COLGATE PALMOLIVE
Marketing Strategies and Programs
Introduction
Colgate Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. This American diversified multinational corporation focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food.("Colgate Palmolive Annual Report 2012,")
Colgate-Palmolive Company's
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(Dollars in Millions Except Per Share Amounts) | 2012 | 2011 | Change | Worldwide Net Sales | $17,085 | $16,734 | +2.0% | Unit Volume, Excluding Divested Businesses | | | +3.5% | Gross Profit Margin | 58.1% | 57.3% | +80 basis points | Operating Profit | $3,889 | $3,841 | +1% | Operating Profit Margin | 22.8% | 23.0% | -20 basis points | Net Income Attributable to Colgate-Palmolive Company (1) (2) | $2,472 | $2,431 | +2% | Net Income Attributable to Colgate-Palmolive Company
Percent to Sales | 14.5% | 14.5% | – | Diluted Earnings Per Share (1) (2) | $5.15 | $4.94 | +4% | Dividends Paid Per Share | $2.44 | $2.27 | +7% | Operating Cash Flow | $3,196 | $2,896 | +10% | Number of Registered Common Shareholders | 27,600 | 28,900 | -4% | Number of Common Shares Outstanding (in millions) | 468 | 480 | -3% | Year-end Stock Price | $104.54 | $92.39 | +13% |
("Colgate Palmolive Annual Report 2012,")
Colgate delivered strong performance in 2012. Net sales grew 2.0% to an all-time record level, and global unit volume from continuing businesses grew 3.5%, led by strong growth in emerging markets. They achieved their profit goals, with diluted earnings per share increasing 7%, despite an intense competitive environment, volatile foreign currency exchange and challenging macroeconomic conditions worldwide. All of the Company’s fundamentals are
Colgate’s Annual Report. Obtain a copy of Colgate’s annual report from the Ashford Online Library or from a valid academic source found elsewhere on the Internet. Use this information to answer the
Michael Crichton was an author from the years he went to college till the day he died. He originally wanted to study medicine and become a doctor, but his urge to write overcame it, he still would graduate with an M.D. He would go on to write thrillers and techno-thrillers. Not only were his books meant to entertain, they were also meant to inform people about the societal issues that existed in the world at that time. His books were also part of the postmodernism movement because his books would talk about topics that involved the real world.
This initiative creates an impression of an environmentally friendly company hence creating a greater appeal for the company’s products. Colgate-Palmolive created 275 new products and introduced them to global markets in the last five years. The company then ensured product presence by building factories in China and Europe.
Favorable liquidity ratios are critical to a company and its creditors within a business or industry that does not provide a steady and predictable cash flow. They are also a key predictor of a company’s ability to make timely payments to creditors and to continue to meet obligations to lenders when faced with an unforeseen event.
Today Unilever is one of the world’s largest consumer products companies. Becel Margarine was launched in 1978 as a premium priced product, positioned as the heart healthy margarine of choice. Previously, the Becel brand had been positioned as the heart healthy margarine of choice in Europe for twenty years prior to Canadian introduction. Despite unique positioning Becel struggled for many years gaining only 8.1 percent market share by 1991. Unilever considered several options for growing the Becel brand, such as, price decreases, repositioning the product, and dramatic increases in advertising support. In 1991 Lipton devised the strategy “living a life that is young at heart”. This strategy was very successful with its current target market, 65 and above. In the butter and margarine category, butter holds fifty percent of the market. The Dairy Bureau of Canada positions butter as tasty and natural, which is conveying that margarine is processed and does not taste as good. However, that is not true, margarine is better for you than butter and does suit consumers’ tastes. In addition, the health focus of the butter and margarine market is growing. More and more competitors are positioning their product as healthy for the consumer. For example, Parmalat is a brand of butter that has just entered the margarine market to compete with Becel with the brand Lactantia.
Colgate-Palmolive Co (CP) was an international leader in household and personal care product, with the sales of $6.06 billion and profit of $2.76 billion in 1991. CP set up a five-year plan in 1991, pointing out that company needed to focus on new product launching and entry into new geographic markets by improving the manufacturing, distribution and the continuance of the core consumer products. Started from 1984, CP’s CEO awaked the company from “sleepy and inefficient” to profitable. Both gross margin and annual volume growth increased from 1985. Although everything seemed good, CP was facing the worldwide strong competitions from other companies. In order to have some protections, 170 CP’s
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
Colgate as a company strives to be the best company to have the best dental products. In an article from the website live strong Norma Chew wrote, “Colgate Palmolive Company is one of many companies that provide dental care products to the consumer.” Colgate as a company is expanding their products. Colgate was once only known for selling toothpaste, but now they have a wide variety of dental products to promote clean teeth.
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
Our profit margin is based off of the companies’ individual years’ total consolidated sales and their net income. We found that the average profit margin of all the years was highest in Constellation Brands Inc. mainly due to their 2014 year numbers, however Mead Johnson CO. was more consistent; producing the same margin three years in a row despite having a dropping overall profit. This shows that Mead Johnson has a much more stable company in means of return based on sales to income, yet Constellation Brands Inc. shows much more promise in potential return as they continuously produce higher numbers than Mead Johnson Co. and improve in overall sales.
Dove was developed in the United States as a non-irritating skin cleaner for pre-treatment use on burns and wounds during World War II. In 1957, Dove bar reformulated as a beauty soap bar. In 1970s, the company launched promotional campaign for shop’s mildness as found in the study that Dove to be milder than 17 leading bar soaps. Through the years, Dove has expanded its product line to body wash, facial cleansers, moisturizers, deodorants and hair care products. In 2005, Unilever’s Dove product line revenue reached $3 billion. However, even though these events make Dove appear as a flawless brand, both Dove’s sales and market share were dwindling and the competition remains on the rise. Thus, under the management of
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
Each and every player of soft drink industry mainly targets the age group of 15 to 30. Though some brands only focus to the urban people and some targets only to rural people. Some targets only to female and some targets to male only.
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.