Colgate Palmolive Company Analysis

Colgate
Financial and Marketing Analysis

Colgate Palmolive Company Analysis

Table of Contents
1. Introduction .......................................................................................................................................... 2 Key Market Players ....................................................................................................................................... 3 Procter & Gamble ..................................................................................................................................... 3 GlaxoSmithKline ........................................................................................................................................ 4 Unilever ..................................................................................................................................................... 4 Locally Manufactured ............................................................................................................................... 4 Levels of Competition ................................................................................................................................... 5 Product Form Competition ....................................................................................................................... 6 Product Category Competition ................................................................................................................. 6 Close Competitors Positioning: ..................................................................................................................... 9 Pepsodent: .............................................................................................................................................. 10 Anchor: .................................................................................................................................................... 10 Babool: .................................................................................................................................................... 10 Oral-B: ..................................................................................................................................................... 10 Marketing Standing ( Leader/ Follower / Niche) ........................................................................................ 10 Marketing Strategies Colgate: .................................................................................................................... 11 Strengths, Weakness, Opportunity and Threat Analysis ................................................................... 12

Colgate Palmolive Company Analysis

Introduction
Colgate is considered one of the most popular companies in toothpaste industry not only in Vietnam but also all over the world. It was established in 1806 in New York City. In the present, Colgate has globally widened its market into 223 countries and occupied the highest market share in toothpaste industry (Colgate.com 2010). Since establishing its company until now, Colgate has received many global recognitions in USA and others countries. For example, in USA, Colgate was awarded by Fortune magazine with a prize Global top companies for leader in 2010 and 100 best companies to work for in 2009.

In a society that cares about appearances consumers continually look for new, innovative oral care products to provide an extra sparkle to their smiles. Oral care companies are marketing their products to different consumer segments in order to capture their share in the growing segment market. Todays consumer demand numerous benefits from their tooth pastes and manufacturers are responding accordingly. The Personal Care and Household Cleaning Products Industry inclues Companies that make Personal Care and Hygiene Care Products such as cosmetics, perfumes and toiletries as well as household cleaning products. Some leading companies in Personal Care and Household care are Procter & Gamble, Unilever, Colgate Palmolive, Johnson & JohnsonGillette and Reckitt & Benckiser etc. Personal care giant Colgate-Palmolive is generally associated with toothpaste and soap, but in fact its broad portfolio also includes Pet food, Deodorants, Fabric softeners, Household cleaners and Detergents. Brands include Ajax, Fab, Mennen and Hill's Science Diet, alongside the two products that make up the company's name. Colgate is the world's #1 toothpaste and toothbrush brand; Palmolive soap is the world's third largest soap brand, now covering a growing range of hair care products as well as soaps. Colgate-Palmolive is also truly international, deriving more than 70% of its sales outside the US. Advertising Age/TNS estimated global measured advertising expenditure in 2003 of $621m, making Colgate the world's #40 advertisers. ColgatePalmolive is a leading global consumer products company, serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable.

Colgate Palmolive Company Analysis

The Company focuses on strong global brands in its core businesses - Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. The Group operates in North America, Latin America, Europe, Asia and Africa.

Key Market Players

Colgate-Palmolive
Colgate-Palmolive headquartered in New York City is the biggest seller of toothpaste (ahead of Procter & Gamble) and a world leader in oral care products (mouthwash, toothpastes, and toothbrushes). The company also makes personal care products (baby care, deodorants, shampoos, soaps) and household cleaners (bleaches laundry products, soaps). Its other wellknown brands include Palmolive dishwashing liquid and tabs, Ajax surface cleaners, and Fab laundry detergent. Its Hills Pet Nutrition subsidiary makes Science Diet and Prescription Diet brands of pet food. Colgate operates in more than 70 countries and sells products in more than 200.

Procter & Gamble

The Procter & Gamble Company is the number one U.S. maker of household products, with brands in five main categories: Baby, feminine and family care; Fabric and home care; Beauty care; Health care and Food and Beverages. Nowadays Procter & Gamble markets nearly 300 brands, including leading brands such us Pampers, Tide, Ariel, Always, Whisper, Pantene, Bounty, Pringles, Folgers, Charmin, Downy, Lenor, Iams, Crest, Actonel, Olay, and Clairol. P&G has sales in more than 160 countries around the world and P&Gs worldwide headquarters is located in Cincinnati, Ohio, USA. The company operates 115 plants in almost 80 countries worldwide and employs nearly 98,000 people. The firm also makes pet food and water filters and produces soap operas. Proctor & Gamble is not an active player in local market tooth paste market.

