Colgate India

Submitted By:

Fenil Bharwadv (0112)

Prajita Chowdhury (0212)

Rahil Darji (0312)

Maulee Desai (0412)

Pujan Gondalia (0512)

Ashal Vyas (2612)

Written Analysis and Communication

Company Report on Colgate India

Submitted to:

Mrs. Jayshree Rammohan

13 January 2013

Colgate India

INTRODUCTION

Colgate Palmolive Company is an American multinational consumer products company. It

focuses on production, distribution and provision of health care, household and personal

products. Colgate-Palmolive is Rs 1,300 Crore Company. It enjoys 50% market share in 2,400

Crore domestic market. Out of 4.5 million outlets, 1.5 million outlets are direct outlets. The

Company is having four wholly owned subsidiaries namely Colgate-Palmolive (Nepal),

Multimint Leasing & Finance and Jigs Investments and Passion Trading & Investment

Company. In November 2007, it acquired a 75% equity interest in Advanced Oral Care Products,

Professional Oral Care Products and SS Oral Hygiene Products. It is the fastest growing and one

of the oldest companies catering to the personal care products. The company is regularly coming

up with new products and has been a consistent financial performer.

Company offers number of products in oral care, health care and household care. Following table

shows the product range of Colgate –Palmolive Company. Appendix 1 shows the brand details

of products in each segment.

SR NO SEGMENT PRODUCTS

1 Oral care Toothpaste, Toothbrush and Toothpowder,

Whitening Powder and Mouthwash

2 Personal care Body wash, Liquid hand wash, Shave prep,

Skin care and Hair care

3 Household care Surface care

Colgate India

HISTORICAL TIMELINE: (Wikipedia)

Today:

Today, with sales surpassing $15 billion, Colgate focuses on four core businesses: Oral Care,

Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in over 200

countries and territories worldwide.

2006: Colgate enters the fast-growing Naturals segment by purchasing Tom’s of Maine, a leader

in that market in the United States.

1989: Annual Company sales surpass the $5 billion mark.

1953: Colgate-Palmolive Company becomes company's official name.

1930: On March 13, Colgate is first listed on the New York Stock Exchange.

1908: Colgate is incorporated by the five sons of Samuel Colgate.

Ribbon opening added to Colgate tube: “We couldn't improve the product so we improved

the tube.”

1906: Colgate & Company celebrates its 100th anniversary. Product line includes over 800

different products.

1896: Colgate introduces toothpaste in a collapsible tube.

1864: B.J. Johnson opens a soap factory in Milwaukee, WI, which later becomes the Palmolive

Company.

1857: Upon the death of founder William Colgate, the company is reorganized as Colgate &

Company under the management of Samuel Colgate, his son.

1806: William Colgate starts a starch, soap and candle business on Dutch Street in New York

City.

Colgate India

MANAGEMENT TEAM (Colgate India)

Prabha Parameshwaram (MD):

She Joined Colgate-Palmolive India in 1995. She has since, held a series of significant positions

in New York in Global Business Development Oral Care and in Global Toothbrush Division.

Paul Alton (Executive VP & CFO):

Mr. Paul Alton joined Colgate in 1989 in the Operational Analysis Department of the European

Division. In 1995 Mr. Alton became General Manager of Project Catalyst where he played a

vital leadership role in successfully rolling out SAP across the European Division.

Ravi Subramanyam (Director, Global Technology Centre):

Dr. Ravi Subramanyam leads the Global Technology Centre (GTC), in Global Research &

Development Implementation for Colgate India and supports the Greater Asia and Africa/Middle

East Divisions.

Aditya Singh (VP, Human Resource):

Mr. Aditya Singh initially joined Colgate-Palmolive, India in 1994 in Human Resources and was

with the company till 2004. During this period, Aditya made significant contributions in

organizational development, rewards and performance management, succession planning,

employee and industrial relations.

Manu Mehrotra (VP, toothbrush category supply chain):

Mr. Manu Mehrotra joined Colgate-Palmolive at the Aurangabad manufacturing plant in India in

1989 and soon took over the responsibilities of Senior Technology Leader for the Africa/Middle

East Division, contributed significantly to technology transfer, quality up-gradation and margin

improvement.

Colgate India

MILESTONES

Colgate-Palmolive in its brief history of 75 years has achieved numerous milestones. Some of

them are as follows:

1) In 2003 Colgate was ranked as India’s Most Trusted Brand across all categories by Brand

Equity’s Most Trusted Brand Survey for four consecutive years from 2003 to 2007.

2) Colgate was also rated as the number one brand by the A&M – MODE Annual Survey

for India’s Top Brands for eight out of nine years during the period 1992 to 2001.

3) In 2011 Colgate-Palmolive (India), the market leader in oral care, in association with the

Indian Dental Association (IDA) achieved the Guinness World Records™ for ‘maximum

number of dental check-ups’ in a single day (multiple venues).

