Assignment on

Colgate

& Competitors’

Social and Technological Analysis

Business Policy and Strategic Analysis Management

3rd Semester (II Phase) – 2nd Year New

Delhi Institute Of Management 2020-

2022

Submitted by: Submitted to:

Group 8 | NM1 Prof. Swapan Das Gupta

20314 – Divyal Sharma
20316 – Harsh Soni 20353
– Shubhrojaa 20355 –
Sweta Banik 20039 –
Prateek Sharma 20045–
SaahasChoudhary
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 CONTENT

1. Introduction
2. Company:
Colgate
a) Introduction
b) Social Analysis of Colgate
c) Technological Analysis Colgate

3. Competitors Analysis:
I. MARICO
a) Social Analysis
b) Technological Analysis
II. P&G
a) Social Analysis
b) Technological Analysis

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 INTRODUCTION

Social factors in PESTLE Analysis

PESTEL analysis also takes into consideration social factors, which are related to the
cultural and demographic trends of society. Social norms and pressures are key to
determining consumer behavior. Factors to be considered are as follows:

 Cultural Aspects & Perceptions

 Health Consciousness
 Populations Growth Rates
 Age Distribution
 Career Attitudes

These factors are helpful for companies to better plan their marketing analytics and
strategy. These factors are particularly significant for marketers as they target certain
customers. Additionally, they also highlight the local workforce and its zeal to operate
under certain circumstances.

Technological factors in PESTLE Analysis

These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably. These factors may have a direct or
an indirect influence on an industry. While some industries will be more affected by
technology than others, innovations in technology may affect the market and
consumer choices, and buying power.
Several new developments like Artificial Intelligence, IoT, Machine Learning, Deep
Learning, are being made in the technology field and if a company fails to match up
the trend it may lose its position in the market. A few of the technological factors are
the rate of technological change, the evolution of infrastructure, and any government
or institutional research.

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 COLGATE PALMOLIVE

Colgate-Palmolive is a global Fast Moving Consumer Goods

(FMCG) company that started in New York City with a
small soap and candle business by William Colgate in 1806.
Colgate manufactures and markets oral care, personal care,
home care, and pet nutrition products. The company is
mainly known as a global manufacturer of toothpaste with a global market share of 40%
under its control its headquarters are located in Midtown Manhattan, New York City. The
company merged with Palmolive-Peet in 1928 and took on the name of Colgate-Palmolive-
Peet which was later shortened to Colgate-Palmolive in 1953.

The company currently operates in over 80 countries with products being sold in around
200 countries. Approximately 75% of the company revenue is generated from sales outside
the US with the majority being sourced from emerging markets of Latin America, Asia,
Eurasia, Africa, and Central Europe.

Colgate-Palmolive acquired PCA Skin and Elta MD in 2018 to step into the professional
skincare segment. It made another major acquisition in 2019 by buying the French skincare:
company Laboratoires Filorga for a price of $1.7 billion. This deal is an important step as it
will propel the company into the premium personal care product segment.

Colgate-Palmolive Revenue :
US$15.50 billion - FY ended December 31, 2018 (y-o-y growth negligible)
US$15.45 billion - FY ended December 31, 2017 (y-o-y growth of 1.5%)
US$15.19 billion FY ended December 31, 2016

Colgate primarily has three divisions:

• Oral Care
• Professional Care
• Home Care

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Social Analysis of COLGATE PALMOLIVE –

Social factors that have an impact on Colgate's operations are the direct reflection of
the society on which Colgate operates. The cultural beliefs, values, attitudes of the
majority of the population will determine the business market for Colgate. Thoroughly
understanding the market, with its age, gender, cultural preferences, product
preferences, would help Colgate get better space in the market. For example, a society
shifts towards ayurvedic products due to social change brought about, Colgate has to
diversify to remain as the main product supplier. The lifestyle of the locals also affects
and hence Colgate has to consider what kind of health standards, what type of product
is preferred largely and have to adjust its product line accordingly.
Their Corporate Social Responsibility (CSR) Policy, as recommended by the
Corporate

