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$20685    86     ...
OPERATING PROFIT                                            ($MM)                379          296206 23185 86 87 88 89 90 ...
OPERATING PROFIT                                                                   ($MM)                                  ...
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   1...
37.0%RETURN ON CAPITAL                        Goal                        15.0%                12.7%        11.6%10.0% 198...
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 G...
TOTAL SHAREHOLDER      RETURN     Five Years   12/31/83 – 12/31/88                              +164%                    +...
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          Pee...
TOTAL SHAREHOLDER             +5,342%      RETURN       27 Years   12/31/83 – 12/31/10                   +3,556%   +1,349%...
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     Co...
WORLDWIDE TOOTHPASTE       SHARES                           31.016.2          17.0       14.6                     9.0  Com...
WORLDWIDE TOOTHPASTE       SHARES                                  44.3                           31.016.2          17.0  ...
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    Impro...
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 excellenc...
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
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
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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 Anniversary. Presentation is on the role of research played in Colgate’s success.

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Advertising Research Foundation's 75th anniversary - Colgate

  1. 1. ADVERTISING RESEARCH FOUNDATION 75th Anniversary
  2. 2. CHANGE
  3. 3. THENTelex machine
  4. 4. NOWTexting while driving
  5. 5. THEN 2 cellphonesper 1,000 people
  6. 6. NOW2,000 cellphonesper 1,000 people
  7. 7. THEN:PUBLIC VIEW OF BUSINESS
  8. 8. THEN:PUBLIC VIEW OF BUSINESS
  9. 9. NOW:PUBLIC VIEW OF BUSINESS
  10. 10. NOW:PUBLIC VIEW OF BUSINESS
  11. 11. TODAY The role of research in Colgate’s success How this role will continue to grow
  12. 12. INSIGHTS AS THE NAVIGATOR
  13. 13. INSIGHTS AS THE NAVIGATOR
  14. 14. LOOKING BACK
  15. 15. OBSERVER ANDMEASURER
  16. 16. MEASURER ANDINTERPRETER
  17. 17. INTERPRETER AND NAVIGATOR
  18. 18. NAVIGATOR ANDREPUTATION GUARDIAN
  19. 19. YOU HAVE TO PUSH TO GET THERE
  20. 20. RESEARCH
  21. 21. COLGATE RESEARCH Truthfulness Constant push to increase influence Always demand a seat at the decision table
  22. 22. THE ROLE OF RESEARCHIN COLGATE’S SUCCESS
  23. 23. DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
  24. 24. DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
  25. 25. OPERATING PROFIT ($MM) $379 $296 $231$20685 86 87 88
  26. 26. OPERATING PROFIT ($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
  27. 27. 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
  28. 28. DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
  29. 29. RETURN ON CAPITAL Goal 15.0%
  30. 30. RETURN ON CAPITAL Goal 15.0% 12.7% 11.6%10.0% 1985 1986 1987
  31. 31. 37.0%RETURN ON CAPITAL Goal 15.0% 12.7% 11.6%10.0% 1985 1986 1987 2010
  32. 32. DEFINING “SUCCESS” Operating Profit Return On Capital Growth in Shareholder Value
  33. 33. TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88
  34. 34. TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +102% S&P
