Multi-level marketing involves recruiting salespeople who become a leveraged sales force and earn commissions on sales. Franchising involves selling territory rights to franchisees and providing various distribution and support services via contract for a fee. The document discusses Colgate Palmolive's distribution network and why multi-level marketing and franchising are not suitable options given its market leadership, established traditional channels, and highly defined distribution system.

1. Made and Presented by
Dipanway Bhabuk
Scope of MLM and franchising in
Colgate Palmolive

2. About Multi Level Marketing
Here salesperson not only sells products but
recruits other sales person who become leveraged
sales force that gives the original salesperson a
commission on sales.

3. About franchising
Product and merchandising is packaged and
formatted. Territory rights are sold to franchisees.
Various distribution and other services are provided
by contract to franchisees for a fee.

4. Overview
 Company started in the year 1806.
 Sales around $15 million, focuses on core business such
as oral care, personal care, home care, pet nutrition.
 Sells its products in almost 200 countries worldwide.
 Available in almost 4.3 million retail outlets.
 The company has 2000 stockiest working under this
chain

5. Colgate and its distribution
network
 Toothbrush- dentist, chemist, plastic surgeon,
drug stores, large retail and departmental stores.
 Toothpaste-Available in all Indian market
especially in semi urban and rural market which is
their prime focus.
 Toothpowder-Available in Indian market rural and
semi urban regions through convenience stores.

6. Level of channels
 Zero level
 One level
 Two level
 Three level

8. Availability of colgate through various
points
 General stores
 Department stores
 Kirana stores
 Super store
 Medical stores

10. Why franchising/MLM is not
possible Established market leader leads in almost all the
segments.
 Has successful set up traditional channel which
has penetrated the market over the years.
 Highly defined and codified distribution channel.
 Involves more responsibility in franchising.