Colgate Palmolive Company Analysis

GlaxoSmithKline
GlaxoSmithKline, one of the top five pharmaceutical firms in the world, is the name behind antidepressant Paxil and asthma therapies, Flovent and Servent, among the worlds best -selling drugs. Other international bestsellers include Avandia fordiabetes, migraine reliever Imitrex, cancer-related nausea drug Zofran, and antibiotic Augmentin. GSK products are also available without a prescription: OTC products include Zantac for sour stomachs, Aquafresh & Maclense for cleaner teeth. Oxy for skin suffering the ravages of adolescence, and Nico Derm for smokers looking to kick the habit.

Unilever
Unilever is one the worlds top packaged consumer goods companies, Unilever has leveraged its brand name food, cleaning and personal care products into market dominance worldwide. Dually headquartered in London and Rotterdam, the Netherlands, it is operated by two different holding companies, Unilever PLC (UK) and Unilever N.V. (the Netherlands), which have separate stock listings but an identical board of directors. Unilever is one of the industry leader in deodorants (Axe, Degree), hair care products (Suave, ThermaSilk), prestige fragrances (Calvin Klein, Lagerfeld) and soap (Dove, Lux ). Its other familiar goods include Q-Tips, Vaseline, Pepsodent, Close up and Mentadent tooth pastes and laundry and cleaning products such as all Wisk and Surf.

Locally Manufactured
Medicame Tooth Pate, Medipac, Forhans, English, Listerine and Sensodine tooth paste are also increasing their market share. Medicame Listerine and Sensodyne are medicated tooth paste. Sensitive consumer gives good consideration to medicated tooth paste. However English tooth paste is very low price tooth paste. Some imported tooth pastes are also available at super store while a variety of medicated tooth paste is available at Medical stores. Close up and medicame are the real competitors of Colgate tooth paste. They have reduced the market share of Colgate. Colgate tooth paste is pioneer and innovator in the introduction of Herbal tooth paste.

Colgate Palmolive Company Analysis

Levels of Competition

Product Form Competition Product Category Competition Generic Competiton Budget Competition

Colgate Palmolive Company Analysis

Product Form Competition

Pepsodent

Anchor

Dabur

Oral-B

Himalaya

Germicheck All Round Protection Germicheck Superior Power Babool Complete Care

Pro Health

Product Category Competition

Colgate Palmolive Company Analysis

Pepsodent
2 in1 Super Salt Whitening Centre Fresh Kids Expert Protection whitening Expert Protection sensitive Pro sentitive relief and repair Gum care

Closeup

Deep Aaction Fire Freeze

Dabur

Red Promise Babool Neem Meswak Salt tooth paper

Colgate Palmolive Company Analysis

Others

Anchor GEL Vicco Toothpaste EMOFORM R 3M CLINPRO IPSA Ayurvedic Toothpaste Trisa Clinical Toothpaste Crest

Himalaya

Complete Care Active Fresh Sensitive Sparkling white

Colgate Palmolive Company Analysis

Generic Level Competition

Anchor Toothbrush, Anchor toothpowder, Pepaodent Mouth wash fresh mint, Pepsodent mouth wash Herbal fresh, Pepsodent Kiddy Toothbrush, Pro whitening toothbrush, Pro sensitive toothbrush, Double action, ultra care, double care, Dant Manjan Dabur, Morisons Happy Smile Tooth Whitening Pen (1170) Mouth Freshners, Mouth Sprays, Mukhvaas

Close Competitors Positioning:

Colgate Palmolive Company Analysis

Pepsodent:
Pepsodent was launched in 1993 by HUL to capture the market from Colgate. It was launched in the platform of Germ fighting property. Pepsodent have experimented with its positioning althrough its life. Ad Campaigns to supplement this positioning:

Lasting Protection for hours Germ Fighting Campaign Dental Insurance Dishum Dishum Bhoot Campaign

Anchor:
They differentiated themselves with only one line which says 100% Vegetarian toothpaste, the brand is called Anchor.

Babool:
Babool is a toothpaste brand which was launched in India by Balsara Hygiene in 1987.Babool is made from the bark of the Babool tree, which has traditionally been used to clean teeth in India. The brand was positioned as an economic toothpaste with the tagline "Babool Babool paisa vasool".Babool was relaunched with the tagline "Begin a great day, the Babool way" in 2002, when Babool was Balsara's biggest brand.

