OVERVIEW

Colgate-Palmolive is the nation's leading manufacturer of toothpaste, with a strong presence in the personal care, household cleaning, and pet food sectors as well. The company's Colgate brand toothpaste moved into the number one position in 1997, displacing Procter & Gamble's Crest brand, while Palmolive leads in the liquid dishwashing detergent field. Ajax, the company's long-time abrasive cleanser, is literally a household word, and various ColgatePalmolive brands such as Murphy Oil cleaning products and Irish Spring soap have benefited from popular advertising campaigns. Fab laundry detergent and Mennen deodorant (a brand acquired in 1992) are also among the leading competitors in their areas, and Science Diet is the top seller among premium pet foods. The company has an enormous global presence with plants in 75 countries and products available in virtually every nation in the world, including Australia, Brazil, Canada, China, Colombia, France, Italy, Mexico, Thailand, and the United Kingdom.

COMPANY FINANCES
Colgate-Palmolive posted a net income of $740 million on revenue of $9.06 billion in 1997, compared with a net of $635 million on sales of $8.75 billion in 1996. Net income rose more than 16 percent between 1996 and 1997. Colgate reported net earnings of $172 million on worldwide sales of $8.36 billion in 1995, compared with net income of $580 million on sales of $7.14 billion in 1994. The company reports that it has paid dividends on its common stock since 1895 with the size of dividends paid per share increasing for the past 35 years.

ANALYSTS' OPINIONS
Market observers are positive about Colgate-Palmolive, given its stability and its continued growth. The company overcame negatives associated with its rampant acquisitions in the 1970s divesting itself of many of the holdings in the following decade. In August 1995, however, Business Week sounded an ominous tone when it described Colgate as having been "caught offguard" by competing specialty toothpaste brands bearing a higher price tag and greater status. That same year Barron's reported that investors were disappointed by slower growth in earnings for a number of companies, including Colgate-Palmolive; but as the magazine reported, optimism for the company's future remained high.

HISTORY
Colgate-Palmolive was formed by the merging of two companies. William Colgate established the Colgate Company, manufacturer of starch, soap, and candles, in New York City in 1806. B.J. Johnson entered the soap business in Milwaukee in 1864 with the first factory for what would

eventually become the Palmolive Company. The two did not merge until 1928, when Colgate was already more than a century old. By its 100th anniversary, Colgate's product line included more than 600 types of perfume and almost 200 types of soap. Although it began life as a soap distributor and would ultimately merge with Palmolive, the company made its name with toothpaste, which it first produced in 1873. In 1896 Colgate became the first toothpaste brand to be packaged in tubes. Two years later, the B.J. Johnson Soap Company introduced Palmolive, a "floating" soap. It opened its first overseas facility; a factory in Toronto, Canada, in 1913; and began selling in England during the same year. In 1916, the Johnson company incorporated and changed its name to Palmolive in recognition of its popular brand. It remained Palmolive until 1926 when it merged with Peet Brothers to form Palmolive-Peet. Colgate became a publicly traded company in 1908 and saw duty in World War I by producing protective coatings to counteract the effects of poison gas. In 1928 Colgate merged with Palmolive-Peet. The new company, Colgate-Palmolive-Peet, might have proceeded with a proposed merger involving Hershey and Kraft, but the 1929 stock market crash put an end to those plans. The company introduced Fab laundry detergent and one of its best-known products, Ajax cleanser, in 1947. Six years later it became the Colgate-Palmolive Company and in 1956 established its headquarters on Park Avenue in New York. The company introduced a series of innovative products in the 1960s, and endured troubled times in the 1970s with a series of unprofitable acquisitions. It sold off most of its questionable acquisitions during the 1980s. With the acquisition of the Mennen Company in 1992, Colgate added a deodorant/antiperspirant line to its already established lines of personal care and household products.

STRATEGY
Colgate-Palmolive has long been an innovator in products and packaging. Just as Colgate was the first toothpaste brand to be packaged in tubes, in 1984 Colgate-Palmolive introduced the first toothpaste pump. The company introduced a series of firsts, including the first cold-water laundry detergent (Cold Power, 1965), cosmetic toothpaste (Ultra Brite, 1968), concentrated detergent (Fresh Start, 1980), and automatic dishwashing liquid (Palmolive, 1986.) Like many other consumer product manufacturers, Colgate-Palmolive has relied heavily on extensive and repetitive advertising. In the fall of 1996, Advertising Age predicted that the company would spend $32 million on advertising a new whitening toothpaste and $15 million on a campaign for the new Lady Speed Stick Invisible Dry deodorant. Palmolive's success in the 1970s could partially be attributed to the well-known series of advertisements depicting Madge the manicurist, who regularly placed her clients' hands in bowls of Palmolivethus emphasizing that the detergent was gentle on hands. Also highly effective was the Irish Spring commercial from the same era, which played on gender identification with certain brands, using the slogan (delivered by a woman with an Irish accent), "Manly, yes, but I like it too."

