COLGATE-PALMOLIVE BALIK ABS-CBN!

It's quite a shock that after almost a year of dispute, COLGATE-PALMOLIVE Phils. Inc. went back to ABS-CBN for its advertising services. It can be remembered last year that because of Ad rates disagreement with ABS-CBN, COLGATE-PALMOLIVE Inc. pulled out all their TV advertisements estimated to cost around P400 million from ABS-CBN.

Accordingly the multi-national toothpaste and shampoo producer demanded Media Giant ABS-CBN to slash off its ad rates by half as a reward for its loyal subscription. But the idea was rejected by the TV Network considering that the company is strictly following the 18-minute rule advocated by the KBP. The Media Titan also argued that the proposal will be unfair for other loyal (but not exclusive) advertisers which may cause turmoil in the advertising market.

But this raged the multi-national shampoo and toothpaste producer, as they canceled all their subscription schedules with ABS-CBN and find refuge in its main rival GMA Network. Since then all product brands produced by Palmolive-Colgate were exclusively seen on GMA's TV Channels, Q11 and GMA-7.But for the past few days Palmolive and Colgate product brands were once again spotted in channel 2's commercial period indicating a renewal of partnership between the two business firms. The reason for this was the rumored wilting sales of Colgate and Palmolive brands which affected the financial condition the company. Accordingly the illogical strategic shift in advertising is the main cause of the down turn in sales .

Based from AGB Neilsen, ABS-CBN has the advantage in all economic classes from A to E especially in the upper economic classes, while GMA Network holds a significant margin in the Class E market which unfortunately has a lesser purchasing power. However the target market of CP are on classes C and D and since GMA Network is behind in these markets the volume of sales weakened. Realizing the mistake in its marketing strategy Colgate-Palmolive redirected its ad subscription back to ABS-CBN. However it was not certain if the subscription will once again be exclusive or it will be an open agreement with all existing TV Outfits, just like leading competitors UNILEVER and Proctor & Gamble.