Slide 4: Introduction
Hi miss, I am YSM. Today I’ll be presenting about a global FMCG company known as
Colgate-Palmolive Company.
1. Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”)
is a leading consumer products company whose products are marketed in over 200
countries
2. Colgate-Palmolive Company is an American multinational consumer products company
headquartered on Park Avenue in Midtown Manhattan, New York City.
3. Founded in 1806, the small soap and candle business that William Colgate began in New
York City early in the 19th century is now, more than 200 years later, a truly global
company serving hundreds of millions of consumers worldwide.
4. Colgate continues to focus on Oral Care, Personal Care, Home Care and Pet Nutrition and
sells its products in over 200 countries and territories worldwide.
5. To name a few, trusted brands such as: Colgate, Palmolive, Mennen, Softsoap, Irish Spring,
Protex, Sorriso, Kolynos, Elmex, Tom’s of Maine, Ajax, Axion, Soupline, Suavitel, Hill’s
Science Diet and Hill’s Prescription Diet
6. In this presentation, I’ll focus on CP most famous Oral Care product, which
comprised 46% of the Company’s total worldwide net sales in 2019.
https://investor.colgatepalmolive.com/static-files/4e950006-c6b9-43b4-abb1d06ad88fbc7a (Colgate-Palmolive , 2020).
Slide 5: Porter’s 5 Forces – Threat of new entrants
1. Currently, the threat of new entrants in the oral care product market is LOW due to high
barriers to entry.
2. A key factor in this industry is customer relationships and the limited capacity on the
shelves of participating distribution chains. With P&G, Colgate-Palmolive having some of
the most well-known products that consumers have become accustomed to, it would make
new consumer goods hard to come-by shelf space because of the fact that retailers want a
product that can sell at reasonable price and create a high turnover rate, and brand
recognition is key in this proposal.
3. CP is subject to the extensive legislation or government restrictions in US and abroad.
Such legal and regulatory requirements apply to most aspects of our products, including
their development, ingredients, formulation, manufacture, packaging content, labeling,
storage, transportation, distribution, export, import, advertising, sale and environmental
impact.
4. U.S. federal authorities, including the U.S. Food and Drug Administration (the “FDA”),
the Consumer Product Safety Commission and the Environmental Protection Agency,
regulate different aspects of CP.
(Colgate-Palmolive , 2020)
Slide 6: Porter’s 5 Forces – Threat of substitutes
1. Currently, the threat of substitutes in the oral care product market is HIGH, customer easily
switch from a product to another.
2. Many substitutes price is relatively cheap and it has same high performance ratio For eg,
P&G Crest, an American brand of toothpaste and other oral hygiene products offers
products such as Crest ProActive Defense is superior to Colgate Total Whitening at
reducing gingival bleeding and promoting gum health and wellness, based on a recent 3month clinical study. (Procter & Gamble , 2020).
SF
Slide 7: Porter’s 5 Forces – Bargaining power of buyers
1. The bargaining power of buyer is HIGH due to the smaller and powerful customer base.
They would demand cheaper price and discounts/offer, product and service improvement.
2. ColgatePalmolive products are used by more than 350 million customers a day worldwide.
indicated that there is a concentrated buyer for the company.
This
3. Since products are similar and associate with low switching costs in the industry, shoppers
have ability to easily switch among Industry competitors such as Proctor & Gamble,
Colgate-Palmolive
4. The variety of undifferentiated products in this industry is the main driver that increases
the buyer’s bargaining power. Buyers are extremely price sensitive, which requires them
to negotiate lower prices. Firms in the personal product industry have to comply with the
buyers in order to continue being competitive in this market, or else buyers will purchase
these goods from competitors that have lower prices. (Kerschen, Glisson, Martin,
Ghaemmaghami, & Schreder, 2008)
Slide 8: Porter’s 5 Forces – Bargaining power of suppliers
1. The bargaining power of supplier is LOW. This is because there are great number of
suppliers in the personal products industry and they must compete on prices along with
quality, speed, and innovation
2. CP have many suppliers all around the world from which they get their resources and
services.
3. Companies such as Proctor and Gamble and Colgate have developed a Supplier Diversity
Program which creates even more competition with the other suppliers because now firms
have more of a variety of suppliers from where they can receive their materials and
resources.
4. Supplier Diversity initiatives recognizes and honors minority-owned and women-owned
businesses who have demonstrated outstanding performance in goods and services.
(Colgate-Palmolive, 2020)
Slide 9: Porter’s 5 Forces – Rivalry among the existing competitors
1. The threat of competition is HIGH since the rivalry among the existing players in the
industry is intense, especially brand image, research and development, and innovation
2. Colgate-Palmolive Company operates in a very competitive Personal Products industry. The
products in this industry are all relatively the same, with the exception of flavors or scents,
and this makes everything very competitive.
3. This competition does take toll on the overall long term profitability of the organization. Eg,
Oral-B, Crest, Sensodyne are among the competitors that offer similar product range from
premium to normal. (Kasi, 2017)
Slide 10: Existing strategies of the company
1. Existing strategies & Recommendation


Colgate Bright Smiles, Bright Futures® (BSBF) is our flagship oral health education
program, reaching children in more than 80 countries. reached over 1.2 billion children and
their families with free dental screenings and oral health education (Colgate-Palmolive,
2020).
REC: Focus in rural market places like Bangladesh, Africa, India. rural segment would
remain the key driver of incremental volume growth for CLGT in India. Selling Colgate
products in affordable small-sized packages such as single-use sachets is another way we
are building consumption in emerging markets like India, where disposable income levels
are low for many consumers. (Atadja, 2012)

Channel in pharmacy market, pharmacy is one of the fastest-growing retail environments.
Likewise, unique, channel-specific innovations, like the Colgate PerioGard and Colgate
OrthoGard product lines in Brazil, are also driving growth in this important channel.

