Colgate

Presented by

v.sairam

Colgate
Type

Public

Industry

Personal Care

Founded

1806

Headquarter

United States

Key People

Ian M. Cook, C.E.O

Revenue

US$ 16.034 BILLION (2015)

No. of employees

37,900 (2015)

Slogan

world of Care

Website

www.colgatepalmolive.com

History of
Colgate

 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.

 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 organizations
spanning 200 countries, but it is publicly listed in only two,
the United States and India.

Colgate in India
1937: The company moved into India.
In India, the company has successfully replicated the strong
brand image and awareness in the minds of consumers.
Today, Colgate is a household name in India with one out of
every two consumers using a modern dentifrice. The company
manufactures and markets its oral care, personal care and
household care products under the Colgate-Palmolive brand
name.
Colgate India earns around 93% of its revenues from the oral
care segment.

Vision
Colgates vision is to become the best truly global
products company.

Mission
To become a fast growing consumer goods industry by
developing and delivering innovative new products to
consumers and marketing them more efficiently.

THE 4Ps OF COLGATE

PLACE
Manufacturing Facilities

Gujarat
Andhra Pradesh
Mumbai
Goa
Himachal Pradesh

Sales Office

Kolkata
Maharastra
Aurangabad
Gurgaon
Chennai
Chittoor

Head office

Mumbai

product
Oral
Care

Personal
Care

Surface Fabric
Care
Care
Brite
Max Bar

Azadi Dish Bar

Max Scourers
Max Liquid
Max Antibacterial
Beauty Soap ~ Palmolive
Naturals
Carbolic Soap~ Azadi
Skin Germ Protection Soap ~
Protex

Colgate original
Colgate max fresh
Colgate Herbal
Colgate visible white
Colgate active salt
Colgate total

Maximu
m
Power
Express
Power
Bonus
Softlan

product
Colgate original

Colgate active salt

Colgate max fresh

 Colgate total
Colgate visible white
Colgate charcoal
Colgate sensitive pro relief

 Colgate advanced whitening

Colgate herbal

Colgate cibaca

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.

Colgate

20gm 40gm 50gm 75gm 80gm 100gm 150gm 200gm 300gm

Dental
cream

5 Rs.

---

14Rs.

---

Active
salt

---

---

14Rs.

---

Max
Fresh

---

---

15Rs.

---

32Rs
.

35Rs.

55Rs.

---

---

Total

---

---

---

55Rs

---

---

105Rs

---

---

Sensitive

---

---

35Rs.

---

---

60Rs.

---

---

---

Visible
white

---

26Rs
.

---

---

---

---

---

---

---

Advanced
Whitening

---

---

---

27Rs
.

---

---

53Rs.

---

---

Herbal

---

---

14Rs.

---

---

30Rs.

---

55Rs.

---

Cibaca

---

---

---

---

---

18Rs.

---

28Rs.

---

charcoal

---

---

---

---

55Rs.

66Rs.

---

---

30Rs.

45Rs.

56Rs.

30Rs.

---

56Rs.

---

---

86Rs.

---

---

promotion
Advertisement through T.V. media, Print
media, social media.

 Hoarding on National highways, cities.

 Free Dental Check-up in mobile vans.

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

Marketing strategy
Brand Building
Innovative & Attractive
Packaging
Introducing New Products
Market Positioning

Segmentation
The Company has divided its market into two product
segments: Oral care & Personal care.
Colgate is considered to be the global leader in the
Oral care Products such as toothpaste, Toothbrushes
and many other pharmaceutical products.
Colgate also possesses a strong market in the Personal
Care segment that includes products like bar, liquid
hand soaps, shower gels, shampoos etc.

