Marketing and Distribution of Toothpaste

Marketing and Distribution of Toothpaste
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Marketing and distribution of toothpaste
Different toothpaste consumer products have been produced and introduced into the markets to provide general oral care. Companies have manufactured a wide range of toothpaste for any age, children, teenagers, and adults. Different economic factors have played a significant role in shaping the future of the setup companies and keeping a healthy competitive environment. Colgate-Palmolive, GlaxoSmithKline PLC, Unilever PLC are some of the most prominent players in the competitive world market. They have continued to dominate for the past few decades. This essay will discuss how economics and various economic factors have contributed to forming these giant companies from identifying a market gap, turning it into an opportunity, and their inception.
A market gap is an opportunity to make and sell a product that is not available or its scars to find and make a profit at a low cost of production (Abendroth, & Pels, 2017). (. Toothpaste manufacturing companies noticed the need to have toothpaste and its product produced to meet the ever-growing market. People are progressively inclined to use toothpaste and its products to maintain their dental health, making it necessary that a human being cannot leave without. Companies investing in product marketing and di paste distribution have enjoyed the going concern principle since humans will always use paste.
Companies set up shop to make money by making a profit through supplying goods to meet the demand in the market. At the same time, consumers are looking to maximize utility, and producers maximize their profit (Knittel & Pindyck, 2016). The existence of demand or a ready market calls for supply to match it with a price to be determined by t both demand and supply forces in the case of perfect completion. An increase in the price of a commodity will trigger an increase in supply since suppliers are looking to make more sales. Customers can also be driven away by a high price. The same effect will happen if the costs increase and the demand decrease, supply will reduce.
“Customers is king." Firms’ success depends on the satisfaction of their customers. For a firm to do that, it should know the consumer's behavior. Since their behavior keeps changing due to innovations, technology, and lifestyle change, it may prove not easy to understand consumers. Unlike in the olden days, it is hard to classify consumers by demographics factors. Consumers' buying behavior has entirely changed. They seem to make their decisions according to product design and packaging. For instance, Colgate products are targeted to the middle class, where most sales come (Baetjer, 2017). Consumers have the purchase decision, where a consumer decides to purchase a good from the available choices. They decide what, where, and when to buy, and at what price. The following are some of the factors that can influence consumer's decisions on purchasing a product.