Market Attractiveness Essay

The proceeds was recently awarded a blue hat stark naked-fangled crossway award for Best toothpaste as wholesome as the Best in Show. In Auckland ,Colgate master(prenominal) target grocery store equal, W atomic number 18house and freshly humans , countdown. Colgate too available in the local food securities industry of the sorezealand Colgate in 2011 ,the guild holds a staggering 44. 7% global grocery store man long time with its flag ship toothpaste lineThere argon three rivals of Colgate in in the rawzealandSENSODYNESensodyneis a chump of toothpaste marted for individuals with sensitive teeth.It is a registered trademark of glaxo smith kline which acquired it in 2001 in the purchase of block drug which develop it. Sensodyne has two chief(prenominal) ware lines sensitiveness and acid erosion. Sensodyne sensitivity growths are marketed to counteract teeth sensitivity caused by exposed dentin . The monetary value of sensodyne pure gel $4 for the 100 gm . Th e brisk ingredient is claimed to form a protective barrier in the tooth. Clinical studies subscribe found that potassium nitrate may be essenceive in treatment of dentine hypersensitivity.Sensodyne acid erosion adjoins, Sensodyne ProNamel, are marketed to protect enamel from acid erision . One of ProNamels active ingredients, fluoride, is widely endorsed to make teeth more(prenominal) resistant to acid attacks and to repair previous acid decay. Both produces come in a alteration of coolnesss and with the option of whitening. PepsodentPepsodent is a brand of toothpaste with a minty aroma derived from sassafras. The brand is owned by unilever, further in2013the rights to the brand in united states and Canada were bought by church and Dwight. ow pepsodent nonplus harvest analogous pepsodent herb tea . The footing of pepsodent herbal 150g of $4. 50 .Pepsodent now have the market plowshare 17 % in RS 2200 crore oral care marketSmokerSmoker toothpaste well also cleanse a nd revive your mouth with its extra strong peppermint flavor. Is also ideal for non smokers who necessity a doubly fresh breath. For whenever you wishing your breath to be its most intimate best. brush with smokers toothpaste. Smokers produces bare-assedly product breath freshener which is available at NZ $2. 90 in 100g. B)Market attractiveness competition market tenderzealand is the best country for interducing new toothpaste product in the market because there multi natio nal mess who demand the dissimilar instance and taste of the toothpaste eitherbody becomes aware about the toothpaste companies of their cheap ways of makeing clear by showing liberal blocks but decreasing the amount of toothpaste and creates competitions. Colgate product cannister do a good bank line by introducing a new taste and flavor of toothpaste product like a herbal and gel toothpaste and this can incur a healthy wage as well by covering more and more bargain volume.As aresult according to advance group of people colgate unveil their diametrical variety of product in market like a herbal product attract to soccer people and gel product attract the rughby and the youngpeople because this product come backs the freshnes to these players The different marketing companies makes it easy for the new companies to launch their product in the A-one market as well as in the city sm eitherest shops as because of their well established think and scattering channelsAuckland is the smallest geography yet most populated being home to around 1. 0 one million millions peoples this makes Auckland a very attractive market for the investors and companies to launch their new product. In newzealand there are four big supermarkets which fork up the different taste of product all these big and small supermarkets attract the guest for get the toothpaste because all these markets are so busy and guest easy approach to these supermarkets . ith the passage of time and proceeds o f product in the market the product start gain the popularity and also add the market share regard as in the market which is improved over all market power of the product in marketQ 2 Assess and analyze competition market segments for shock on market outline. ?Our fraternity is a market orientated one and caters to most age groups from children to adults but concentrates on younger customers by making their products alluring and affordable to children.According to the in vogue(p) communicate Auckland have the population of 1. 5 millions and peoples from the age group 20 to 85 they love to eat chocolate twice a week. This all report is for both male and female although females ratios are bit higher than male peoples. Children from the age of 10 to 20 they love to eat chocolate almost daily. In the four primary(prenominal) super market ofAuckland it has been analyzed in all markets that all the competitor likes to air and place their product in tier bin near the check out and entrance of the stores and also they have weekly promotions mo nonone which give them little discount if they deprave like Whi undertaker display their special promotions in countdown after every week mean to say they brings promotion and special displays in countdown two week in a month this is how they attract peoples and especially children which comes with their families in store to buy the product by different adequate and attractive tier bin display although all our competitors have their normal and permanent positions in the shelves in chocolate corner in the countdown super market. QUWSTION 7LEGALIn a newzealand ,if a comp either never have any legal rights to deal any product then they can not exchange anything. they should have the legal licence for the sale . In newzealand if any club call for to sale their toothpaste product in local market then they have authority to sale their colgate product in market. In newzealand is there is also rule of fair trade act the colgate attach to fol slump all rule and regulation keep in the mind fair trading act. 2 SOCIALaccording to customer take up and their life style colgate introduce their product in the market . ith the passage of time customer want the different flavour according to hostel of people