Tuesday, December 10, 2019
Market Attractiveness free essay sample
The product was recently awarded a best new product award for Best toothpaste as well as the Best in Show’. In Auckland ,Colgate main target market like, Warehouse and new world , countdown. Colgate also available in the local market of the Newzealand  Colgate in 2011 ,the company holds a staggering 44. 7% global market share with its flag ship toothpaste lineThere are three competitors of Colgate in newzealandSENSODYNESensodyne is a brand of toothpaste marketed for individuals with sensitive teeth. It is a registered trademark of glaxo smith kline which acquired it in 2001 in the purchase of block drug which developed it. Sensodyne has two main product lines: sensitivity and acid erosion. Sensodyne sensitivity products are marketed to counteract teeth sensitivity caused by exposed dentin . The price of sensodyne pure gel $4 for the 100 gm . The active ingredient is claimed to form a protective barrier in the tooth. Clinical studies have found that potassium nitrate may be effective in treatment of dentine hypersensitivity. Sensodyne acid erosion products, Sensodyne ProNamel, are marketed to protect enamel from acid erision . One of ProNamels active ingredients, fluoride, is widely endorsed to make teeth more resistant to acid attacks and to repair previous acid decay. Both products come in a variety of flavors and with the option of whitening. Pepsodent Pepsodent is a brand of toothpaste with a minty flavor derived from sassafras. The brand is owned by unilever,but in2013the rights to the brand in united states and Canada were bought by church and Dwight. ow pepsodent produce product like pepsodent herbal . The price of pepsodent herbal 150g of $4. 50 . Pepsodent now have the market share 17 % in RS 2200 crore oral care market SmokerSmoker toothpaste well also cleanse and revive your mouth with its extra strong peppermint flavor. Is also ideal for non smokers who want a doubly fresh breath. For whenever you want your breath to be its most intimate best. brush with smokers toothpaste. Smokers produces new product breath freshener which is available at NZ $2. 90 in 100g. B)Market attractiveness competition market†¢Ã‚ Newzealand is the best country for interducing new toothpaste product in the market because there multi natio nal people who demand the different type and taste of the toothpaste    everybody becomes aware about the toothpaste companies of their cheap ways of earning profit by showing big blocks but decreasing the amount of toothpaste and creates competitions. Colgate product can do a good business by introducing a new taste and flavor of toothpaste product like a herbal and gel toothpast e and this can bring a healthy profit as well by covering more and more sale volume. As aresult according to age group of people colgate introduce their different variety of product in market like a herbal product attract to soccer people and gel product attract the rughby and the youngpeople because this product gives the freshnes to these players The different marketing companies makes it easy for the new companies to launch their product in the super market as well as in the city smallest shops as because of their well established links and distribution channelsAuckland is the smallest geography yet most populated being home to around 1. 0 millions peoples this makes Auckland a very attractive market for the investors and companies to launch their new product. In newzealand there are four big supermarkets which provide the different taste of product all these big and small supermarkets attract the customer for purchasing the toothpaste because all these markets are so busy and customer easily approach to these supermarkets . ith the passage of time and growth of product in the market the product start gain the popularity and also increase the market share value in the market which is improved over all market position of the product in market Q #2: Assess and analyze competition market segments for impact on market strategy. ? Our company is a market orientated one and caters to most age groups from children to adults but concentrates on younger customers by making their products alluring and affordable to children. According to the latest report Auckland have the population of 1. 5 millions and peoples from the age group 20 to 85 they love to eat chocolate twice a week. This all report is for both male and female although female’s ratios are bit higher than male peoples. Children from the age of 10 to 20 they love to eat chocolate almost daily. In the four main super market of Auckland it has been analyzed in all markets that all the competitor likes to advertise and place their product in tier bin near the check out and entrance of the stores and also they have weekly promotions plane which give them little discount if they buy like Whitaker display their special promotions in countdown after every week mean to say they brings promotion and special displays in countdown two week in a month this is how they attract peoples and especially children which comes with their families in store to buy the product by different nice and attractive tier bin display although all our competitors have their normal and permanent positions in the shelves in chocolate corner in the countdown super market. QUWSTION 7  LEGAL In a newzealand ,if a company never have any legal rights to sale any product then they can not sale anything. they should have the legal licence for the sale . In newzealand if any company want to sale their toothpaste product i n local market then they have authority to sale their colgate product in market. In newzealand is there is also rule of fair trade act the colgate company follow all rule and regulation keep in the mind fair trading act. 2 SOCIALaccording to customer need and their life style colgate introduce their product in the market . ith the passage of time customer want the different flavour according to society of people colgate make their toothpaste product in newzealand market like a herbal and gel product toothpaste   In this we must be able to offer products and services that aim to