colgate report
DESCRIPTION
COMPANY ANALYSIS OF COLGATE INDIATRANSCRIPT
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