colgate make their toothpaste product in newzealand market like a herbal and gel product toothpasteIn this we must be able to offer products and run that aim to complement and benefit people lifestyle and behavior. If organizations do not respond to changes in society they give lose market share and demand for their product or service. Population changes also have a direct impact on organizations. Changes in the structure of a population will profess the supply and demand of goods and services within an economy3 TECHNOLOGYDue to technology, there are lot of changing in toothpaste graphic symbol, standard packaging. applied science infrastructure such as the internet and other learning exchange s ystems including telephone. Technology systems incorporating a multitude of software which help them manage their toothpaste task in different areas of new Zealand. spry information can benefit businesses as they are able to react quickly to changes within their in operation(p) environment. These are technology factor which piece on marketing dodge of the Colgate toothpaste4 CULTURALThere are manycultural effects on market strategy. Different country has different culture so their demand of product is depend on their culture like kiwi people choice of Colgate herbal flavour is the 30 %and gel toothpaste 20% .Culture always affix the demand of product in the market5 ECONOMICS The economic power of country effect to the market strategy of come with if country has unretentive economic power and there are living low income people so keep conjunction cannot plus the price of product if high society increase the product price then low income people cannot buy the product so our ships party Colgate choose the best price $ 8 of one Colgate which purchase the low and high income people very easily6 REGULATORY Regulatory inwardness rule and regulation of market if any business does not use the regulatory then it cannot success. The fair trading act is spending the main role in marketing strategy .The Colgate telephoner always does the work according to this act and it gives the becoming information abbot product and service if this company gives the wrong information to their customers the customer can take the step against Colgate company it is also rule of fair trading act7 COMPETITIVE Todays business environment poses many challenges to high-technology enterprises in every segment of the industry . The competitor always impact on the market strategy of company . Company has to promote their product compare to their competitor like Colgate product is cheap then sensodyne or smoker . Moreover Colgate give the special offer like it gives the detached to othbrush with one Colgate pack8 DEMOGRAPHIC There are many demographic effect on marketing strategy of company. Demographic means select the target audience according their different sex ,age etcetera.Different age has different demand of product in the market as children like sugariness Colgate or youngster or old people has more demand of mint flavor of Colgate so Colgate company has to make the product keep in the mind different choice of customers9 policy-making Colgate is the multinational brand and it is main statistical distribution centre in wellington which produce the Colgate toothpaste product in whole new Zealand Political Government change policies could affect import of goods. Like custom charges on the International made goods. If government make charges increase in the custom rates, it will affect on those company who conduct the international products in New Zealand10 NATURAL The climate or environment effect on the market strategy of company. It also effect on th e demand of product . in newzealand people give the more antecedency herbal toothpaste because it is suitable for the people according their involvement . Colgate lways produce their product according their climate of the country11 ETHNICS Ethnics means people of different culture , region, casts and nationality who are living in same society . There are heaps of impact on market strategy of company . Different people have different choice according their culture, religion and nationalityfor event Indian people has different taste compare to kiwi people so they always different flavor of the colgate for example kiwi people like the herbal toothpaste and indian people like orange flavor of toothpasteQ 3 Three marketing activities of main competitorAnsPromotionalNowadays, every company make promotional policy for increasing gross gross sales of product in market. The competitors of Colgate also give priority to advertise, for increase market share and market maturement of product in market.In 2011,Smokers and pepsodent make unique promotional policy ,spend 1/3 share of income on promotional. As a result. The sales of both company increase 5-7% in end of detail year. Moreover, the esteem market share of company increase, it is helpful to create new customer, company maintain their position in market. Both competitors of spread out their business in different areas like develop business in rural areas and backward areas. As a result, the company helpful to market growth in different areas. Cost ControlThe competitors of Colgate also controlled approach of product. As a result, the company helpful for earning increase which leads to increase market share and market growth in market.In2011,somkers make specialist team for reducing cost of product. The company purchase manufacturing material from different company make long term planning with manufacturing company. After that, manufacturing company give 10% discount on manufacturing material. DisplayIn mar ket ,pepsodent and smokers adopt display method for attracting more customer and create image in customer mind. Both of company show all information in front of office, where customer easily understand product quality and step. indisplay ,the company also give different packing to their product means in packing show more amount of money and also mention about product ingredient.Example in 50m of pepsodent which show all ingredient of product and company give unique packing . As a result, the product of company successful in market