 Geographic Segmentation Strategy:

The Colgate Company has implemented this strategy by expanding its business
in over 200 countries. The company does not market the same product in every
country. For instance, in United States they are selling sixteen different types of
toothpastes while in UK; they are selling twenty two different types of varieties.
Demographic Segmentation Strategy :
The Company caters the market segment based on different demographics such
as age, gender, social class etc. For kids aged 8-10, they have products like
transitional toothpastes. They have a separate section for infants, children,
teenagers and adults.
Psychographic Segmentation Strategy:
Here the company sells the products considering the lifestyle and needs of the
consumers. For people who are sensitive about their teeth, they have introduced
Sensitive pro-relief toothpaste and brushes which are made to decrease tooth
sensitivity issues.

The Product Life Cycle

A company's positioning and differentiation strategy must

change as the product, market and competitors vary over the
Product Life Cycle. to say that a product has a life cycle
consist of four things:1. Products have limited life

2. Product sale passes through different stages, each posing a

different challenge and opportunity to seller.
3. Profits rise and fall at different stages of life cycle.
4. Products need different strategies in different life cycles.

1. Introduction:
A period of slow growth, because the product is just introduced in the
market, the profits here are nonexistent due high cost of advertising and
other product introduction strategies.

2. Growth:
A period of rapid market acceptance and substantial profit improvement.

3. Maturity:
A slowdown in sales growth, because the product has achieved
acceptance by most potential buyers. I believe this to be more of a stable
stage for the product, where the graph is almost flat.

4. Decline:
Here the sales show a downward drift and profits decrease. This is where
the company has to really think of ways to get its product back in
business. It may try hard at advertising, or may be add new features, but
basically come with a new marketing strategy to increase its falling
profits.

Market share(2015)
Market Share

13%
22%

8%
57%

Colgate Palmolive
HUL
Dabur
others

Major competition to Colgate

in rural India
Pepsodent
Close up
Babool
Meswak
Dabur red
Sensodyne
Himalaya
Oral-B
Other small Players

SWOT Analysis
Strengths
Geographically diversified industry.

Strong brand image.

Strong market share.
Appealing advertisements.
Huge sales growth.
Skilled workforce.
Strong promotional strategies.

Weaknesses
Saturated market.
Market share is limited due to the presence of other strong FMCG Brand
Fake Brands are supplied under their brand names

 Opportunities
Tap rural market and increase penetration in same.
Emerging markets may attract business.
Differentiation strategy is required.

Threats
Increase in commodity prices.
Fierce competition.
New entrants in the market can be a threat to Colgate.

Demand Analysis
of Colgate

Independent Variables affecting

demand of Colgate
Price:
This product is a brand loyal product, so if there is a slight
increase in the price, the demand of the product will remain
unaffected. But if there is a decrease in the price, the demand of the
product may slightly increase.
Income:

If the income of the people increases, the demand of

the product also increases and if the income of the people
decreases, the demand of the product decreases because then
people will go for lower price products. So, there is a positive
relationship between income and the product demand.

 Population & Age group:

This product is meant for the children, adults and
also for the old people so the age groups are not much
affected the demand of the product so demand remain
same and by the increase in the population, the
demand of the product also increases.

Brand Image:
This product has built such a brand image that it has
much attracted the mind of the consumers so they
will not like to switch over to the other brand.

 Consumers taste and preferences:

Colgate always produces high quality product the
taste has still remained the same which has touched
the heart of the consumers. So, they will not like to go
for any other product.

Competition:
There are many competitors like Pepsodent, Dabur,
Vicco, Sensodyne, Himalaya etc. in the market so if
the price of the competitors increases, the demand of
the Colgate also increases. But if the price of the
competitors decrease, the demand of the Colgate not
much affected by it.

 Price of Complementary Goods:

If the price of these complementary goods increases
then there will be no change in the demand. Because
colgate is a brand loyal product so there will not be any
effect on the demand of the product.

Advertisement campaign:
Advertisement campaign has played a vital role in
attracting the major part of the population towards the
Colgate. It was through this campaign like free dental
checkups, Scholarships. So, it is through advertisement
that Colgate has gained social acceptance which has
played a major role in increasing his demand.

Demand
Forecasting
Of
Colgate

Consumption in World wide

9

8.5

7.2

7
6

5.8

5
Billions

4
3
2
1
0

1999

2009
year

2020