...COLGATE PALMOLIVE Marketing Strategies and Programs Introduction Colgate Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. This American diversified multinational corporation focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food.("Colgate Palmolive Annual Report 2012,") Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed ("Colgate-Palmolive Company History,"). 1. CURRENT SITUATIONAL ANALYSIS a. Current Products The company is organized around four core segments: oral care, personal care, home care, and pet nutrition. i. Oral care products are such as: * toothpastes: colgate total, CDC, optic white, sensitive, CSPR, kids, advavced whitening, kayu sugi etc. * Toothbrushes: colgate 360, Twister, Zig Zag, Slim Soft, Classic, Kids ...
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...oral hygiene which has led to a phenomenal growth in the Oral care Industry. But still, rural penetration is quite low as people there are still comfortable with the conventional methods of oral care. Due to this low per capita consumption, rural markets offer great opportunities for penetration. Rising per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand...
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...oral hygiene which has led to a phenomenal growth in the Oral care Industry. But still, rural penetration is quite low as people there are still comfortable with the conventional methods of oral care. Due to this low per capita consumption, rural markets offer great opportunities for penetration. Rising per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand...
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...Colgate Palmolive (CP), an extremely respected player in the U.S. Oral Care market, has spent several years developing a toothbrush that is technologically superior to all competitors presently available. However, the question remains as to whether CP should launch this toothbrush as a niche product or a mainstream brand. After considering many different variables, including a Profit and Loss forecast for both scenarios, we recommend that CP launch the Precision Toothbrush as a niche product. We support this recommendation with the following analysis of the toothbrush market and CP’s position within that market. In the U.S. Oral Care Market, a market that commands 2.9 billion dollars in annual retail sales, toothbrushes currently account for 15.5% of that market. In recent years, many new products have been introduced into the market, making competition fierce. Increased media coverage and awareness of issues, such as gum disease, have lead to the development of a new class of toothbrushes; the super-premium category. Precision marks Colgate’s first foray into this class of toothbrushes. In our opinion by launching Precision as a niche product in the super-premium category, marketers will be able to target the fastest growing segment within the market, production managers will be able to maintain the production schedules and product managers of other lines within the CP family would be less concerned about the potential cannibalization of their products which is a major...
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...review the potential profits of each of the industries in which their particular firm is competing within. Due to the fact that the diversity of each industry will change in a somewhat predictable manner over a period of time when a certain event may happen in the economy the analyst need a way to predict what the outcomes are going to be. There is a model that we refer to do just this, it is known as the “Five Forces Model” and it shows the influence of industry structure on profitability. The model is made up of two main components: The first one is the degree of actual and potential competition, which consists of the rivalry among existing firms, threat of new entrants, and the threat of substitute products. The second one is the bargaining power of input and output markets; made up of the powers of buyers and suppliers. Together these five forces can help predict the industry’s profitability and be able to classify the important factors of Colgate- Palmolive. Within the five forces there is a high and low end that must be applied to each of the forces to determine the volatility and to what extent each force affects a firm within the industry. These five forces help an investor understand how and by how much, different factors that could happen in an industry would affect the firm. The following table shows a summary of the highs and lows within the personal product industry. Personal Product Industry Rivalry Among existing firms - high Threat of new entrants...
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...how they will be carried out. Marketing planning consists of an interrelated sequence of analytic and decision making activities. Marketing planning is the process of making a coordinated set of decisions that constitute a marketing strategy for one or more target markets. MARKETING PLANNING PROCESS 1. SITUATION ASSESSMENT: The first step in the marketing planning process is situation assessment. This includes evaluating opportunities and threats in the product-markets of interest to the firm and determining the firm’s strengths and weakness. 2. TARGET MARKET STRATEGY: Step 2 in the planning process provides important guidelines for setting objectives, for formulating marketing program positioning strategy, and for taking the other steps trequired to build the marketing plan. 3. OBJECTIVES: Deciding what you want to accomplish is basic to marketing strategy, yet a surprising number of firms fail to formulate and quantify marketing objectives. 4. POSITIONIG STRATEGY: Marketing program positioning strategy is deciding how to combine product or...