  35. 35. TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +152% +102% S&P Peer Group
  36. 36. TOTAL SHAREHOLDER RETURN Five Years 12/31/83 – 12/31/88 +164% +152% +102% S&P Peer Group Colgate
  37. 37. TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10
  38. 38. TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10 +1,349% S&P
  39. 39. TOTAL SHAREHOLDER RETURN 27 Years 12/31/83 – 12/31/10 +3,556% +1,349% S&P Peer Group
  40. 40. TOTAL SHAREHOLDER +5,342% RETURN 27 Years 12/31/83 – 12/31/10 +3,556% +1,349% S&P Peer Group Colgate
  41. 41. RESEARCH
  42. 42. C-P STRATEGICC-P INITIATIVES
  43. 43. C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit
  44. 44. RESEARCHDOMINATION
  45. 45. WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 Comp. 1 Comp. 2 Colgate
  46. 46. WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 14.6 Comp. 1 Comp. 2 Colgate
  47. 47. WORLDWIDE TOOTHPASTE SHARES 31.016.2 17.0 14.6 9.0 Comp. 1 Comp. 2 Colgate
  48. 48. WORLDWIDE TOOTHPASTE SHARES 44.3 31.016.2 17.0 14.6 9.0 Comp. 1 Comp. 2 Colgate
  49. 49. EXITING STRATEGICALLYNON-VIABLE CATEGORIES
  50. 50. WORLDWIDE DETERGENT SHARES 46.4 2001 19.8 7.9Comp. 1 Comp. 2 Colgate
  51. 51. C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit  Accelerate new product process
  52. 52. BEFOREU.S.-CENTRIC RESEARCH
  53. 53. BEFORELOCAL NEW PRODUCT INDEPENDENCE
  54. 54. RESEARCH GLOBALCONSUMER INSIGHT AND INNOVATION CENTERS
  55. 55. CONSUMER INSIGHT AND INNOVATION CENTERS
  56. 56. RESEARCH NEW PRODUCTROLL-OUT SPEED
  57. 57. BEFORE LENGTHYCOUNTRY-BY-COUNTRY PROCESS
  58. 58. 20 languages, single execution
  59. 59. C-P STRATEGIC INITIATIVES  What businesses to emphasize, which to exit  Accelerate new product process  Improve global creative excellence
  60. 60. RESEARCH IMPROVE GLOBALCREATIVE EXCELLENCE
  61. 61. NEW AGENCYCOMPENSATION SYSTEM
  62. 62. IMPORTANCE OF THE BIG CREATIVE IDEA
  63. 63. 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
  64. 64. MEDIA SELECTION
  65. 65. SPENDING TESTS
  66. 66. SHOPPER MARKETING EXPLORATION
  67. 67. NEW MEDIA TESTING
  68. 68. RESEARCHDEFINING AND BUILDING GLOBAL VALUES AND CULTURE
  69. 69. CULTURE ANDWALL STREET
  70. 70. RESEARCHVALUES
  71. 71. COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
  72. 72. COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
  73. 73. NORMAL CURVE
  74. 74. GLOBAL CURRICULUM 270+ Courses
  75. 75. 3,000 CERTIFIEDCOLGATE INSTRUCTORS
  76. 76. COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
  77. 77. GLOBAL PLAN FOR PROFESSIONALRECOMMENDATION
  78. 78. COLGATE’S VALUES Continuous Improvement Global Teamwork Caring
  79. 79. CARING AND RESPECTING: Consumers The world we live in Each other Integrity of the organization
  80. 80. CODE OF CONDUCT
  81. 81. DIVERSITY
  82. 82. SUSTAINABILITY
  83. 83. FUTURECONSUMERS
  84. 84. OVER 500 MILLION CHILDREN REACHED WORLDWIDE
  85. 85. BUT…
  86. 86. CURRENT BUSINESS CLIMATE BRINGS NEW OBLIGATIONS
  87. 87. NOW:PUBLIC VIEW OF BUSINESS
  88. 88. BUSINESS DISHONESTY
  89. 89. PERCEPTION EXCEEDS REALITY
  90. 90. RESEARCH HAS ABIG OBLIGATION
  91. 91. MUST CONSTANTLYOBSERVE THE WHOLE ORGANIZATION AND ALL ITS PARTS
  92. 92. OBSERVE GOOD PRACTICES ANDDETECT PROBLEMS
  93. 93. PROBLEMS/GOOD PRACTICES  Products  Environmental  Human  Regulatory
  94. 94. THEN WHAT?
  95. 95. THE ROLES OF NAVIGATOR ANDGUARDIAN ARE VITAL
  96. 96. YOU ARE A MAJOR FACTOR IN CURRENT AND FUTURE BUSINESS SUCCESS
  97. 97. ONLY YOUCAN DO IT

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