Economic factors that affect the colgate brand

Economic factors that actuate the colgate brandThe overall economic system of the country is showing a stable maturation. at that placefore this assiduity is overly showing a growth of 10%. But the flash is growing rapidly which is not a good sign for the sore entrants. mixture in the interest rate withal appropriates the perseverance. Hence the new entrants argon also be by the increasing interest rates.Economic factors do influence the bargaining power of buyers as inflation is the major factor that is affecting the consumers hard.Economic factors do not affect the availability of substitutes. But since inflation is growing, so it is hard for the poor people to switch to more than(prenominal) modern products wish well washing powder, tooth paste. They would kind of prefer oil to clean their fabrices and use miswak to brush their teething.Economic factors do adopt an affect on the bargaining power of suppliers as inflation is rising fast. Suppliers demand that t hey would provide the necessary crank material at a uplifteder monetary value. Exchange rate fluctuations also affect the cost of keen material.Economic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors ar favoring intense competition from the pull round five years. raft have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff.).Quantitative Strategic think Matrix (QSPM)STRATEGY 1STRATEGY 2WeightsASTASASTASSTRENGTHSMarket leader in bulge guardianship with 90% market share0.15Good Leadership0.06Employee commitment0.1230.3620.24Cooling crystal patent0.1Accurate forecast with respect to demand0.0740.2820.14 graduate(prenominal) EPS0.0830.2420.16Strong advertisement and promotional campaign0.0820.1630.24WEAKNESSESIT not apply optimally0.1340.5220.26No ecommerce0.130.320.26No proper use of prior integration0.0520.130.15They are not exporting their prod ucts to otherwise countries0.061OPPORTUNITIESExploring into new categories like shampoo, hand wash , body wash, shower gel0.1420.2840.56Rural population shimmy from miswak to toothpaste0.06Gap in tooth brush market0.0820.1630.24Implementation of ERP(SAP)0.1440.5620.28 people becoming hygiene and beauty conscious0.120.230.3No layoffs0.07THREATS(T)Raw material and susceptibility prices are increasing0.1230.3620.24Inflation in the country0.0730.2120.14Competitors re launching their products0.120.230.3Competitors increasing their marketing budgets0.0620.1230.18Unstable law and pasture conditions.0.061TOTAL4.053.69Rivalry among existing competitorsYes (+)No (-)The industry is growing rapidly.The industry is not alternate(prenominal) with intermittent overcapacity.The fixed costs of the business are relatively low portion of total costs.There are signifi tusht product differences and brand identities between the competitors.The competitors are diversified rather than specialized.It w ould not be hard to get out of this business because thither are no specialized skills and facilities or long-run contract commitments etc.My customers would incur significant costs in switching to a competitor.My product is intricate and requires a detailed understanding on the part of my customer.My competitors are all of approximately the same size of it as I am.INTERPRETATIONThreat of competitors is high because the product is not unique as there are no product differences. Same products are available with all competitors like Unilever, Procter and Gamble, Shield, Oral B. thus rivalry is also increasing as demand in the economy has also increased for the last 5 to years. Majority of the competitors are MNCs which means that they have the necessary resource and skill (Hiatt, Jeff). politics FactorsGovernment regulations do have an affect on the rivalry among the competitors.Political factorsPolitical factors do not affect the rivalry among the competitorsEconomic factorsEcono mic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff). genial trendsSocial trends have changed, buyer are more aware of their purchases. So the players in the industry are always trying hard to increase their market share (Hiatt, Jeff).Technological changeTechnology is component part the companies to gain a competitive advantage over their rivals. Also research and development plays an important mathematical function in this (Hiatt, Jeff).KEY SUCCESS ACTORS FOR COMPETIVE SUCCESSLow cost production efficiency. CP has plants installed that take only 30 minutes for the plant to shift from the production of one product to the other.High quality manufacturing of products with very hardly a(prenominal) defects.A strong network of livelong sale distributors.Gaining ample space on retailer shelves. (Examples Naheed, Aghas, Makro and other splendid shops.)Attractive packaging and styling.Good length of product lines.Attractive commercials and advertising.Good reputation in the industry along with favorable reputation with buyers.Market penetrationColgate can do market penetration by increasing its advertising, people always associate Colgate with tooth paste and have no awareness that it produces personal and surface care products as well. They should show their logo on all its products so that people know the producers and this exit increase customer loyalty and also when people will come to know that Colgate is the producer consequently new customers will also buy the product (Hiatt, Jeff).They should also increase their promotion efforts by dismissal to school and doing health awareness programs, also they should go to residential areas and make women aware of their surface care and fabric care products such as m ax, bonus and express etcProduct developmentColgate can also do product development by introducing new features in their already existing brands. They can purify their tooth brush quality and features by introducing flexi tooth brushes for special oral care. Also they can introduce whitening features in their feature in their tooth paste different colors of tooth paste can also be introduced to take up the kinds market. In their fabric care they can introduce in special features of protecting the color of the cloth while washing and also whitening enhancing surfs to give a good shine to while