Jahnvi Manek

Leveraging technology and Colgate's provision of care: EstablishingPresence within the e-commerce landscape Dok Chon, Hyunjung Kim, Juan Camilo Sanchez, Rasha Shihabi, Rebecca Paul & Jahnvi Manek

This analysis examined the growth of the Ecommerce landscape, mobile technology, and how the convergence of these two sectors has changed consumer behavior. Within that scope, key trends have been identified and applied to the development of a viable Ecommerce strategy for Colgate-Palmolive. These trends include: increased consumer spending online facilitated by mobile devices, and an increase in use of mobile technology as a tool for consumers to obtain information about products and personal care. This strategy is focused on Colgate-Palmolive’s Oral Care division, and the target demographic is Young Professionals living in the United States.

The components for this strategy include: amplifying Colgate-Palmolive’s value of care; establishing a strategic partnership with an existing retailer; and the development of a mobile application that connects consumers’ activity online and offline. Ultimately this strategy allows Colgate Palmolive to move forward within the Ecommerce space without exhausting their financial or human resources. Trends in consumer behavior- The combination of these two factors, Ecommerce and Mobile technology, has caused several shifts in consumer behavior. If leveraged correctly, these shifts could be potential opportunities for Colgate-Palmolive to engage and communicate with their consumers to support the sales of Colgate’s Oral Care products.

Our strategy was developed around the relationship that Colgate-Palmolive has with their customers (retailers). Colgate-Palmolive generates revenue from a B2B exchange between themselves as a supplier of goods, and their customers— the retail locations that sell Colgate products directly to the consumer. The success of this relationship is directly dependent on the financial stability of Colgate-Palmolive’s customers, which is driven by the consumers’ ability and desire to purchase goods. Colgate-Palmolive can help support this stability by strengthening their relationship with consumers. This approach is strategic because it ultimately creates value for all stakeholders

For this strategy, we have identified Young Professionals living in the United States as the ideal demographic. Young Professionals are described as— an ambitious group that embodies the work hard, play hard mentality. The daily record identifies Young Professionals as college educated adults between the ages of 24-39, heavy consumers of news and information. Research and trends show that this category will continue to increase their income in the next 20 to 30 years, and it is important for brands to capture their interest early on and to continually track this relationship into the future. Young Professionals are considered to be early adopters of trends and technology, they are very competitive when it comes to their career, they have a high average household income, and only one quarter of them have children to look after. This gives the giving them a significant spending power

In-store components. The in-store experience for this strategy gives consumers access to “Bright” information about the best products and procedures for a sound oral health. Consumers will be encouraged to download the Bright app via their mobile device through in-store communications (shelf signage advertising) that feature touch-codes or QR codes. Colgate’s Bright app will then enhance the in-store buying experience in the following ways: ? Recommend Oral Care products based on the consumer’s needs or purchasing history. ? Provide consumers with coupons and special offers for Colgate-Palmolive Oral Care products. ? Give consumers the ability to set reminders to buy Colgate oral care products when added to their shopping list. ? Inform consumers about complementary Colgate products and where they are located.

Future phases will include expansion into countries outside the United S tates, including partnerships with other drug stores and retailers.

In conclusion there are two main concepts that Colgate-Palmolive should incorporate into their future strategies. First, Ecommerce has created a new “space” for companies to display, advertise and sell their products; Colgate-Palmolive needs to understand this transition from the traditional offline shelf to the new virtual Ecommerce self, and the interplay between the two. The second is consumers are increasingly interested in “self-care,” and they are looking to utilize technology as a tool to make this as convenient as possible. This strategy incorporates both concepts seamlessly within each of its components. Not only can this strategy be implemented immediately, but it also provides Colgate-Palmolive with the tools they need to understand Ecommerce within the context of their business.

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