Colgate-Palmolive :: Business, Competitive Prices, Innovation

Companies are not able to succeed without having a strong branding and pricing strategy. Colgate-Palmolive has managed to build a strong brand name and offer competitive prices. Innovation is a key factor in the Colgate strategy. This paper will take a look at Colgate-Palmolive’s product positioning and life cycle. This paper will also discuss the branding relationships and pricing methods. Positioning and Life Cycle According to Keller and Kotler (2009) â€Å"positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.† Colgate-Palmolive has remained a leader in the oral health care industry. The company has remained a leader by focusing on innovation. According to Sekar and Thomas (2008) throughout the past two decades, the development of new products has been a popular marketing strategy for many firms.† The company hires marketers and consumer insight professionals to focus on market trends and customer insights (Drug Store News, 2008). The company uses the information found to develop new products to attract new customers. Innovation and communication has been at the heart of the company’s growth strategy (Economic Times, 2011). Colgate-Palmolive offers a variety of products. They offer a line of oral health care products for any need. According to Checkout (2011) â€Å"in difficult economic times Colgate has continued to offer the consumer the reassurance of a market leading brand at competitive prices and attractive promotions.† The brand is one of the most trusted names in the oral health care industry. Having a large variety of recognized brands and products provide the company with a competitive advantage (Yahoo Finance, 2011). Since the company has a strong focus on innovation the company may see lower growth in sales when they release a new product. The company as a whole is in the maturity stage. The company has remained strong and steady so there has not been much fluctuation. Product and Branding Relationships The company focuses on what consumer trends and needs are. The company does extensive research to develop new products that customers will want. The company’s focus on the consumer has helped the company become a familiar and trusted name. According to Chain Drug Review (2010) â€Å"brand is an influential part of the shopping equation.