Type

Public

Traded as

NYSE: CL
S&P 500 Component

Industry

Personal care

Founded

1806

Headquarters

300 Park Avenue

New York City, New York,United
States

Key people

Ian M. Cook, CEO

Revenue

US$ 17.085 billion (2012)[1]

Operating
income

US$ 3.889 billion (2012)[1]

Net income

US$ 2.472 billion (2012)[1]

Total assets

US$ 13.394 billion (2012)[1]

Total equity

US$ 2.189 billion (2012)[1]

Employees

37,700 (2012)[1]

Website

www.colgate.com

INTRODUCTION
The Colgate-Palmolive Company is an American multinational consumer products
company focused on the production, distribution and provision of household, health care and
personal
products,
such
as soaps, detergents,
and oral
hygiene products
(including toothpaste and toothbrushes). Under its "Hill's" brand, it is also a manufacturer
of veterinary products. The company's corporate offices are on Park Avenue in Midtown
Manhattan, New York City. Incorporated in the year 1937.
Colgate- Palmolive (India)
Key Executives

Designation

Mr. Mukul Deoras

Chairman

Mr. R.A.Shah

Vice Chairman

Dr. (MS.) I Shahani

Director

Mr. J.K.Setna

Director

Mr. V.S. Setna

Director

Colgate-Palmolive (India) Ltd is engaged in the personal care business, which includes oral
care. The oral care products manufactured by the company include toothpastes, toothbrushes,
toothpowder, whitening products and mouthwash. The personal care products manufactured
by the company include body wash, liquid hand wash, shave preps, skin care and hair care.
The household care product manufactured by the company includes surface care. The other
products and treatments provided by the company include gingivitis treatment, sensitivity
treatment, tooth whitening, fluoride therapy, mouth ulcer treatment and specialty cleaning.
Colgate-Palmolive Company is the company's ultimate holding company.

Product Portfolio:
In Colgate Palmolive it includes 16 different brands and they are:
Colgate Dental Cream, Colgate Total 12, Colgate Sensitive, Colgate Max Fresh, Colgate
Cibaca , Colgate Active Salt, Colgate Plax, Colgate 360, Colgate Zig Zag, Colgate
Toothpowder, Halo Shampoo, Palmolive Naturals, Palmolive Aroma, Palmolive Thermal
Spa, Aroma Hand Wash, Palmolive Shave Cream, Palmolive Charmis.

HISTORY

In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New
York City under the name of; William Colgate and Company. In 1857, William Colgate died
and the company was reorganized as Colgate and 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
and the current name. Today Colgate has numerous subsidiary organisations spanning 200
countries, but it is publicly listed in only two, the United States and India.
Colgate-Palmolive (India) Ltd was incorporated in the year 1937. In the year 1983, the
company introduced their successful product Colgate Plus toothbrush in the market. In the
year 1988, CPIL received a licence for producing 24,000 tonnes per annum of fatty acids.
They also registered with DGTD for production of 30,000 tonnes of toilet soap per annum. In
June 1988, the company established a wholly owned subsidiary at Hetanda in Nepal to
manufacture the toothpaste and tooth powder initially. In the year 1991, the company
launched new Colgate Gel Toothpaste, Palmolive Extra Care and new Palmolive soap. They
also re-launched a high quality Colgate Plus and other toothbrushes. In the year 1994, the
company acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd. In the year 1996,
the company introduced the Colgate fresh stripe toothpaste and Palmolive naturals soap in
personal care products segments, Keratin Treatment Shampoo and Palmolive optima in Hair
care segment. Also, they established a modern facility at Aurangabad to manufacture
Dicalcium phosphate, a key ingredient for toothpaste. In the year 1998, the company
launched Colgate Double Protection toothpaste for the entire family
During the year 2000-01, the company launched Colgate Herbal Toothpaste, Economy
Toothpaste, Colgate Zig Zag Toothbrush, Colgate Navigator Toothbrush and Transparent Skin
Care Soap in the year market. They came out with a mega promotion, 'Colgate ke andar kya
hai', which was one of the key drivers in strengthening the consumer bond with the
Company's oral care and personal care brands. During the year 2001-02, the company relaunched Colgate Fresh Energy Gel with a refreshing falvour in a unique first-of-its king
transparent tube and economy toothpaste. During the year 2002-03, the company re-launched
their flagship brand, Colgate Dental Cream. Also, they re-launched their premium toothpaste,
Colgate Total, in a green and white striped paste format. They launched Colgate Navigator
Plus toothbrush to deliver excellent cleaning with a high degree of comfort and control. Also,
they re-launched Colgate Super Flexible with the consumer promise of '3-way action for a
comfortable clean'. During the year, the company divested their entire shareholding in
Camelot Investments Company Ltd (Camelot), a wholly owned subsidiary of the company.