Maximizing growth online is another key priority. In 2019, Colgate’s eCommerce sales
increased 26% globally, approaching $1 billion, led by very strong growth.

To further build on this, in 2019, we opened our first Online Acceleration Center in the
which produces digital content for Europe in-house. The center combines our eCommerce,
digital, insights, analytics, information technology and production resources all in one
place. (Colgate-Palmolive , 2020).


Colgate’s nine consumer innovation centers, situated close to consumers in different parts
of the world, are focused on developing insight-driven innovation. Over 1,000 Studies are
conducted annually around the world to hear from consumers before our products are sold
(Colgate-Palmolive, 2012).
REC: Conduct more dental and oral care R&D which can innovate and develop product in
pharmacy market, for eg by partner with other oral health organization. Activities and
relationships with dental professionals also build our business.
Slide 11: Suitability


YES, the proposed strategy address the key opportunities and constraints an organization
faces.
Focusing in rural areas reduce the competitive intensity in the industry. It helps to build
more consumption in emerging market like India. (Colgate-Palmolive, 2012).
Slide 12: Acceptability

YES, the proposed strategy expected to fulfil the stakeholder expectation because in the
past, CP has generate Cash Returned To Shareholders Through Dividends And Share
Repurchases

It benefits the company and the customers will find the recommendation to be of value
risk level is low due to likely return acceptable, the benefit would be financial benefit.
Financial performance improved, achieved market Share In Toothpaste Worldwide &
15.7B Worldwide Net Sales.
Stakeholders will accept the strategy, especially employees and management staff.
(Colgate-Palmolive, 2020)


Slide 13: Feasibility



YES, the proposed strategy is feasible and could work in practice. CP has the capability
to deliver the strategy.
The strategy could be financed due to its financial feasibility. There is accelerating Growth
for Colgate. They have maintained strong balance sheet and increased operating cash flow,
which led the Board of Directors to authorize an increase in the quarterly cash dividend,
effective in the second quarter of 2019. This was our 57th consecutive year of dividend
increases and our 124th consecutive year paying a dividend
The company would have sufficient resources to perform the strategy because they have
skilled employees, technology and supplier’s resources to perform. (Colgate-Palmolive ,
2020)
Slide 14: Conclusion
Yes. The recommendations given are acceptable for the company to go ahead with. It could help
them with breakthrough technology and innovation, which accelerated their organic sales growth
and helped grow the multi-benefit segment.
Consumers are looking for products that are more natural and sustainable, which is an important,
high-growth area of opportunity across all of their 22 businesses around the world.
Slide 15: References
1. Atadja, F. K. (2012). Research and Design Strategies for Colgate Palmolive Company.
Sustainable Solution Paper: Academic Publications- DBA Strategy. Retrieved from
https://www.researchgate.net/publication/311571729_Research_and_Design_Strategies_f
or_Colgate_Palmolive_Company
2. Colgate-Palmolive . (2020). Colgate-Palmolive Company: 2019 Annual Report. London:
Colgate-Palmolive
Company.
Retrieved
from
https://investor.colgatepalmolive.com/static-files/4e950006-c6b9-43b4-abb1d06ad88fbc7a
3. Colgate-Palmolive. (2012). Colgate Sustainability Report 2012: Giving the World Reasons
to Smile. Colgate-Palmolive. Retrieved from https://www.rspo.org/file/acop/colgatepalmolive-company/M-Policies-to-PNC-laborrights.pdf
4. Colgate-Palmolive. (2020). Colgate-Palmolive: 2019 Sustainability Progress Highlights .
Retrieved from Contributing to the Communities Where We Live and Work:
https://www.colgatepalmolive.com/en-us/core-values/sustainability/2020-sustainabilitycomitments-progress
5. Colgate-Palmolive. (2020). Supplier Diversity. Retrieved from Colgate-Palmolive:
https://www.colgatepalmolive.com/en-us/suppliers/supplier-diversity
6. Kasi, A. (2017). Porter Analysis. Retrieved from Porter's Five Forces Model of Colgate:
https://www.porteranalysis.com/porters-five-forces-model-of-colgate/
7. Kerschen, R., Glisson, Z., Martin, W., Ghaemmaghami, B., & Schreder, D. (2008).
Colgate-Palmolive.
Retrieved
from
http://mmoore.ba.ttu.edu/ValuationReports/Spring2008/ColgatePalmoliveSpring2008.pdf
8. Procter & Gamble . (2020). Crest: Part of P&G Family. Retrieved from Crest vs. Colgate:
Battle
for
the
Best
Toothpaste:
https://crest.com/en-us/oral-health/whycrest/toothpaste/crest-vs-colgate
9. Sambamoorthy, K. (2017). Great play on rural growth. Retrieved from Colgate:
https://www.motilaloswal.com/site/rreports/HTML/636256022779273751/index.htm
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