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Brand Experiences - Colgate-Palmolive Company and Coca-Cola Company - Report Example

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From the paper "Brand Experiences - Colgate-Palmolive Company and Coca-Cola Company " it is clear that Colgate-Palmolive has been noted for many product recalls. Such recalls have created doubts in the minds of loyal consumers who have been tempted to use products from direct competitors…
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Extract of sample "Brand Experiences - Colgate-Palmolive Company and Coca-Cola Company"

Brand Experiences Affiliation Word Count: 3599 TABLE OF CONTENTS Contents 3 COLGATE-PALMOLIVE COMPANY 4 SWOT Analysis of Colgate-Palmolive 4 Strengths 4 Weaknesses 5 Opportunities 5 Threats 5 Competitive Strategy and Marketing Mix 6 MERCK & COMPANY 6 Strategies 8 External Assessment 10 Internal Analysis 11 COCA-COLA COMPANY 12 Integrated Marketing Communications and Advertising Strategies 13 Marketing Mix 14 Business and Competitive Environment 15 References 16 Abstract The personal diary contained a daily list of activities focused on various brands of products. Among the many brands of products that I frequently use, I picked three major brands. Most of the products that I utilize daily have been manufactured by Colgate-Palmolive. These products include oral care products such as toothpaste, toothbrush, and mouthwash liquid. Other products are bathing soap, washing soap, and deodorant. My preference for Palmolive soap, Feb laundry detergent, and Ajax surface cleaners further highlights my indebtedness to the Colgate-Palmolive brand. Painkillers and other medication are also part of my regular consumption in order to deal with chronic pain. Merck & Company manufacture my health care products. I have an absolute dependence on medication so as to sustain my life and make it bearable. Coca-Cola Company serves as my third brand of choice due to my daily consumption of coffee. In addition, I frequently partake of other products manufactured by Coca-Cola Company such as Diet Coke, Minute Maid, Sprite, and vitamin water. COLGATE-PALMOLIVE COMPANY Colgate Company was founded in the United States almost two centuries ago by William Colgate. Its first advert appeared in the newspapers in 1817. However, the first starch factory was established three years later in New Jersey. In the late 1860s, Colgate introduced toothpaste and perfumed soap in jars. It was not until 1896 that Colgate began producing toothpaste in collapsible tubes (Colgate-Palmolive). The company established its first international subsidiary at the onset of the First World War. By 1920, Colgate had established offices in Asia, Africa, Europe, and Latin America. Perhaps the most significant event occurred in 1928 when Colgate merged operations with Palmolive-Peet. Nevertheless, the brand name Colgate-Palmolive became official in 1953 (Colgate-Palmolive). This merger catapulted the company’s revenues into millions of dollars. Currently, Colgate-Palmolive has offices in over 70 countries. In addition, the company markets and sells its products in over 200 countries. Some of the major international brands produced by Colgate-Palmolive include Ajax, Colgate, Softsoap, Protex, Speed Stick, and Palmolive soap (Colgate-Palmolive). Colgate-Palmolive is universally acclaimed as a leading provider of personal care, household care, oral care, and veterinary products under its Hill’s brand. The company is worth a whopping $13 billion dollars (Colgate-Palmolive). SWOT Analysis of Colgate-Palmolive Strengths Colgate-Palmolive has a strong brand image universally recognized by consumers. The company enjoys over 45% of the market share in the US (Colgate-Palmolive). The geographical diversity of the personal care products industry works in its favor since it has been able to expand operations in all continents. Colgate-Palmolive has an enormous growth of sales both in internal and external markets. The company has an impressively skilled workforce surpassing 38,000 (Colgate-Palmolive). Enviable promotional strategies and captivating advertisements have enhanced the popularity and goodwill enjoyed by the company. Weaknesses Colgate-Palmolive has been noted for many product recalls. Such recalls have created doubts in the minds of loyal consumers who have been tempted to use products from direct competitors. Unfortunately, Colgate-Palmolive operates within a saturated market. Consequently, product expansion has been restricted, and the market share of the company has plummeted relative to its competitors. The low level of innovation has hampered the ability of Colgate-Palmolive to penetrate new markets. Opportunities The rapidly growing market of oral hygiene presents an incredible opportunity for Colgate-Palmolive to expand its market share. Locally, the large Hispanic population has emerged as a potent market. Internationally, the company has identified far-flung Asian nations as potential areas of expansion. Colgate-Palmolive needs to adopt a broad differentiation in an effort to capture additional markets and rise above its competitors. Threats An increase in prices of commodities presents the biggest threat to the company. Consumers may be forced to limit their spending on personal care products if the prices keep rising. Consequently, the company stands to lose plenty of business as a result. The stiff level of competition