Toothpaste and Colgate

INDEX S. No. CONTENTS PageNo. 1 COMPANY PROFILE 4 2 INTRODUCTION 5-7 3 COMPANY story 9-12 4 MARKETING MIX 11-16 5 BCG MATRIX 14-18 6 SWOT ANALYSIS 7 STP ANALYSIS 8 BALACESHEET 9 RECOMMANDATIONS 9 final stage 10 COMPANY PROFILE Company name Colgate Palmolive Ltd. Date of Establishment 1937 Revenue 347. 188 (USD in Millions) Market Cap 111160. 5286158 (Rs.In jillions) Corporate Address Colgate Research Centre, principal(prenominal) Street Hiranandani Gardens Powai ,Mumbai-400076, Maharashtra WWW. colgate. co. in Management Details Chair person J Skala MD R D CalmeyerDirectors Derrick Samuel, J K Setna,Skala, K V Vaidyaanathan, M Elias,PK Ghosh, R A Shah, V S Mehta Business Operation Household &Personal Products Background Colgate-palmolive is Rs 1. 300 crore company started in year 1937. In Rs 2,400 crore piazza(prenominal) market it enjoys 50% of markets shargon.It bedspread across 4. 5 million retails outlets out of which 1. 5 million are direct outlets. Fina ncials Total Income Rs 20606. 60 Million (year closing Mar 2010) Net Profit Rs 4232. 60 Million (year Ending Mar 2010) Company Secretary K V VaidyanathanINTRODUCTION * Colgate Palmolive Company is an American diversified multinational corporation focused on the ingatheringion, distribution and provision of household, health supervise and personal overlaps, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). * Under its Hills marking, it is as well as a performr of veterinary products. The companys corporate offices are on honey oil Avenue in overbold York City, across from the Waldrof Astoria. * In India, it operates under the name as Colgate-Palmolive (India) limited and its head office is at Mumbai. Colgate Palmolive is a $10. 6 billion global company serving people in more(prenominal) than 200 countries and territories with consumer products that make lives healthier and more enjoy able. COLGATE PALMOLIVE INDIA * Headquarte r in Mumbai. * Annual Turnover or so 1100 crs. * Market leaders in oral care. * Colgate consistently won India no 1 brand of the year award from last three years. * Colgate ranked among best employer in India. * Customer base of more than 8 lacs retailers. * Serviced by company field force, more than 1800 stockiest & super stockiest & their field force. Colgate is the brand that people trust, for complete oral care protection for themselves and ones they lov COMPANY HISTORY * 1806 William Colgate starts a starch, soap and candle business on Dutch Street in New York City. * 1817 First Colgate advertisement appears in a New York newspaper. * 1820 Colgate establishes a starch factory in Jersey City, New Jersey. * 1857 Upon the death of founder William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son. * 1873 Colgate introduces toothpaste in jars. * 1879 Gerhard Mennen establishes a pharmacy in Newark, NJ, later ecoming the M ennen Company. * 1896 Colgate introduces toothpaste in a collapsible tube. * 1902 Stylish Colgate advertising begins, emphasizing ingredient purity and product benefits. * 1906 Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products. * 1911 Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing. * 1914 Colgate establishes its first international subsidiary in Canada. * 1930 On March 13, Colgate is first listed on the New York Stock Exchange. 1939 Dr. Mark L. Morris develops a pet sustenance to help save a guide dog named Buddy from kidney disease. This breakthrough leads to the first Hills Prescription Diet product. * 1956 Colgate opens corporate headquarters at 300 Park Avenue in New York City. * 1968 Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities. * 1972 Colgate acquires Hoyt Laboratories, which later becomes Colgate O ral Pharmaceuticals. * 1985 Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley Hazel, a leading oral care company, which adds strength in key Asian markets. 1989 Annual Company sales surpass the $5 billion mark. * 1995 Colgate enters Central Europe and Russia, expanding into fast-growing markets. * 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 Today, with sales surpassing $15 billion, Colgate focuses on four core businesses Oral Care, Personal Care, central office Care and Pet Nutrition. Colgate now sells its products in over 200 countries and territories worldwide. MARKETING MIX MARKETING MIX CUSTOMER WANTS AND NEEDS PRODUCT COST TO acti on PROMOTION PLACE PRICE CONVIENCE TO BUY COMMUNICATION 1. Product - * The product, the Precision toothbrush, is a product that should add value to a buyers life. * It should in any case add utility, and meet the wants and needs of targeted consumers. The product should be unique and different from all similar products that are already available on the market. * The strategy is to key out the products design and packaging, which in return entrust cause the toothbrush to stand out. VARIOUS