complement and benefit people lifestyle and behavior. If organizations do not respond to changes in society they will lose market share and demand for their product or service. Population changes also have a direct impact on organizations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy3 TECHNOLOGYDue to technology, there are lot of c hanging in toothpaste quality, quantity packaging . Technology infrastructure such as the internet and other information exchange systems including telephone. Technology systems incorporating a multitude of software which help them manage their toothpaste business in different areas of new Zealand. Fast information can benefit businesses as they are able to react quickly to changes within their operating environment. These are technology factor which effect on marketing strategy of the Colgate toothpaste4 CULTURAL –There are many cultural effects on market strategy. Different country has different culture so their demand of product is depend on their culture like kiwi people choice of Colgate herbal flavour is the 30 %and gel toothpaste 20% . Culture always increase the demand of product in the market5 ECONOMICS – The economic power of country effect to the market strategy of company if country has poor economic power and there are living low income people so company cannot increase the price of product if company increase the product price then low income people cannot buy the product so our company Colgate choose the best price $ 8 of one Colgate which purchase the low and high income people very easily6 REGULATORY –Regulatory means rule and regulation of market if any business does not use the regulatory then it cannot success. The fair trading act is spending the main role in marketing strategy . The Colgate company always does the work according to this act and it gives the proper information abbot product and service if this company gives the wrong information to their customers the customer can take the step against Colgate company it is also rule of fair trading act7 COMPETITIVE –Todays business environment poses many challenges to high-technology enterprises in every segment of the industry . The competitor always impact on the market strategy of company . Company has to promote their product compare to their competitor like Colgate product is cheap then sensodyne or smoker . Moreover Colgate give the special offer like it gives the free toothbrush with one Colgate pack  8 DEMOGRAPHIC –There are many demographic effect on marketing strategy of company. Demographic means select the target audience according their different sex ,age etcetera. Different age has different demand of product in the market as children like sweet Colgate or youngster or old people has more demand of mint flavor of Colgate so Colgate company has to make the product keep in the mind different choice of customers9 POLITICAL –Colgate is the multinational brand and it is main distribution centre in wellington which produce the Colgate toothpaste product in whole new Zealand Political Government change policies could affect import of goods. Like custom charges on the International made goods. If government make charges increase in the custom rates, it will affect on those company who sell the international products in New Zealand10 NATURAL –The climate or environment effect on the market strategy of company . It also effect on the demand of product . in newzealand people give the more priority herbal toothpaste because it is suitable for the people according their involvement . Colgate lways produce their product according their climate of the country11 ETHNICS –Ethnics means people of different culture , region, casts and nationality who are living in same society . There are heaps of impact on market strategy of company . Different people have different choice according their culture, religion and nationality for example Indian people has different taste compare to kiwi people so they always different flavor of the colgate for example kiwi people like the herbal toothpaste and indian people like orange flavor of toothpaste   Q 3 Three marketing activities of main competitorAns PromotionalNowadays, every company make promotional policy for increasing sales of product in market. The competitors of Colgate also give priority to advertise, for increase market share and market growth of product in market. In 2011,Smokers and pepsodent make unique promotional policy ,spend 1/3 part of income on promotional. As a result. The sales of both company increase 5-7% in end of particular year. Moreover, the value market share of company increase, it is helpful to create new customer, company maintain their position in market. Both competitors of expand their business in different areas like develop business in rural areas and backward areas. As a result, the company helpful to market growth in different areas. Cost ControlThe competitors of Colgate also controlled cost of product. As a result, the company helpful for earning profit which leads to increase market share and market growth in market. In2011,somkers make specialist team for reducing cost of product. The company purchase manufacturing material from different company make long term planning with manufacturing company. After that, manufacturing company give 10% discount on manufacturing material. DisplayIn market ,pepsodent and smokers adopt display method for attracting more customer and create image in customer mind. Both of company show all information in front of office, where customer easily understand product quality and quantity. in display ,the company also give different packing to their product means in packing show more quantity and also mention about product ingredient. Example in 50m of pepsodent which show all ingredient of product and company give unique packing . As a result, the product of company successful in market increase sale up to 15% in 2011. it is helpful for company to expand their business in different areas. Question 4Complete sales forecast and evaluate both A- Qualitatively B- Quantitatively QualitativelyColgate is the main aim to provide the high quality toothpaste to their