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Advertising Research Foundation's 75th anniversary - Colgate
 

Advertising Research Foundation's 75th anniversary - Colgate

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A presentation given at the Advertising Research Foundation’s (ARF) 2011 Annual re:think convention to show the effectiveness of advertising research. This presentation celebrates the ARF’s 75th ...

A presentation given at the Advertising Research Foundation’s (ARF) 2011 Annual re:think convention to show the effectiveness of advertising research. This presentation celebrates the ARF’s 75th Anniversary. Presentation is on the role of research played in Colgate’s success.

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    Advertising Research Foundation's 75th anniversary - Colgate Advertising Research Foundation's 75th anniversary - Colgate Presentation Transcript

    • ADVERTISING RESEARCH FOUNDATION 75th Anniversary
    • CHANGE
    • THENTelex machine
    • NOWTexting while driving
    • THEN 2 cellphonesper 1,000 people
    • NOW2,000 cellphonesper 1,000 people
    • THEN:PUBLIC VIEW OF BUSINESS
    • THEN:PUBLIC VIEW OF BUSINESS
    • NOW:PUBLIC VIEW OF BUSINESS
    • NOW:PUBLIC VIEW OF BUSINESS
    • TODAY The role of research in Colgate’s success How this role will continue to grow
    • INSIGHTS AS THE NAVIGATOR
    • INSIGHTS AS THE NAVIGATOR
    • LOOKING BACK
    • OBSERVER ANDMEASURER
    • MEASURER ANDINTERPRETER
    • INTERPRETER AND NAVIGATOR
    • NAVIGATOR ANDREPUTATION GUARDIAN
    • YOU HAVE TO PUSH TO GET THERE
    • RESEARCH
    • COLGATE RESEARCH Truthfulness Constant push to increase influence Always demand a seat at the decision table
    • THE ROLE OF RESEARCHIN COLGATE’S SUCCESS
    • DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
    • DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
    • OPERATING PROFIT ($MM) $379 $296 $231$20685 86 87 88
    • OPERATING PROFIT ($MM) 379 296206 23185 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
    • OPERATING PROFIT ($MM) 3,796 3,615 3,265 2,959 2,567 2,339 2,211 2,239 2,054 1,875 1,773 1,597 1,451 1,315 1,185 1,011 1,067 910 780 626 558 462 379 296206 23185 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
    • DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
    • RETURN ON CAPITAL Goal 15.0%
    • RETURN ON CAPITAL Goal 15.0% 12.7% 11.6%10.0% 1985 1986 1987
    • 37.0%RETURN ON CAPITAL Goal 15.0% 12.7% 11.6%10.0% 1985 1986 1987 2010
    • DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
    • TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88
    • TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +102% S&P
    • TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +152% +102% S&P Peer Group
    • TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +164% +152% +102% S&P Peer Group Colgate
    • TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10
    • TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10 +1,349% S&P
    • TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10 +3,556% +1,349% S&P Peer Group
    • TOTAL SHAREHOLDER +5,342% RETURN 27 Years 12/31/83 – 12/31/10 +3,556% +1,349% S&P Peer Group Colgate
    • RESEARCH
    • C-P STRATEGICC-P INITIATIVES
    • C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit
    • RESEARCHDOMINATION
    • WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 Comp. 1 Comp. 2 Colgate
    • WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 14.6 Comp. 1 Comp. 2 Colgate
    • WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 14.6 9.0 Comp. 1 Comp. 2 Colgate
    • WORLDWIDE TOOTHPASTE SHARES 44.3 31.016.2 17.0 14.6 9.0 Comp. 1 Comp. 2 Colgate
    • EXITING STRATEGICALLYNON-VIABLE CATEGORIES
    • WORLDWIDE DETERGENT SHARES 46.4 2001 19.8 7.9Comp. 1 Comp. 2 Colgate
    • C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit  Accelerate new product process
    • BEFOREU.S.-CENTRIC RESEARCH
    • BEFORELOCAL NEW PRODUCT INDEPENDENCE
    • RESEARCH GLOBALCONSUMER INSIGHT AND INNOVATION CENTERS
    • CONSUMER INSIGHT AND INNOVATION CENTERS
    • RESEARCH NEW PRODUCTROLL-OUT SPEED
    • BEFORE LENGTHYCOUNTRY-BY-COUNTRY PROCESS
    • 20 languages, single execution
    • C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit  Accelerate new product process  Improve global creative excellence
    • RESEARCH IMPROVE GLOBALCREATIVE EXCELLENCE
    • NEW AGENCYCOMPENSATION SYSTEM
    • IMPORTANCE OF THE BIG CREATIVE IDEA
    • LEADERSHIP STEPSTO CREATIVE EXCELLENCE Be the best client they have Really care Mutual trust Ask for excellence Clear direction Look for the big idea Ensure agency profitability
    • MEDIA SELECTION
    • SPENDING TESTS
    • SHOPPER MARKETING EXPLORATION
    • NEW MEDIA TESTING
    • RESEARCHDEFINING AND BUILDING GLOBAL VALUES AND CULTURE
    • CULTURE ANDWALL STREET
    • RESEARCHVALUES
    • COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
    • COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
    • NORMAL CURVE
    • GLOBAL CURRICULUM 270+ Courses
    • 3,000 CERTIFIEDCOLGATE INSTRUCTORS
    • COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
    • GLOBAL PLAN FOR PROFESSIONALRECOMMENDATION
    • COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
    • CARING AND RESPECTING: Consumers The world we live in Each other Integrity of the organization
    • CODE OF CONDUCT
    • DIVERSITY
    • SUSTAINABILITY
    • FUTURECONSUMERS
    • OVER 500 MILLION CHILDREN REACHED WORLDWIDE
    • BUT…
    • CURRENT BUSINESS CLIMATE BRINGS NEW OBLIGATIONS
    • NOW:PUBLIC VIEW OF BUSINESS
    • BUSINESS DISHONESTY
    • PERCEPTION EXCEEDS REALITY
    • RESEARCH HAS ABIG OBLIGATION
    • MUST CONSTANTLYOBSERVE THE WHOLE ORGANIZATION AND ALL ITS PARTS
    • OBSERVE GOOD PRACTICES ANDDETECT PROBLEMS
    • PROBLEMS/GOOD PRACTICES  Products  Environmental  Human  Regulatory
    • THEN WHAT?
    • THE ROLES OF NAVIGATOR ANDGUARDIAN ARE VITAL
    • YOU ARE A MAJOR FACTOR IN CURRENT AND FUTURE BUSINESS SUCCESS
    • ONLY YOUCAN DO IT