...Colgate rethinks a supply chain By Peter C. Witton How do you eliminate waste and wring out costs when your operations are spread over 57 sites in 11 different markets? ColgatePalmolive met this challenge in Asia with an ambitious overhaul of its regional supply chain and information systems. 70 Outlook 2000, Number 1 W hen it comes to toothpaste in China, Colgate is the market leader, according to a recent AC Nielsen Media International survey on China’s emerging consumer society. But in the shampoo category, a Colgate-Palmolive rival tops the list. Driving sales through brand-building and smart marketing is as necessary for fast-moving consumer products companies in China and the rest of Asia as it is in the mature markets of North America and Europe. But in Asia, with its fickle tastes, falling prices and unpredictable competitors, the pressure to keep ahead of the pack—and make a proper return—is relentless. The trick is to control tightly what can be controlled. The one area a consumer products company can be firmly in charge of is its own internal business processes. Eliminating waste and wringing out costs can have a dramatic effect, especially with the likes of shampoo, toothpaste and soap, where volumes are large but margins are tight. In the past two years ColgatePalmolive has rolled out an ambitious program to do just that in the Asia Pacific region. The company’s entire supply chain was reengineered and new back-office...
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...COLGATE-PALMOLIVE (INDIA) LIMITED Background Colgate-Palmolive India Ltd (CPIL) is a 51 per cent subsidiary of Colgate-Palmolive Company (CPC), USA. CPC’s main business is manufacturing and marketing of oral care products, toilet soap, and shaving products. With an employee strength of 1130, CPIL has grown to a US$ 230 million company with a wide distribution network in India. Colgate is a household name in India with one out of two consumers using Colgate toothpaste. Colgate has maintained its leadership and emerged as India’s No. 1 brand across all categories for eight out of nine years since 1992. • Launched a National Oral Health Program called “Bright Smiles, Bright Future” in association with the Indian Dental Association to spread awareness about oral care amongst children. Market Share CPIL is the market leader in the Indian oral care market with a market share of 51 per cent in the toothpaste segment, 48 per cent in toothpowder segment and 30 per cent in the toothbrush segment. Creating demand in rural areas In order to create new demand for oral care products, CPIL has increased their reach in rural areas. It is converting non-users to users through various sales promotion measures such as small volume low priced sachets, distribution of free toothbrushes, Rural Van Programmes, among other things, especially in rural areas. Rural areas contribute to 35 per cent of Colgate’s sales. Major player in oral care segment Colgate was voted the “Most Trusted Brand”...
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...COLGATE-PALMOLIVE (INDIA) LIMITED Background Colgate-Palmolive India Ltd (CPIL) is a 51 per cent subsidiary of Colgate-Palmolive Company (CPC), USA. CPC’s main business is manufacturing and marketing of oral care products, toilet soap, and shaving products. With an employee strength of 1130, CPIL has grown to a US$ 230 million company with a wide distribution network in India. Colgate is a household name in India with one out of two consumers using Colgate toothpaste. Colgate has maintained its leadership and emerged as India’s No. 1 brand across all categories for eight out of nine years since 1992. • Launched a National Oral Health Program called “Bright Smiles, Bright Future” in association with the Indian Dental Association to spread awareness about oral care amongst children. Market Share CPIL is the market leader in the Indian oral care market with a market share of 51 per cent in the toothpaste segment, 48 per cent in toothpowder segment and 30 per cent in the toothbrush segment. Creating demand in rural areas In order to create new demand for oral care products, CPIL has increased their reach in rural areas. It is converting non-users to users through various sales promotion measures such as small volume low priced sachets, distribution of free toothbrushes, Rural Van Programmes, among other things, especially in rural areas. Rural areas contribute to 35 per cent of Colgate’s sales. Major player in oral care segment Colgate was voted the “Most Trusted Brand”...
