Colgate Swot

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  • Topic: Colgate-Palmolive, Toothpaste, Colgate
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Running Head: WS1 CP Paper

WS1 CP Paper
Amy Eckley
Applied Marketing Management 541
Indiana Wesleyan University

Colgate-Palmolive’s Mission Statement

As a Company that strives to be the best truly global consumer products company, we are committed to doing business with integrity and respect for all people and for the world around us ("Profile of Colgate-Palmolive," 2011).

Product Diversification
Colgate-Palmolive is a diversified company with products in many categories including oral care, personal care, home care and pet nutrition (Quelch, & Laidler, 1993). The diversified product portfolio serves as a strength as it minimizes risk by not putting all of their ‘eggs in one basket’ and maximizes growth opportunity by having expanded business operations and markets to serve. Toothpaste Market Share

As the global market leader in Oral Care, the company holds now 44.7% of the global toothpaste market share ("Colgate-Palmolive company (cl)," 2011), which is a large portion of the market. In 2006, the Company also acquired Tom’s of Maine, a niche natural toothpaste company, which added to their marketshare (Kotler, P. & Keller, K., 2009). Global Presence

Colgate-Palmolive is one of the global leaders in Consumer Products and sells its widely recognized products in more than 200 countries in the world (“,”). The ability to sell in a large number markets is a strength as it provides opportunity to earn more revenue. In fact, over three-fourths of their revenue comes from outside of the US. ("Colgate-Palmolive company (cl)," 2011) Innovation

Another strength is the Company continues to invest in R&D and as a result develops innovative new products such as Hill’s Prescription diet, Palmolive Nutra-Fruit, and 12-hour germ fighting toothpaste (“,”). In 2011, they introduced Colgate Sensitive Pro-relief toothpaste, which offers faster relief to those who suffer from tooth sensitivity ("Colgate-palmolive introduces new," 2011). World Outreach Efforts

Colgate-Palmolive is very involved in outreach programs, which help people and communities around the world. For example, since 1991, the company has run Bright Smiles, Bright Futures, which educates kids about oral health. These programs work to build respect for the Company as well as further brand recognition and use of the products. This program has reached 80 countries and a half a billion children (Annual Report, 2011). Global Recognition Awards

In the last 10 years, Colgate-Palmolive has earned numerous recognition for being a top employer (“,”). Most recently, in 2010, Fortune Magazine named the company as one of the 100 best companies to work for (“2010 100 Best Companies”, 2011). This is a strength in that they are able to attract top talent to run the business, which serves as competitive advantage.

Declining Stock Price
In 2010, the Stock Price declined 2% overall compared to 2009 (Annual Report, 2011.). Shareholders pay close attention to these trends when considering stock purchases and this could have a negative impact on investor interest. Reliance on Oral Care

Colgate Palmolive has a high reliance on their oral care products, which increases risk should the market change significantly in that category. Oral care accounts for 33% of Colgate-Palmolive’s total sales (“,”). Declining Sales

Sales in the Pet Nutrition Division of Colgate Palmolive, which accounts for 14% of all sales, declined 2.5% in 2010. Sales also declined in Latin America, Europe and South Pacific in 2010. Sales declined 1.5% in Latin America and 1.5% in Europe/South Pacific. These regions account for 48% of total sales. Declining sales are a weakness, especially when the decline is impacting 62% of total sales (Annual Report, 2011.). Slow Innovation

Colgate-Palmolive, when compared to Proctor & Gamble, innovates new products at a much...
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