normal activities, and the Vietnam-EU Free Trade Agreement that took effect from August 1, 2020 has created impetus for the economy, GDP in the fourth quarter of 2020 prospered compared to the third quarter of 2020, The Covid-19 outbreak has been effectively contained, the economy has gradually resumed regular operations, and the Vietnam-

EU Free Trade Agreement, which went into force on August 1, 2020, has provided a boost GDP increased in the fourth quarter of 2020 compared to the third quarter of

2020, which was a positive sign for the economy

In 2020, according to the Kantar latest report, Vietnam's FMCG industry has a total of about 9,988 (nearly 10,000) new products introduced to consumers, which means that the market receives nearly 30 new products every day on average A reason for this is due to the epidemic with its impacts on consumers' lives, behaviors and needs In previous years, businesses were more inclined to improve existing product lines, because launching a completely new brand required more time, investment and effort, from ideation to concept planning, implementing support activities to help products stay on the market But in 2020, when consumer demand changes markedly, businesses will launch more new products

3.2.3 Technology: N/A

3.2.4 Natural:

However, with the outbreak of COVID -19, the positive aspects of the pandemic

as the strongest reduction of the greenhouse effect ever The reduction of greenhouse gas pollution is due to the social distancing measures that countries have been applying In two quaratine time in Vietnam, the "law" of social isolation has passed for 2 weeks, the largest cities in the country, Hanoi and Ho Chi Minh City, also escape air pollution The AQI index in HCMC is often in the yellow - moderate level On the citywide air quality map, yellow covers the measurement points, alternating with

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many areas showing blue - good air quality The average AQI index on the last day

of March in Hanoi was 47 - good for human health About a month earlier, the concentration of PM2.5 fine dust measured in Hanoi skyrocketed to 104.3 µg/m3, 10 times higher than the WHO recommendation of 10.0 µg/m3 and 5 times higher than the standard level permission of the Government of Vietnam However, at the time when people minimized going out of the house, this number decreased by nearly 10 times, back to 11.5 µg/m3, close to the allowed standards of WHO

3.2.5 Political

In order to continue to support businesses, the Ministry of Finance is continuing

to closely monitor the actual situation and deploy the next support solutions In the immediate future, continuing to reduce the environmental protection tax on jet fuel is estimated at about 900 billion VND; review and reduce the collection of a number of fees and charges estimated at about 1,000 billion VND; submit to the Government for guidance on allowing them to be included in deductible expenses of enterprises, organizing expenditures to support and finance activities for the prevention and control of the Covid-19 epidemic, estimated at about 170 billion VND; submit to the Government for promulgation a decree to continue extending the tax payment deadline, the land rent in 2021 is estimated at 115,000 billion VND

3.2.6 Cultural:

For several year, Vietnamese people have had a great care for oral care There is also an idiom about it “Cái răng cái tóc là gốc con người” And with the higher living stadard nowadays, people are willing to spend more on health care, especially oral care With products like toothpaste, toothbrush, soap, … people tend to go to grocery store or Bach Hoa Xanh to buy instead of buying these at supermarket

The cultural environment of Vietnam is extremely rich and diverse, but now there are also many potential problems It is a multi-faceted, multidimensional and dynamic system of relations and socio-cultural phenomenon It welcomes every new idea and stimulates all possibilities of discovery and invention However, it also offers enough

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challenges and temptations to make any individual, family or group highly vigilant

to avoid getting lost or making mistakes

3.3 SWOT Analysis:

High market share: Colgate has successfully

maintained its market share and gained loyalty

customers in Vietnam thanks to its deep

penetration

Effective marketing methods include dynamic

television and print advertising, ecommerce, a

sale campaign, Colgate's Bright Smiles, Bright

Futures program, and Oral Health

Catch up with Vietnamese trends

Innovative products: Colgate's strong R&D

skills and collaborations enable the company to

consistently develop products to fulfill client

requests

With the development of E- commerce and international trade, Vietnamese people easily access the oral care international market They would buy diverse oral care products from many countries