The company has emphasized oral hygiene and good health in its marketing campaigns for Colgate toothpaste, leaving the "sex appeal" to its Ultra Brite whitening toothpaste. (In the 1970s when Ultra Brite first used that phrase in its advertising, it was considered somewhat daring.) From there the toothpaste manufacturer concentrated on products that fight cavities, plaque, and tartar. For instance, in 1986 Colgate-Palmolive introduced tartar-control Colgate, a contrast with specialty brands that, as Business Week observed in an August 14, 1995 ariticle, "[focus] on things other than the therapeutic benefits of toothpaste."

INFLUENCES
Colgate-Palmolive seems to have fared best when it stayed closest to its core product line of personal care, laundry, and household cleaning items. In the 1970s, management attempted to diversify, purchasing not only Helena Rubenstein, whose cosmetic line might have seemed in keeping with the company's personal care items, but such wide-ranging enterprises as Ram Golf and Maui Divers. These endeavors did not prove to be successful, and Colgate-Palmolive divested itself of these properties, as well as its Etonic shoe line, in the 1980s. In late 1996, Colgate-Palmolive met its leading rival, Procter & Gamble (P&G), in court over a dispute involving a Colgate ad that P&G claimed was a copy of its own Crest commercial. This was not the only time that year the company faced advertising difficulties. The company was forced to withdraw an Australian sunscreen ad because it received criticism for alleged racial overtones. Generally, though, advertising has been a strong suit for Colgate-Palmolive, as it must be for marketers of personal care products.

CURRENT TRENDS
The year 1994 marked a milestone for Colgate-Palmolive marketing strategy. In that year, the company made a shift from its traditional pricing structure, based on special promotions, to the more low-key "everyday low pricing," which emphasized purchasing on the basis of need rather than high-powered promotions.

FAST FACTS: About Colgate-Palmolive Company

Ownership: Colgate-Palmolive Co. is a publicly owned company traded on the New York Stock Exchange. Ticker symbol: CL Officers: Reuben Mark, Chmn. & CEO, 59, 1997 base salary __BODY__,222,500; William S. Shanahan, Pres. & COO, 57, 1997 base salary $756,167; Lois D. Juliber, Exec. VP & COO, Developed Markets, 48, 1997 base salary $450,000

Employees: 37,800 Principal Subsidiary Companies: Colgate-Palmolive has 237 subsidiaries worldwide, including Hills Pet Nutrition Inc., Mennen Company, Murphy Phoenix Company, and Softsoap Enterprises Inc. Chief Competitors: Colgate-Palmolive's competitors include: American Home Products; Amway; Avon; Gillette; and Procter & Gamble.

In 1994 the company launched its largest series of new products in a decade: Colgate Toothpaste with Baking Soda & Peroxide, Irish Spring Waterfall Clean Soap, Palmolive Antibacterial Dishwashing Liquid, and the Murphy Kitchen Care line. In the mid-1990s it also introduced Colgate Plus Ultra Fit Compact Head toothbrushes, and in December 1996 it introduced Lady Speed Stick Invisible Dry Deodorant. With concerns over germs growing in the 1990s, antibacterial soaps became popular, and in 1996 Colgate announced the introduction of Irish Spring Sport, an antibacterial product intended to compete with a "body wash" produced by Procter & Gamble. The company anticipates continued global success with present and future products.

PRODUCTS
Colgate-Palmolive has a wide line of products in the following areas: personal care, household and fabric care, pet nutrition, and assorted specialty items. Colgate-Palmolive's personal care line includes Colgate toothpaste; Mennen, Speed Stick, and Lady Speed Stick deodorants; Skin Bracer after shave; and Irish Spring deodorant and Palmolive cosmetic soaps. Palmolive is also a brand in the household/fabric care area with its dishwashing liquids and powder. Also included in this area are Ajax, Fab laundry detergent, Murphy Oil soap, and Handi Wipes. With the acquisition of Hills Pet Products in 1976, Colgate-Palmolive entered the pet food business, with specialty dietary management products HealthBlend and Science Diet, as well as Prescription Diet, a line available only through veterinarians. Finally, through its subsidiary, Princess House, Colgate-Palmolive manufactures crystal and giftware.

CORPORATE CITIZENSHIP
Colgate-Palmolive has pursued an outstanding program of corporate citizenship, both globally and locally. In 1987 the company announced plans for a significant redevelopment of the Jersey City, New Jersey, waterfront plant. The revitalization plan, for which ground was broken in 1990, included proposals for offices, parks, housing units, a hotel, and a marina. Throughout the world the company has devoted millions of dollars and thousands of person-hours to education, health, sports, and community programs, mostly targeted toward young people.

