Colgate

In: Business and Management

Submitted By dellieoo
Words 883
Pages 4
WS5 Paper

This paper will evaluation the distribution strategy for Colgate-Palmolive Oral Care market. According to the case study, Colgate-Palmolive (CP) held forty-three percent of the world’s toothpaste market and sixteen percent of the toothbrush market in 1991. That same year the worldwide sales of CP oral care products increased by twelve percent by 1.3 billion (twenty-two percent of total sales). $243 million was invested to upgrade 25 of CP’s 91 manufacturing plants; introduce 275 new products and begin manufacturing in China and Eastern Europe the same year while introducing Colgate Baking Soda to the North American toothpaste market. The manufacturing plants help provide efficient logistics and efficiency of shipping products worldwide to the various suppliers.
In evaluation of CP logistics, CP has done a very good job on the logistics side of the marketing aspect. Without the proper company investment(s) in logistics, products cannot be effectively distributed worldwide. The company makes each of its oral care products readily available to multiple suppliers (including retail, dental and pharmacy stores) in various countries throughout the world. The popularity of the Oral B brand has also benefited the company globally to spread the company products into areas unfamiliar with Colgate toothbrush brand. CP’s investment in adding manufacturing plants in China and Eastern Europe is beneficial to increase and greatly enhance the logistical side of business within the company. It is the investment of logistics that helps push industrious productivity.
Effective production is important for the company to deliver a quality product to its target audience. The case study explained how most of the baby boomers were showing concern for healthy gums and willing to purchase a premium product that provided optimal results. The introduction of the Precision brand…...

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