During the year 2003-04, the company launched Colgate Herbal White striped toothpaste
with lemon extracts, eucalyptus and mint. They launched Colgate Navigator Plus Toothbrush
in the market.
During the year 2005-06, the company established Oral Care Category Innovation Centre
works closely with the Technology Centres in India and U.S.A. to shape ideas into products
that meet today's consumer needs. They launched Colgate Advanced Whitening, Colgate
Active Salt, Colgate MaxFresh Gel and Colgate Super Flexible Toothbrush with Unique
Tongue Cleaning Feature. During the year 2006-07, Sewri manufacturing facility
discontinued its operations with effect from September 27, 2006. During the year 2007-08,
the company acquired 75% shareholdings in three companies, namely, Advanced Oral Care
Products Pvt Ltd, Professional Oral Care Products Pvt Ltd and SS Oral Hygiene Products Pvt
Ltd and thus they became subsidiaries of the company with effect from November 1, 2007.

COMPETITORS

The competitors of the Colgate Palmolive are:

1. Marico
2. L'Oral
3. Nirma Ltd
4. HUL
5. ITC
6. Procter and Gamble
7. Dabur

Moreover, They launched the ad campaign for their new product Colgate Double Protection
toothpaste in competition with rival brand Pepsodent from the Hindustan Lever stable. In the
year 1999, the company launched three new products, such as Colgate Double Protection,
Colgate Total and Colgate Sensation. They started a new research and development centre, a
manufacturing facility in Nepal. Also, they completed a dicalcium phosphate facility in
Aurangabad. In the year 2000, the company introduced two new variants to their Palmolive
Naturals soap range and revitalised their sandalwood soap. Also, they launched two new
variants in their Palmolive Naturals range of beauty soap lime and milk cream. The company
re-launched their Colgate Gel as Colgate Fresh Energy Gel. During the year, the company
entered into a strategic tie-up with Calcutta-based First-net Solutions Ltd for joint sales
promotion of Colgate Fresh Energy Gel toothpaste on the Web portal called www.yantram.co

Management

Colgate-Palmolive structured

Colgate-Palmolive is structured on a functional basis. However, being an MNC and hence

part of a large global corporation, they also have a matrix structure.
In India, the people report to the Function Heads of each function, who in turn report to the
Managing Director. Each Function Head also reports to the Divisional Function Head, who
in turn reports to the Global Category Head.
All products categories are handled centrally and there are no separate divisions or SBUs
for each category. This gives the employee the opportunity of handling a broader portfolio
and also helps in developing a holistic view of the business.
The Sales & Distribution function operates through four branches Mumbai, Delhi, Kolkota
& Chennai. Each branch comprises a multifunctional sales team and field force, to plan and
implement various trade schemes and drive sales volumes. The Distribution system is also
common for all products (except Colgate Oral Pharmaceuticals for legal reasons).

Careers at Colgate-Palmolive advances

At Colgate-Palmolive, all the HR processes are tied to a competency framework

(Leadership & Functional). Employees exhibiting high performance and potential, can
grow in the organization through the following paths :

Vertical Growth - Higher levels of responsibility in the same function

Lateral Growth - Cross-functional assignments. There are several examples within

the company for this.

International Assignments - Taking up important international assignments

Compensation levels determined

They offer competitive compensation. Compensation depends on the level of responsibility,

qualification and experience of the candidate.

