Colgate
Colgate
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In 1806, when the company was founded by 23-year-old William Colgate, it
concentrated exclusively on selling starch, soap, and candles from its New
York City-based factory and shop. Upon entering his second year of business,
Colgate became partners with Francis Smith, and the company became Smith
and Colgate, a name it kept until 1812 when Colgate purchased Smith's share of
the company and offered a partnership to his brother, Bowles Colgate. Now
called William Colgate and Company, the firm expanded its manufacturing
operations to a Jersey City, New Jersey, factory in 1820; this factory produced
Colgate's two major products, Windsor toilet soaps and Pearl starch. Colgate-
Palmolive Company's growth from a small candle and soap manufacturer to
one of the most powerful consumer products giants in the world is the result of
aggressive acquisition of other companies, persistent attempts to overtake its
major U.S. competition, and an early emphasis on building a global presence
overseas where little competition existed. The company is organized around
four core segments--oral care, personal care, home care, and pet nutrition--that
market such well-known brands as Colgate toothpaste, Irish Spring soap,
Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing
liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and
Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet
pet foods. Colgate-Palmolive has operations in more than 200 countries and
generates about 70 percent of its revenue outside the United States.
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, aromatic toothpaste sold in
jars.
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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1997,Colgate Total toothpaste is introduced in the U.S. and quickly becomes
the market leader. Only Colgate Total, with its 12-hour protection, fights a
complete range of oral health problems.
2004,Colgate acquires the GABA oral care business in Europe, with its
strength in the important European pharmacy channel and its ties with
the dental community.
Today Colgate has numerous subsidiary organizations spanning 200
countries, but it is publicly listed in only two, the United States and India.
Colgate Palmolive milestone
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Colgate has been ranked as IndIa’s #1 Most trusted brand
across all categories for four consecutive years from 2003 to
2007
51% market share in the toothpaste segment.
48% market share in the toothpowder market.
30% share in the toothbrush market.
On 4Sept.2009, Colgate-Palmolive signed SRK as its Brand
ambassador.
Presently it is facing competition from no. 2 player HUL. E.g.
Pepsodant.
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Many people in India still clean their teeth with traditional products like Neem
twigs, salt, ash, tobacco or other herbal ingredients.
Average all India per capita consumption of toothpaste is a dismal 82gms.
The dentist to population ratio is a critically low 1:35000 in the country. This
results in low oral hygiene consciousness and widespread dental diseases.
Less than 15% of the Indian toothpaste users brush twice a day.
The toothpaste market grew at a CAGR of 7-8% between 1995-2000. But in
2001 the market grew by only 4%.
Colgate and Hindustan Lever together account for over 85% of the organized
toothpaste market.
Red and Black toothpowder still accounts for 35% of the toothpowder market.
In toothpowders, Colgate and Dabur are the leading players sharing between
the 75% of the market.
Penetration of toothpowder in the urban areas has been declining, as more
and more consumers switch from powders to paste.
Brand loyalty is quite high for toothpastes, but is extremely low for
toothbrushes.
The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a
robust 10 per cent in value in 2000. But this wound down to 2.4 per cent in 2001.
In the first six months of 2002, the market for toothpastes in fact shrank by around
5.7 per cent in value; in volumes terms it was much higher at 11 per cent. The
going was tough for the oral care industry .Little wonder that teeth were bared
between the market leader, Colgate Palmolive, and the challenger, Hindustan
Lever, as the marketing war between the two FMCG giants for protecting market
share got tough. As if that was not enough, these players found new aggressive
competition coming their way from regional low priced competitors such as Anchor
Healthcare &Ajanta India, who priced their offerings at over 40% discount, giving
market leaders a run for their money. But then the big boys struck back, Colgate
revitalized one of its existing brands, Cibaca as Colgate-Cibaca. It was to act as the
price flanker brand in the portfolio. Ditto by HLL with Aim. The market dynamics
changed. Within a year, Colgate Cibaca managed to garner whopping 50% of the
market share in the discount segment and established Colgate’s supremacy once
again. HLL’s Aim however could not match the success and was subsequently
withdrawn from the market .Today not only has Colgate's flagship brand grown, but
Colgate Cibaca has risen to become the 4th largest paste brand in the country in
volume terms after Colgate Dental Cream, Pepsodent and Close-up .It is interesting
to note that Colgate Cibaca became big without any intensive communication
support.
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Focus on innovative and new product launches.
Colgate business planning initiative
Diversified business operations.
Strong financial performance
Product research
Highly leveraged
Because of high rate of taxes prices are high
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MARKETING MIX
PRODUCT
MARKETING PRICE
PROMOTION MIX
PLACE
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MARKETING MIX
CUSTOMER WANTS
PRODUCT AND NEEDS
CONVIENCE TO BUY
PLACE
COMMUNICATION
PROMOTION
A product is a set of tangible and intangible attributes which may include packaging, color, price,
quality and brand. A tangible product that the consumer feels comfortable purchasing without
gathering additional information and then actually buys with a minimum of effort is termed a
convenience product. A product that is use for business is called business product. Like if a producer
produces and sell products and earn money or profit, so that product is a business product for the
producer. If the middleman buys a product from producer and sell it to the end customer, so that
product ll’ be a business product for the middle man and vise versa .Consumer products are the
products which customer buys to satisfy his/her personal needs & wants. Like the products of our
daily use i.e. toothpastes, soap etc. A lot of customer purchases the Colgate product for their own
consumption to satisfy their daily personal needs. From the marketing point of view Colgate
Toothpaste is an excellent business product. Whole sellers & retailers purchase the Colgate
toothpastes from its manufacturer (Colgate-Palmolive) and sell it to the end customer or
consumers and earn a good business from it.