increase sale up to 15% in2011. itis helpful for company to expand their business in different areas. Question 4Complete sales forecast and evaluate bothA- QualitativelyB- QuantitativelyQualitativelyColgate is the main aim to provide the high quality toothpaste to their customers in New Zealand. In simple earthly concern it is the quality of a product or service refers to the perception of the degree to which the product or service meets the customers ex pectations. In 2001, a record 39 present of total sales came from new products introduced in the past five years.The sale forecast of Colgate in newzealand$28 million from 2012 to 2013 and company want to earn 14% to 16 % profitQuantitativelyColgate quantitavily means the quantity of product in particular product. It show the how many quantity we give the respected customer, It is all about the quantity not about the quality. It matters a lot to increase the product sales of the Colgate toothpaste in the marketBy the early 1990s there were many different companies that focused on oral care products, with the leader being Colgate-Palmolive. By 1991, Colgate Palmolive held the number one position in the world for the sale of oral care products, accounting for 19% of the total toothbrush market.The companys sales and profits were increasing each year, and by 1991 sales totalled 1. 03 billion dollars, while profits totalled 9. 8 million dollars,. At this point in time Colgate had introd uced two different types of toothbrushes to the market, the Colgate Classic and the Colgate Plus. For producing toothpaste product Colgate use the latest technology and the ingredients to increase the quality of the product like Herbal and the Gel toothpaste is the best example of the high quality of product in the market in 2010 -11, in this way the sale of the company increase up to 10% in 2010 -11. The sale of colgate in 2008-09 was 14 million and company earn the $5 million profit in this year . here was the rapidly change the sale of the colgate in 2009-10,it was the $18million company earn almost 8 million profit in this yearQuestion 5Assess selected marketing strategies for their impact upon profit. Expand marketColgate makes the different market strategy for increasing their profit in market. Expand market means expand the business in the all rural and urban areas in New Zealand . Colgate expand their business in south and the north region which means the company earn the ex tra profit from their market strategies about their business. Moving into new market areas can transform a business and, handled correctly, can significantly increase your profitability.However, bear in mind that developing new products and services and selling in new markets can be risky and mistakes can prove veryexpensive. in2008-09 the colgate the worth value in newzealand $14millionafter that colgate expand their business 2009-10 its worth value increase $18million and this period of time colgate company earn 7. 5%profit . in 2010-11 the company worth value again raise $20 million . Increase shareWhen the business of the Colgate expand in all area of nNew Zealand it create the new customer and the market share of the company in market . Increase in share means to earn more profit. It all about demand and supply.In 2010 the market share value of the Colgate company $10 million after that when the Colgate increase their business as a result the share value of the Colgate increas e $13 million in 2011Increase marginsIncrease margin means increase the profit of the product in market and Colgate in 2010-11 the company earn the more profit 3%as a compare to 2009-10. When the margin of the company increases it also effect the market share of the . So, increase in margins will directly affect the market share but you will earn money. For example the Colgate increased the price of gel product toothpaste 200g from $2 to $3 as a result increasing the price of the Colgate the market share value of the company decline to 7 % from 12% but still company is earning profit. discredit costReduce cost is also part of the market strategy of company for increasing the profit in the market.When the company reduces the price of product in the market it is the also positive change for the company for earning the profit and increase the market share value. As a result the company save the manufacturing cost and the product cost saving. Example Colgate also decreased the price of herbal product from 200g from $3. 50 to $2 only as result the company increase the market share value and increase the sale of product in market in 2011 only herbal product give the 10% profit of the company by the reducing the price of the product Task 2ObjectivesTarget Market-The documental for the target market is 12 to 18 year olds for the next 2 yearsDemand-1. million People using 12 per year =18 million tubes of toothpaste per yearTherefore our objective is to sell 1,200,000 sweet and 1,600,000 mint flavours over next 24 monthsProductThe objective is to launch new product in next two yearsPricing-objective is to sell new products at between $3. 50-4. 00 over next yearThe main objective of the Colgate is fix the price of their toothpaste product . For this bearing Colgate sell the herbal product 200g for $3. 50and gel toothpaste in 200g for $4Distribution-objective is to use their existing strong distribution over next yearPromotionobjective is to do sales promotions to laun ch and get awareness and trials by customers of the new product over next 12 monthsStrategiesA)According to Colgate strategy we introduce at least two new products in the market with two different flavors like gel flavor and sweet flavor within one year.B)In second strategy of the colgate, they sponser the sports events in New Zealand like cricket matches, rugger matches etc motreover ,we give the advert of colgate product on radio, television,magazineor internet etc in next 2 years. C)In the weekend we advertise about the new product flavor on the night club we distribute the pamphlets to people and give the information about the product quality to people in next two year . D)In twenty-five percent strategy the company provide the discount on their gel and the herbal product and set the stripped price of the gel product 200g in $4 and herbal product $3. 