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...colgate Meg Carey Max Jayapaul Julie Longmuir Kate Lynch Rani Marom Liz Sansone Marketing 9703 Dr. Chattalas Colgate-Palmolive Case Analysis April 10, 2002 COLGATE-PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH SWOT Strengths ColgateColgate-Palmolive is recognized as the world’s leader in personal care sales which included oral hygiene products like toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2.76 billionand as it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. In the United States, the world’s largest market, ColgateColgate-Palmolive holds the number one spot in toothbrush sales with a market share of 23%. From these statistics, one of Colgate-Palmolive’s main strengths is being the market leader inpersonal oral care products. is one of Colgate ColgateColgate-Palmolive’s extensive overseas reach is another main strength. Based on the data in the case study, ColgateColgate-Palmolivehas introduced 275 new products worldwide and setup manufacturing facilities in China and Eastern Europe, breaching the new emerging economies inof the 21st century. On top of that, international sales accounted for 64% of total sales andand profits from international operations account for 67% of the total profits for ColgateColgate-Palmolive.-Palmolive ColgateColgate-Palmolive hasa very large an...
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...EXECUTIVE SUMMARY Purposes of the Report The purpose of this report is to (1) analyze the policies and strategies of five competing companies that may have contributed to their honorable reputation as one of the best corporate citizens in 2009, and (2) inform the managers of Johnson & Johnson about possible policies and practices that can help their company become a better corporate citizen. By implementing these new strategies, the goal is to enable Johnson & Johnson to be included on the Forbes list of 100 Best Corporate Citizens for 2011. In order to discover the methods in how these competing companies have earned their placement on the Forbes list, research was conducted into their policies in several key categories. First, the competitors’ environmental and employee relations policies were evaluated. These two categories are the most weighted when being considered for inclusion on the Forbes list. Additionally, research was also conducted on the competitors’ policies in the remaining categories that are considered in the process for inclusion on the Forbes list: climate change, human rights, philanthropy, finance, and governance. The following is a report of the findings on the most relevant policies used by these various competing companies that have earned recognition on the Forbes list. Policies of Good Corporate Citizens All the competing companies included in this report have utilized several policies that have garnered them the distinction of being...
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...Colgate: Global Strategies, Local Strength 2010 Annual Report Colgate: Global Strategies, Local Strength Succeeding With Consumers, The Profession And Our Customers u Innovating Everywhere u Effectiveness And Efficiency In Everything u Strengthening Leadership Worldwide u Colgate-Palmolive Company is a $15.6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in Chengdu City, Sichuan Province, China Contents: Financial Highlights Dear Colgate Shareholder Succeeding With Consumers Succeeding With The Profession Succeeding With Our Customers Innovating Everywhere Effectiveness And Efficiency In Everything 18 Strengthening Leadership Worldwide 2 4 8 10 12 14 16 20 Colgate’s Corporate Governance Commitment 21 Your Board Of Directors 22 Your Management Team 23 Non-GAAP Reconciliation Of Financial Measures 24 Global Financial Review/Form 10-K IBC Shareholder Information t Mexico Financial Highlights 2006 2007 2008 2009 2010 Net Sales ($ millions) 2006 2007 2008 2009 2010 $12...
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...Colgate: Global Strategies, Local Strength 2010 Annual Report Colgate: Global Strategies, Local Strength Succeeding With Consumers, The Profession And Our Customers u Innovating Everywhere u Effectiveness And Efficiency In Everything u Strengthening Leadership Worldwide u Colgate-Palmolive Company is a $15.6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in Chengdu City, Sichuan Province, China Contents: Financial Highlights Dear Colgate Shareholder Succeeding With Consumers Succeeding With The Profession Succeeding With Our Customers Innovating Everywhere Effectiveness And Efficiency In Everything 18 Strengthening Leadership Worldwide 2 4 8 10 12 14 16 20 Colgate’s Corporate Governance Commitment 21 Your Board Of Directors 22 Your Management Team 23 Non-GAAP Reconciliation Of Financial Measures 24 Global Financial Review/Form 10-K IBC Shareholder Information t Mexico Financial Highlights 2006 2007 2008 2009 2010 Net Sales ($ millions) 2006 2007 2008 2009 2010 $12...
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...the consumer and commercial markets of Graves Enterprises. Both plans involved creating new product lines and raising the cost to increase sales. It was determined that both consumer and commercial buyer’s were happy with their current products and ranked price of the product over any other attribute. This suggests that creating a new line alone would not be a justifiable incentive to purchase the new Graves products. This “You Decide” report presents the analysis of marketing suggestions submitted by the marketing directors at Graves Enterprises. Their suggestions are a review of primary and secondary research conducted to help determine a marketing strategy that will double sales in both the consumer and commercial markets of Grave Enterprises within the next year. The first analysis is aimed at the consumer market, while the second is an analysis at how to grow the commercial market. Consumer Products The determination must be made as to whether Joshua Edwards’s market research and recommendations in the initial marketing plan will be successful in doubling sales in the consumer market. Edwards was instructed to provide a set of criteria used in evaluating the reasoning for his approach. He first identified the target market, female homeowners between the ages of 29-59, with an income of $75-150k. The second is an analysis of our primary competitor, Kleen Floor products. Research shows...