CHRONOLOGY: Key Dates for Colgate-Palmolive Company

1806: Founded by William Colgate in New York to make and sell soap, starch, and candles 1820: Colgate expands it manufacturing to a New Jersey factory to produce soaps and starch 1857: William Colgate dies and Samuel Colgate takes over; company name is changed to Colgate & Company 1864: B.J. Johnson opens a soap factory in Milwaukee, Wisconsin 1872: The Peet Brothers open a soap factory in Kansas City, Kansas 1873: Colgate begins selling toothpaste in a jar 1898: Johnson's company creates Palmolive soap 1908: Colgate goes public 1916: Johnson's company incorporates and officially becomes Palmolive Company 1926: Palmolive merges with the Peet brothers to become Palmolive-Peet 1928: Colgate and Palmolive merge to form Colgate-Palmolive-Peet

1947: Introduces Fab laundry detergent and Ajax cleaner 1953: The company name changes to Colgate-Palmolive Company 1963: Colgate-Palmolive expands by introducing Baggies, a new food wrap 1973: Cosmetics manufacturer Helena Rubenstein is acquired 1981: Colgate loses a suit brought by United Roasters for breach of contract 1982: Colgate is sued by the federal government for job discrimination 1992: Mennon Co. is purchased 1993: S.C. Johnson Wax's liquid hand and body soap brands are purchased, making ColgatePalmolive the worldwide leader in liquid soap 1997: Colgate brand becomes the number one selling toothpaste In 1987 Colgate-Palmolive helped fund the revitalization of Wadleigh School in New York City, a junior high with a crumbling infrastructure and a disastrous academic record. In addition, a "friendship school" in Cali, Colombia, built with Colgate money, provides education to children between the ages of 6 and 12. Outside Johannesburg, South Africa, is a pioneering multiracial day-care center called the Wonderland School, operated by Colgate-Palmolive. In the Philippines and many other developing countries, the company sends dentists into villages and barrios to treat underprivileged children. The company also sponsors sporting events throughout the world, most notably the Colgate Women's Games, which involve 15,000 women, and a Colgate Sports & Activity Day on the island of Fiji gives disabled participants an opportunity to compete.

GLOBAL PRESENCE
Colgate has an enormous global presence. The list of countries where no Colgate-Palmolive products are sold (North Korea, Mongolia, Iran, Cuba, Somalia, and a handful of others) is far shorter than the one listing the 194 (at last count) nations in which its products are available. By contrast, the United Nations in 1997 had only 185 members. The company's global expansion began in the early part of the twentieth century, and by 1997 it had plants in 75 countries. Although Colgate-Palmolive has established itself in most parts of the world, it continues to seek new segments of international markets, especially in developing countries. In 1996, the company undertook a remarkable promotional activity that combined corporate citizenship with a forwardthinking strategy of marketing. Colgate "video-vans" throughout India began distributing free toothpaste samples to rural villagers. The Indian villagers, the vast majority of whom were not exposed to Western-style oral care (including toothpaste), represent a potential market of more than 600 million people. In the Western world, Colgate-Palmolive continues to develop new variations on traditional soap and toothpaste products.

EMPLOYMENT
Colgate-Palmolive's public relations presents the company work force in a glowing light, emphasizing diversity and stability. Its 1995 annual report, for instance, listed numerous top management personnel who had served the company for one, two, and even three decades, along with in-depth commentary from a wide range of managers. While diversity was a popular buzzword in corporate America in the 1990s, it seems to have come naturally to a company with offices and plants on every continent except Antarctica. As the 1990s neared an end, optimism for the company's future remains high. Colgate-Palmolive's recruiting and employment practices have received praise from Personnel Journal, which awarded the company's human resources department its "Global Outlook Award" for 1995. As for stability, although the corporation has gone through numerous mergers, acquisitions, and divestitures since its founding, the core entity has existed since 1806, an impressive record in the ever-shifting world of corporate America. In 1995 the company announced plans to downsize 3,000 jobs and either close or reconfigure 24 of its facilities over the next three years.

Principal Subsidiaries: Colgate Flavors and Fragrances, Inc.; Colgate (Guangzhou) Co. Ltd. (China); Colgate Oral Pharmaceuticals, Inc.; Colgate-Palmolive (America), Inc.; ColgatePalmolive (Asia) Pte. Ltd. (Singapore); Colgate-Palmolive Argentina S.A.; Colgate-Palmolive A/S (Denmark); Colgate-Palmolive Belgium S.A./N.V.; Colgate-Palmolive Beteiligungsgesellschaft mbH (Germany); Colgate-Palmolive Canada, Inc.; Colgate-Palmolive

