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Colgate Toothpaste Practicum #5 Bus 306 Spring 2014

Colgate Toothpaste Practicum #5 Bus 306 Spring 2014 . By Patrick Sasaki Bret Russell Sean Curtis Michael Isom. Colgate Commercial. https://www.youtube.com/watch?v=_3G7vpYd3S8 3:38-4:25. Chapter 12: Marketing Channels -Delivering Customer Value.

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Colgate Toothpaste Practicum #5 Bus 306 Spring 2014

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  1. Colgate Toothpaste Practicum #5 Bus 306 Spring 2014 By Patrick Sasaki Bret Russell Sean Curtis Michael Isom

  2. Colgate Commercial https://www.youtube.com/watch?v=_3G7vpYd3S8 3:38-4:25

  3. Chapter 12: Marketing Channels -Delivering Customer Value Chapter Objectives -Objective 1: Marketing Channel uses and their Functions. -Objective 2: Behavior and Organization of Market Channels. -Objective 3: Distribution Channel Decisions. -Objective 4: Channel Management and Distribution. -Objective 5: Logistics and Supply Chain Management

  4. Supply Chains -Supply Chains -Consists of upstream and downstream partners. -Downstream partners are distribution channels such as retailers and wholesalers. -Distribution Channels -Marketing channels directly affect every marketing decision.

  5. Colgate Distribution Relations -Colgate’s prices are affected by its supplier type. -Their new products must be able to adhere to channel partner operations. -Colgate’s sales decisions are based on its downstream channels. http://english.vietnamnet.vn/fms/business/85431/foreigners-sell-toothpaste-at-below-production-costs-.html

  6. Number/Layers of Channel Levels -Channel Levels - Three types of channel levels. -Channel 1 (Direct Marketing Channel) -Company sells directly to consumers. -Channel 2 (Indirect Marketing Channel) -Company uses only one distribution channel. -Channel 3 (Indirect Marketing Channel) - Company uses more than one marketing channel.

  7. Channel Levels Channel 1 Channel 2 Channel 3 Number of Levels Producer Producer 1 2 3 Producer Wholesaler Retailer Retailer Consumer Consumer Consumer

  8. Colgate's Distribution Model

  9. Channel Behavior and Organization... -Channel Behavior -Channel partners rely on one another for maximum efficiency and profit. If disagreements occur, channel conflict arises. -Horizontal and Vertical Conflicts -Horizontal, is conflict between same channel levels. -Vertical, is conflict between different channel levels.

  10. Channel Behavior and Organization... -Vertical Systems - A vertical system: Has channel leadership and includes producers, wholesalers, and - retailers. Types of VMS- Corporate VMS: Ownership. Contractual VMS: Contracts. - Administered VMS: Power. - Horizontal Systems - A horizontal system is when two channels of the same level join together to create a better marketing opportunity.

  11. Vertical Marketing System Horizontal Marketing System http://www.mbaknol.com/marketing-management/concept-of-distribution-channels-in-marketing/ http://www.impowerable.com/protect-the-planet/how-mcdonalds-and-wal-mart-affect-your-food/

  12. Channel Behavior and Organization... -Multi-Channel Distribution - Organizations create multiple distribution channels to reach various segments. -Changing Channel Organization -A changing world filled with advanced technology calls for different distribution measures. Multi-Channel Distribution

  13. Distribution Channel Decisions -Analyzing Customer Needs -Each channel level must be selected carefully, each level adds value to the customers. -Setting Channel Objectives -A company must figure out which channels work best for each segment. -Identifying and Evaluating Alternatives -Marketing Channels vary in types, numbers, and responsibilities. -International Distribution Channels -International intermediaries face complex and challenging issues.

  14. Colgate’s Distribution Decisions -Colgate implements Intensive Distribution: As many as outlets as possible (Trunick, 2011) -Colgate’s International Distribution Channels consist of One Central Distributor for the entire region(Trunick, 2011)

  15. Channel Management Decisions -Selecting, Managing, and Evaluating Distribution Members. -Distribution Policy -Exclusive distribution is when a company allows only a certain outlets to carry its products. -Exclusive dealing is when a company requires a channel to not handle its competitor’s products.

  16. Logistics and Supply Chain Management -Importance and Goals of Logistics -Functions -Warehousing -Inventory Management -Transportation -Information -Integration of Logistics -Involves teamwork, building relationships, and third-parties. http://www.imperiallogistics.co.za/imperial-news/566/imperial-wins-colgate-palmolive-contract

  17. Colgate’s Logistics Success -Transportation- 65 Ocean Containers, 3800 Truck Loads per week. (“Colgate palmolive,”) - Negotiated Global Tender Agreement allowing cheaper shipping overseas (Colgate palmolive,”) -Green Logistics-Colgate cut 1.8 million miles of line haul from its system, which equates to 300,000 gallons of diesel and 3,000 tons of carbon emissions (“Colgate palmolive,”) - Integrated -Third Party Logistics- Outsourced Logistics to Imperial Logistics Co. (“Imperial logistics, 2014) https://www.dlsweb.rmit.edu.au/bus/mk100/html/lect_10.html

  18. What we Learned Michael- The importance of marketing channels and the roles that they play. Also the different levels there are and how they work. Patrick-The amount of time and effort it takes a product to go from raw material to end user. The intricate design of a supply/distribution chain and the importance of each decision. Bret- I found it intriguing that third-party logistics can play an such important role in distribution marketing. As it is affects every other decision. Sean- The internet has produced a lot of channel conflict and disintermediation for companies.

  19. References -Imperial Logistics. (2014, January 30). Imperial wins Colgate-Palmolive contract. Retrieved April 3, 2014, from http://www.imperiallogistics.co.za/imperial-news/566/imperial-wins-colgate-palmolive-contract -Marketing (15th th ed., p-Kotler, P., & Armstrong, G. (2014). Principles op. 191-216). Upper Saddle River, NJ: Pearson. -Francis, A. (2010, September 23). Concept of distributing channels in marketing. In MBA Knowledge. Retrieved April 3, 2014, from http://www.mbaknol.com/marketing-management/concept-of-distribution-channels-in-marketing/ -Trunick, P. (2011). Colgate logistics delivers smiles. Retrieved from http://www.inboundlogistics.com/cms/article/colgate-logistics-delivers-smiles/ -Colgate palmolive. (n.d.). Retrieved from http://p7distributioncasestudy.wikispaces.com/Colgate Palmolive

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