MARKET SHARE

Oral care market in India is driven by innovation, retail availability, packaging and right

promotion. Today this market is estimated to be of Rs. 4200 Crore. Toothpaste contributes

around 75% in this industry.

Colgate-Palmolive is undoubtedly the market leader in the segment by occupying 45% of market

share. Its major competitors are HUL and Dabur by occupying 30% and 7% respectively. Other

brands collectively occupy 16% of market share.

Colgate India

MARKETING MIX

Marketing mix is crucial when a company is determining a product’s brand offering. It is

synonymous to 4P’s: Price, Product, Place and Promotion.

Marketing mix of Toothpaste category in oral care segment of Colgate-Palmolive are as follows:

1) PRODUCT: The product should be what a customer needs and desire for. Colgate has

maximum number of variants under the umbrella of Colgate-Palmolive. Reports suggest

that it is more durable than any other toothpaste. Products are available in various packet

sizes such as 50g, 100g, 200g and 400g. Toothpastes for special needs such as Colgate

sensitive are launched.

2) PRICE: The price is amount paid by customer for the product. Colgate has some fierce

competition in market. Also, FMCG goods don’t have high price even when they have

high usage. Hence, price is determined according to competitor’s price. For niche

products like Colgate herbal, Colgate blue etc, company charges higher premium.

3) PLACE: It represents from where a customer can buy the product. Product is distributed

through the supply chain of company distributor to retailers. Currently, product has

presence even in semi-urban and rural market. Company is planning to increase the

number of distributors to tap rural market more effectively.

4) PROMOTION: It involves all kind of communication a marketer uses in order to reach

out to their target customers. Hence, Colgate has continuous T.V. and F.M radio

promotions. Special promotional activities for rural market also. It also celebrated oral

health month with dentists all over India.

Colgate India

MARKETING STRATEGIES

BRAND STRATEGIES

Colgate-Palmolive India Ltd It has become household name since

decades now.

It offers plethora of products from

toothpaste, toothpowders and

mouthwashes.

Company has gels, tooth whitening

pastes and premium herbal products for

much aware urban population.

Colgate dental cream, Cibaca and

Colgate toothpowder are targeted at

rural and urban lower income groups.

Hindustan Unilever Limited It launched Pepsodent in 1993 to

challenge Colgate.

It is largest personal care company in

terms of market cap first launched close

up to challenge Colgate.

Colgate was positioned as mouth

freshener and hence Pepsodent was

launched. It was positioned as complete

oral care package in premium segment

HUL priced it at Rs. 10 for 40g for

rural market.

It launched special “dishoom dishoom”

package targeting mothers who worried

regarding their kid’s dental health.

Dabour India Limited It offers Promise brand in white

Colgate India

toothpaste category

For herbal category Dabur red, Dabur

red Gel, Babool, Babool Neem and

Meswak are offered.

Babool is currently the biggest brand in

Dabur India Ltd.

FINANCIAL REPORT AND ANALYSIS OF COMPANY

Colgate- Palmolive discloses its financial information whether it has negative or positive effects.

They also disclose they face because of their expansion plans. The level of disclosure of Colgate

–Palmolive according to industrial standard is above-average. (Russel Kerchen)

Colgate-Palmolive reported net sales of Rs 2,206 Crore in year 2010-2011. It has increased its

sales by 13% compared to previous years. Its net profit recorded was Rs 402 Crore. Company

has achieved strong growth of 12% in volume and its toothpaste segment has achieved growth of

13%. The Company continues its focus in the emerging mouthwash category, registering a

substantial increase in volume market share to 22% (Apr’10-Mar’11) from 7.5% (Apr’09-

Mar’10).

Colgate offers numbers of products. The contribution of these products in terms of sales as on

March 2012 is as follows:

Product Sales Value ( Rs. Millions)

Soaps, Cosmetics and Toilet

Preparation

23358.23

Toothbrushes and shave

brushes –Traded

3198.01

Soaps, Cosmetics and Toilet

Preparation

779.97

Other Operating revenue-

Service Income

679.52

Colgate India

Others- Traded 25.47

Other operating Revenue-

Scrap Sales

14.25

Colgate-Palmolive faces fierce competition. The basic comparison of Colgate-Palmolive with other major brands in India in terms of finance is as follows:

Company

Sales

(Rs.Million

)

Current

Price

Change

(%)P/E Ratio

Market

Cap.