(Central America), Inc.; Colgate-Palmolive (Centro America) S.A. (Guatemala); ColgatePalmolive Chile S.A.; Colgate-Palmolive Cia.; Colgate-Palmolive (Hellas) S.A.I.C. (Greece); Colgate-Palmolive Compania Anonima (Venezuela); Colgate-Palmolive Company, Distr. (Puerto Rico); Colgate-Palmolive del Ecuador S.A.I.C.; Colgate-Palmolive de Puerto Rico, Inc.; Colgate-Palmolive Deutschland Holding GmbH (Germany); Colgate-Palmolive (Dominican Republic), Inc.; Colgate-Palmolive (Eastern) Pte. Ltd. (Singapore); Colgate-Palmolive Espaa, S.A./N.V. (Spain); Colgate-Palmolive Europe S.A. (Belgium); Colgate-Palmolive Europe Sarl (Switzerland); Colgate-Palmolive G.m.b.H. (Germany); Colgate-Palmolive (Guangzhou) Co., Ltd. (China); Colgate-Palmolive (H.K.) Ltd. (Hong Kong); Colgate-Palmolive Holding Inc.; Colgate-Palmolive Holdings (UK) Limited; Colgate-Palmolive Holding S. Com. p.a. (Spain); Colgate-Palmolive Inc. S.A. (Uruguay); Colgate-Palmolive (India) Limited; Colgate-Palmolive Industria e Comercio Ltda. (Brazil); Colgate-Palmolive Industrial Unipessoal, Lda. (Portugal); Colgate-Palmolive International LLC; Colgate-Palmolive Investments, Inc.; Colgate-Palmolive Ltd. (New Zealand); Colgate-Palmolive (Malaysia) Sdn Bhd; Colgate-Palmolive (Marketing) Sdn Bhd (Malaysia); Colgate-Palmolive Nederland BV (Netherlands); Colgate-Palmolive Norge A/S (Norway); Colgate-Palmolive Philippines, Inc.; Colgate-Palmolive (Poland) Sp. z 0.0.; Colgate-Palmolive Pty Limited (Australia); Colgate-Palmolive (Pty) Limited (South Africa); Colgate-Palmolive Services, S.A. (France); Colgate-Palmolive, S.A. de C.V. (Mexico); ColgatePalmolive S.p.A. (Italy); Colgate-Palmolive Temizlik Urunleri Sanayi ve Ticaret, A.S. (Turkey); Colgate-Palmolive (Thailand) Ltd.; Colgate Sanxiao Company Limited (China); Cotelle S.A. (France); CPIF Venture, Inc.; GABA Holdings Delaware, LLC; GABA Holding A.G. (Switzerland); Hawley & Hazel Chemical Company (HK) Limited (Hong Kong); Hawley & Hazel Chemical Company (Zhongshou) Limited (China); Hawley & Hazel Chemical (Taiwan) Corporation Ltd.; Hill's Pet Nutrition, Inc.; Hill's Pet Nutrition Indiana, Inc.; Hill's Pet Nutrition Limited (U.K.); Hill's Pet Nutrition Sales, Inc.; Hill's Pet Nutrition Manufacturing, B.V. (Netherlands); Hill's Pet Nutrition SNC (France); Hill's Pet Products, Inc.; Hill's-Colgate (Japan) Ltd.; Inmobiliara Hills, S.A. de C.V. (Mexico); Kolynos Corporation; Mission Hills, S.A. de C.V. (Mexico); Norwood International Incorporated; Softsoap Enterprises, Inc. Principal Competitors: The Procter & Gamble Company; Unilever; The Clorox Company; S.C. Johnson & Son, Inc.; The Gillette Company; Johnson & Johnson; Alberto-Culver Company; Reckitt Benckiser plc; Sara Lee Corporation; Church & Dwight Co., Inc.; The Dial Corporation.

Colgate's Core Values Our three fundamental values Caring, Global Teamwork and Continuous Improvement are part of everything we do. They are the foundation for our business strategy and are reflected in every aspect of our work life. Caring The Company cares about people: Colgate people, customers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty and high ethics in all

situations, to listen with respect to others and to value differences. The Company is also committed to protect the global environment, to enhance the communities where Colgate people live and work, and to be compliant with government laws and regulations. Global Teamwork All Colgate people are part of a global team, committed to working together across countries and throughout the world. Only by sharing ideas, technologies and talents can the Company achieve and sustain profitable growth. Continuous Improvement Colgate is committed to getting better every day in all it does, as individuals and as teams. By better understanding consumers' and customers' expectations and continuously working to innovate and improve products, services and processes, Colgate will "become the best." SEGMENTATION Colgate toothpaste products can be divided into segments catering to the needs of the consumers. The following is the basic way of segmenting the toothpaste products:

COLGATE DENTAL CREAM: It helps cleaning breath and guards teeth from tooth

decay. This is for the general people and for family use.

COLGATE TOTAL 12: This product of Colgate has decay preventing dentifrice,

prevents gingivitis, reduce formation of plaque and tartar above gum line. This is especially helpful for protecting teeth enamel and all round protection of teeth. Focus of this product is upon the hygiene conscious consumers and patients who are suffering from gum problems.

COLGATE SENSITIVE: This product prevents nerve ends; provide effective relief

from pain of sensitive teeth and gently whitens the gums. This product targets the hygiene conscious customers and also the patients who are suffering from serious teeth and gum problems.
COLGATE MAX FRESH: The gel properties of this product of Colgate gives freshness

along with protection. This product specially targets the young generation who avoids bad breath and inculcate the word freshness.

 COLGATE KIDS TOOTHPASTE: This product helps to prevent tooth decay of the

kids. This product is specially designed for the kids.

COLGATE FRESH ENERGY GEL: This product of Colgate has the freshness which

gives freshness and energy to the user and helps to avoid bad breath. This product targets the young generation who prefers freshness.
COLGATE HERBAL: This product contains herbal ingredients for white teeth and

freshness which removes bad breath and removes plaque. This product is designed for the people who believe in ayurvedic products and avoid using strong chemicals.

COLGATE CIBACA FAMILY: This product is designed as a complete family dental

cream. The product targets all age groups and all types of consumers, basically, the rural and township areas with low per capita income as well as urban areas.