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Colgate Product Mix:
A product mix is the set of products offered by a company. The structure of the
product mix has both the number of product lines and number of product mix in
that line. Colgate-Palmolive is having different product line. Like they are having
product line consists of personal care, bathroom care, household care and many
more.
Some of the Colgate-Palmolive’s products lines are given below.
Oral Care
Colgate Dental Cream Trusted by Generations to make Teeth Stronger
Colgate Total 12 Fight 12 teeth and Gum Problems (the Complete
Toothpaste)
Colgate Max Fresh For a whole new dimension of freshness
Colgate Kids toothpaste makes fighting cavities Fun
Colgate Fresh Energy Gel Fresher Breath Stronger Teeth
Colgate Herbal Strong Teeth, Healthy gums, Naturally
Colgate Herbal White Pearly White Teeth……..Naturally
Colgate Cibaca Top Now Strong Teeth Fresh Breath for Your Family
Colgate Advance Whitening Whiter Teeth in 14 Days
Colgate Active Salt fight germs for Healthy Teeth and Gums
List price- the list price of the product is RS 12.50 for 50g pack. the product
is in the popular segment which is priced higher to onlythe economy segment
and lower than the gel and premium segment in the toothpaste market.
Discount/Allowances- No promotional discount are allowed.
Payment period/credit terms- Being an off-the-shelf FMCG, in line with
the category, no credit ia allowed by the company (though the store allows
credit on purchase of all items)
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Innovation is a process in which a company always tries to produce and
introduce a new and unique product in the market. Colgate-Palmolive has a
kind of nature. It is in a habit of introducing stunning products in the market
and tries to have an edge from its competitors. Colgate always tries to create
its images as innovators. By introducing new products in a product line
Colgate try to defend its market & create its image as innovators. The adoption
is a set of successive decisions an individual person or an organization make
before accepting a new product. Here we are talking about Colgate
(toothpastes). As we all know that people are well informed about the brand of
Colgate. Colgate-Palmolive always introduces toothpastes which are new as
quality but it use to have a flavor which is easily adaptable. Customer never
compromises on quality. Due to this behavior of customers, it is easy for
Colgate customers to adopt any new product without any fear or hesitation.
For the customer, Colgate is a reliable brand. That’s why when ever Colgate
introduces any new product (toothpastes) it easily spread throughout the social
system in a short period of time.
BRAND PERSONALITY
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BRAND IDENTITY
There are brands which are not known by many buyers in the market place on
the other hand there are brands for which the buyers have a fairly high degree
of brand awareness. Beside this there are brands with high degree of brand
preference. Finally there are brands that command high degree of brand
loyalty. This is where the acid test of brand lies. Whenever a brand innovates,
the role of brand name is to protect the innovation – it creates a mental patent.
The brand name makes the innovation exclusive and protects it against
imitations.
The sources of a brand’s identity include: The product, the name, brand
characters, form of advertising.
There are four component of brand identity platform:
1. The product class in which the brand is to operate.
2. The targeted consumer segment.
3. Brand location in the perceptual space of the target consumer.
4. Benefits and Attributes with the brand by the consumer.
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Colgate total
Colgate sensitive
Colgate Herbal
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BRAND HIERARCHY
A brand hierarchy is a useful means of graphically portraying a firm’s branding
strategy by displaying the number and nature of common and distinctive brand
elements across the firms products, revealing the explicit ordering of brand
elements. It’s based on the realization that we can brand a product in different
ways depending on how many new and existing brand elements we use and how
we combine them for any one product. We can construct a hierarchy to represent
how products are nested with other products because of their common brand
elements.
COLGATE TOOTHPASTE
Colgate
Dental
Cream
Colgate
Colgate Colgate Cabana
Active Max
Colgate Fresh
Colgate Salt
Total
Herbal
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Colgate Branding Strategy has a objective strengthening its' business
promotion network. The company is undertaking advertising strategies
and campaigning programs with the objective of reaching to the
customers of India across income classes.
Strong distribution - The Company has backed its products with a very strong
distribution network
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By the Detailed study on the product and market of
COLGATE it was able to get a clear picture of the past
and present of the products and was able to get in to
the assumptions about the future of the product.
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Q 1) Are you a consumer of Colgate?
□ Yes □ No
Colgate Products and rest 10 are consumers of others. Colgate is quite famous
with the different types of consumers in the market. Our survey took the
Q 2) what comes first in your mind when you hear the word Colgate?
None of these
active salt, 10 for Colgate max fresh gel and 5 People are familiar with Colgate
dental cream.
Q 3) what is the brand that comes to your mind when we say the word tooth
paste?
Colgate
Pepsodant
Dabur red
close up
Analysis: The survey suggested that Colgate is the most popular brand with
Colgate.
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Q 4) Rank the following Colgate products w.r.t. frequency of purchase with 1
Colgate Total
Colgate Herbal
· Taste ____________
· Variety/Flavours ____________
· Hygiene/Purity ____________
· Availability ____________
Analysis: The products of Colgate have been rated well above 3 in the above
Analysis: The survey suggests that most of the consumers perceive Colgate
awareness)
Colgate Total
Colgate Herbal
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Analysis: The survey suggested that most of the consumers regularly buy
· Newspapers
· Radio
· T.V advertisements
· Word of mouth
· Other source
Analysis: The survey suggested that a majority of the people came to know
□ Yes □ No
· Yes
· No
Analysis: The survey suggested that majority of the consumers perceive Colgate
as a healthy product for teeth. The survey suggests that 30 out of 30 consumers
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