In arriving at the compensation levels, they look at:

Compensation data of the market

Internal compensation structure and parity

Performance and Potential of the employee

Colgate-Palmolive culture

The culture at Colgate is one of openness and transparency in all our interactions internally and externally.
They strongly believe in the principles of Managing with Respect with all our fellow
employees, business partners and customers. All processes and programs are so designed
that these values are upheld under both favorable and unfavorable circumstances.
The value of Caring (one of our three core values) permeates all that they do. Above all,
they believe in a strong code of ethics.
At Colgate, it's not only achieving results that counts, it is achieving results by following
proper means that puts an employee at an advantage

Employees evaluation

The Performance review year for Colgate-Palmolive is January December. At the beginning
of each year in January, employees take on objectives for the year, which are cascaded
down from the Organizations goals. Employees are appraised at the year-end, on
achievements against these objectives.
Areas of focus for the annual appraisals are:

Achievement against Objectives

Process by which Objectives are achieved

Additional accomplishments

'Managing with Respect' Principles Adopted

In addition to the formal appraisal process, there is a half yearly review of performance.
There is a lot of emphasis on day to day coaching and feedback aimed at the development
of the employee.

FUTURE PERSPECTIVE

Essel Propack Ltd signed a long-term agreement with the company to set up a plant in Goa at
an investment of Rs 400 million. The company has decided to set up a greenfield facility at
an upcoming industrial estate in Sanand in Gujarat with an estimated investment of Rs 200
crore. The company has been allotted 100,000 sq metres of land at the upcoming GIDC
industrial estate in Bol village in Sanand-II by the Government.

For the year ended March 2013

The net sales have increased by 17% to Rs 3163.81 crore. OPM has declined by 72 bps to
20.8%, due to rise in ad spend by 170 bps to 11.29% of adjusted net sales. The operating
profit has inclined by 14% at Rs 656.81 crore.

Other income declined by 2% to Rs 49.92 crore. Depreciation has increased by 11% to Rs

43.7 crore. The profit before tax has increased by 13% to Rs 663.03 crore.

Total tax outgo has increased by 17% to Rs 166.28 crore. Tax rate has increased from 24.1%
to 25.1% on Y-o-Y. The net profit has increased by 11% to Rs 496.75 crore

SWOT Analysis

Strength
1.
2.
3.
4.

It is one of the biggest brands in the personal care consumer products industry.
It has over 38000 employees globally.
One of the market leaders globally with excellent R&D.
Colgate focuses on four core businesses: Oral Care, Personal Care, Home Care and
Pet Nutrition.

5. Colgate has excellent reach and distribution and its products are available in over 200
countries.
6. Excellent advertising and brand visibility of products with a strong customer loyalty
for brands.

Weakness
1. Market share is limited due to presence of other strong FMCG brands.
2. Fake brands are supplied under their brand names.

Opportunity
1. Tap rural markets and increase penetration in urban areas.
2. Mergers and acquisitions to strengthen the brand.
3. Increasing purchasing power of people thereby increasing demand.

Threats
1. Intense and increasing competition amongst other FMCG companies.
2. FDI in retail thereby allowing international brands.
3. Competition from unbranded and local products.

Future strategies on 4ps of Colgate-Palmolive

Product
They try to position some innovative toothpaste with a brand name other than Colgate
but under the umbrella of Colgate Palmolive Focusing toward rural rich and consuming
class by endorsing the development of Colgate Ayurvedic Toothpowder They would
come up with sachets of these tooth powder and position toward rural population who buy
in smaller lots.
For Urban population, they would come up with the products suiting to young generation
For Urban rich and consuming class, they would come up with the products on the basis
of functional benefits Eg: 1.They launch different toothbrushes for different age groups.
2. They launch a special toothpaste and toothbrush for kids in the age group from 4-10
years

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.
Promotion
The positioning of the Colgate dental white crme and toothpowder towards rural rich
segment For rural consuming class they endorsing Cibaca toothpaste Advertisement
through T.V. media, Print media FM Radio for Urban population & MW and SW radio for
Rural population Hoarding on National Highways.
Place
They would try to increase product penetration to rural population They would try to
increase the wholesalers to smaller towns They would track the distribution path so that
they are covering all the village areas around the towns.

Bibliography

http://economictimes.indiatimes.com/colgate-palmolive-(india)ltd/infocompanyhistory/companyid-13873.cms
http://www.colgate.co.in/app/Colgate/IN/Corp/HomePage.cvsp
http://in.reuters.com/finance/stocks/overview?symbol=COLG.BO
http://www.indiainfoline.com/Markets/News/Colgate-PalmoliveIndia/4972761563
http://www.mbaskool.com/brandguide/fmcg/1516-colgate-palmolive.html
http://www.colgate.co.in/app/Colgate/IN/Corp/BoardOfDirectors.cvsp