Colgate-Palmolive is one of the foremost players in the oral care and hygiene sector all over the world. Despite the recessionary period that the businesses and the environment in general faced in the last many years, Colgate-Palmolive has been able to increase its product prices and reap profits as opposed to competitor organizations.
This has been done keeping the strategy of marketing and pricing aggressive to drive demand on a constant basis.
The core attributes of Colgate-Palmolive products is oral health which is perceived to be as very important element in the minds of the consumers and also the fact that the product used by consumers to take care of oral hygiene doesn’t get replaced easily if they are satisfied.
A satisfied base is the key for Colgate-Palmolive and thus Colgate’s study on Customer Buying Habits proved the fact that in spite of tough economic conditions it’s the brand and its benefits that makes a consumer buy a product as loyalty for a health product is more often than not constant.
The effects of the increase in the pricing strategy has been a positive marketing move for Colgate-Palmolive as evident from the figures given in the case study that in spite of raising prices by 7.5% Colgate Palmolive didn’t experience any sales decline, on the contrary the profits rose by 20% which in essence gives a very good picture for future expansion in terms of sales volume and growth with the periodic price increase of Coalgate-Palmolive products.
The figures clearly imply the fact that some products especially health and hygiene related products are recession proof and the anticipated sales will increase with time giving significant market share to Colgate both in the short and long run.
