Assignment 1 Title: Situation Analysis of Colgate Name: Sushan Karki Student Number: 30333720 Unit Name: Introduction to Marketing Name of Lecturer: Divya Judge Department/ School Business Date Submitted: 26th April 26, 2017 Word Count: 1200 I Table of Content Executive Summary III Introduction 1 2.0 Situation Analysis 1 2.1 External Environment 1 2.1.1 Macro Environment Trends 1 2.1.2 Competitor Analysis 2 2.2 Internal Environment 2 2.2.1 Evaluation of the Company’s Internal Capabilities and core competencies. 2 3.0 Conclusion and recommendation 3 References 4 II Executive Summary This report contains the situation analysis of Colgate which involves internal and external environment factors. It helped me to know and understand the political, economic, social cultural and natural environments of Colgate. It has also has provided me a better understanding of its good and bad impacts on environment and also about its strengths, opportunities, weakness and threats within the company. Colgate possesses the social responsibilities towards society where they try and perform good work for society to be popular and on good will. It is also eco-friendly and they trends to preserve nature while manufacturing products by less carbon being produced. This report describes about the Colgate’s competitors which provides an understanding that Colgate has big numbers of competitors in markets and very strong in their production and market. All the references are given at the end according to the research done. III 1.0 Introduction A situation analysis is the method of marketing plan that a manager applies to analyze and understand both the internal and external environment with regard to its strengths and weaknesses and in terms of its potentialities and threats. Toothpaste industry in Australian is expanding rapidly in the retails sales and continues to expand presenting positive growth. Also it is minimizing its price to grab the attention of youth and children towards its market. Toothpaste industry consists various toothpastes’ types: natural toothpaste, herbal toothpaste, baking soda toothpaste, children’s toothpaste etc which contributes variety of choices to the consumers. The situation analysis report includes full detail marketing analysis, plans and strategies for growing developments and environment trending. 2.0 Situation Analysis Situation analysis includes both the factors of macro environment that have impacts on different inside the organization. The significance of situation analysis is to create the proper understanding of organizational position and it presents the internal and external trends about company survival, position and states. 2.1 External Environment Colgate is one of Australia’s most popular toothpaste. They own a huge market in Australia and their target market is towards children, young peoples and senior citizens. Colgate commits 78% of their packaging is recyclable . Similarly, Colgate mentioned that greenhouse gas emission have been dropped by 25% from 2003- 2012 (Annual Report of Colgate 2016, 2016) which automatically creates efficiency in their external environment. However, Colgate had controversy over the chemical for some duration of time. In 2010 the European Union banned ‘triclosan’ in all products but still gave permission to be present in the toothpaste till 0.3 %. Moreover, when we are brushing our teeth we are allowing entering in our very specific part of the mouth for short period of time. Then EPS examined the effect of triclosan on thyroid hormones and estrogen levels. According to Tamara Daran, Colgate Australia spokeswoman, Colgate user can be fully secured about the non toxicity of toothpaste. ( Bagshaw, 2017). But also in the time of controversy, Colgate lost some of their customers. 2.1.1 Macro Environment Trends 1 Colgate has been created on six environmental components that enable them to maintain consistency in their economic behavior and demographic due to the reason that their target market is focused in all age group of individual and each of the customers is enjoying their product while purchasing Colgate products. Colgate products are designed for various kinds of purposes such as healing gums problems, whitening teeth, removing germs and sensitivity which increase their product’s demand for customers to purchase them. Colgate has various types that target various ages’ groups such as Colgate Children’s Toothpaste for children, Colgate total for adults and elder person, Colgate sensitivity for patient of hypersensitivity and many more. As their main motive is to give reason to smile with the healthy and white teeth Political Environment Colgate is restricted to use company resources for contribution of any candidates or political party.