TABLE OF CONTENTS
Keeping up with the competition
Setbacks and Lawsuits
COLGATE – WORLD OF CARE
The Colgate-Palmolive Company earns 17.28 billion dollar as its annual revenue serving customers in more than 200 countries. It focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate was started as a soap, candle and starch business at 6, Dutch Street in New York City in 1806 by William Colgate , an Englishman who believed he could bring innovation to the business of making and selling soap. After his death in 1857 his son Samuel Colgate reorganised the company as ‘Colgate and Company’. In 1872 Colgate introduced ‘Cashmere Bouquet’, one of the first perfumed soaps. It later became the company’s first global product successes. In 1896 Colgate was one of the first to package dental paste in collapsible tube. At the turn of the century Colgate was manufacturing more than 800 products. In 1908 after 102 years of family owned business Colgate became a publically owned company. On March 13 ,1930 Colgate was first listed on the New York Stock Exchange. In 1928 Colgate merger with another well known company of the time , Palmolive-Peet, which was itself the result of a merger between the Peet Brother’s Company and the Palmolive Company. The first international Colgate subsidiary was Canada in 1914. In the years just before and after the Colgate-Palmolive-Peet mergers the company added major subsidiaries in Asia , Europe , Latin America , Africa. The present corporate name – The Colgate Palmolive Company was adopted in 1953. In 1956 Colgate opened its corporate headquarters at 300 ,Park Avenue in New York City .In 1976 Colgate acquired Hill’s Pet Nutrition , a company with its own rich and caring heritage. In 1985 Colgate entered a joint venture with a Honk Kong based company Hawley and Hazel , a leading oral care company which added strength to its Asian markets. In 1992 it acquired Mennen company . Today Mennen products are sold in over 52 countries. During this period Colgate’s global oral care initiative ‘ Bright Smiles Bright Futures ‘which provides free dental care , dental checkups , lessons and oral care products to children expanded to 50 countries. Today it reaches more than 75 million children. In 2004 it acquired Gaba oral care business in Europe. During the last decade Colgate has perfected its abilities to rapidly roll out existing and new products all around the globe. It is successfully using new innovations, world class brands and talented Colgate people all over the world to drive it success. SWOT ANALYSIS
1. Strong brand name – All of the leading companies in the personal goods industry offer similar products that may differ in colors or scents. This makes the industry very dependent on brand image. Colgate-Palmolive having a very strong brand image and is a common household name it has a distinct advantage.1 2. Research and Development— By investing in R&D it is able to directly target particular consumer taste at any particular time. When the firm knows what the customer needs it emphasizes attention towards that particular product and gains market share. This department also strives to make simpler product designs which would in turn reduce the cost of manufacturing and the cost of the product. 3. Territorial diversity –Approximately 75% of the net sales come from markets outside of U.S. The company markets its products in over 200 countries globally. Hence geographical diversity helps to reduce the Company’s exposure to risks in any one country or part of the world. 4. Product quality – It is very important to differentiate products from other competitors. The Hills pet...
Bibliography: Government does not have much influence on the FMCG industry in terms of regulations. There are consumer protection laws but they are not implemented as they should be. There are not much regulations involved in this industry (Krutz 2004).
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