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...Growing In A Fast-Changing World Colgate-Palmolive Company Growing In A Fast-Changing World Colgate’s sharp focus on its proven global strategies is fueling growth in today’s fastchanging global marketplace. This focus, supported by Colgate’s global values of Caring, Continuous Improvement and Global Teamwork, has enabled the Company to improve and adapt with speed and insight. In 2012, Colgate delivered another year of strong results despite volatile currencies and challenging macroeconomic conditions worldwide. Colgate people remain sharply focused on the Company’s four strategic initiatives: Engaging to Build Our Brands, Innovation for Growth, Effectiveness and Efficiency, and Leading to Win. Colgate-Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in rural Uttar Pradesh, India. Brazil United Kingdom Brands Innovation Engaging To Build Our For Growth Italy Efficiency Effectiveness And IFC 2 8 10 12 14 16 20 Contents: Growing...
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...Proctor and Gamble Global Fabric & Home Care Corporate and Strategic Business Unit Model Strategy Introduction The purpose of this paper is to examine a Strategic Business Unit for its overall fit and alignment within its corporate environment. For this case study, the corporate parent must be a publically traded, multinational corporation with two or more strategic business units. The corporation that will be examined is Proctor and Gamble. This study will begin by understanding the parent corporation through its history, its basic or generic corporate strategy, the current structure of the corporation, and its overarching business model. The case study will then thoroughly examine the selected strategic business unit to include its value chain, strengths weaknesses opportunities and threats (SWOT), marketing and sales, comparison to competitors, stock trends and shareholder value. In order to complete this study the effects of corporate parenting strategy, an examination of its resources and capabilities, and review of recent and emerging trends within the industry must also be examined. However, before this paper can delve into Proctor and Gamble and its strategic business unit basic theory and business analysis techniques must be determined and defined. The different theories and analysis techniques that will be used are Value Chain Analysis, Corporate Parenting Analysis, SWOT Analysis, and analysis of corporate resources and capabilities. These will be...
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...typically from an external public or regulatory agency (e.g., Cisco’s incentive from the local energy supplier to meet or exceed guidelines for energy conservation). 2. When the adoption of a new practice would reduce operating costs, as well as contribute to a social issue (e.g., Chiquita saving millions each year after reducing its use of select chemicals). 3. When a current business practice can be identified (in part) as contributing to an important social problem, and modifications and improvements would help address the issue (e.g., McDonald’s deciding to phase out supersize options). 4. When there is an opportunity to improve employee health, safety, or well-being by altering a business practice or investing in infrastructures and educational communications (e.g., Coca Cola’s HIV/AIDS workplace program). 5. When engagement in this practice can add an important point of differentiation to target markets in a crowded, undifferentiated marketplace (e.g., Nike offering a line of products made with environmentally friendly materials). 6. When there are opportunities for alliances that will strengthen the brand’s positioning (e.g., Motorola’s participation in EPA’s waste reduction program). 7. When the adoption of the practice could actually improve product quality or performance, providing increased value and points of difference (e.g., compact fluorescent light bulbs that use less energy and last longer). 8. When investments or changes in practices...
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...Procter & Gamble Equity Valuation & Analysis As of November 1, 2007 Raider Investments Group Brian Hooper Tyler Yenzer Nathan Yosten Dustin Bradford Brian.D.Hooper@ttu.edu Phillip.T.Yenzer@ttu.edu Nathan.Yosten@ttu.edu Dustin.Bradford@ttu.edu Table of Contents Executive Summary Business & Industry Analysis Company Overview Industry Overview Five Forces Model Rivalry Among Existing Firms Threat of New Entrants Threat of Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Key Success Factors Firm Competitive Advantage Analysis Future Competitive Analysis Accounting Analysis Key Accounting Policies Potential Accounting Flexibility Actual Accounting Strategy Quality of Disclosure Qualitative Analysis of Disclosure 36 31 33 35 10 11 13 13 18 20 22 24 24 28 30 5 2 Quantitative Analysis of Disclosure Sales Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Financial Analysis Liquidity Analysis Profitability Analysis Capital Structure Analysis IGR/SGR Analysis Financial Statement Forecasting Cost of Equity Estimation Valuation Analysis Multiples Valuation Discounted Free Cash Flow Model Discounted Dividends Model Residual Income Model Long-Run Return on Equity Residual Income Model Abnormal Earnings Growth Model Credit Analysis 40 41 44 49 49 50 63 72 76 79 83 86 95 96 98 100 103 106 3 Analyst Recommendation Appendix Regression Analysis Income Statement Balance Sheet Statement...
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