has weakened the growth of sales in global markets. The ever-present threat of new entrants into the market cannot be overemphasized (Ryan, 2014, 72-76). In the recent past, some companies have illegally used the Colgate brand name to advance their interests. Competitive Strategy and Marketing Mix Colgate-Palmolive has used a multilayered approach in order to market its products in various places. The most common method has been the use of television commercials and print advertisements in mainstream magazines. In addition, the company uses inserts in local dailies along with product sampling in an endeavor to generate sales. In other instances, coupons are used to entice the involvement of consumers. Colgate-Palmolive also uses market targeting in its attempt to tap into unexplored markets. The cutthroat competition in the personal care products industry has required the deployment of strategies to cope with the market demands. Colgate-Palmolive has also established competitive pricing strategies in order to entice more consumers to consider its products (Colgate-Palmolive, 2009, 50-65). Furthermore, employing a direct distribution channel has served to appeal to consumers by making the products easily accessible. Colgate-Palmolive has acquired plenty of goodwill from consumers all over the world. The company fulfills its ethical and social responsibilities by giving back to customers. Employees at Colgate-Palmolive achieve job satisfaction and career fulfillment. As a result, the company has attained booming results in over 200 countries (Colgate-Palmolive). If current trends persist, the company will break into the surging Asian market and establish its operations. MERCK & COMPANY Merck & Company is a drug-manufacturing company which was started in 1891 as a subsidiary. It was not until 1917 that the company emerged as an independent organization. The Corporation was established with the aim of discovering, developing, manufacturing, and marketing of healthcare products designed to improve both human and animal health. The pharmaceutical company has its headquarters at Whitehouse Station in New Jersey State in the United States of America. Merck & Company is the 8th largest pharmaceutical company in the world on the basis of revenue and market capitalization. The company publishes periodic, unbiased, and informative health reports as a free service (Merck & Company). The Merck Manuals are recognized as a series of books used for medical reference by technicians, physicians, and nurses. Merck & Company has built an enviable reputation for offering assistance to consumers unable to afford its products. The organization has displayed a continuous streak of enhancing access and delivery of donated medicines. This is accomplished using widespread programs and initiatives. Merck & Company is responsible for the creation of 10 major new medications including Mevacor and Vasotec (Merck & Company). Merck has carved out a reputation for its research-driven approach. It has been a major player in many joint-venture collaborations. Merck & Company has a mission to provide innovative, distinctive products and services that save and improve lives and satisfy customer needs. The company has lived up to this section of its mission statement by presenting major innovations into the consumer market. Until the 1980s, the company achieved wide success by focusing on research-driven programs. The company gained popularity by bombarding the market with a never-ending stream of innovative products. As already noted, Merck & Company was solely responsible for the emergence of at least ten new drugs. Mevacor was produced as a reliable drug for treating high cholesterol while Vasotec was acclaimed as a powerful cure for high blood pressure. During the 1980s onwards, high blood pressure emerged as a primary cause of deaths in developed countries. The production of Vasotec served to reduce the number of deaths arising due to high blood pressure (Vagelos & Galambos, 2004, 46-63). At the same time, many patients had been struggling with high cholesterol due to poor dietary choices. The discovery and manufacture of Mevacor served to satisfy the medical needs of patients contending with high blood pressure. The company also has a mission to be recognized as a great place to work and also provide investors with superior rates of return. The company boasts over 75000 employees in over 100 countries with a whopping 31 factories worldwide (Muse, 2011, 35-37). The company rakes in a net income of around $7.8 billion. In this regard, the company is shown to be fulfilling the stated aspects of its mission statement. Merck & Company has a vision of achieving recognition as one of the top pharmaceutical companies in the world. As already noted, Merck & Company is recognized as the 8th largest drug-manufacturing company in the world. The company has laid down plans that will help to propel it further up the global rankings. Mergers and acquisitions of firms such as Schering-Plough have built up the profile and sales revenue of Merck & Company (Hawthorne, 2003, 100-123). Consequently, its vision of achieving worldwide recognition is gaining momentum. Merck & Company has various strategic goals that give a sense of purpose and direction to the activities of the firm. The organization aims to improve the life of its customers through its products. The company also endeavors to attain scientific fulfillment and excellence. Merck & Company has a goal to carry out its operations with the highest standards of ethics and integrity. The organization also aims to increase the overall access to its roster of products. The company also has the strategic goal to ensure that it employs a diverse workforce that values teamwork. Strategies Merck & Company is currently using a variety of strategies in an attempt to fulfill its stated objectives. The company has embraced acquisitions and joint ventures as key ways of expanding the access to its products. Improving access to health involves increasing the market share of the products offered by the firm. The acquisition of Schering-Plough is one prime example of such a joint venture. Merck & Company acquired Schering-Plough for $41 billion. At the time of the acquisition, the two firms were already acting as partners in the production of Zetia and Vytorin, popular cholesterol drugs. The acquisition enabled Merck & Company to combine the market reach of some of its products such as Singulair and Gardasil with those of Schering-Plough such as Nasonex and Coppertone sun care line (Hawthorne, 2003, 147-152). Merck & Company has also been involved in other joint-venture agreements with firms such as Astra AB, Sanofi Pasteur S.A., Johnson & Johnson, and Rhone-Poulene S.A (Sheth and Sisodia, 2014, 23-29). Such joint-venture agreements have enabled Merck & Company to raise its overall stock. Consequently, Merck & Company has developed the potential to rise to the second position in the world behind Pfizer, the giant pharmaceutical firm. Embracing joint ventures has also enabled Merck & Company to boost its previously sagging pool of drugs still undergoing development. Additionally, the company has increased the size and capability of its biotech unit (Sheth and Sisodia, 2014, 35-38). Moreover, the joint-venture agreements have ensured that Merck & Company has become a major player in the production of drugs and vaccines for conditions such as cholesterol and respiratory problems. Diversification is also an excellent strategy that will help the firm to acquire a varied workforce. As already noted, the firm has an international presence in over 30 countries. Acquiring a diverse workforce would open up foreign markets to the company. The realization of a diverse workforce would make it necessary for the company to achieve teamwork. Merck & Company can also choose to use product development as a strategy that will help it achieve scientific excellence. Innovative techniques of research, development, and production will contribute towards a reduction of costs (Sheth and Sisodia, 2014, 55-59). Subsequently, the firm can realize increased profitability. The strategies adopted by Merck & Company have been successful in achieving the objectives set out by the organization. The success of the strategies can be attributed to the fact that Merck & Company has set clearly-defined goals. Moreover, the goals set are realistic and attainable. Therefore, the company has been able to attain to the anticipated level of success within a reasonable period. External Assessment The external environment encompasses external factors that are beyond the control of the firm. Economic forces that have an impact on the company include the slow growth rate of the economy. The costs of manufacturing have also increased in recent decades. Production costs have been on the rise due to increase in research and development. Overhead costs associated with research and development have been increasing every two decades from the late 1950s tenfold. For instance, 50 years ago, the costs of research and development amounted to $1.5 million. However, current figures indicate that such costs have risen to over $500 million (Werth, 2014, 165-187). Moreover, the company spends over $1.5 billion in lobbying processes. The latter costs represent a 30% increase from previous expenditure on lobbying. Merck & Company has been influenced by the collective action of such economic forces (Werth, 2014, 190-192). The cost of research determines the financial position and analysis of the company. High costs of development have pushed the focus of production efforts of the firm from acute to chronic diseases. The population of elderly persons has increased considerably in recent decades. Persons over 65 years of age have been shown to utilize drug prescriptions three times more than young persons. Therefore, Merck & Company will have to redirect its production efforts towards the development and manufacture of drugs used primarily by aged persons. Demographic estimates have also revealed increased demand for low-cost prescriptions. In fact, an increasing number of customers have turned to countries such as Canada in an effort to obtain cheaper prescription drugs (Sheth and Sisodia, 2014, 100). Merck & Company has to respond to this new trend in a decisive and amicable manner. Therefore, discovery, research, development, and manufacturing processes have to be modified in such a way so as to lower the overall expenses incurred. Consequently, it may be possible for the company to respond to the increased demand for low prescription medications without compromising on profitability. Internal Analysis The organization has a culture that nurtures success and prosperity. Merck & Company has a framework that emphasizes access and durability. The organization endeavors to make its products available to a large as possible size of the