Colgate Palmolive

1. COLGATE PALMOLIVE

2. HISTORY
 Colgate Palmolive was
established by William
Colgate in 1806
 A global consumers
products company with
a diverse product
portfolio.

3. ABOUT COLGATE PALMOLIVE

4. Household and Personal Products
 Oral care
 Personal care
 Home care
 Pet Nutrition

5. Industry Products
 Household Products
• Laundry Detergent
• Cleaners
• Fabric Conditioner
 Personal Products
• Hair care
• Deodorant
• Soap

6. Financials

8. Competition

10. Proctor and Gamble
o Differentiator
o Price Leadership
o Reducing COGS
o Divestiture – focus brands (80
Products/ 90 % of sales)
o Innovation

11. Kimberly Clark
o Differentiator (Professional
Products )
o Ex: Work Gloves/ Tissues
o Divestiture of health care
products
o Focus on professional , consumer
care , consumer tissue
o Environmental Sustainability
o Innovation.

12. Clorox
 Differentiator (Concentrating
Health and Wellness )
 Environmental Sustainability
 Divestiture (Auto Care )
 Innovation
 Diversification of suppliers
 Cleaning (bleach ) and House
Products.

13. Strategies and Factors

14. Business Level Strategy
o According to Michael Porter ‘s Business level Strategy one would consider
Colgate – Palmolive to be a DIFFERENTIATOR .
• Name Brand Strategy
• Large Number Of Products
• Innovative
o The Miles and Snow Strategy would classify Colgate – Palmolive as both
a defender and prospector which means they consider Colgate – Palmolive
be an ANALYZER
• Always advancing current products
• Efficient

15. Corporate Level Strategy
o Related Diversification
• Many in store brand names
 Hill ‘ s science Diet Pet Food
 Colgate Toothpaste
 Palmolive Dish Soap
• Many products are similar in raw materials .

16. Distinctive Competence
o Diversified geographic operation
o Leading market position
o Large product and brand portfolio
o Continuous Improvement .

17. Critical Success Factors
o Offering high quality products at a lower price
o Positive Environmental Values
o Offers a variety and depth of products catering to every buying group

18. Stakeholder
 Stakeholder
 Employees
 Directors
 Local Communities
 Customers( End Users )
 Distributors
 Suppliers
 Business Partners.

20. Strengths/Opportunities
Opportunities
How will we use our strengths to take
advantage of our opportunities.
O1: Increase in disposable income
O2: Asian Market Expansion under
Developed nations.
03 : Increased in societal standard
O4 : Increased pet industry spending
Strengths
S1: Expansive Global Presence
S2: Large Market Presence
S3: diverse Product Lines
S4: Purchasing Power
S5: Inventory Turnover
Maxi-Maxi Strategy
1. Colgate – Palmolive should use its
affluence to expand into more
foreign markets , and grow it s
global brand
2. Expanding the company’s product
line to include more pet care item
as well as re branding one its
current products .

21. S/O Implementation
o Using it s already established global company, Colgate – Palmolive needs
to focus its efforts on expanding its reach to the emerging small towns
and cities that are currently arising in Asia. The increased demand for these
areas provides an excellent opportunity for growth and expansion efforts.
If the company acts quick, they will be able to gain a majority share in
these currently developing areas. and have a foot held when the
population increases and expands Colgate products in this areas will be
offered in smaller , refillable sizes , and vale packs to make products more
affordable and attainable for this market.
o Colgate – Palmolive already has a wide range of dog food products
available , all with a scientific feel to the names , But none with a large
share of the market .

22. S/o Evaluation
o Within one year of expanding, the company will measure the sales after
the implementation of its products . Since this will be a new area of
expansion, previous sales number will be unavailable for the specific area
.In order to measure the effectiveness of the market expansion , Colgate –
Palmolive will have to use the data from similar markets in order to
measure their reach in these new areas.
o The change in name and increased advertising for the “new” dog food
product should cause a jump in sales for the new product , and the toys
and treats associated with the new name should grow as well .In order to
determine the change in amount of profit from these new items , its
necessary to compare previous year profit to the ones after rebranding
.Colgate – Palmolive s line is recommended since it will provide a better
idea of the market share act of the rebranded product line.

23. Strengths/Threats
Threats
How will we use our strengths to
minimize our threats ?
T1 : Economic Barrier
T2 : Unstable Political Structure .
T3 : Competition
T4 : Legal and Regulatory Risks
T5 : Low Barrier to entry.
T6 : Political Instability
Strengths
S1 : Expansive Global presence
S2 : Large Market Presence
S3 : Diverse Product Lines
S4 : Purchasing Power
S5 : Inventory Turnover
Maxi – Mini Strategy
1. Colgate – Palmolive Should
continue to grow it s expansive
global presence and expand into
more countries to minimize its
threats of political unstable
countries.
2. Colgate – Palmolive should
capitalize on its diverse product line
to continue to beat the competition
in innovative products.

