case study on colgate

1. Colgate-Palmolive Company
Companies description

2.  What business we are?
Colgate-Palmolive Company is
an American diversified multinational corporation focused
on the
1. Production,
2. Distribution, &
3. Provision
of household, health care and personal products, such as
soaps, detergents, and oral hygiene products
(including toothpaste and toothbrushes).

3. Information
 Industry: Personal products
 Founded: 1806
 Headquarters: New York City, New
York ,U.S .
 Key people: Ian M. Cook, CEO
 Revenue: US$15.3 billion (FY 2009)
 Employees: 36,002
 Website: www.colgate.com

4. History
 In 1806, William Colgate introduced starch, soap and
candle factory on Dutch Street in New York City under
the name of "William Colgate & Company".
 In 1857, William Colgate died and the company was
reorganized as "Colgate & Company" under the
management of Samuel Colgate, his son.
 In 1873, the firm introduced its first toothpaste, an
aromatic toothpaste sold in jars.

5. His company sold the first toothpaste in a tube, Colgate
Ribbon Dental Cream, in 1896.
In 1928, Palmolive-Peet bought the Colgate Company to
create the Colgate-Palmolive-Peet Company.
In 1953 "Peet" was dropped from the title, leaving only
"Colgate-Palmolive Company", the current name.
Today Colgate has numerous subsidiary organisations
spanning 200 countries, but it is publicly listed in only
two, the United States and India.

6. Awards & Achievements
 Colgate has been ranked as India’s #1 Most Trusted
Brand across all categories from 2003 to 2007
 51% market share in the toothpaste segment
 48% market share in the toothpowder market
 30% share in the toothbrush market
 On 4Sept.2009,Colgate-Palmolive signed SRK as its
Brand ambassador.

7. Future strategies on 4 P’s:-
1. Product
 They try to position some innovative toothpaste
with a brand name other than Colgate but under
the umbrella of Colgate Palmolive
 Focusing toward rural rich and consuming class
by endorsing the development of ‘Colgate
Ayurvedic Toothpowder
 They would come up sachets of these tooth
powder and position toward rural population who
buy in smaller lots

8.  For Urban population, they would come up with the
products suiting to young generation
 For Urban rich and consuming class, they would
come up with the products on the basis of functional
benefits
 Eg: 1.They launch different toothbrushes for different
age groups.
2.They launch a special toothpaste and
toothbrush for kids in the age group from 4-10 years.

9. 2.Price
 Based on the competitor's price
 Charging higher premium which focused on
consuming and lower income classes
 Pricing done on the basis of price points
 Packaging would be customized on the basis of
price points.

10. 3.Promotion
 They positioning Colgate dental white crème and
toothpowder towards rural rich segment
 For rural consuming class they endorsing Cibaca
toothpaste
 Advertisement through T.V. media, Print media
 FM Radio for Urban population & MW and SW radio
for Rural population
 Hoarding on National highways

11. 4. Place
 They would try to increase product penetration to
rural population
 They would try to increase the wholesalers to
smaller towns
 They would track the distribution path so that they
are covering all the village areas around the
towns

12. SWOT Analysis
SWOT analysis for Colgate……

13.  Strengths
 Strong financial
performance
 Focus on innovation
and new product
launches
 Colgate business
planning initiative

14.  Weakness
 Highly leveraged
 Product research

15.  Opportunities
 Emerging markets growth
 Deploying advance technologies
 Growing Hispanic population in the US

16.  Threats
 Competitive landscape from other Private label
growth
 Increasing commodity prices
 Falling consumer confidence in the US

17. Promotion tools
 Increasing circumference of toothpaste tube
 Free Dental Check-up in mobile vans

19.  Free Dental Check-up by sending a
SMS
 Scholarship offers like Learn & earn
offer

20. Advertisement
 In 1940,the Colgate Company used Slogan was "It
cleans your breath while it cleans your teeth “
 The 1960s onwards, the slogan was "The Colgate
ring of confidence“
 In the late 1950's and early 1960's, Colgate stressed
the fact their "Dental Cream" contained Gardol, a
formula that helped protect teeth from cavities and
tooth decay .