COLGATE ACTIVE SALT: This product is popularly known as everyday family

toothpaste, combined with minty taste with a dash of salt for a unique brushing experience. The product is designed for individuals who trust natural element like salt as a tooth care ingredient. TARGET MARKETS Colgate has the whole toothpaste market as its target market. Being one of the oldest varieties of toothpaste, the Colgate Dental Cream has been marketed as a synonym for toothpaste. Colgate Total 12 claims to provide a 12-hour protection from germs. Hence, this variety of Colgate toothpaste is targeted at the educated, urban people who brush their teeth twice. Colgate Max Fresh, with its multiple flavours, seems to target the youth. It also associate brands like iPod and sports like Kayaking with it through the means of gifts / prizes which further enforces the belief that Colgate Max Fresh is for the youth. Colgate Kids toothpaste is clearly, as even the name suggests, targeted at kids. The advertisements and packing of the toothpaste further suggests that it is meant specifically for the smaller kids. Colgate Fresh Energy Gel is clearly aimed at the youth. Its sleek toothpaste cover and the picture of a young couple on it unambiguously emphasize this point. Colgate Herbal targets the traditional and the naturalist market which is pretty apparent from the name as well as the tagline Strong teeth, healthy gums, naturally and the use of squirrel as the central character in its advertisements. Colgate Advanced Whitening specifically targets people with plague problems as the toothpaste claims to provide whiter teeth within 14 days. Colgate Active Salt toothpaste targets customers with orthodox thinking who believe that salt is good for teeth. Colgate Cibaca is a product for the economy segment. The target market is basically the rural and township areas with low per capita income as well as urban areas.

POSITIONING Colgate Dental Cream positions itself as toothpaste that has the necessary calcium and minerals to provide decay protection, strong teeth, germ protection and fresher breath. Lately, with competition from indigenous vegetarian toothpastes, Colgate Dental Cream has also positioned itself as an always 100% vegetarian toothpaste. The tagline of is advertisements, Trusted by generations to make teeth stronger, clearly aims to position the Dental Cream as a toothpaste that has been used over generations and hence creating a kind of emotional attachment with the toothpaste. Colgate Total 12 have been projected as the most advanced toothpaste that provides 12 hour germ protection even after eating and drinking by building a protective shield around the teeth. It also tries to position itself higher in terms of reliability of its claims by telling the consumers that its formula is a patented one and the toothpaste is the most recommended one by the dentists. Colgate Max Fresh positions itself on the basis of freshness. The tagline A new dimension of freshness brings home this very point. Colgate Kids Toothpaste tries to position itself based on emotions which is apparent in its tagline Makes fighting cavities fun. It also provides the names of familiar cartoon characters like Tweety and Bugs Bunny to the various flavors that it markets and hence associating the tastes with the feelings of kids towards these cartoon characters. Colgate Fresh Energy Gel, as the name itself suggests, basis its marketing strategy on the toothpaste providing freshness. It positions itself as a gel (note that here it tries to differentiate itself from a toothpaste) for fresh breath and strong / white teeth. The emotional positioning of Colgate Fresh Energy Gel is implicit by the way of the photo of the couple on the toothpaste pack and in the advertisements. It obviously wants to strike a chord with the young, and also the budding, couples of the country. Colgate Herbal positions itself based on basically only one attribute, i.e. being herbal. The Colgate Cibaca Family Protection toothpaste positions itself in a very standard way by claiming to provide strong teeth and fresh breath. Colgate Advanced Whitening toothpaste has a very unique positioning as it is very focused on specific attributes like restoring natural whiteness, preventing stains from adhering and fighting plague. The Colgate Active Salt toothpaste positions itself alongside the other toothpastes that claim to fight gums and result in healthy gums and teeth.

India Oral care

Toothpastes

Colgate Dental Cream Colgate Max Fresh Colgate Active Salt Colgate Total 12 Colgate Sensitive Colgate Kids Colgate Advanced Whitening Colgate Herbal Colgate Cibaca Colgate Fresh Energy Gel Colgate Maxwhite

Toothbrushes

Colgate Massager Colgate Navigator Plus Colgate 360 ActiFlex Colgate Extra Clean

Colgate Extra Clean Gum Care Colgate Sensitive Toothbrush Colgate 360 Toothbrush Colgate Zig Zag

Toothpowder

Colgate Super Rakshak

Whitening Products

Colgate Advanced Whitening

KidsProduct

Colgate Kids ToothPaste Colgate Kids 2+

Mouthwash

Colgate Plax Personal Care:

Bodywash

Palmolive Aroma Bodywash Relaxing Palmolive Thermal Spa Bodywash Firming Palmolive Aroma Bodywash Vitality Palmolive Thermal Spa Bodywash Massage Palmolive Naturals Moisturising Bodywash Milk & Almond Palmolive Naturals Moisturising Bodywash Milk & Honey

Liquid Handwash

Palmolive Naturals Milk and Honey Hand Wash Palmolive Aroma Liquid Hand Wash Relaxing Palmolive Naturals Liquid Hand Wash Family Health

Hair Care

Palmolive Halo Shampoo

Skin Care

Palmolive Charmis Cream

Shave Preps

Shave Cream Home care:

Axion - Dish Washing Paste Professional Oral Care:

Gingivitis Treatment

Colgate PerioGard

Sensitivity Treatment

Colgate Sensitive Colgate Gel Kam

Tooth Whitening

Colgate Visible White

Fluoride Therapy

Phos Flur

Mouth Ulcer Treatment

Oragard-B

Specialty Cleaning

Specialty Cleaning

Pakistan:

Throughout the world, people like you trust our family of brands to care for the ones they love. From toothbrushes and toothpastes to bar soap, household cleaners, every day our products improve the quality of life for consumers worldwide.