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...colgate Executive Summary The Colgate-Palmolive company is acknowledged as the world’s leader in personal care. This report analyse the Colgate’s current situation in order to give recommendations on their actual toothpaste product line. The report is divided into two parts. The first parts will analysis the current situation of Colgate. On the basis of a Swot analyse the strengths, weaknesses, opportunities, and threats of the company as well as of Colgate’s toothpaste product line will be analysed. Furthermore additional information on the company’s current market share, profitability, sales and the external environment of Colgate within the scope of the PEST analysis will be presented. At the end of the first part the competitive advantage of Colgate will be mentioned. The second part includes a suggested marketing strategy of the author using marketing tools such as segmentation targeting & positioning, SMART objectives as well as the marketing mix. To better recommend improvements, the actual state of Colgate referring to their products, objectives, etc. is in some parts shortly mentioned. At the end a conclusion is drawn concerning the current situation of Colgate and suggested improvements for the future. Introduction Colgate is the world market leader in oral hygiene products. The toothpaste product line consists of strong brands. This is due to a very successful marketing strategy of the company in the past. But especially in a competitive environment like the...
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...Colgate rethinks a supply chain By Peter C. Witton How do you eliminate waste and wring out costs when your operations are spread over 57 sites in 11 different markets? ColgatePalmolive met this challenge in Asia with an ambitious overhaul of its regional supply chain and information systems. 70 Outlook 2000, Number 1 W hen it comes to toothpaste in China, Colgate is the market leader, according to a recent AC Nielsen Media International survey on China’s emerging consumer society. But in the shampoo category, a Colgate-Palmolive rival tops the list. Driving sales through brand-building and smart marketing is as necessary for fast-moving consumer products companies in China and the rest of Asia as it is in the mature markets of North America and Europe. But in Asia, with its fickle tastes, falling prices and unpredictable competitors, the pressure to keep ahead of the pack—and make a proper return—is relentless. The trick is to control tightly what can be controlled. The one area a consumer products company can be firmly in charge of is its own internal business processes. Eliminating waste and wringing out costs can have a dramatic effect, especially with the likes of shampoo, toothpaste and soap, where volumes are large but margins are tight. In the past two years ColgatePalmolive has rolled out an ambitious program to do just that in the Asia Pacific region. The company’s entire supply chain was reengineered and new back-office...
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...------------------------------------------------- Colgate-Palmolive ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Colgate-Palmolive Prepared for: Bill Waxman Organizational Behavior Edison Community College Prepared by: Catalina De Fex Jenny Smith James Tobias October 28, 2013 October 28, 2013 Mr. Bill Waxman Instructor Organizational Behavior Edison Community College 1973 Edison Drive Piqua, Ohio 45356 Dear Mr. Waxman: Here is our strategic plan for our organizational behavior class. Throughout this report we will explain our plan intended to increase financial satisfaction for Colgate- Palmolive. We included a complete analysis of internal and environmental factors that will benefit our understanding of this company’s internal and external culture. We sincerely hope that this report will fulfill your expectations, and we assure you that the oral presentation will be a great complement in order to influence the implementation of our ideas. Thank you for your time and consideration, and we look forward to finally present our ideas to you and to our audience. Sincerely, Colgate-Palmolive StudyGroup Table of Contents Executive summary v Introduction 6 Objectives of the Research 6 Colgate Palmolive Company 6 ...
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...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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...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 - low Threat of substitute products - high Bargaining power of buyers - high Bargaining Power of suppliers – low Rivalry among Existing Firms “In most industries the level of profitability is primarily influenced by the...
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...Colgate: Focused For Global Growth Speeding Powerful Brands Worldwide ■ Achieving Greater Profitability ■ Succeeding Together ■ 2001 Annual Report Another Year of Strong Performance Dollars in Millions Except Per Share Amounts 2001 2000 Change Unit Volume Worldwide Sales Gross Profit Margin Earnings Before Interest & Taxes (EBIT) Percent of Sales Net Income Percent of Sales Earnings Per Share, Diluted Dividends Paid Per Share Operating Cash Flow Percent of Sales Return on Capital Number of Registered Common Shareholders Number of Common Shares Outstanding (in millions) Year-end Stock Price ■ ■ ■ +5% $9,427.8 55.1% $1,834.8 19.5% $1,146.6 12.2% $ $ 1.89 .675 17.0% 29.7% 40,900 550.7 $ 57.75 $ $ $9,357.9 54.4% $1,740.5 18.6% $1,063.8 11.4% 1.70 .63 16.4% 26.4% 42,300 566.7 $ 64.55 +.7% +70 basis points +5% +90 basis points +8% +80 basis points +11% +7% +4% +60 basis points +330 basis points –3% –3% –11% $1,599.6 $1,536.2 Every operating division participated in the strong 5 percent unit volume growth. Colgate achieved its sixth consecutive year of double-digit earnings per share growth. All key profitability indicators set new records: gross profit margin, EBIT, net income, operating cash flow and return on capital. ■ ■ Continuing sales would have increased 5.5 percent if not for foreign currency translation. The dividend rate was increased by 14 percent in 2001. Colgate-Palmolive is a $9.4 billion global company serving people in more than 200 countries ...