market. Nurturing such a culture ensures that the organization gets to increase its market share. The organization has innovation as one of its hallmarks. The enterprise has a chequered history of production of new, innovative drugs that cure previously unassailable illnesses. Vasotec and Mevacor are some of the ten major new drugs that have resulted from research-driven efforts of Merck & Company (Hawthorne, 2003, 165). The organizational culture of the firm gives prominence to results over the process (Arnold, Beauchamp, Bowie, 2013, 400). Therefore, there occurs a compromise in safety and quality. The company released the drug Vioxx to the market without carrying out conclusive and definitive trials. The enhanced perils of stroke and heart attack were discovered much later. The eventual withdrawal of the drug from the market in 2004 did nothing to hold back the tide of lawsuits that rocked the firm in subsequent years. Merck & Company was forced to issue payments totaling $750 million to the plaintiffs (Nesi, 2008, 59-89). Merck & Company has an apparent strength in its ability to embrace innovative procedures into research, development, and manufacture of products. Nevertheless, a definite weakness arises in its inability to ensure the quality and safety of its products (Moynihan and Cassels, 2005, 124-186). COCA-COLA COMPANY Coca-Cola Company is among the most familiar brands in the business world. The Coca-Cola Company is universally recognized as the largest beverage company. In total, the company offers beverages of various types in over 500 scintillating brands (Coca-Cola, 5-8). The Coca-Cola drink is arguably the worlds most recognizable and valuable brand. Coca-Cola Company has enjoyed phenomenal success through the decades. The companys portfolio boasts some of the most financially grossing brands. Many of these brands create revenues in excess of 20 billion dollars. These successful brands include Fanta, Dasani, Minute Maid, Diet Coke, Sprite, Del Valle, POWERADE, vitamin water, Georgia, and FUZE TEA (Coca-Cola, 9-11). The supremacy of Coca-Cola Company is globally acclaimed. It is the No. 1 producer and distributor of juices, drinks, coffees, and other beverages. In the drinks sector, Coca-Cola Company boasts of the largest distribution network in the world. The company boasts of customers in over 200 countries, more than 90% of the worlds total population (Coca-Cola, 12-15). Metric data collected and analyzed by the corporation indicates that the Company sells an average of 1.9 billion servings of drinks per day. This astronomic figure shows the high level of business conducted by the Company (Coca-Cola, 20). The stunning statistic compares favorably to competitors in the beverages industry. This highlights the fact that Coca-Cola Company acts as the undisputed market leader in the drinks industry. Furthermore, the company shows an incredible level of commitment towards the creation of sustainable communities (Foster, 2008, 33-36). It has a laser-like focus on minimizing its impact on the environment. In this regard, Coca-Cola Company sets a sterling example in reducing the environmental footprint of companies. Moreover, Coca-Cola Company is committed towards the support of active and healthy living within local communities. Predictably, Coca-Cola Company has a network of offices all over the world. The Company shows a remarkable desire to improve the social status and well-being of persons living within local communities. Coca-Cola Company ranks among the greatest employers in private firms. The Company boasts of over 700,000 employees based in different regions of the world (Coca-Cola, 46-53). This highlights the importance of the company in creating employment opportunities and improving economic development in local communities. Integrated Marketing Communications and Advertising Strategies Coca-Cola Company employs Integrated Marketing Communications so as to foster communication with its target audience. Coca-Cola has been the pioneer firm in advanced advertising strategies (Belch and Belch, 2015, 56-63). The enterprise has outlay a significant amount of capital and other resources in an effort to establish links with consumers in different places all over the world. The company has been willing to locate customers from wherever they can be found (Parente, 2006, 20-23). The form of communication adopted by Coca-Cola Company differs depending on certain factors worthy of consideration. Flexibility and adaptability can be seen in the manner through that the company considers local circumstances before drafting appropriate advertisements and other commercials. Factors of consideration include societal values, potential for growth, market specifications, and positioning of the product. The company considers the potential for growth observable in the market along with the particular requirements of the market under consideration (Farbey, 2002, 32-39). Coca-Cola Company shows interest in the daily lives of its clients. In this regard, the company uses social media to sustain their social responsibility programs. This also affords them the platform through which they can post eye-catching advertisements for their beverages (Farbey, 2002, 46-48). Such actions strike a chord with consumers since they seem to show genuine interest in the welfare of its consumers. In particular, Coca-Cola Company raises money for charitable causes such as alleviating the damage caused by natural