The company's reliance on a single segment is substantial

Fake items are sold under the Colgate brand name

The market saturated, with a large number is

of local and national companies competing for market share in the personal and oral care sector When all companies are eroding each other’s market share, this leads to there is no space for expansion The toothpaste category under the Coalgate brand is so popular that the term has become the main product and is now used in various toothpaste brands This made other products from Colgate hard to be recognized

High cost for manufacturing leads to lower profits Moreover, this makes products of Colgate more expensive than those of other brands

Increasing awareness of the importance of oral

hygiene: due to today's beauty standards, many

Colgate competes against a huge number of multinational and local businesses

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individuals desire their bodies to be ideal in

every way, including having bright, immaculate,

and healthy teeth Therefore, people spend more

in oral care products

- Huge population: Vietnam is now ranked 14th

in the Worldometers population ranking

Customers have more requirements and

demands as a result of more people, which gives

the organization additional opportunity to grow

- Rural areas: The Vietnam urbanization

initiative has had some success, and more rural

people are now purchasing things based on

quality rather than price As a result, Colgate

will have greater access to those places and will

be able to sell its products more easily

More and more people are used to going to some

resellers like Vinmart, Bach Hoa Xanh to buy

goods Therefore, Colgate can take advantage of

this point to increase the number of products

distributing to these reseller

By employing modern technologies, Colgate

can focus on innovation and new product

releases

Colgate's major competition is Unilever and Sensodyne Unilever is also the market leader

in mouth hygiene in Vietnam

With the development of E- commerce and international trade, Vietnamese people easily access the oral care international market They would buy diverse oral care products from many countries

Table 3 1: SWOT analysis

4 COLGATE PALMOLIVE’S S – T - P STRATEGY IN VIETNAM

4.1 Segmentation

Colgate-Palmolive has produced a number of toothpastes to meet the demands of customers with different oral health problems and objectives They continue to introduce new and enhanced items to the market in the aim of satisfying the needs of

a diverse variety of customers There are four types of customers in their market

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4.1.1 Geographic segmentation

Geographic segmentation is carried out according to many factors Colgate now has a presence in more than 200 countries throughout the world In each country, they

do not market the same products For example, there are about fifteen distinct types

of toothpaste in Vietnam There are currently sixteen different types of toothpaste in America, whereas there are twenty-two different varieties available in the United Kingdom Colgate-Palmolive is dedicated to its worldwide brand and conducts considerable research to promote the bring products to the appropriate markets

4.1.2 Demographic segmentation

Age, gender, and social status are among demographic considerations to consider Cogate has a large selection of items, and they make every effort to divide their market into adult and child segments Adults have a vast selection of products

to choose from, which are based on their preferences In fact, they produce whitening toothpaste, it means toothpaste for people who has a sensitive teeth and people who have gum sensitivity

In terms of children, they target four market age groups: 0-2, 2-5, 5-8, and 8-12 years old Because they are new to oral health care, they market fluoride-free toothpaste to newborns and toddlers in the 0-2 years age bracket For those aged 8 to

12, they sell transitional toothpaste, which helps individuals adjust to the shift from childhood to adulthood while also providing excellent cavity protection Aside from that, they sell items for both young girls and adults

4.1.3 Psychographic segmentation

This form of segmentation is used by Colgate to segment their market based on their customer's lifestyle, values, or personality As a result, COLGATE sells its product to a variety of consumers depending on their dental health care needs They sell whitening toothpaste and toothbrushes to people who seek whiter teeth Customers with sensitive teeth can purchase Sensitive Pro-Relief toothpaste

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4.1.4 Behavioral segmentation

Another qay to segment the market is based on the behavior of consumers when they buy a certain product Colgate appears to categorize its consumers according to their anticipated objectives They should use a specific toothpaste formula if they want whiter teeth If they suffer tooth sensitivity, they should use a sensitivity-reducing toothpaste Price isn't a concern because the majority of their merchandises are in the same general price They may use usage as a marketing tool for their products