Toothpastes

New Palmolive Colgate CDC Naturals Colgate Total Fresh Stripe Azadi Colgate Herbal Carbolic Colgate Herbal White Soap Colgate Whitening Protex Colgate Fresh Energy Gel

Max Bar Azadi Dish Bar Max Scourers Max Liquid Max Antibacterial

Brite Maximum Power Express Power Bonus

Navigator Plus Colgate Plus Colgate Premier Colgate Extra Clean Colgate Super Flexible

Sparkle Tooth Brushes Colgate

Canada:

Oral Care

Toothpaste

Colgate* Sensitive Pro-Relief Colgate Total* Toothpaste Colgate Total* Advanced Health Colgate Total* Advanced Fresh Colgate Total* Clean Mint Colgate Total* Fresh Stripe Colgate Total* Whitening Gel Colgate Max Fresh* Burst Colgate Sensitive* Whitening

Colgate MaxFresh* Toothpaste Colgate* Visible White Colgate* 2in1 Colgate* Sparkling White Colgate* Cavity Protection Childrens Toothpaste

Toothbrushes

Colgate* 360 Colgate* 360 microSonic Power Toothbrush Colgate Motion* Battery-powered Colgate Total* Professional Colgate Massager* Colgate Twister* Fresh Colgate Navigator* Colgate UltraFit ZigZag* Colgate Max Fresh* Children's Toothbrushes

Children's Products

Colgate Kids* 2in1 Colgate* SpongeBob SquarePants

Oral Care Specialty

Colgate OraGard* Colgate Peroxyl* Colgate Platinum* Colgate PreviDent* Colgate Gel-Kam* Colgate PerioGard*

Personal Care:

Mens Antiperspirant & Deodorant

Speed Stick* Speed Stick Stainguard* Speed Stick Irish Spring*

Women's Anti-Perspirant

Lady Speed Stick* Lady Speed Stick* 24/7

Body Wash

Softsoap* Advanced Moisture Collection Softsoap* Nourishing Collection Softsoap* Fragrance Collection Irish Spring* Collection

Bar Soap

Irish Spring*

Liquid Hand Soap

Softsoap*

Men's Toiletries

Skin Bracer*

Home Care Products

Palmolive* Dishwashing Liquid Palmolive* Gel Dishwasher Detergent Murphy* Oil Soap AJAX* Dish Liquid AJAX* Powder Cleanser

Fabric Care

Fleecy* Liquid Fabric Softener Fleecy* Dryer Sheets Pet nutrition:

Hill's Science Diet

Pricing Strategies

Colgate has maintained the custom of launching the new product at low prices so that every customer can take a trial of the product. Colgate changes its prices to meet the competition but only at that time when the prices of competitors decrease because of national change in prices. Every customer has to pay the same amount to buy the products of Colgate Palmolive

in Pakistan. It means the company is following uniform delivered pricing strategy for all its products. Before setting price Colgate considers the following Pricing objectives Importance of pricing for target customers Identifies the demand Estimated costs Competitors prices

Product Colgate Herbal Colgate Herbal White Colgate Anti Cavity

Colgate Fresh Gel Colgate Whitening Sparkle 2 Good

Packaging/Size 100gm 50gm 100gm 50gm 150gm 100gm 75gm 50gm 160gm 90gm 100gm 50gm 150gm 70gm 45gm PRICE in India

Price in Pak Rs. 40 40 42 22 58 42 32 22 85 48 44 30 32 18 12

Sl. No. 1. 2. 3. 4. 5.

PRODUCT Colgate Dental Cream Colgate 12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste

50 gramRs. 14/-, 100 gramRs. 30/- and 200 gram Rs. 50/150 gramRs. 62/100 gramRs. 58/150 gramRs. 50/150 gramRs. 48/-

6. 7. 8. 9.

Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Active Salt

50 gramRs. 15/-, 100 gramRs. 32/100 gramRs. 29/- and 200 gramRs. 54/50 gramRs. 10/-, 100 gramRs. 17/- and 200 gram Rs. 27/100 gramRs. 29/- and 200 gramRs. 54/-

Promotion In India:
Colgate normally gives out small product samples at annual events like Oral Health month to remind target consumers, especially kids to take better care of their teeth after eating sweets. This method does not drive strong results as most consumers tend to forget the message, even if they have collected the samples. Now, instead of giving away product samples, Ice cream and cotton candy were given out. The stick carrying the ice cream and cotton candy carries a hidden message. Once consumers are done the message printed on the tip of the stick shaped like a toothbrush reveals Dont forget with the Colgate logo. This simple message effectively reminded consumers to brush their teeth. Advertising of Colgate products is basically done through television commercials. Famous personalities like Sunny Deol, Viveik Oberoi, Virendar Sehwag, etc. had been associated with this brand in past for a quite a long time. Sales promotion is not done at the retailer level, apart from possible recommendation by the shopkeeper. The company has backed its products with a very strong distribution network. The companys distribution network covers 940 direct accounts and 3.8 million retail outlets. Colgate is the 2nd most widely distributed product in the country. The company is tying up with initiatives like EChoupal and Disha to further strengthen its distribution network. Over the years, Colgate has been able to develop strong brand equity. It has been voted the The Most Trusted Brand in the country for 3 consecutive years in the AC Nielsen Brand Equity Survey.