TYPES OF COLGATE 2. Price- * The price of a product says something rough the quality. * Even though the quality of the Precision toothbrush will be significantly higher than other leading toothbrushes, the price of the toothbrush will be determined by the prices of the other toothbrushes already in the market. This pricing strategy is a result of positioning the toothbrush as a mainstream product earlier than a niche product. COLGATE 20gms 40gms 50gms 75gms 80gms 100gms 150gms 200gms 300gms De ntal cream 5rs - 14rs - - 30rs 45rs 56rs 86rs Max impertinently 15rs 32rs 35rs 55rs - Total - - 35rs 65rs Sensitive 35rs 60rs Kids 26rs Advance whitening 27rs 53rs Active salt - 14rs - - 30rs - 54rs - Cibaca 18rs 28rs Herbal 14rs 30rs 55rs Fresh elan vital gel - - 55rs 60rs 3. Place- * Place represents the location where a product can be purchased. * The most important part of marketing is how a product will get from the seller to the buyer. * Many products go through a channel of distribution, which involves manufacturers, wholesalers, retailers, and consumers. The distribution strategy proposed for the Precision toothbrush is through dentists, plastic surgeons, drug stores, market stores, large retail stores, and department stores. * The product is available in the all India market, including semi-urban & rural markets which are their primary focus. 4. procession - * Product promotion is communication spread through advertisin g, Publicity and sales promotion. * Promotion represents all of the communication that marketers use in the market. * We suggest that Colgate-Palmolive advertise their products by using commercial, magazine ads, the radio, ads that are to be placed in dentist ffices, billboards, and the sides of buses. * Advertising is done to promote new products, remind consumers of existing products, and overly promote the depiction of the company at hand. We also suggested that Colgate offer special coupons and rebates through their other products, and also food products. * Also, Colgate could benefit from the usage of in-store displays. * Most of the promotional activities would be T. V. media. * T. V. , FM radio for urban population. * Promotion towards rural population also. BCG MATRIX * The BCG matrix or also called BCG prototype relates to marketing.The BCG model is a well- known portfolio management tool used in product life cycle theory. * BCG matrix is often used to prioritize which p roducts within company product mix get more funding and attention. * The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the BOSTON CONSULTING GROUP in the early 1970s. * The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combination of market growth and market share relative to the largest competitor. SWOT ANALYSIS SWOT is an acronym for the inside strength and weakness of a firm and the environmental opportunities and threats facing the firm. * SWOT analysis is a widely used technique through which managers become a quick overview of a companys strategic situation. * The technique is based on the assumptions that an effective strategy derives from a sound fit between a firms internal resources (strengths and weakness) and its external situation (opportunities and threats). INTERNAL FACTORS- (1) STRENGTH- * Colgate dental cream offers all-round cavity protection, even where a toothbrush cannot reach. Its ample mint taste freshens breath. * It protects against root caries. * It cleans makes teeth whiter and repairs early decay spots. * Extremely popular brand and high brand awareness due to advertising. (2) WEAKNESS- * heights dependence of the company on a single category i. e. , oral care. * Reduction in advertisement expenditure in order to maintain growth. impertinent FACTORS (3) OPPORTUNITIES- * Leverage on fact that Colgate has been ranked as the most rely brand in India. * Focus on innovations and new product launches by deploying forward-looking technologies. Growth in emerging markets rural and semi- urban. (4) THREATS- * High competition from competitive brands like Pepsodent from HUL. * Increasing commodity prices for manufacturing. STP ANALYSIS (1) SEGMENTATION - * Colgates market segmentation is very broad because all their products are of need to most people so those people share a similar interest in product needs. * Colgate uses a segmentation bases by knowing that certain groups of people need Colgate toothpaste for a specific similar reason like yellow teeth, peeled teeth or just teeth with cavities. Colgate also uses the family life cycle because they make toothpaste that could be used for grownups and children. * Also, toothbrushes are made to attract young children with cartoon characters and different tastes and are less watertight so that it wouldnt damage their gums. (2) TARGET GROUP- * MAX FRESH Colgate targeted youth with the introduction of this toothpaste, as this helps in