Palmolive Naturals Company: Connecting with the Consumer

MGT 151

Palmolive Naturals Company: Connecting with the consumer

Adag, Debbie Jane

Bautista, Ronna

Diego, Deune Jun

Diaz, Gilyn

Evangelista, Juan Raphael

Lopez, Miguel Gabriel Othmar

November 14, 2017

Point of View

This case will be from the point of Gigi Alvarez and will be set in 1996, this is to be in line with the set backstory of the case. As the senior product manager of Palmolive shampoo, she is able to apply any necessary course of action needed to improve the marketing and distribution of the Palmolive naturals shampoo.

Market Analysis

Opportunities-Threats Analysis

Opportunities

Threats

Studies on consumer insights may be used in formulating marketing strategies

It is in a highly competitive marketing marketing environment.

It is in a highly competitive marketing marketing environment however this also can be used as a motivation to further improve.

There is a decrease in customer loyalty.

Opportunities to increase consumption levels are presented.

Brand Switching is done often and is very common.

Use of surveys and studies on leading brands.

Other competitors claiming they are the leading brand with the use of surveys and studies.

Brand new technology or developed technology to improve operations on developing products such as packaging

The trend on consumer’s buying behavior on shampoo is in a repetitive choice decision manner thus this can be used to form marketing strategies.

Table 1. Opportunities-Threat Analysis Table

Strengths- Weaknesses Analysis

Strengths

Weaknesses

It is the market leader in the year 1996, thus it has the power to influence the market.

It has a weak image differentiation.

It has a strong consumer research group that it may use to discover to different consumer behavior.

Its packaging is not much different from other brands.

It is the leading marketer if not a leader in most product categories it competes in namely oral care products, skin care products, household care products and of course hair care products.

It has a poor or weak coverage on the distribution in Visayas and Mindanao.pe

It has a general good distribution and also palmolive naturals shampoo is popularly priced.

It has a poor overall product differentiation

Shampoo is a high-margin product.

It is frequently purchased and is a low involvement product.

Table 2. Strength-Weaknesses Analysis Table

Product Life Cycle (PLC)

The Palmolive Naturals Shampoo, based on its characteristics, objectives and strategies, is at its Maturity Stage of its Product Life Cycle (PLC). Summary is listed in the data below.

Criteria

Characteristics/Objectives/ Strategies

Sales

Peak Sales: In the year 1996, one can say that Palmolive was at its peak sales since it was the market leader at that time. It also gives the company a high contribution margin thus its sales is definitely high and at its peak.

Costs

Low Cost: Palmolive Naturals is using

popular pricing as its strategy to reach its target market. Popular pricing is a strategy that uses low costs to popularize a product