customers in New Zealand. In simple world it is the quality of a product or service refers to the perception of the degree to which the product or service meets the customers expectations. In 2001, a record 39 present of total sales came from new products introduced in the past five years. The sale forecast of Colgate in newzealand$28 million from 2012 to 2013 and company want to earn 14% to 16 % profitQuantitatively:Colgate quantitavily means the quantity of product in particular product. It show the how many quantity we give the respected customer, It is all about the quantity not about the quality. It matters a lot to increase the product sales of the Colgate toothpaste in the marketBy the early 1990’s there were many different companies that focused on oral care products, with the leader being Colgate-Palmolive. By 1991, Colgate Palmolive held the number one position in the world for the sale of oral care products, accounting for 19% of the total toothbrush market. The company’s sales and profits were increasing each year, and by 1991 sales totalled â€Å"1. 03 billion dollars, while profits totalled 9. 8 million dollars,. At this point in time Colgate had introduced two different types of toothbrushes to the market, the Colgate Classic and the Colgate Plus. For producing toothpaste product Colgate use the latest technology and the ingredients to increase the quality of the product like Herbal and the Gel toothpaste is the best example of the high quality of product in the market in 2010 -11, in this way the sale of the company increase up to 10% in 2010 -11. The sale of colgate in 2008-09 was 14 million and company earn the $5 million profit in this year . here was the rapidly change the sale of the colgate in 2009-10,it was the $18million company earn almost 8 million profit in this year               Question 5Assess selected marketing strategies for their impact upon profit. Expand market :Colgate makes the different market strategy for increasing their profit in market. Expand market means expand the business in the all rural and urban areas in New Zealand . Colgate expand their business in south and the north region which means the company earn the extra profit from their market strategies about their business. Moving into new market areas can transform a business and, handled correctly, can significantly increase your profitability. However, bear in mind that developing new products and services and selling in new markets can be risky and mistakes can prove very expensive. in 2008-09 the colgate the worth value in newzealand $14million after that colgate expand their business 2009-10 its worth value increase $18million and this period of time colgate company earn 7. 5%profit . in 2010-11 the company worth value again raise $20 million . Increase share: When the business of the Colgate expand in all area of nNew Zealand it create the new customer and the market share of the company in market . Increase in share means to earn more profit. It all about demand and supply. In 2010 the market share value of the Colgate company $10 million after that when the Colgate increase their business as a result the share value of the Colgate increase $13 million in 2011Increase margins: Increase margin means increase the profit of the product in market and Colgate in 2010-11 the company earn the more profit 3%as a compare to 2009-10. When the margin of the company increases it also effect the market share of the . So, increase in margins will directly affect the market share but you will earn money. For example the Colgate increased the price of gel product toothpaste 200g from $2 to $3 as a result increasing the price of the Colgate the market share value of the company decline to 7 % from 12% but still company is earning profit. Reduce cost:Reduce cost is also part of the market strategy of company for increasing the profit in the market. When the company reduces the price of product in the market it is the also positive change for the company for earning the profit and increase the market share value. As a result the company save the manufacturing cost and the product cost saving. Example Colgate also decreased the price of herbal product from 200g from $3. 50 to $2 only as result the company increase the market share value and increase the sale of product in market in 2011 only herbal product give the 10% profit of the company by the reducing the price of the product                                                       Task 2 ObjectivesTarget Market- The objective for the target market is 12 to 18 year olds for the next 2 years Demand- 1. million People using 12 per year =18 million tubes of toothpaste per yearTherefore our objective is to sell 1,200,000 sweet and 1,600,000 mint flavours over next 24 months           ProductThe objective is to launch new product in next two years           Pricing-objective is to sell new products at between $3. 50-4. 00 over next yearThe main objective of the Colgate is fix the price of their toothpaste product . For this purpose Colgate sell the herbal product 200g for $3. 50and gel toothpaste in 200g for $4  Distribution-objective is to use their existing strong distribution over next year           Promotionobjective is to do sales promotions to launch and get awareness and trials by customers of the new product over next 12 months Strategies:A) According to Colgate strategy we    introduce at least two new products in the market with two different flavors like gel flavor and sweet flavor within one year. B) In second strategy of the colgate, they sponser the sports events in New Zealand like cricket matches, Rugby matches etc motreover ,we give the advertisement of colgate product on radio, television,magazineor internet etc in next 2 years. C)In the weekend we advertise about the new product flavor on the night club we distribute the pamphlets to people and give the information about the product quality to people in next two year . D)In fourth strategy the company provide the discount on their gel and the herbal product and set the minimum price of the gel product 200g in $4 and herbal product $3. 