refreshes breath. * ACTIVE SALT - Elder people are targeted in this segment as it makes teeth stronger and provides protection from cavities. COLGATE TOTAL - Colgate Total contains the anti-microbial ingredient triclosan, which reduces the number of bacteria that cause gingivitis, cavities and halitosis Basically its for kids but Mothers are targeted as they are very concerned about their kids. This toothpaste safeguards t eeth for 12 hours. * COLGATE SENSITIVE - People who prevail sensitive teeth are targeted in this segment who have problem in their gums. * KIDS TOOTHPASTE - Often small children dont like to brush teeth, so for them this toothpaste was launched. Colgate had focused on taste aspect to encourage kids to brush teeth. COLGATE WHITENNING A whitening toothpaste that is Clinically-proven to whiten in 14 days. Its whitening ingredient is enthalpy peroxide, which gradually bleaches the teethFocus is given on group of customers in this segment those who are already suffering from plaque in their teeth. * COLGATE 2in1 - People who want both strongness and fresh breath are targeted. (3) POSITIONING- * Colgate dental cream positions itself as toothpaste that has the necessary calcium and minerals to provide decay protection, strong teeth, germ protection and fresher breath. Colgate positioned some(prenominal) toothpaste so that people would like the products more like adding a different style or taste to the toothpaste. * Colgate repositions their products because with the way they market and promote their products, consumers know that these products are way better than other brands and competition that is out there. * Lately with competition from indigenous vegetarian toothpastes, Colgate dental cream has also positioned itself as an always 100% vegetarian toothpaste. The tagline of its advertisements, trusted by generations to make teeth stronger. Colgate total12 have been projected as the most advanced toothpaste that provide 12 hr germ protection even after eating and drinking by building a protective shield around the teeth. * Colgate max fresh positions itself on the basis of freshness. The tagline new dimensions brings home this very point. * Colgate kids toothpaste tries to position itself based on emotions which is apparent in its tagline makes fighting cavities fun RECOMMANDATIONS * Colgate should hire celebrities for the advertisement. They should also increa se their CSR activities because they have very good image in the market. * Target market should be clearly emphasized in the advertisement. * Colgate should emphasize on digital branding i. e. , online purchase. * Colgate should use colorful paste to create uniqueness. BALANCESHEET Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 Sources of funds Owners fund Equity share capital 13. 60 13. 60 13. 60 13. 60 13. 60 Share application money - - - - - Preference share capital - - - - - Reserves & surplus 421. 79 370. 45 312. 51 202. 0 148. 61 Loan funds Secured loans - - - - - Unsecured loans - 0. 05 4. 59 4. 69 4. 69 Total 435. 39 384. 10 330. 70 220. 98 166. 89 Uses of funds indomitable assets Gross block 522. 50 579. 83 534. 52 425. 26 449. 59 Less revaluation reserve - - - - - Less accumulated depreciation 268. 08 324. 79 287. 57 251. 33 258. 19 Net block 254. 42 255. 04 246. 95 173. 93 191. 41 Capital work-in-progress 69. 38 12. 26 6. 19 4. 67 7. 59 Investments 47. 12 38. 74 21. 00 38. 3 3 72. 59 Net current assets Current assets, loans & advances 758. 8 739. 21 626. 71 577. 18 444. 85 Less current liabilities & provisions 694. 21 661. 15 570. 15 573. 13 549. 54 Total net current assets 64. 47 78. 06 56. 56 4. 06 -104. 69 Miscellaneous expenses not written - - - - - Total 435. 39 384. 10 330. 70 220. 98 166. 89 Notes Book value of unquoted investments - 38. 74 21. 00 33. 01 56. 39 Market value of quoted investments - - - 5. 00 15. 60 Contingent liabilities 68. 45 82. 06 62. 75 46. 46 46. 67 Number of equity shares outstanding (Lacs) 1359. 93 1359. 93 1359. 3 1359. 93 1359. 93 CONCLUSION * 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. * The Brand COLGATE has been interchange successfully and has created a good demand all the time. * It is also holding a good place in the toothpaste market with a share of around 10% 15%. * As like for all other products Colgate is also facing a tight competition in the toothpaste Market. Since the competition is too strong the company has to keep on watching market closely for avoiding any sudden collapse for the product. * Finally, it should note that the company may have to face push-down storage of threats in coming years like political threats, legislation threats ongoing economic crisis, changing life style of the people etc. If the company is able to overcome all the threats and can prepare themselves for facing the problems in advance it can achieve a good growth for COLGATE.