(Rs.Million)

52-Week

High/Low

Hindustan

Unilever221163.70 541.25 0.73 32.70 1170153.22 580/375

Godrej Consumer

Prod29800.80 709.45 3.08 48.79 241444.30 745/370

Dabur India 37593.30 124.35 0.24 39.24 216732.25 140/92

Colgate

Palmolive. (I)26932.27 1422.45 4.53 38.02 193442.98 1365/932

Now here by comparing the outputs of past three years of the company:

Colgate India

(Colgate India, 2002)

Observing the information given by the company for these years, it can clearly be seen that the

sales of the company is continuously increases as 14.26% in 2009-10 to 2010-11 and 18.54% in

2010-11 to 2011-12. PAT also gradually increases from 2010-11 to 2011-12. Observing other

parameters it is clearly seen that the parameters are continuously increasing during these three

years. The other parameters to compare are that of the equity share data.

Earnings per share Dividend per share Number of shareholders-10.0

10.0

30.0

50.0

70.0

90.0

110.0

130.0

2009-102010-112011-12

SalesNet PATCash profitsTotal assetsTotal capital empoyeed Earnings per shareDividend per shareNumber of sharesNumber of shareholders

2009-10 (in Lacs)

2,024,65423,26460,83330,70330,70 31.12 20.00 13,601,24

2010-11 (in Lacs)

2,317,40402,58436,83384,10384,1029.6022.0013,601,26

2011-12 (in Lacs)

2,736,17446,47485,78435,39435,3932.8325.00 13,60 1,22

Colgate India

Hence by observing the above financial information available it can be said that the company is

continuously a profit making company in as with lower rate as compared to the other companies.

Company has not made loss since last 10 years. (Colgate India, 2002) . hence it is a safe

investment option.

SWOT ANALYSIS

1. Strengths:

a. Brand value in consumer care product industry

b. Global market leaders with excellent R&D

c. Geographically diverse business

2. Weaknesses:

a. Limited market share due to other FMCG products with strong brand names

b. Product recalls

c. Fake brands supplied under their brand names

3. Opportunities:

a. Cover the rural market and increase penetration in urban areas

b. Mergers and acquisitions to strengthen their brands

c. Taking restructuring initiatives

4. Threats:

a. Increasing competition amongst other FMCG products

b. FDI in retail allowing international brands

c. Threat of fake product

(mbaskool, 2012) (S., 2010)

MARKETING MIX OF COLGATE

Product:

1. Numerous products are present under the umbrella of Colgate-Palmolive.

2. They try to position some innovative products.

3. Launched products with clear segmentation of premium, freshness, popular and economy

4. Introduced product for the category where gap was felt.

Colgate India

Place

1. It has strong distribution network.

2. It is planning to strength its network in 14,000 villages in next five year.

3. It has availability in different retail outlets in different geographical locations.

Price

1. Prices are comparable to other brands.

2. Overhead expenses reduction strategy

Promotion

1. Series of communication initiatives like colgate-shoppe, hero no 1 and dil se.

2. It is emphasizing on relationships with trade owners.

3. Programs for consumers like “colgate ke andar kya hai”, “school dental education

program” , and toll free number.

Colgate India

APPENDIX 1

SR NO SEGMENT BRANDS

1 Oral care Colgate Dental cream

Colgate Active Salt

Colgate Max Fresh

Colgate Total

Colgate Plax

Colgate 360 Actiflex

Colgate Sensitive Pro-Relief

Toothbrush

Colgate 360 Toothbrush

2 Personal Care Palmolive Thermal Spa

Palmolive Aroma Shower Gel- Relaxing

Palmolive Naturals Liquid Handwash Family Health

Palmolive Naturals Moisturizing Body Wash- Milk & Honey

3 Home Care Axion- Dish Washing Paste

4 Professional Oral

Care

Colgate PerioGard

Colgate Sensitive

Colgate Sensitive Pro – Releif

Colgate Gel Kam

Colgate Visible White

Colgate India

BibliographyColgate India. (n.d.). Retrieved November 12, 2012, from www.colgate.in

Colgate India. (2011). Annual Report 2011-12. Mumbai: colgate india.

Colgate India. (2002). Ten years Annual Report. Mumbai: Colgate India.

mbaskool. (2012). COLGATE-PALMOLOVE. Retrieved 11 28, 2012, from mbaskool.com: http://www.mbaskool.com/brandguide/fmcg/1516-colgate-palmolive.html

Russel Kerchen, Z. G. (n.d.).

S., A. (2010, november 25). SWOT ANALYSIS ON Colgate-Palmolive. Retrieved 11 28, 2012, from managementparadise.com: http://www.managementparadise.com/forums/principles-management-p-o-m/208043-swot-analysis-colgate-palmolive.html

Wikipedia. (n.d.). Retrieved November 25, 2012, from http://en.wikipedia.org/wiki/Colgate-Palmolive

yousigma. (2011). colgate-pamaolive company(SWOT analysis). Retrieved 11 28, 2012, from yousigma.com: http://yousigma.com/comparativeanalysis/colgatepalmolivecompany.html