Oral-B:
Globally, the Oral-B Pro-Health brand toothpaste is positioned as an all-in-one toothpaste that covers several aspects of oral care, including sensitivity and whitening.

Marketing Standing ( Leader/ Follower / Niche)

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Colgate Palmolive Company Analysis

Leader
Colgate toothpaste is the leader within the product category holding 36.2% of the market or $1,114,137,768 in sales.

Marketing Strategies Colgate:

Price Colgate features products in the oral health isle of almost all stores carrying oral health products. Colgate has a large span of shelf space on nine rows, totaling 35 items per store that illustrates the wealth of variety Colgate offers. It is important to note that Colgate is the first product on display in the toothpaste section of the oral health isle. The subtotal of all of Colgates products per ounce is 28.58 equaling $0.81 per ounce, making it the most expensive brand of the three toothpaste category leaders. The most expensive toothpaste per ounce is the Colgate Pro Clinical, which is featured at eye level on the top shelf. The least expensive toothpaste per ounce is the Colgate Regular super tube, which is located on the second shelf from the store floor or shin level of the consumer. Promotion The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of mediums. The advertisements and promotions are located in a targeted media selection that appeals to the target consumer. Website: Colgate has a dynamic website with the title, Colgate World of Care,

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Colgate Palmolive Company Analysis

that details products, oral care, company history, e-newsletter and special offers. The website also has a social networking page called Colgate Smile to engage the consumer to get involved with their oral health and the Colgate-Palmolive Company. Colgate also has social media pages on Facebook, Twitter and Myspace. Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section of the website. Colgate coupons can also be found as cutouts in the weekend coupon sections of 500+ newspapers around the country. Television: Colgate and its advertising agency produce several television advertisements a year using humor and pseudo scientific displays to appeal to consumers. Magazines/Outdoor: Colgates marketing campaigns have been known to use historical, sexual, cultural and social inferences in their advertisements. Donations: Colgate donates millions of dollars annually to the ADAs Give a Kid A Smile. Colgate is a direct partner with this IDA program.

Strengths, Weakness, Opportunity and Threat Analysis

Strengths: Colgate has a history of producing quality products and a stellar reputation for oral health products. Colgate has strong channels of distribution not only on a national scale but also globally. Thereby, Colgate is the number one selling toothpaste in the world. Colgate is accepted by the IDA as effectively helping to prevent and reduce tooth decay. Within Colgates website is a social network that asks consumers to get involved with the brand called Colgate Smile. Colgate has 40 product facings in stores, which is the most out of any toothpaste brand. Colgate has 93% product penetration. Weakness: Within the product life cycle most of Colgate products are either mature or declining, creating the need for Colgate to keep introducing new products. Colgates product line is broad with over 40 different products varying in tube size, quantity, flavor and desired effect. Toothpaste promotion is cutthroat. Products are frequently on sale, which appeals to price buyers and potential brand switchers. This may also cost the company profits due to regular users taking advantage of the discounted price.

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Colgate Palmolive Company Analysis

Opportunities: Colgate commands 37% of the toothpaste market share opening the door to brand growth through marketing, acquisitions and mergers. Colgates brand image is an everrevolving door opening the opportunity for rebranding and new promotion/marketing tactics to be explored.

Pricing Strategy
Colgate

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Colgate Palmolive Company Analysis

Distribution Based Pricing

Psychological Pricing

Product Line Pricing

Competitive Pricing

Differential Pricing

Colgate being the market leader apply Competitive Pricing, Bundle pricing , which means that when consumers buy toothpaste, they will receive a toothbrush or mouthwash in this toothpaste . That will encourage customers to buy products. Also, the benefits are not only given to consumers but also the producers because they can sell three things like toothpaste, toothbrush and mouthwash in one time.

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Colgate Palmolive Company Analysis

Pricing of Various Toothpaste's In India in Rs.

Brands Stock Keeping Units Basic Active Salt Sensitive Max Fresh Colgate Fresh Tea Herbal Visible White Bubble Pepsodent Whitening Fresh Mint Sensodyne Repair & Protect Rapid Relief Fire & Freeze Close Up Red Dabur Meswak Babool 30 39 40 80 60 50 15 49 70 95 80 70 90 100 46 84 40 42 140 78 150 52 92 79 95 100 180 200 75 78 78 70 78 40 -

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