50 for 200g in 2 years. : Our best strategy is advertisement of the new product flavour on the sports event in New Zealand because we easily provide the product information about quality to people. Question no-2 Evaluate the strategic options from 2. 1 above. Are they compatible with marketing objectives? A) Ability to maximize key opportunities and marketing strengths  according to Colgate strategies ,we introduce the atleast new flavour of the coilgate in the market for attracting the target market in A strategy. For promoting this product we give the advertisement on the sports event as well as distribute the pamphlets on the weekend and B and C strategies. Moreover, company provide the discount on their product on the different occasion. The market objective of the colgate to sell the sweet flavor 1,200,000 and gel flavour 1,600,000 and earn the 10 % profit in next 2 years. B) Critical success factors in the intended market the critical success factor of the colgate , the product of colgate easily available in the market where our target customer between the age group 8-18 buy the sweet flavor and 18-50 gel flavor . Moreover we promote the our product in the weekend because our target customer between 18-30 enjoying the at the club and the night party          C) Marketing capabilities and resourcesThe market share of the Colgate 40% in the newzealand toothpaste industry as result Colgate company is the market capability to introduce the at least 2 flavour in the market with the new technology A strategy. In B and C strategy colgate company use their resources and advertisement of the product on the sports event and give the pamphlets to the people. In this way company earn the 10% profit in next 2 years D)Market characteristics Market characteristics of the colgate company, the market share of the colgate 40% in toothpaste of New Zealand but the competitor of the colgate toothpaste like smoker, pepsodent market share 10 and 15 % respectively. In a strategy of colgate they introduce the at least a 2 flavor of colgate product within 12 months but the competitor of the colgate launch only the one product within 2 year in the market,in B and C strategies colgate advertise their product on the sports event and distribute the pamphlets on the night club for attracting the target customer they provide the discount on the product in D in next 2 years. E)Competitive Factors In newzealand the competitor of the collate smoker and the pepsodent only the 10 and 15% market share respectively but the colgate market share 40%. n A strategy colgate introduce the two product within 12 months but the competitor launch the one product wit hin 2 years as result the competitor factor give the positive response to increase the market share in the market in B and C strategy colgate company advertise their product in the sports event and distribute the pamphlets in the night club but the competitor of the Colgate don’t follow these strategies as result Colgate company easily achieve their marketing objective      Question-3Evaluate distinctive competencies and competitive advantages of strategic options. Are they compatible with marketing objectives? Colgate is the market share 40 % toothpaste because Colgate provide their service between 8-18 and 18-50 age group. In market Colgate image is better than their competitor because they introduce the 2 flavour within 12 months according to target customers . Moreover Colgate use the different ingredients for making their product which give the strength and freshness to teeth’s The distribution of the Colgate is the well manage in newzealand because Colgate distribution network distribute the Colgate product which is unique idea for catering the target customer in New zealand. Colgate through the advertisement colgate advertise their product in the market and well manage distribution network to make the easily available product in the market these are the market strategies are main competencies of Colgate which provide their service to target customer in the market of New Zealand                                             Task-3 Question no-1 Rank the strategic options from the information gained in task 2 The strategy that we will be ranking first is B to sponsor sports events in newzealand . to advertise the colgate product in sports event we give the information about the new flavour of product to people . The strategy of the colgate that we will be ranking second is A to introduce two new products flavour of colgate in the market within 12 months because colgate want to increase the market share from 40% to 50% in next 2 year as result we want increase the profit 10 % and increase the target customer between the 8-10 % . The strategy of the colgate is that we will be ranking third is C to advertise the product on the night club because target customer of the colgate between the 18-30 age group people enjoing at the weekend but the colgate easily dstribute the pamphlets and give the proper information to people. The strategy of colgate is that we will be ranking fourth is the D provide the discount on the new product flavour within 2 years because the competitor of the colgate set the high price of the sweet and thegel flavour in the market but colgate set the price between$ 3. 50 to $4 sweet and gel flavour respectively. Q2-Balance the risks and returns associated with strategies are against the feasibility of achieving the marketing objective. The Main risk of colgate to spend huge money on advertisement because sometimes advertise donot successful for creating new customer and not increase the sale of product in market. moreover it can be negative impact on the colgate strategies because advertisement don’t provide the proper information about the product quality to the people sometimes people don’t like the advertisement thus every advertisement give the same message about the product to people so people don’t give the priority to advertisement of the product as result company don’t successful to provide the information about the product to people. The another risk for Colgate company of distribution network in newzealand.
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