Colgate

Submitted by – Submitted to –
Arghya Banerjee (307) Prof. Ravindra Chawla
Heena Kauser (378)
 About the company

In 1806, William Colgate introduced starch, In 1857, William Colgate died

soap and candle factory on Dutch Street and the company was
in reorganized as "Colgate &
New York City under the name Company" under the
of "William Colgate & Company". management of Samuel
Colgate, his son.

In 1928, Palmolive-Peet
1873, the firm introduced its first bought the Colgate
toothpaste, an Company
aromatic toothpaste sold in jars. to create the Colgate-
Palmolive-Peet
Company.
Today Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in
only two, the United States and India.

Product type: Oral hygiene

Owner: Colgate-Palmolive
Country: United States
Introduced: 1873; 146 years ago
Markets: Worldwide
Number of employees (worldwide): 37,700
 Position in Global Market

20% 22%

27%
31%

North America Latin America Europe/South Pacific Asia/ Africa

 Colgate in India

In 1937, when hand-carts were used to distribute Colgate Dental Cream, Colgate-Palmolive (India)
today has one of the widest distribution networks in India

Colgate available in almost 4.3 million retail outlets across the country.

The company dominates the Rs. 3100 crore Indian toothpaste market by commanding more than
50% of the market share.

In 2004, as an additional effort to create awareness for good oral hygiene ‘Oral Health Month’
(OHM), was introduced.
 Types of Channel

Contracted service providers who

receives supplies from the company
Stockist against firm orders and arrange
distribution of products amongst all outlets
at required frequencies
CP Products are directly served to
big customers

Channels
Wholesale is an important
middlemen, the difference is
that they are not contracted
but are independent
Direct Wholesale
middlemen.
They service indirectly covered
retail environments.
Market Segmentation

• 27 Metro Towns • 360 towns

• Population greater Middle • Population between
Metro 1 lac and 10 lac
than 10 lac India

• Urban Towns with Rest of

population less than Rural • Villages and Rest of
Urban the towns
1 lac
Channel Factory
Structure detail
Warehouse

Direct Direct
Stockist Trade

Urban Rural Reliance Fresh

Rest of Super Rural Spencers

Metro Stockist distributor
Urban

Walmart
Indirect Rural
wholesale
stockist

Retail Environment Retail

Environment/Wholesale
Retail Environment

Retail Environment

Kirana General Medical Cosmetic Modern

Pan shop Wholesale
store Store store store Trade
Roles and Responsibilities of Sales Force
Functions Distribution Instore Market Developing Reporting Relationship
Management Management and Building
Training

Area •Stockist •Coordination •Secure and •Ensuring sales •Compile reports •Maintain trust
Manager Management •New Product draw call and information and
•Trade launches insights for new efficiency as per understanding
Management products, •Self-assessment requirements in
activities, •Ensure that all communicated by working with
systems. CDOs in his team RM stockist and
are trained trade in
general.

CDO •Trade •Priorities •Secure and •Train and •Compile reports •Maintain trust
Customer management accounts for draw develop and information and
Management •Ensure sales maximum impact insights from any salesmen as per understanding
call through visibilities competitive •Coach and requirements in
efficiency information motivate communicated by working with
available in salesmen AM stockist and
public to perform well trade in
domain general,
especially
partner
Roles and Responsibilities of Sales Force

Functions Distribution Instore Market Reporting Relationship

Management Management Building

Salesman •Trade •Observe & share •Secure and •Compile reports •Maintain trust
management feedback for all draw and and
•Ensure sales call in- insights from any information (hard understanding in
efficiency store executions competitive copy) as per working with
•Ensure information requirements stockist
compliance available communicated and trade in
in public domain by general,
CDO CM especially
partner with key
wholesalers to
drive
business
 • PSR: Pilot Sales Representative is a Colgate’s representative for rural areas.
• PSR supports and implements activation plans and operations in rural areas.
• Key roles and responsibilities for PSR includes:

Implementation Increasing
Communication Relationship Business Planning
of Key Activities Coverage

• New promotional
• Identification schemes to the • PSR must • Meeting
• Activation of retailers as well as maintain good
key
of monthly
wholesalers working commitments
activities for the feeder
• Should also guide relationship with • Ensuring
month as slated wholesalers them on utilization stockists, availability of
inthemonthly • By identifying of schemes to retailers, and optimum stocks
meetings new villages generate higher trade in general
volumes
 Role of IT in Managing Channel

• Distributor fill a predefined E-order sheet and send that to Warehouse

warehouse.
• Warehouse generates bill trough SAP based application and
dispatch.
• Sales man takes orders from retail stores through company
provided palm top that is connected to servers .
• On the basis of order from sales man, distributor generates the
bill through SAP application and dispatch the order. Retail
Distributor
• CP official can see the stock movement Environment
through the SAP application
 Business Planning Process (BPP)

Month Past
Inputs Averages

• Helps minimize time spent on billing

and use it more productively in the SKU wise Retailing
market and for sales planning
• Helps ensure availability of all stocks SKU wise Opening Stocks
and enables to focus on selling and
distributing all SKUs
• Helps in planning standard orders
SKU wise Billing
with the Stockist and also in doing
business evenly across the month

Week wise Phasing

Standard Orders/ VMI order

Order Frequency, Supply and Payment
Flow

WHOLESALERS
[Cash and Carry]
[Frequency-Weekly once]
No pre-set targets by
Distributor
DISTRIBUTOR
COLGATE Advance Full Payment SUPERMARKETS
PALMOLIVE [RTGS only] [7-15 days Credit]
[Warehouse] [Frequency-Weekly Twice] [Frequency-Weekly once]
Target Set by CP Targets set by Distributor

RETAILERS
[7-15 days Credit]
[Frequency-Weekly once]
Targets set by Distributor
 Communication through Review Meetings
Details Monthly Area Monthly Review Meeting Weekly Review Meetings
Meetings with Stockist with Salesman

Period 30th/31stof every At the beginning of the Immediately after

month month cut off dates
(7th,14th,21st ,28th)

Conducted By Area Manager CDO CDO

Venue As informed by Area Stockist Point Stockist Point

Manager

Participants All CDOs of the area Stockist All Stockist and salesmen

Objective of the Meeting •To finalize BPP for •To finalize KPIs •To motivate/train salesmen
next month •To finalize salesman for
•To set KPIs wise targets achieving KPIs
•To plan week wise •To plan channel wise •To review salesmen wise
billing/retailing business performance
phasing •To firm up week wise •Channel wise business
billing/retailing phasing analysis
•Any other dealer related
issues
•Maintenance of required
reports
 Margins

Retailer’s Margin
• For high end toothpaste variants like Colgate Sensitive, Advanced White, the retailers
are given a margin of 15%
• For other toothpaste variants, the margin is 10%
Distributor’s Margin
• Distributors are given 5% margin
• Extra .25% for ullage
• And .70% for tax paid on profit
• Total distributor margin is 5.95%
 Conflicts

Price difference of Products Margin Difference

• Retailers complaint of price

difference of product in other
channels
• Highendproductsuchas
Colgate sensitive ,charcoal are
pushed through cash and
carry
while general productare
pushedthroughretail
environment
• Retailers complaint that
whole
sellersaregettingmore
margin
• Retailers sell product on MRP
while whole sellers sell on less
than MRP so they get more
margin
THANKYOU