COLGATE:MARKETING STRATERGY

PROJECT REPORT

Submitted by

Ayisha.b.m

MAY- 2010
02. Overview of the Company/Company profile

2.1. Back ground:

Toothpaste has a history that stretches back nearly 4,000 years. Until the mid-nineteenth
century, abrasives used to clean teeth did not resemble modern toothpastes. People were
primarily concerned with cleaning stains from their teeth and used harsh, sometimes toxic
ingredients to meet that goal. Ancient Egyptians used a mixture of green lead, verdigris (the
green crust that forms on certain metals like copper or brass when exposed to salt water or
air), and incense. Ground fish bones were used by the early Chinese.

In 1850, Dr. Washington Wentworth Sheffield, a dental surgeon and chemist, invented the
first toothpaste.

Modern toothpaste was invented to aid in the removal foreign particles and food substances,
as well as cleans the teeth. When originally marketed to consumers, toothpaste was packaged
in jars. Chalk was commonly used as the abrasive in the early part of the twentieth century.

The Colgate-Palmolive Company also asserts that it sold the first toothpaste in a collapsible
tube in 1896. The product was called Colgate Ribbon Dental Crème. In 1934, in the United
States, toothpaste

What is Colgate ?

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.

What are Colgates Products ?

Dental Care Products

Of Colgate's oral care, household cleaning, personal care and pet food products, dental care
products are the most lucrative. According to Texas Tech University, "Out of these four
products their main source of income is oral care." Some of Colgate's "Total" line of
toothpaste includes Colgate Total Advanced, Colgate ProClinical, Colgate Tartar Control,
Colgate Ultrabrite and Colgate Cavity Protection.

SpongeBob SquarePants, Dora the Explorer, and Colgate 2in1 are a part of the Colgate
children's line. Colgate makes over-the-counter products and supplies dentists with teeth
whitening, fluoride, sensitivity products and toothbrushes. Some over-the-counter sensitivity
names include canker sore pain relievers Colgate Orabase with Benzocaine and Colgate
Peroxyl Rinse. Colgate 360, Colgate Motion, Colgate Wave, Colgate Navigator and Colgate
Total Professional are among Colgate's line of toothbrushes.

Household Cleaning Products

Colgate produces several lines of household cleaning products. Ajax brand scouring and
machine washing cleaners, Palmolive hand soap and dishwashing liquid, and Dermassage
dishwashing liquids are popular. Colgate's fabric care line of cleaners includes Dynamo and
Fresh Start laundry detergents; Suavitel Fabric conditioners as well as Murphy Oil disposable
wipes and household cleaner.

Personal Care Products

Colgate manufactures several lines of personal care toiletries for men and women. Colgate
shaving cream, deodorants, and body wash products for men include Aft and Skin Bracer by
Mennen. Irish Spring bar soap and body washes, along with several deodorants such as
Stainguard and Speed Stick 24/7.
 Lady Speed Stick antiperspirant, Invisible Dry and Lady Speed Stick with Aloe are among
deodorants for women. Female soap products include Softsoap hand soaps, body washes,
moisturizers, hand gel sanitizers and Vel beauty bars. Teen Spirit and Teen Spirit Fun
Fragrance are two Colgate lines of dry deodorants designed especially to attract teens.

Sucess Stratergy

Consistent growth drives Colgate’s global success. New products, increased advertising,
geographic expansion and greater efficiency again drove sales and profits to new records.
Innovative new products are critical to Colgate’s continuing growth. And the pace of new
product introductions is accelerating. The most effective marketing begins with the
consumer. It starts with insight gleaned country by country, by being closer to the consumer
than competitors and sharing knowledge with colleagues across the Company. Over 100
Colgate researchers from around the world are united on-line and meet globally to share their
knowledge, validate concepts and keep the new product development pipeline full with
options, as far as three years into the future.

Teams of new product specialists, located in regional centres all over the world, develop the
Company’s new products. From the very beginning of the development process, they are
focused on creating global products that can be rapidly expanded throughout Colgate’s broad
global network.

Colgate Actibrush has helped make the Company Number One in manual and battery
operated toothbrushes in the United Kingdom, France and Ireland, strengthened

our top position in Portugal and the South Pacific, and propelled us to a strong Number Two
position in Italy and Greece. Similarly, Palmolive Naturals skin and hair care products are
winning consumers in Asia, Europe and Latin America with their natural, refreshing
ingredients and elegant packaging. And Colgate Herbal toothpaste, with its natural formula,
is building share in countries in Latin America, Central Europe and Asia.

Colgate’s new product teams identify and roll out products to market faster, bringing
profitable returns sooner. Product development cycles have been reduced dramatically in the
past five years, sometimes halved. TGlobal equities today account for almost 75 percent of
Company sales, up from 50 percent ten years ago. Fuelled by new products, Palmolive has
emerged from among more than 20 brands to become the Number Two best-selling Personal
Care brand in Italy. And the Colgate brand name has demonstrated its ability to expand into
new segments that provide incremental sales, such as with Colgate 2in1, a combination liquid
gel toothpaste and breath freshener.

Because so many consumer purchase decisions are made in-store, Colgate research
professionals conduct in-depth interviews with diverse shoppers, both in retail stores and in
their homes, on an ongoing basis. The insights discovered have led to the success of new
Colgate products like Soft-soap brand Fruit Essentials hand soap and shower gel, with
attractive bright packaging that literally stops people in store aisles.
Importantly, proprietary knowledge about different consumer groups and how they shop,
coupled with Colgate’s growing market shares, creates a strong partnership that is enabling
Colgate sales executives to increase in-store presence for Colgate products.

While Colgate Oral Care is well established in over 200 countries, newer categories such as
liquid hand soap are currently distributed in only half that many, with plans in place to
expand Colgate’s global market presence in 2001 and beyond. In China, introductions of
fabric softener and shampoo combined with a new joint venture with Sanxiao, that country’s
market leader in toothbrushes, are helping to fuel rapid growth.

Colgate’s many decades of global operating expertise, its powerful brands and proven
strategies for broadly launching superior new products to the market quickly, serve as a rich
foundation for future success. By building on recent achievements and anticipating the needs
of tomorrow, Colgate will continue to deliver greater value, growth and profitability in the
years to come.