enclothe (Hiatt, Jeff).develop systems to involve appropriate stakeholders in the introduction of changeSIX THINGS REQUIRED TO EFFECTIVELY IMPLEMENTING A STRATEGYAccording to Porter, to implement a strategy effectively six things should be followedCreate a formal planDistributorQuantity Item Price Negotiation,Inventory Reporting, Stock Details, Payment damageHR ModuleInventory / StoreCreate a multifunctional teamTo effectively implement ERP, Colgate must first hire an independent resource firm.Acquire licensing for SAP Implementation.Establish an independent IT unit for the observe of ERP. This department will coordinate with all the other departments (Robbins S, Mukerji).Communication of strategy inside and outside altogether employees in the company should be made aware of the new automated system. Each employee must be provided a minimal insight of SAP but those employees who have to work on SAP the al just about should ofcourse be provided with proper genteelness course of SAP. These includeFactory passenger carManager accountsWarehouse ManagerDistribution teamConsumer insight departmentOutside the company the strategy to implement ERP should be communicated correctly to all the local and foreign suppliers of Colgate Palmolive (Hagberg).Consistency over timeAs Information Technology is progressing twenty-four hours by day, new changes in ERP are expected aft er certain time periods. Therefore it would flummox very important for Colgate to cope up with the changes in the software. For this purpose it would need to update it employees by providing training whenever any change takes place in SAP (Hagberg).Use proper measurementsOther measures, not that financial measures would be required to test whether the system is working properly. These measures includeWhether the system is accurately forebode demand, gross sales, price changesWhether or not there are any deviations in the actual versus projected salesEffectiveness of the internal processes after the strategy implementation (Robbins S, Mukerji).Test the strategyAsk employees and senior management in all departments whether they are satisfied with the new system of working. Talk to suppliers and distributors whether they want any more improvements in the new system of working (Hagberg).KEY DRIVING FORCESIndustry growthNow most of the people have knowledge about the different produ cts and its advantages. The intense competition in industry and high demand enables the new entrants to compete in this market (Hagberg).Product innovationInnovation in product, as Colgate has just introduced Max fresh in which the coolant crystals are present which none of the competitors has adopted yet. There is also room in innovation in washing detergents (Hagberg).Changing societal concerns, attitudes and lifestyleSince social issues are really effecting the use of product just like the use of Miswak which is the Islamic mode of cleaning the teeth (Hagberg).Use of E-commerce and InternetUsage of online ordering and maintaining the stock level through e-commerce can be capricious force in the industry. By using that they can provide products to customer which is value addition for them (Hagberg).This accounting is purely based on the finding from the Colgate expert and the secondary data analysis, and the reason for writing the whole report is to find the obstacle / hindrance a business men face and how the organization can minimize it through implementing the different strategies and analysis.The whole report research draws attention tothe fact that any paradox can be eliminate if proper investigation and consideration can be observed the achievement is easy to get, Pakistan market is mature market and the competition is tough here because most of the customer is price conscious and act like butterflies, so targeting this kind of customer is quite difficult, but on the other hand it can be managed if the you can understand the market effectively and efficiently (Robbins S, Mukerji).Hiatt, Jeff. HYPERLINK http//www.change-management.com/tutorial-definition- biography.htmThe definition and history of change managementHYPERLINK http//www.change-management.com/tutorial-definition-history.htm. http//www.change-management.com/tutorial-definition-history.htm.Filicetti, John (August 20, 2007). HYPERLINK http//www.pmhut.com/pmo-and-project-management-dictiona ryProject Management DictionaryHYPERLINK http//www.pmhut.com/pmo-and-project-management-dictionaryMoore, E.R., (accessed 1 April, 2001), Creating Organizational finales An Ethnographic Study, Eastern Academy of Management practical(prenominal) Proceedings,Moore, E.R., (accessed 1 April, 2001), Creating Organizational Cultures An Ethnographic Study, Eastern Academy of Management Virtual Proceedings,, R. Ph.D. Heifetz, D.Ph., 2000 (accessed 4 April, 2001), Corporate HagbergCulture/Organisational Culture UnderJerryding and Assessment,Robbins S, Mukerji D (1994). Managing organisations. 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(1984) Educational Leadership, Leadership and excellence in schooling, Volume 41, take 5, United States of America, page 4-13Kent State University 2000 (accessed 28thMarch, 2001), Kent State University Cultural Self-StudyInternal Communication of ChangeBy Dagmar ReckliesCircling the pyramid Building Lasting Commitment to Change (pdf-file)by Edmond MellinaWhat Makes a Good Change Agent?by Dagmar ReckliesThe Role of the Change Master From Change Agent to HYPERLINK http//www.themanager.org/ schema/Change Master.htmHYPERLINK http//www.themanager.org/Strategy/Change Master.htmChange MasterHYPERLINK http//www.themanager.org/Strategy/Change Master.htmBy Ruth TearleManaging Change Definition and Phases in Change Processesby Oliver ReckliesProblems in Managing Changeby Oliver ReckliesAuditNet.org provides a downloadable PDF of change management best practices.Fred Nickols wrote HYPERLINK http//home.att.net/nickols/change.htmHYPERLINK http//home.att.net/nickols/change.htmChange Management 101 A Primer.HYPERLINK http//home.att.net/nickols/change.htmSearchCRM.com provides resources on discussion change management following a CRM upgrade.Neglecting your change control process can kill an IT incident recovery plan.