Colgate Company Analysis Report

Colgate Palmolive Company Analysis

Colgate Financial and Marketing Analysis


Table of Contents1. Introduction.........................................................................................................................................2

Key Market Players......................................................................................................................................3

Procter & Gamble....................................................................................................................................3

GlaxoSmithKline......................................................................................................................................4

Unilever...................................................................................................................................................4

Locally Manufactured..............................................................................................................................4

Levels of Competition..................................................................................................................................6

Product Form Competition......................................................................................................................6

Product Category Competition................................................................................................................7

Close Competitors Positioning:....................................................................................................................9

Pepsodent:..............................................................................................................................................9

Anchor:..................................................................................................................................................10

Babool:..................................................................................................................................................10

Oral-B:...................................................................................................................................................10

Marketing Standing ( Leader/ Follower / Niche).......................................................................................10

Marketing Strategies Colgate:...................................................................................................................11

Strengths, Weakness, Opportunity and Threat Analysis.......................................................12

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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. Today’s 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. Colgate-

Palmolive 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.

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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 PlayersColgate-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 well-

known 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 & GambleThe 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&G’s 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.

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GlaxoSmithKlineGlaxoSmithKline, one of the top five pharmaceutical firms in the world, is the name behind

antidepressant Paxil and asthma therapies, Flovent and Servent, among the world’s 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 world’s 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.

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Levels of Competition

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Product Form Competition

Product Category Competition

Generic Competiton

Budget Competition


Product Form Competition

Product Category Competition

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Pepsodent

Germicheck

GermicheckSuperior Power

AnchorAll Round Protection

DaburBabool

Oral-B

Pro Health

HimalayaComplete

Care


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Pepsodent 2 in1 Super Salt Whitening Centre Fresh KidsExpert Protection whiteningExpert Protection sensitivePro sentitive relief and repairGum care

Closeup

Deep AactionFire Freeze

Dabur

RedPromise

Babool NeemMeswak

Salt tooth paper


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Others

Anchor GELVicco Toothpaste

EMOFORM R 3M CLINPRO

IPSA Ayurvedic ToothpasteTrisa Clinical Toothpaste

Crest

Himalaya

Complete CareActive Fresh

SensitiveSparkling white


Close Competitors Positioning:

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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


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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Leader

Colgate toothpaste is the leader within the product category holding 36.2% ofthe 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 healthproducts. 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 Colgate’s 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 avariety of mediums. The advertisements and promotions are located in a targeted mediaselection that appeals to the target consumer.

Website: Colgate has a dynamic website with the title, “Colgate World of Care,”

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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 theconsumer to get involved with their oral health and the Colgate-PalmoliveCompany. Colgate also has social media pages on Facebook, Twitter andMyspace. Coupons: Colgate Toothpastes has printable weekly coupons online in the specialoffers section of the website. Colgate coupons can also be found as cutouts in theweekend coupon sections of 500+ newspapers around the country.

Television: Colgate and its advertising agency produce several televisionadvertisements a year using humor and pseudo scientific displays to appeal toconsumers.

Magazines/Outdoor: Colgate’s marketing campaigns have been known to usehistorical, sexual, cultural and social inferences in their advertisements. Donations: Colgate donates millions of dollars annually to the ADA’s “Give aKid 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 reputationfor oral health products. Colgate has strong channels of distribution not only on a nationalscale but also globally. Thereby, Colgate is the number one selling toothpaste in theworld. Colgate is accepted by the IDA as effectively helping to prevent and reducetooth decay. Within Colgate’s 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 ordeclining, creating the need for Colgate to keep introducing new products. Colgate’sproduct line is broad with over 40 different products varying in tube size, quantity, flavorand desired effect. Toothpaste promotion is cutthroat. Products are frequently on sale,which appeals to price buyers and potential brand switchers. This may also cost thecompany profits due to regular users taking advantage of the discounted price.

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Opportunities: Colgate commands 37% of the toothpaste market share opening the door to brand growth through marketing, acquisitions and mergers. Colgate’s brand image is an ever-revolving door opening the opportunity for rebranding and newpromotion/marketing tactics to be explored.

Pricing Strategy

Colgate

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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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Distribution Based Pricing

Psychological Pricing

Product Line Pricing

Competitive Pricing

Differential Pricing


BrandsStock Keeping Units

30

40

50

70

80

100

140

150

180

200

Colgate

Basic - -15 - - - - 52 - 75

Active Salt - - - - - 46 - - - 78

Sensitive39 -

49

95 - - - - - -

Max Fresh - - - - - - 78 92 - -Fresh Tea - - - - - - - 79 - -Herbal - - - - - - - - - 78Visible White - - - - - 84 - - - -

Bubble - - - -70 - - - - -

Pepsodent Whitening - - - - - - - 95 - -

Sensodyne

Fresh Mint - - - -90 - - - - -

Repair & Protect -80 - - - - - - - -

Rapid Relief -60 - - - - - - - -

Close Up Fire & Freeze - - - - - - -

100 -

Dabur Red - - - - - 40 - - - 70Meswak - - - - - - 42 - - - 78Babool - - - - - - - - - 40 -

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Documents

Colgate Company Analysis Report