Colgate-Palmolive’s Product and Pricing Strategy

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WS3 CP Paper Subbu Subbiah Indiana Wesleyan University WS2 Case Study Paper Colgate-Palmolive’s Product and Pricing Strategy To sustain itself in the marketplace as one of the major leaders in consumer marketing, Colgate-Palmolive’s (CP) Sustainability Strategy emphasizes people, performance, and the planet through focused, measurable goals that align with the Company’s business objectives. CP’s product strategy aims to deliver products that delight consumers and respect our planet. CP’s pricing strategy is to deliver products at a reasonable price to earn a small profit margin for the Company (Colgate-Palmolive Company, 2012b). Product Strategy Companies plan product offerings at five levels: core benefit, basic product, expected product, augmented product, and potential product. Products are classified based on durability and consumer or industrial use. On the product positioning side, product-line managers analyze sales, profits, and market profiles and then decide on the items to build, maintain, harvest, or divest. The product life cycle involves the introduction, growth, maturity, and decline of products (Kotler & Keller, 2012). Colgate-Palmolive’s new product strategy focuses on three main aspects: (a) increase the sustainability profile in all new products, (b) ensure that ingredients continue to meet or exceed all recognized safety standards, and (c) reduce the environmental impact from products by 20% (Colgate-Palmolive Company, 2012b). Based on an understanding of sales, profits, consumer use, and markets, CP has developed various products in its toothpaste and toothbrush categories to penetrate a variety of consumer markets, such as toothpastes and toothbrushes for kids, teeth whitening toothpastes for consumers who want to keep their teeth white, oral care toothpastes and toothbrushes for consumers who want to maintain a hygienic mouth,

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