4.2 Target markets

Colgate's target market is the whole toothpaste market Because it is one of the earliest forms of toothpaste, Colgate Dental Cream has been advertised as a synonym for toothpaste Colgate Total 12 helps to prevent teeth from germs and bacteria in 12 hours As a result, the purpose of Colgate toothpaste is to advise people should brush their teeth twice a day With its variety of flavors, Colgate Max Fresh appears to be aimed towards teenagers Colgate Kids toothpaste is clearly aimed at children, as the name implies The toothpaste's ads and packaging also suggest that it is intended for younger children Colgate Advanced Whitening toothpaste is designed to help patients with plague because it claims to whiten teeth in just fourteen days Colgate Active Salt toothpaste is aimed at customers who believe that salt is helpful for their teeth

4.3 Positioning

To bring the Colgate brand into awareness and make it an indispensable commodity in daily life, Colgate has tried to create a strong brand in the minds of consumers based on the following factors:

 As a big brand: Colgate products are present in 223 countries around the world Colgate-Pamolive's revenue increased 4.96% in fiscal year 2020 compared to fiscal year 2019 to $16.47 billion

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Figure 4 1: Revenue of Colgate Palmolive Company –

 High quality: The product has been clinically tested, has protection for up to 12 hours, helps to remove maximum dental plaque, reduces gingivitis, improves breath, effectively avoids bad breath

 Make a difference:

- Product features with a unique formula including the main active ingredients triclosan, copolymers, sodiumflouride for long term and comprehensive protection.-

- Win the hearts of consumers: through programs with profound humanity

Colgate Dental Cream claims itself as a toothpaste which can provide calcium and minerals to help to prevent decay, strengthen teeth, kill germs, and improve breath Colgate Dental Cream has positioned as a "always 100 percent vegetarian" toothpaste in response to competition from indigenous "vegetarian" toothpastes

"Trusted by generations to make teeth stronger," the tagline of its commercials, clearly tries to market the Dental Cream as a tried-and-true toothpaste, thereby building an emotional tie to the toothpaste Colgate Total 12 has been projected the

"most advanced toothpaste" because it creates a protective shield around the teeth that gives 12 hour germ prevention even after eating and drinking It also strives to establish a position for itself as more trustworthy in terms of its assertions telling customers that its formula is trademarked and that the toothpaste is the most dentists recommend "Freshness" is how Colgate Max Fresh positions itself This is emphasized by the tagline "A new dimension of freshness." Colgate Kids Toothpaste

to differentiate itself from toothpaste here) Colgate Fresh Energy Gel's emotional positioning is implicit in the photo of the couple on the toothpaste package and in the advertising It's clear that it's trying to connect with the country's young and upcoming couples Colgate Advanced Whitening toothpaste has a distinct positioning because

it focuses on certain qualities such as restoring natural whiteness and preventing stains from forming Colgate Active Salt toothpaste competes with other toothpastes that promise to treat gum disease and promote gum and tooth health

5 COLGATE PALMOLIVE’S MARKETING – MIX STRAGETY IN

"Bright Smiles, Bright Futures" oral health education effort and our global hand washing campaign

5.1.4 Branding:

Different flavors, packaging, and colors have been introduced in order to meet the changing needs and perceptions of consumers Colgate has established a powerful

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branding strategy that has substantially aided the brand in gaining significant market share in India's oral care sector Colgate is still reorganizing its branding strategy in order to reinforce its brand identity Colgate's branding strategy was effective enough

to establish the firm as a prominent player in Vietnam's oral care sector Colgate emerged as the market leader, with significant market share in all categories of the oral care market, including toothpaste and tooth care

In Vietnam, Colgate is one of two oral care brands that everyone believes in With the brand element:

Colgate continue to work on solutions for the transition to monomaterial flexibles and recyclable dispensing systems, which are industry-wide challenges In addition, they are continuing to phase out opaque PET bottles in favor of shrink sleeves with perforated tear tabs that direct consumers to remove the bottles