() Economic Environment There has been downfall in worldwide net sales by 5.0 %. Likewise operating profit has increased by 38 %, dividend paid per share is increased by 3 %.( Annual Report of Colgate 2016, 2016) Socio-Cultural Environment Colgate is thankful for commitment and enthusiasm of Colgate employees all around the world. Treating all customers with fairness and integrity is primary objective of Colgate. Technological Environment Colgate is heading towards the improvement of oral health through the development of leading edge technologies. Its technologies effort spans both OTC technologies and drug with prevention and treatment of oral diseases. Natural Environment Colgate is focused to control deforestation of our planet. It has increase the use of wood fiber, recycled content and alternative fibers in order to preserve the nature. 2.1.2 Competitor Analysis Colgate’s biggest competitor is Sensodyne toothpaste. It had net sales of USD 65.65 Billion. Its gross profit was 17.98 Billion in 2015.( Annual Report GlaxoSmithkline, 2015) It is progressing and coming up in fast speed to get equal to Colgate. Another competitor is Oral-B toothpaste which has USD 65.3 Billion in the year 2016. (P & G Annual Report, 2016). Along with these companies Colgate has very high competition with more other companies. 2.2 Internal Environment Colgate’s Internal Environment is based on self governing their , their style of managing is decision making which involves all their employees, managers and board of directors which they discuss about the company’s success, progress, profit and development. Colgate has kept the machines in place of their staffs; they are using? this sort of high technology to produce their products in less time. Employees of Colgate at all levels keep person responsibility for being leaders and they agree to conduct business with high integrity. Theses all are quiet significant aspects of Colgate’s business as they help in growth and expansion of business 2 2.2.1 Evaluation of the company’s internal Capabilities and core competencies. Colgate has very strong target market and experience in the toothpaste industries. The high quality of their toothpaste shows their characteristics and makes their customers loyal and faith able to their product. Colgate always tends to manufacture new types of toothpastes by mixing different ingredients in it to attract more consumers attention and remain best in the market Colgate tries various new strategies to promote and create publicity of their products by bringing many expertise dentists in their advertisement in television and other form of media so there will be high demand and supply of their product. This is one of the effective strategies to advertise their product Colgate has big name and fame in the market which they want will to lose it at any cost. So, each and every year they modify their product with the packaging designs or natural ingredient among their managers, leaders and staffs that improves their products, quality and standards. 3.0 Conclusion and Recommendation Colgate is world’s leading toothpaste which has huge reputation and brand image. This company is important to other companies to analysis its external and internal environment so that they can have a proper understanding. Water use per tones of product manufactured is being deducted by Colgate. Colgate should be more eco friendly and work for the society along with increasing their products good will. Colgate should use more natural ingredients in its products instead of chemical for whitening teethes of consumers. 3 References Annual Report of Colgate 2016. (2016). Retrieved from http://files.shareholder.com/downloads/CL/4339804468x0x935194/6BF5EC44-AB57-420E-A38B-0A19953BA2C6/Colgate-Palmolive_2016-Annual-Report.pdf Annual Report GlaxoSmithkline. (2015). Retrieved from https://pk.gsk.com/media/128803/gsk-annual-report-2015.pdf Bagshaw, E. (2017). Colgate Total toothpaste under scrutiny over ingredient. The Sydney Morning Herald. Retrieved 26 April 2017, from http://www.smh.com.au/nsw/colgate-total-toothpaste-under-scrutiny-over-ingredient-20140819-1062ws.html P & G Annual Report. (2016). Retrieved from https://www.pg.com/fr_FR/downloads/annual_reports/PG_Annual_Report_2016.pdf Marking guide for Situation Analysis: Total Marks Marks Scored Introduction 5 1 External Environment Macroenvironment Competitor Analysis 40 20 5 5 Internal Environment Capabilities 20 5 Referencing 5 1 Presentation 5 1 Conclusion 5 1 Total Marks 100 19 Total Marks out of 25 5 Comments4 : The student has admitted that he got “help” in doing this assignment. There is a strong evidence of collusion between this student and another student in class.