The price should stay the same Would take place in all major distribution outlets Colgate currently has Alternative 2 Increase consumer promotion budgetWill target customers with no particular brand loyalty Only an increment of 1 million will double the 201 2 spending on consumer promotions The promotion would be to use a coupon put up in the store, this would bring in new customers who may already have brand loyalty to a different competitor because price is a large influencer Would take place only the largest distributors (Lowbrow’s, Sobers and Metro) as these hold the highest market share and therefore have the largest opportunity to create sales Alternative 3 Increase advertising budget Normally represents 3/4 of the budget, so it accounts for the most $ spent in arresting because that is what most toothpaste company s use Advertising has fluctuated significantly over the years, as overall sales have increased by 5% from 201 1 to 2012 the advertising budget has decreased since 201 1 Advertising would be to create advertisements for whitening products as they are the fastest growing slice in the toothpaste industry.The advertisement would use all the marketing budget as it would need to be on during peak hours The advertisement will be a reminder for current users but also increase awareness for new customers of what we offer and how we differ from competitors Alternative 4 Increase overall awareness with an even larger marketing budget to fund multiple options Not a viable option because they have said they need to focus on 1 or 2 parts rather than spreading over the existing functions Qualitative Revenues are going to increase by 768. 82 in 2013 (4. 5%) meaning that net sales will be 17853 IF it is assumed that the cost of sales and expenses do not fluctuate too much (as they haven’t within the lass 3 years) then the next profit would be 3,399. 2 – this is without the added increase in marketing expense Positioning Statement For the socialites who are looking for a way to enhance their appearance and et noticed, Colgate Optic White is a oral hygiene system that delivers white teeth that will get you noticed because only Colgate Optic White offers a complete whitening solution Recommendation/implementation The recommendation is that they increase the marketing budget and spend the money marketing towards the sociable segment of the market through advertisement Product: Focus mainly on the Colgate Optic White line, it is the line that focus’s solely on whitening and although it still provides other benefits it makes the consumer believe it’s main purpose is whitening so it ill work the best for that Price: keep the price as it is, do not want to start a price war with competitors.
The Current price Is roughly the same as the other competitors so changing it a small amount will not increase consumer buying as it is mainly focused on brand attributes and loyalty Place: it will be offered in the largest three retailers we currently are distributed in (Lowbrow’s, Soybean’s and Cost) as these are part of the company’s largest customers Promotion: The new advertisement will initially be a TV campaign that targets the consumers who are looking for a whiter smile and fresher breath. The commercial will focus specifically on the Optic White line because this is the line that best suites these consumers. The advertisement will create a perception that a whiter smile will lead to a better life. The focus will be on the social aspect so it will have more than one actor in it, in a social setting and one will receive a compliment on their white teeth.Followed by a demonstration of yellow teeth of a competitor brand compared to the Optic White results to prove it does work By increasing the advertising, it should also increase sales because it will attract new customers which is how you can row a company in a mature and stable market The advertisements should also keep the current customers reminded as to why they are currently with the Colgate brand and what we have to offer.
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