PROMOTION in Pakistan:
Promotion is necessary to reach consumers with which Colgate interacts. Promotion is communication used to inform, persuade or remind. Personal selling, advertising, publicity and public relations are the four key elements of the promotion mix. Colgate is targeting the whole population of Pakistan through advertisement. Company also introduces different promotion schemes such as discounts and 2 in 1. Colgate gives high emphasis on direct approach to customers. Its sales team visit citites after cities where they involve in experiments of tooth whitening. They try to satisfy their customers at the spot

Colgate toothpaste is the main driving force behind the Oral Care business, contributing towards consistent and profitable growth. Colgate Maximum Cavity Protection toothpaste, a key equity driver, was relaunched last year with a new improved germ fighting formula containing micro particles of calcium and active fluoride that help keep teeth healthy and strong. The relaunch was accompanied with a hard hitting advertising campaign highlighting the importance of protection against cavities. Colgate works hand in hand with the Pakistan Dental Association (PDA) to leverage its quality perceptions and oral health awareness in the masses. This is one of the many consumption building activities which have been pioneered by Colgate in Pakistan.

Packaging:

As the saying goes looks matter, and without a properly designed package a product is hard to sell regardless of how good its other attributes might be. Indeed, packaging design represents what the brand stands for as much as other elements of the brand visual identity do, and in certain cases the packaging is almost as important as the product itself. In markets, packaging design does not only have the function of protecting the product and explaining its attributes and benefits, but it also has the role of appealing to consumers. Studies show that buyers generally decide what to buy at the point of sale . In order to successfully help sell the product, the package needs to differentiate and characterize the product and ultimately to become part of the product experience. We will look at the components of packaging design in the order a customer may perceive them: colour; label and typeface; images, patterns and shapes; and material. Selecting the right colour palette for the packaging has a great deal to do with the ultimate success or failure of a product brand. In fact, colour plays an important role in a consumers purchase decision . People use a little more than a minute to make up their minds about a product they see for the first time, and a big part of this judgment is based on colours alone. So, clever use of colours in packaging design can contribute not only to differentiate the product from competitors, but also to influence moods and feelings and ultimately attitudes towards a certain product . "All of us have involuntary physiological and psychological responses to the colours we see," according to the Chicago-based Institute for Colour Research, a group that collects information on the human response to colour and then sells it to industry. "Colour...impacts our appetite, sexual behaviour, business life and leisure time," says Eric Johnson, the institute's head of research studies. In fact, the same colour may be perceived very differently in different cultures. For example, green enjoys no popularity in Japan, France, or Belgium, while it can be frequently seen on the packaging designed for Turkish and Austrian consumers. People

from Islamic cultures react negatively to yellow because it symbolizes death but like green as this is believed to help fight off diseases and evil. Europeans associate black with mourning and tend to prefer red, grey, green and blue. In the Netherlands, orange is the national colour and therefore can be used to arouse nationalistic feelings . Colours have a strong significance in Chinese culture as well. Yellow, as the colour that was only for the emperor to wear, and red, as symbol for happiness and good luck, are both very powerful colours for designing product packaging for this country market. However, this does not apply to every product category: Chinese consumers generally find appealing these bright and shiny colours for food products but tend to prefer white and pastel colours for personal care and household items. For instance, General Mills adapts the colours used on own product packages in the Chinese market by using bright and flashy colours. Kleenex, instead, features brightly colour and slightly abstract flowers on the packages sold in the US but it designs Chinese packaging with pastel colours and small, delicate and realistic flowers. 2. Label and Typeface Label and typeface are critical to attract consumers for they are a prominent visual element on any packages. Different countries have different regulations about the information product labels should or should not contain, therefore size and layout of information on the label may need to change in order for the product to enter a certain country. Besides country specific regulation on labels, key to market the brand to local consumers is the typeface used on the package. This is especially true in China where foreign brands adopt Chinese brand names, and consequently Chinese typeface, to better communicate to the market. 3. Images, Patterns, and Shapes Researchers estimate that more than 70 percent of purchase decisions are made at point of sale . Here the consumer takes in rapidly all the products displayed and likewise hastily looks for clues that help him make a decision. Products brands that are successful on the market clearly take into consideration how images and patterns printed on the packaging influence consumers decisions towards own products. 4. Material The material used to produce the package it is also extremely important in order to gain the preference of target consumers. For instance, a growing segment of the population

worldwide dislikes products using too much waste material for the packaging directly due to environmental concerns. Price conscious consumers, instead, are less concerned by the quality or recyclability of packaging and are generally more likely to consider other, more function-oriented factors when purchasing a product. However, these factors often depend on priorities that change according to the category of goods, the specific product, and the available budget of the buyer . In other words, the material used to package a product reflects how much the company understands its market. Colgate, for instance, chose to differentiate its products in China by using a packaging material that was scarcely used by competitors when the company entered the Chinese market in 1992. Back then, the majority of domestic toothpaste manufacturers used aluminium tubes. Colgate, instead, adopted the plastic tube that is now commonly used by almost all toothpaste brands as this is more convenient, durable, and safe for the user. The new packaging material helped Colgate seize about one third of the market share over the years.

