Colgate Palmolive Case Study

According to colgate.com “we make the products that make your smile brighter and healthier.” By examining the target market analysis of the Colgate-Palmolive case study, it will be determined why a brighter and healthier smile is important at least to those in the United States.

Geographic Segmentation

“Geographic segmentation calls for dividing the market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.” (Kotler et al, 2009, P. 114) Colgate-Palmolive’s asset has been international sales. The company seized 43% (Quelch et al, 1993) of the world’s toothpaste market by expanding products worldwide. By globalizing the product base it enabled Colgate-Palmolive to dominate nearly half of the toothpaste market compared to only 16% of the tooth brush market. (Quelch et al, 1993) By examining the successful toothpaste data analysis, it revealed a need to focus global attention to toothbrush technology in a global market.

Demographic Segmentation

Demographic segmentation “divides the market into groups on the basis of age and the other variables.” (Kotler et al, 2009, P. 114) Demographics in this situation are consumers who buy and use products for themselves, buy and use products for all family members and those who do not engage in oral health care. When analyzing that statement there seems to be a large segment of the world’s population that would be a consumer for the products of Colgate-Palmolive. If the company has 43% of the toothpaste market, this would be a huge advantage over other companies that compete with Colgate-Palmolive.

Psychographic Segmentation

“Psychographics is the science of using psychology and demographics to better understand consumers.” (Kotler et al, 2009, P. 114) When reviewing the psychological influences of consumers of toothbrushes, it was found that “therapeutic brushers differentiate among products, they search out functionally effective products. Cosmetic brushers search for products that deliver cosmetic benefits and uninvolved consumers review all products the same, lack of interest in product category.” (Quelch et al, 1993) In the United States one would think that the view of those brushers would be the mindset of delivering cosmetic benefits. Most Americans tend to look up to figures that are in the public eye, like actors and actresses. Therefore, brushers would want something to increase the brightness of their smile and something to increase the beauty of their smile.

Behavioral Segmentation

“In behavioral segmentation, marketers divide consumers into groups on the basis of their knowledge of, attitude toward, use of, or response