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PRICIPLES OF MARKETING
DIGITAL ASSIGNMENT 2
Discuss the E-Commerce strategies adopted.(Company–Colgate)

Colgate-Palmolive Co., maker of Colgate toothpaste and a wide range of personal

health and cleaning products such as SoftSoap, Irish Springs and AJAX, has a lot
to smile about when it comes to ecommerce.
Last year all forms of ecommerce, including business-to-business, business-to-
consumer and business-to-business-to-consumer, or  B2B2C, totaled about 5% of
total 2018 global sales of $15.54 billion and grew year over year by 30%,
according to the company’s latest annual report and other recently released year-
end documents.
While Colgate-Palmolive didn’t break out ecommerce numbers, B2B2C News
estimates that global ecommerce sales totaled $777.2 million compared with $598
million in 2017.
“Capitalizing on growth in ecommerce, which was up 30% in 2018 and now
represents 5% of global sales, is another key priority,” CEO Ian Cook wrote in his
shareholder and investor letter included in the annual report. “We have a clearly
defined ecommerce strategy linking digital marketing, customer service and
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logistics, analytics and customer development.”A big push online for Colgate-
Palmolive, which posted total sales of $15.54 billion last year, is focusing on
B2B2C programs such as Hill’s to Home.
With Hill’s to Home, consumers with overweight pets can have a veterinarian
write a prescription for a special type of pet food, sign the patient up for an online
account and then arrange for home delivery of the prescription pet food based on
their schedule.
The veterinarian works with the pet owner to set up the ecommerce account,
including billing the patient’s credit card and arranging home delivery.
Colgate-Palmolive has yet to say how many veterinarians and consumers have
signed up for Hill’s to Home, but the company sees the ecommerce program as an
important way to tie both groups to its Hill’s pet nutrition business, which in 2018
posted essentially flat net sales of about $2.39 billion.

ONLINE WEBSITE OF COLGATE

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“The pet parent initially signs up for their program through their vet, who enters
the appropriate prescription diet food recommendation,” Colgate-Palmolive
president Noel Wallace told analyst on the company’s recent year-end earnings
call, according to a transcript from SeekingAlpha. “This new system allows us to
maintain the key relationship between Hill’s, our vet partners and pet parents.”
Colgate-Palmolive, which runs on ecommerce applications from SAP SE’s SAP
C/4 Hana software suite, will continue to invest in ecommerce, especially in ways
that build up its core brands and improves ties to retailers and other B2B sellers,
Wallace told analysts. “We’re looking on our ecommerce and direct consumer
partners to further build our capabilities in digital, ecommerce and direct-to-
consumer, which will allow us to expand our offerings and strengthen our
consumer relationships,” Wallace said.

Colgate-Palmolive e-commerce sales shine thanks to digital transformation

 Colgate-Palmolive Company has reported sales of $3.884 billion (–3

percent) with operating profit of $879 million and net income of $22
million in the first quarter 2019.

 Colgate-Palmolive digital transformationColgate-Palmolive has lost sales

revenue despite achieving 28 percent growth in e-commerce channels in
the first quarter. Colgate-Palmolive achieved strong e-commerce business
in North America. But Colgate-Palmolive’s e-commerce business in Asia
was flat.

 Gross profit margin was 58.9 percent in first quarter 2019 versus 60.2
percent in first quarter 2018.

 Colgate-Palmolive’s advertising investment increased 3 percent to $429

million versus $416 million in the year ago quarter. Colgate-Palmolive
does not reveal its IT budget or investment in technology efforts. Colgate-
Palmolive CIO Mike Crowe is heading its digital transformation
initiatives.

 Colgate-Palmolive revealed that Cloud and e-commerce delivered strong

toothpaste growth.
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 Elta MD and PCA Skin care businesses are delivering very strong growth
across a number of channels, including Professional, DTC and e-
commerce in North America.

 Colgate-Palmolive sales in Asia-Pacific fell 8 percent, driven by 2.5

percent drop in volume, and flat pricing. Colgate-Palmolive’s Oral Care
business faces challenging conditions in China due to shift into e-
commerce.

 Colgate-Palmolive’s Hills business has achieved strong growth led by the

United States with particularly strong growth in e-commerce, pet
specialty, and farm and feed.

 Colgate-Palmolive said it is expanding the availability of its products

through distribution and new markets. Michael A Corbo is the chief
supply chain officer of Colgate-Palmolive.

 Colgate-Palmolive in 2015 launched a 5-year-long supply chain

transformation strategy called Global Supply Chain 2020, aimed at
boosting supply chain innovation, agility and operational excellence,
research firm Gartner said.