Packaging has an incredible power over what people buy. The same way people express themselves through the clothes they wear they also make statements about who they are through the products they buy. Indeed, we buy products not just for their functional attributes but also and maybe even more importantly because these products promise to fulfil desires and longings. The package that enfolds the product carries a big part of that promise.

Competitor Analysis
Colgate Pakistan does not consider any brand as its close competitor in the market. Colgate is the only market leader in the oral care in Pakistan. P& G is its world wide competitor but P& G is not marketing its brand Crest tooth paste. However Unilever, Glaxosmithkline are having good contribution in the market. Especially Close up is rapidly expanding its product line. But still imported close up is having better share as compared to locally manufactured close up. English laboratories ( English tooth paste) and Roomi Entreprises with Sensodyne are also popular brands in tooth paste market. But Medicame and Synsodyne are categorized in the medicated tooth pastes. Colgate Herbal is uniqeue in its formula and not any other brand is offering Herbal tooth paste in the market. Manjans and tooth powder are losing their importance and mouth washes may increase their current low share. However awareness about the mouthwashes is also increasing but still the trend has not set. Colgate is still market leader in oral care in Pakistan. Its brand image and its diversified products touch it a universal market leader in the oral care and personal care.

The top toothpaste brands in

India include Colgate Palmolive, Hindustan Lever

Limited and Dabur India. The level of penetration of toothpaste in India is 50 per cent. However the major toothpaste players in India are trying their best to increase penetration levels in the rural parts of the country which is still by far untapped. At Present Colgate holds a market share of 52% and HUL 23%. 14.5% of the market share is shared by brands such as Pepsodent, Babool, Sensofoam, Cibaca, Neem, Vicco etc .

S.W.O.T. Analysis Strategic Planning and Thinking

S.W.O.T. stands for Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis provides us with an analytical framework for studying a Companys position and strategy. Strengths and Weaknesses are internal factors of a Company. Opportunities and Threats are external factors. It allows you to analyze the different factors which affect the relative competitiveness of a Corporation. While SWOT is a useful tool to organize information, it is based on the subjective assessment of a situation. As such, as SWOT analysis is only as good as the information to goes into them.

Strengths
Companys presence in 200 countries is its biggest strength Strong Corporate image of Colgate Palmolive Strong Financial Position Worldwide research and excessive emphasize on technology. Strong social image of the Company Well-established and renowned distributors Highly enthusiastic sales team More concern towards quality improvement A blend of scientific research with natural herbs

Weaknesses
Only emphasize on urban market while suburban and rural areas are neglected to some extent. Colgate promotion budget is very less as compared to its competitors.

Opportunities
People are becoming more and more health conscious. Due to this growing market there are a lot of opportunities for Colgate to exploit this growing market by introducing new products. Due to shift from artificial components to natural things people are demanding

products that are very natural. This trend is a good opportunity to capture this segment through efficient marketing practices.

Threats
Threat of the new entrance is also present. Unilever and Medicame is capturing market increasingly. Locally manufactured as well imported tooth pastes are also threat to Colgate in the competitive market. Market competition is also increasing day by day.

Conclusion:
India is still a nascent country in dental hygiene, with the majority of the population still not having access to modern dental care but relying on substances like coal ash and neem sticks. As the penetration level of the rural segment is at a low of 30 percent, this means that only 200 million of our 740 million rural population use toothpaste. In India, per capita toothpaste consumption stood at 74g in 2005, which is amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam respectively. Toothpaste enjoys a country wide penetration level of 50%. The penetration levels of dentifrice in the country have been on an upward trend over the last few years driven by strong improvements in toothpaste penetration. With the huge consumer base waiting to be tapped and the expected rise in purchasing power as the economy picks up, oral hygiene in India may receive a fresh lease of life. While concluding all the discussion, we would like to tell proudly that Colgate is not only world leader in oral care in the world but also in Pakistan. Colgate has given variety in its products and it has introduced so many flavors and formulas in its tooth pastes. Its brands are world class in quality. Colgate people emphasize on three fundamental valuesCaring, Global Teamwork and Continuous Improvementare part of everything they do. These values are the foundation for Colgate business strategy and are reflected in every aspect of their work life. Colgate brands are very popular in our society. Colgate is focusing on quality and innovation in oral care sector. Colgate Herbal tooth paste is an innovative step towards a tooth paste industry and Colgate is pioneer to introduce a product that is a blend of Natural Herbals and Scientific research. Colgate will continue to improve its products through innovation and customer satisfaction.