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...Colgate Mazbooth Daath rakhe surakshith The Colgate Rural Initiative, targeted at rural areas with a population between thirty and a hundred thousand people, aimed at disseminating information and spreading the message of oral hygiene to children and their families in schools and rural centres. To this effect, Colgate conducted dental check ups in along with various activities at schools. The dental check up camps were supervised by teams of dentists and organisers who interacted with over 1 lakh people teaching them the benefits of oral hygiene. Children were targeted through “infotainment” – activities that included interactive activities like essay writing and painting competitions centred around the “Spread a Smile” theme. Colgate, a company also tied up with ITC E-Choupal and Rotary to spread the message of dental care and oral hygiene to villages across India. The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota. Dental checkups and school activities have succeeded in spreading the message of 'Zero Tooth Decay' to children and adults in around 433 villages and towns, bringing a brighter, bigger smile to rural India. This grass root initiative went a long way in helping Colgate touch base with consumers in the interiors. Abstract Promotion of brands in rural markets requires the special measures. Due to the...
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...Colgate-Palmolive CreatiNg a glObal SuPPly CHaiN the Colgate-Palmolive Company sells oral care, personal care, home care, and pet nutrition products in over 200 countries and territories. Since implementing its first SaP® solution in 1994, Colgate has significantly improved global visibility for its supply chain management processes, automated many of these processes, improved supply chain decision making, increased the speed to market for its products, and reduced costs. SAP Business Transformation Study Consumer Products Oral, Personal, and Home Care and Pet Nutrition CONteNt 3 4 7 9 10 11 13 14 Colgate-Palmolive Creating a Global Supply Chain Supporting an International Enterprise Helping Ensure Supply Chain Success Reducing Total Cost of Ownership Transforming Business Processes Future Road Map Building a Firm Foundation Colgate-Palmolive better Data Quality, timeliNeSS, aND aCCeSSibility QuiCk faCtS Industry Consumer products – oral, personal, and home care and pet nutrition Revenue uS$15.3 billion Employees 36,000 Headquarters New york City Web Site www.colgate.com SAP® Solutions and Services SaP® Supply Chain management application Implementation Partner SaP Consulting organization Implementation Best Practices • involved global cross-functional business and it teams • appointed a global owner to drive process standardization across subsidiaries • tested real-life scenarios and used pilots in significant markets before global rollouts • Worked closely...
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...The Marketing Mix - Colgate Herbal White Toothpaste The Product Product variety - Colgate Herbal White is part of the range of toothpastes offered by Colgate Palmolive in India, which is led by Its flagship brand Colgate Dental Cream (CDC). The brand was launched in 2001 and is essentially targeted at traditional consumers who seek natural ingredients (such as in semi-urban and rural towns) Quality – Being a popular segment product and an offering by Colgate-Palmolive quality parameters are thoroughly tested to ensure consumer satisfaction. Features – Herbal White promises a ‘unique formula’ including a special blend of eucalyptus, calcium and minerals and ;lemon extracts. Brand Name – The use of Herbal in the brand name is self-explanatory. Herbal ‘White’ has been highlighted to stress their brand proposition of ensuring ‘pearly white teeth’. Packaging – The green-coloured packaging enhances the ‘herbalness’ of the product, while the pneumonics of mint leaves, lemon and eucalyptus supplement the ingredients which lend uniqueness to the product. The colours red and the word ‘new’ in blue are the two colours researched to be the most eye-catching on the shop shelf and aid the choice of the product during the purchase decision process. Standard fonts and colours of Colgate and associated pneumonics serve to maintain familiarity with the brand and capitalise on positive associations such as that of being one of the most trusted brands in the country (Brand Equity survey). ...