disasters and other unprecedented events. Consumers benefit both directly and indirectly through such initiatives. In the final reckoning, this acts as a plus to the profile generated by the company. Coca-Cola Company has been successful in portraying fun and happy messages in their promotional advertisements (Pendergrast, 2013, 56-59). Consumers are pleased to share laughter and happiness, especially during fun events. The company always finds a way to adapt their message to the needs of the target market so as to maintain relevance and ensure pointedness. Nevertheless, fun and laughter have been retained as a full-fledged tradition of Coca-Cola Company. Coca-Cola Company began the Integrated Marketing Communications campaign in 2006 with the adoption of the slogan “Taste the Coke side of life". Henceforth, the company has incorporated consumer dialog as one of the foremost means of communication in the enterprise (Foster, 2008, 62-67). This change in approach has been responsible for creating new employment opportunities and developing new departments within the company. The IMC mix adopted by Coca-Cola Company utilizes forms of mass media such as banners advertisement, print media, and Television advertising. All the employed means must integrate in such a manner that a persuasive and consistent message is relayed to the intended audience. Marketing Mix This section includes the various avenues through which an advertising campaign would be carried out. Marketing mix takes into consideration the different characteristics of members of the target audience. Some marketing methods would appeal to a certain group of people while another may interest yet another group. Therefore, marketing mix deserves keen thought before implementation. Advertising through billboards, commercials, and print media is a one of the crucial ways through which Coca-Cola Company creates awareness for its products. This avenue allows Coco Cola to build a brand image and create awareness for its products (Senker and Foy, 2012, 33-36). Consequently, the Coca-Cola slogan has become quickly identifiable anywhere in the world. The Coca-Cola Company also uses sales promotion strategies in order to differentiate its products from those offered by its competitors. Consumer-oriented techniques involve placing their products in areas that would be visible to all prospective customers in supermarkets and city malls (Jewler and Drewniany, 2001, 89). Another method involves the offer of discounts, allowances, and free merchandise. Business and Competitive Environment Pepsi and RC Cola provide the greatest competition to the Coke drink. PepsiCo has been the most potent rival for Coca-Cola Company for decades. Granted, Pepsi is usually second to Coke in terms of gross sales. Nevertheless, Pepsi drink has been shown to have better sales compared to Coca-Cola in some markets (Wayland and Porter, 1994, 44). There also exists localized forms of competition to the beverages offered by Coca-Cola Company. References Arnold, D. G., Beauchamp, T. L., and Bowie, N. E. 2013. Ethical Theory and Business. Boston: Pearson Education. Belch, G., and Belch, M. 2015. Advertising and Promotion: An Integrated Marketing Communications Perspective. New York, NY: McGraw-Hill. Coca-Cola., 2013. Coca cola. New York: Spruce Books. Colgate-Palmolive Company. Available at: http://www.colgate.com/app/Colgate/US/HomePage.cvsp Colgate-Palmolive Company, 2009. Your Smile Counts. New York: Colgate-Palmolive. Farbey, D., 2002. How to Produce Successful Advertising: A Guide to Strategy, Planning, and Targeting. London: Kogan Page. Foster, R., 2008. Coca-globalization: Following Soft Drinks from New York to New Guinea. New York: Palgrave Macmillan. Hawthorne, F., 2003. The Merck Druggernaut: The Inside Story of a Pharmaceutical Giant. Hoboken, N.J.: J. Wiley & Sons. Jewler, J., and Drewniany, B. 2001. Creative Strategy in Advertising. Belmont, CA: Wadsworth. Merck & Company. Available at: http://www.merck.com/index.html Moynihan, R., and Cassels, A. 2005. Selling Sickness: How the Worlds Biggest Pharmaceutical Companies are Turning us all into Patients. New York, NY: Nation Books. Muse, A. L., 2011. Flexibility Implementation to a Global Workforce: A Case Study of Merck and Company, Inc. Community, Work & Family, 14 (2), pp.249-256. Nesi, T. J., 2008. Poison Pills: The Untold Story of the Vioxx Drug Scandal. New York: Thomas Dunne Books. Parente, D., 2006. Advertising Campaign Strategy: A Guide to Marketing Communication Plans. Mason, Ohio: Thomson/South-Western. Pendergrast, M., 2013. For God, Country and Coca-Cola: The Definitive History of the Great American Soft Drink and the Company that Makes It. New York: Basic Books. Ryan, D., 2014. Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. Philadelphia: Kogan Page. Senker, C., and Foy, D. 2012. Coca-Cola: The Story Behind the Iconic Business. London: Wayland, 2012. Sheth, J., and Sisodia, R. 2014. The Rule of Three: Surviving and Thriving in Competitive Markets. S.l.: Free Press. Vagelos, P. R., and Galambos, L. 2004. Medicine, Science, and Merck. New York: Cambridge University Press. Wayland, R., and Porter, M., 1994. Coca-Cola versus Pepsi-Cola and the Soft Drink Industry. Boston, MA: Harvard Business School Pub. Corp. Werth, B., 2014. The Billion-Dollar Molecule: The Quest for the Perfect Drug. New York: Simon & Schuster Paperbacks. Read More

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