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Presented By, Nikhil Biyani Kaustubh Tare Girish Vyas Shilpa Raju

Colgate Palmolive

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Strategies of Colgate - Porters Generic Strategy, SWOT Analysis, Value Chain -Primary & Secondary Activities, Responses to Threats to Sustainability, BCG Matrix

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Page 1: Colgate Palmolive

Presented By,

Nikhil BiyaniKaustubh TareGirish VyasShilpa Raju

Page 2: Colgate Palmolive

04/17/2023 Colgate Palmolive 2

LEADING PRODUCTS

Oral Care• Tooth Pastes• Tooth

Brushes• Tooth

Powders• Mouthwash• Whitening

Product

Personal Care• Body Wash• Liquid Hand

wash• Shave Preps• Skin Care• Hair Care

Household Care• Surface Care

Professional Care• Gingivitis

Treatment• Sensitivity• Tooth

Whitening• Fluoride

Therapy• Mouth Ulcer

Treatment• Specialty

Cleaning

Page 3: Colgate Palmolive

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HISTORY OF COMPANY

• In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company".

• In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.

• In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.

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HISTORY OF COMPANY

• 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", the current name.

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COMPANY PROFILE• Prabha Parameswaran - Managing Director• Godfrey Nthunzi - Executive Vice-President – Finance• Niket Ghate - Vice President, Legal & Company Secretary• Ajith Babu - Marketing Director• M Chandrasekar - Vice President, Customer Development• Shashank Potnis - Director, Global Technology Centre• Manu Mehrotra - Vice President, Toothbrush Category Supply Chain• Shashank Potnis - Director, Global Technology Centre• Mustapha Yajid - Vice-President Manufacturing and Supply Chain• Aditya Singh - Vice-President, Human Resources• Sarala Menon - Vice President, Customer Service & Logistics

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BOARD OF DIRECTORS

• Mukul Deoras – Chairman• R. A. Shah - Vice-Chairman• P. K. Ghosh - Deputy Chairman• Vikram Singh Mehta – Director• J. K. Setna – Director• Indu Shahani - Non-Executive Director

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SECTOR & POSITION OF COLGATE• Sector contributes 9% to GDP of India• HUL is the largest seller succeeded by Colgate

PEER COMPARISON

CompanyMarket Cap P/E

(TTM)P/BV

(TTM) EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (x) (%) (%) (x)

Hindustan Unilever 1,34,356.13 39.55 50.27 18.99 103.1 100.1 0

Colgate Palmolive 18,397.40 36.05 37.58 23.38 107.4 133.7 0

P & G Hygiene 9,061.05 48.56 13 27.62 27.9 34.3 0

Gillette India 7,048.24 80.88 10.86 53.7 12.4 19.2 0

Reckitt Bnck 652.93 1.54 0.99 0 103.5 130.1 0

Jyoti Consumers 490.3 0 5.9 0 0 0 0.9

Rayban Sun Optics 333.78 9.85 1.49 0 16.3 23 0

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SWOT AnalysisStrength Weakness

Brand Name of 75 YearsOperates in 200 CountriesWide Range of ProductsStrong Network – 1843 direct accounts 5.14mn storesHighest manufacturing Capacity

Highly LeveragedOld TechnologyProduct Research

Opportunities ThreatsDeploying advance technologiesGrowing Hispanic populationEmerging MarketMonthly Per Capita Income increasing

Increasing CompetitionIncreasing commodity pricesIncreasing importance of “Swadeshi” products

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High Share Low Share

High Growth

Low Growth

BCG MATRIX

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STRATEGIES OF COMPANY

• Value Chain – Primary & Support Activities• Porters Generic Strategy• Sustainable Competitive Advantages• Responses to Threats to Sustainability• Marketing Strategy - Advertising

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Value Chain – Primary Activities

Inbound Logistics:

Raw Materials Purchase order &

arrival of goods

within 72 hours

Operations:Require 35

days to convert raw

materials into

finished product

Outbound Logistic:Finished

goods delivery to

Stockist within 48 hours of

their demand

Marketing & Sales:

Sales Person market

products of Colgate through

B2B business,

Advertising Campaign

Returned items

customer feedback:Colgate

Palmolive looks

forward for feedback

from dealers and

launched many

products as per buyers requiremen

ts

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Value Chain – Support ActivitiesFirm Infrastructure •Promoters Contribution in its shareholding pattern make firm cost effective

•Leadership in market enable company to reduce Fixed Cost per unit

Human Resource •Employees are treated as associates of company•Trained Chartered Accountant & highly qualified MBA grads are part of management team

Technology Development •One of the best Research & Development unit of India in sector•Better infrastructure & set up of factory enable maximum utilisation of resources

Procurement •Delivery of finished product within 48 hours of purchase order•Better infrastructure & set up of factory enable maximum utilisation of resources

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Porters Generic Strategy

Industry wide

Uniqueness perceived by the customer

Low cost position

Delivery of orders should fulfil within 00 hours from order placed by customer

Colgate Palmolive limited provide products at competitive cost with superior quality.

Particular segment only

Unique advertising campaign & product development for rural market E.g. Colgate Powder

Colgate Total White & Colgate Whitening are made of same raw material & under similar processColgate small pouch turned in to tube

STRATEGIC TARGET

STRATEGIC ADVANTAGE

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SUSTAINABLE COMPETITIVE ADVANTAGES

• Marketing Strategy

• Human Resource Strategy

• Manufacturing Factor

• Information Technology

• Research & Development

• Environment & Safety

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RESPONSES TO THREATS TO SUSTAINABILITY• Responses to

Imitation• Size Economies• Retaliation• Upgrading

• Responses to Substitute

• Straddling• Defending

• Responses to Hold-up

• Integrating• Building Mutual

Dependence• Developing Trust

• Responses to Slack

• Offering Performance Incentives

• Shaping norms

Value AddedAppropriate

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MARKETING STRATEGY- ADVERTISING

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MARKETING - CLOSER TO CUSTOMER

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FINANCIAL STATS

PARTICULAR 2013(Figures in Lac Rs.)

2012(Figures in Lac Rs.)

Revenues 2,743,91.18 2,327,35.87

Less: Expenses 2,155,52.09 1,807,41.02

Profit Before Tax 588,39.09 519,94.85

Less: Tax 141,91.96 117,36.52

Profit After Tax 446,47.13 402,58.33

Shareholders' Fund 435,38.89 384,05.33

Earning Per Share Rs. 32.83 Rs. 29.60

Share Price at BSE Rs. 1324.85/Share Rs. 1117.35/Share

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CONTRIBUTION TO INDIAN ECONOMY

• Employing more than 1mn Employees• One of the highest tax paid company in

healthcare sector• 2nd largest Company in healthcare brand• Sector contributes 9% to GDP of India &

Colgate is the 2nd rank seller in this sector

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CSR ACTIVITIES

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CSR ACTIVITIES

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