 Colgate-Palmolive will simplify processes and structures. Colgate-

Palmolive is revamping its innovation process to reduce the time to
market.

 Colgate-Palmolive is already using Google Cloud and G Suite with the

help of Google Cloud partner SADA Systems, Colgate-Palmolive
migrated to G Suite within six months, reveals

 Google Cloud.

 Colgate-Palmolive will enhance the use of data and will be looking to

digitize organization very differently.

 Colgate-Palmolive will focus on digitization us to drive productivity

across the organization.

 “We know that data can enable faster growth and faster decision-making.
Data drives further ROI in media, and data-driven marketing is far better
return-on-investment than the way we are spending today. We can use
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data to improve assortment in e-commerce,” said Colgate-Palmolive CEO
during an earnings call.

 Colgate-Palmolive has decided to change its SAP system deployed in

1994 to SAP S/4HANA in order to simplify processes significantly, drive
more standardization and better reporting and decision-making.

 Technology major IBM earlier said Colgate-Palmolive Pakistan has

upgraded its SAP ERP applications and migrated to the SAP HANA
database, powered by IBM Power Systems servers.

COLGATE PALMOLIVE SET TO INVEST IN ONLINE STARTUP TO

DEVELOP E-COMMERCE SALES

Colgate Palmolive is thought to be on the verge of investing in online startup

company Hubble in what is said to be a bid to move sales onto an e-commerce
platform via an online subscription service, according to a report by the Wall
Street Journal.

According to reports, Colgate is near completion of the deal with Hubble, which
currently sells contact lenses online, and will see the online company sell Colgate
products such as its oral care whitening products as early as this year.It is thought
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the partnership will continue to develop with the two companies in discussion to
sell products such as Colgate’s pet food products.

While financial details of the deal were not disclosed, it’s reported that the two
companies will share revenue from the venture
That e-commerce inflection point packaged-goods marketers have sought for
decades may finally have arrived. CPG e-commerce sales soared 42% last year,
well ahead of overall growth in e-commerce and driven heavily by Amazon
subscription sales, which more than tripled, according to data analytics firm
1010data.

E-commerce Market Shares for Toothpaste

While IRI gets its data from store scanners, 1010data collects online
"clickstream" data from 10 million panelists in the U.S. to track sales, with the
analysis adjusted to reflect U.S. Census demographics, said Tim Wilson, VP-
online insights. The firm was acquired last year by Advance Publications.
The firm's Facts for Ecom Insights covers 50 broad CPG categories as well as
other sectors and found e-commerce overall grew 30% last year in the U.S. That's
faster than some other market trackers such as ComScore have found, largely
because 1010data doesn't track bigger, more established segments such as travel,
automotive and eBay.. But the report also projected accelerating growth this year,
based on a survey that found 26% of U.S. consumers expect to buy groceries
online this year, more than triple the 8% who said they did so last year.

THE MAJOR E-COMMERCE SITES THROUGH WHICH COLGATE SELLS

ITS PRODUCTS ARE:
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1.AMAZON: Amazon.com, is an American multinational technology company
based in Seattle, Washington, that focuses on e-commerce, cloud
computing, digital streaming, and artificial intelligence. In today’s dynamic retail
environment, it is an exciting time to be a part of the Customer Development
team at Colgate. Our highly energetic and focused Amazon Customer Team is
dedicated to driving growth for Colgate Palmolive and for Amazon in this ever-
changing landscape

2.FLIPKART:

Flipkart Private Limited, Flipkart 

is an Indian e-commerce company
based in Bengaluru, India. It was
founded by Sachin Bansal and Binny
Bansal in 2007. The company initially
focused on book sales, before
expanding into other product
categories such as consumer
electronics, fashion, and lifestyle
products.It is one of the major
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e-commerce site through which
colgate sells its brands.

3.SHOPEE:

Shopee is a Singaporean e-commerce platform
headquartered under the Sea Group (previously
known as Garena), which was founded in 2009
by Forrest Li.[1]Shopee first launched
in Singapore in 2015, and since expanded its
reach to
Malaysia, Thailand, Taiwan, Indonesia,
 Vietnam and the Philippines.[2] It serves users
in Southeast Asia and Taiwan to buy and sell
products online.[3] Due to the mobile and social
element built within the concept, Shopee was
described as one of the “5 disruptive
ecommerce startups we saw in 2015” by Tech
In Asia.[4]
4.BIG BASKET:

Bigbasket is the largest online grocery

supermarket in India.  Bigbasket offers groceries and food supplies in various
categories such as fruits & vegetables, food grains, oil, masalas, bakery items,
beverages, branded foods, personal care products, household supplies, eggs, meat,
fish, etc.
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