21. Various Product Categories
 Oral Care
 Personal Care
 Home Care
 Professional Oral care

22.  Oral Care
 Colgate Dental Cream
 Colgate Active Salt
 Colgate Max Fresh
 Colgate Total 12
 Colgate Plax
 Colgate 360 ActiFlex
 Colgate Extra Clean Gum Care
 Colgate Sensitive Toothbrush
 Colgate 360 Toothbrush
 Colgate Zig Zag

23.  Personal Care
 Palmolive Thermal Spa
 Palmolive Aroma Shower Gel - Relaxing
 Palmolive Naturals Liquid Hand Wash
Family Health
 Palmolive Naturals Moisturizing Body
Wash - Milk and Honey

24.  Home Care
 Axion - Dish Washing
Paste
 Palmolive dish washing
Paste

25.  Professional Oral Care
 Colgate PerioGard
 Colgate Sensitive
 Colgate Gel Kam
 Colgate Visible White

26. Market Share

27. Product category-(Oral Care)
 Colgate Palmolive increased its oral care market
share from 26% in 2005 to 33% in 2009
 Colgate Palmolive the largest player in the oral
care business globally. Colgate is the world
leader in oral care with a 33% market share
 We expect Colgate’s oral care business to
generate $25.5 billion in annual revenue by the
end of this year

28. Financial Report
 Total Revenue: 2,060.92 1,802.57
 Sales: 1,962.46 1,694.81
 Other Income: 98.46 107.76
 Profit before Taxation: 484.80 345.31
 Provision for Taxation: 61.54 55.09
 Profit after Taxation: 423.26 290.22
 Balance brought forward: 28.84 5.77
 Profit for appropriation: 452.10 295.99
 Appropriation: Dividend: 271.98 203.99
 Dividend Tax: 45.84 34.14
 General Reserve: 42.33 29.02
 Balance c/f: 91.95 28.84 452.10 295.99
(In ‘000)

29. COMPETITORS
 Hindustan Unilever Ltd.
 Procter & Gamble
 Church & Dwight Co., Inc.
 The Clorox Company
 Kimberly-Clark Corporation

30. COLGATE PALMOLIVE CO Top
Competitors
Symbol Company's
name
Last Change %
Change
Volume
CL COLGATE
PALMOLIVE
CO
78.01 -0.18 -0.23 584,643
CLX CLOROX CO
DEL
62.27 -0.03 -0.05 274,795
PG PROCTER &
GAMBLE CO
63.41 0.54 0.86 5.03 M
CHD CHURCH &
DWIGHT INC
67.05 0.01 0.01 152,756

31.  Hindustan Unilever Ltd.
 Hindustan Unilever Ltd. Stock Quote (In $)

32.  Procter & Gamble
 P & G Stock Quote (In $)
Latest
12/10/10 EST
Change ($) Change (%) High Low
$63.35 0.480 0.764 $63.79 $63.21

33.  Church & Dwight Co., Inc.
 Church & Dwight Co., Inc. Stock Quote (In $)
Latest
12/10/10 13:33:49 EST
Change
($)
Change
(%)
High Low
$67.08 0.040 0.060 $67.45 $66.95

34.  The Clorox Company
Latest
12/10/10 13:34:10
EST
Change ($) Change (%) High Low
$62.49 0.185 0.297 $62.51 $62.16
 The Clorox Company Stock Quote (In $)

35.  Kimberly-Clark Corporation
 Kimberly-Clark Corporation Stock Quote (In $)
Latest
12/10/10 14:07:19
EST
Change ($) Change (%) High Low
$61.83 -0.145 -0.235 $62.24 $61.70

36. Submitted by :-
Shweta Sharma
(m100700054)