24. S/T Implementation.
o Since Colgate - Palmolive is a market leader and it has the assets to grow
and expand , it should increase it s global network into newly developing
countries and new economies. Expanding into multitude of countries
mitigates the risk it experiences through diversification . Colgate –
Palmolive has the capital and the expertise to expand into these markets
and use a combination of existing products and market – specific offerings
to develop a presence there.
o In addition , the development of new and innovative products can occur
concurrently with this market expansion due to exposure to new markets.
It would be profitable for Colgate – Palmolive to invest in new product
development , especially in developing countries.

25. S/T Evaluation
o New Markets provide research and development opportunities .Expansive
demographics to learn new market dynamics from and acquisitions that
can bring new talent and intellectual capital into capital into the
organization .
o Hedging risk through multiple investments in variety of markets will help
ensure progressive and stable growth, despite risky political environments
and changing public policies in certain developing countries. All of these
factors contribute to the success of a global expansion strategy for
Colgate-Palmolive, allowing it to minimize risk while developing its
innovative product line and increasing its competitive advantage and
market stability .

26. Weakness/Opportunities
Opportunities
How will we minimize weaknesses by
taking advantage of opportunities ?
O1 : Increase in disposable Income.
O2 : Asian market Expansion – under
Developed Countries.
O3 : Increase in societal Standard.
O4 : Increased pet industry spending .
Weakness
W1 : High debt to – equity
W2 : Product Recall
W3 : Dependence on International
Markets .
Mini – Maxi Strategy
1. Increase focus on U.S. markets ,
especially the pet industry , to
lessen damage if international
market decline.
2. Use increased revenue from the
rise in the disposable and
societal standard in the U.S. to
retain earnings and pay debt.

27. W/O Implementation
o Continue striving for international growth, but focus on having the U.S.
market represent a larger percent of total sales in order to minimize risk.
This can be achieved by expanding the product line in the U.S., especially
the pet food sector.
o The risk in societal standard for health and beauty will increase demand for
personal care products. This ,in addition to customers having more
disposable income to spend on the products, indicates that Colgate –
Palmolive ‘s sales will most likely grow in the future .The company could
then use the profits to build equity for the ue of future expense and rely
less on debt.

28. W/O Evaluation
o Aim for percentage of net sales to be at least 10% higher for North
America than other market within Colgate – Palmolive . Total sales should
continue growing for all segments.
o Colgate – Palmolive should have lower debt –to- equity ratios in the
future. Even though they are using the debt to fund growth , they should
be closer to half their current DTE.

29. Weakness/Threats
Threats
How will we minimize our
weaknesses to combat against our
threats ?
T1 : Economic Barriers
T2 : Unstable Political Structures.
T3 : Competition
T4 : Legal an Regulatory Risks
T5 : Low Barrier to Entry
W1 : high debt to equity
W2 : Product Recall
W3 : Dependence on International
Market.
Mini – Maxi Strategy
1.To battle the threat of legal and
regulatory risks, Colgate Palmolive
should institute product quality
controls as well as task force to
properly an efficiently handle
product recalls.

30. W/T Implementation
o The increase in class action lawsuits and mass torts against companies has
increased a threat and weakness within Colgate - Palmolive . In order to
effectively minimize the threat from public with Colgate – Palmolive
should
• Keep a tighter control over their supply chain,.
• Utilize a product quality campaign
• Create a Public Representation task force to efficiently handle recalls without public
harm.
o Colgate Palmolive’s Dependence on international markets has created a
dependence on a country ‘s stability and government .To protect against
losing assets abroad from unstable governments Colgate Palmolive should
• Create more products within the host countries.
• Withdraw assets from high risk areas and diversifying assets over several different
countries .

31. W/T Evaluation
o To keep a greater control over the supply chain Colgate Palmolive should
acquire producers as well as move factories from abroad to their host
countries .
• Quality Programme
 Create a quality task force within each country to have an effectively control on
product quality.
 Random checks an supplier and producers to minimize risk of product deficiency .
o International Dependence Strategy.
• Create a campaign to move more production back into stable countries such as U.S. ,
U.K. , Western Europe , Etc.
• Ingrain company into countries through public goodwill programmes such as
environmental responsibility and promotional advertising and giveaways.
• Remove factories and production from high risk areas such as the middle east , sub –
Saharan Africa , Central America, and South America (ex : Somalia, Syria , Honduras )

32.  These slides are prepared by
P.V.S. SAATTHVIK from
Avinash College Of Commerce
, Hyderabad in a Marketing
Internship under the guidance
of Prof. Sameer Mathur , IIM
Lucknow