50 for 200g in 2 years. Our best strategy is advertizing of the new product flavour on the sports event in New Zealand becaus e we easily provide the product information about quality to people.Question no-2Evaluate the strategic options from 2. 1 above. Are they compatible with marketing objectives? A) Ability to maximize key opportunities and marketing strengthsaccording to Colgate strategies ,we introduce the atleast new flavour of the coilgate in the market for attracting the target market in A strategy. For promoting this product we give the advertisement on the sports event as well as distribute the pamphlets on the weekend and B and C strategies. Moreover, company provide the discount on their product on the different occasion. The market objective of the colgate to sell the sweet flavor 1,200,000 and gel flavour 1,600,000 and earn the 10 % profit in next 2 years.B)Critical success factors in the intended marketthe critical success factor of the colgate , the product of colgate easily available in the market where our target customer between the age group 8-18 buy the sweet flavor and 18-50 gel flav or . Moreover we promote the our product in the weekend because our target customer between 18-30 enjoying the at the club and the night party C)Marketing capabilities and resourcesThe market share of the Colgate 40% in the newzealand toothpaste industry as result Colgate company is the market capability to introduce the at least 2 flavour in the market with the new technology A strategy. In B and C strategy colgate company use their resources and advertisement of the product on the sports event and give the pamphlets to the people.In this way company earn the 10% profit in next 2 yearsD)Market characteristicsMarket characteristics of the colgate company, the market share of the colgate 40% in toothpaste of New Zealand but the competitor of the colgate toothpaste like smoker, pepsodent market share 10 and 15 % respectively. In a strategy of colgate they introduce the at least a 2 flavor of colgate product within 12 months but the competitor of the colgate launch only the one product within 2 year in the market,in B and C strategies colgate advertise their product on the sports event and distribute the pamphlets on the night club for attracting the target customer they provide the discount on the product in D in next 2 years. E)Competitive FactorsIn newzealand the competitor of the collate smoker and the pepsodent only the 10 and 15% market share respectively but the colgate market share 40%. n A strategy colgate introduce the two product within 12 months but the competitor launch the one product within 2 years as result the competitor factor give the positive resolution to increase the market share in the market in B and C strategy colgate company advertise their product in the sports event and distribute the pamphlets in the night club but the competitor of the Colgate dont follow these strategies as result Colgate company easily achieve their marketing objectiveQuestion-3Evaluate distinctive competencies and competitive advantages of strategic options. Are they compatible with marketing objectives? Colgate is the market share 40 % toothpaste because Colgate provide their service between 8-18 and 18-50 age group.In market Colgate image is better than their competitor because they introduce the 2 flavour within 12 months according to target customers . Moreover Colgate use the different ingredients for making their product which give the strength and freshness to teethsThe distribution of the Colgate is the well manage in newzealand because Colgate distribution communicate distribute the Colgate product which is unique idea for catering the target customer in New zealand. Colgate through the advertisement colgate advertise their product in the market and well manage distribution network to make the easily available product in the market these are the market strategies are main competencies of Colgate which provide their service to target customer in the market ofNew Zealand Task-3Question no-1Rank the strategic options from the informa tion gained in task 2The strategy that we will be ranking first isBto sponsor sports events in newzealand . to advertise the colgate product in sports event we give the information about the new flavour of product to people . The strategy of the colgate that we will be ranking second isAto introduce two new products flavour of colgate in the market within 12 months because colgate want to increase the market share from 40% to 50% in next 2 year as result we want increase the profit 10 % and increase the target customer between the 8-10 % .The strategy of the colgate is that we will be ranking third is C to advertise the product on the night club because target customer of the colgate between the 18-30 age group people enjoing at the weekend but the colgate easily dstribute the pamphlets and give the square-toed information to people. The strategy of colgate is that we will be ranking fourth is the D provide the discount on the new product flavour within 2 years because the competit or of the colgate set the high price of the sweet and thegel flavour in the market but colgate set the price between$ 3. 50 to $4 sweet and gel flavour respectively. Q2-Balance the risks and returns associated with strategies are against the feasibility of achieving the marketing objective.The Main risk of colgate to spend capacious money on advertisement because sometimes advertise donot successful for creating new customer and not increase the sale of product in market. moreover it can be negative impact on the colgate strategies because advertisement dont provide the proper information about the product quality to the people sometimes people dont like the advertisement thus every advertisement give the same message about the product to people so people dont give the priority to advertisement of the product as result company dont successful to provide the information about the product to people. The another risk for Colgate company of distribution network in newzealand.