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...The four P’s: The two companies could only became successful and therefore could reach global recognition by the efficient use of the four P’s. Let’s see what the four P’s mean in the case of these firms. Product: Although toothpaste, shower gel, detergents are convenience goods, (these products are usually bought with little planning) Colgate-Palmolive and Unilever maintain a high level of quality. “Companies choose a quality level that matches target market needs and the quality levels of competing products”(Kotler, Armstrong, Saunders, Wong 1996, p. 551). Quality is not just a feature, but also a core philosophy and all members of the firm, even top management have to be dedicated to quality. Quality refers not only to products but also refers to the manufacturing, which is done without defaults. Quality also means the fact that the firm is involved in improving customer value and maintains the satisfaction of customers and participates in constant R&D (research and development). In the case of Colgate, it is easier to keep the level of quality because the firm’s products are deemed suitable for use and consumers have not complained much about the quality. Unilever also struggles to maintain quality but is always tarnished by the constant criticism of the Greenpeace. Unilever, which makes the famous Dove product buys palm oil from suppliers who destroy Indonesia’s rainforests. This will result in forest destruction, extinct animals, and climate change. In Unilever’s “sustainable...
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...COLGATE MAX FRESH: GLOBAL BRAND ROLL-OUT John A. Quelch Jacquie Labatt-Randle ______________________________________________________________________________ HBR - Oct. 2007 Introduction Colgate max fresh (CMF) introduction to the US market drove Colgate-Palmolive's US market value share upto 34.8% ahead from Proctor and Gamble's share of 31.6% value share. Nigel Burton, the president of global oral care at Colgate-Palmolive Company (CP), is reviewing market launch plans for a new toothpaste , Colgate Max Fresh (CMF) by CP'sChinese and Mexican subsidiaries. . Both launch plans involved departures from the CMF marketing program for the USA launch six months earlier. Burton must decide whether the costs of marketing program adaptation in China and Mexico can be justified. US LAUNCH (Breath Strip in Toothpaste) Assessing the US market conditions are necessary at this point. US retail toothpaste market - $438 million with a growth rate of 8% since 2000 From Table B in the case, CP and P&G are on a head to head competition for the 2004 value share of toothpaste market with 34.8% and 31.6% value share respectively. Facts in the case prove that the US Market Toothpaste Benefit Importance cosmetics benefits such as breath freshening and whitening are at the 3rd and 5th place respectively while therapeutic benefits : 'protection against cavities / contains flouride' , ' reduce plaque buildup' and controls tartar' are at the 1st, 2nd and 4th places respectively. This shows that in the...
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...ON WHAT IS DONE BY COLGATE IN THE MARKET (Swot analysis tool) If someone asked which the top toothpaste brand in the world is, he/she will not need to search around his/her brain so much. Because, in most brains, the top of the mind brand for toothpaste is Colgate. Using SWOT tool, Colgate has analyzed below; Strength in the SWOT analysis of Colgate * Brand recall & visibility: Colgate being the brand name holder as it repeal well to customers. Build strong loyal customers as a result of excellent advertising and this had helped the brand to compete well with other players in the market hence become one of the topmost brands in its market. * Product line: It offers product categories namely oral care, personal care, household surface, fabric care and pet nutrition in fast moving consumer goods (FMCG), the more in depth your product line, the more chances of success increases because the cost of logistics drops further. * Efficient Supply chain: Colgate succeeded in reaching customers widely, both in rural and urban areas as to make the product available. And this is the major concern to customers about any kind of product in the market. The lower the availability, the lower the sales hence the company will not be able to survive any long. * Financial position: Colgate is well financially that’s why has been able to be the old company within 2 centuries as it has built a strong base for Colgate. . Weaknesses in the SWOT analysis of Colgate * Saturated market:...
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