Effluents and wastes

 As per the 2017 report, waste to landfills fell by nearly 44% since 2010

 Site-related spills fell from two in 2009 to zero in 2010

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  Greenhouse gas emissions fell by approximately 28% compared to 2002

Biodiversity

Elimination of non-animal testing: over 99% of internal requests for safety assessments of
the company's products are addressed by using available databases and non-animal
alternatives.
Water

 Named to the 2015 CDP Water A-List, an exclusive global list for corporate leaders

 52% of Colgate sites reuse or recycle water

 The reverse osmosis process has saved 14 million gallons a year and a smart
irrigation system is saving 9.4 million gallons a year

 EveryDropCounts campaign

Compliance

 Health and safety

 Diversity and Inclusion

 Disclosure Statements UK Modern Slavery Act

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  Disclosure Statements UK Modern Slavery Act

 Transparency in Supply Chains Act

Supplier Environment Assessment

 Colgate's Third Party Code of Conduct sets the Company's expectations for suppliers
and business partners

 The Code is provided to suppliers and business partners and Colgate's contracts and
purchase orders typically require suppliers to abide by the Code's standards

Labor practices and decent work

 Ensures diversity of its people through inclusive culture and values and promoting
employee resource groups

 Provides all employees with a series of training programs focused on building

leadership skills

 Creation of employee resource groups such As Colgate Abilities Network, Diversity

Councils

Human rights

 Supports the United Nations Universal Declaration of Human Rights and the
International Labor Organization (ILO) Core Labor Standards

 Colgate's Code of Conduct Since 1987 communicated the company's commitment to

oppose the illegal use of child labor, human exploitation, and all other forms of
unacceptable treatment of workers.

 The company has a Performance Reporting & Remedying Grievance s The Colgate
Ethics Line
Society

 Bright smiles bright future

 Oral health month

 Protex handwashing day

 Colgate women's games

 Give kids a smile

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  Issues for Colgate Palmolive

 Starlight Children's Foundation

Technological Analysis COLGATE PALMOLIVE:

Technological changes can rapidly dismantle the current product range, price structure,
competitors’ landscape, in a very short amount of time. Colgate being a market leader, has to
constantly keep updating itself in terms of the quality of products offered by constant
innovation. Colgate has to constantly remain updated with the technological changes in the
industry and needs to analyze how will it affect the market.

It has to know how quickly will the new technology be adopted by the other competitors and
also know-how will affect the cost structure of the competitor's product.

COMPETITORS ANALYSIS

 MARICO

SOCIAL ANALYSIS:

1. Customers in India are preferring experiential goods over traditional value

propositions in the Consumer/Non-Cyclical sector. Marico can capitalize on this
trend by developing goods that deliver a better consumer experience.

2. Marico has demographics on its side when it comes to Consumer/Non-Cyclical

goods. India is a young and developing country. Marico can take advantage of this
trend to appeal to a wide range of demographics.
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 3. Media outlets in India play a vital role in shaping public opinion. In India, both
conventional and social media are quickly expanding. Marico can take advantage of
this trend to improve the marketing and positioning of its products.

TECHNOLOGICAL ANALYSIS:

Marico has always aspired to leverage technology to deliver a seamless experience for
its consumers, associates, and members.

1. Delighting Consumers with Technology

Marico launched the Kaya Youth oxy-infusion range which helps in boosting the
oxygen levels in facial skin, resulting in youthful and glowing skin. To measure the
oxygen level, Marico launched a Skin Analyser tool that leverages Artificial
Intelligence (AI) and machine learning capabilities to analyze the skin on parameters
such as dark circles, dark spots, uneven skin, and skin dullness. Basis the oxygen
score, it also suggests the routine that is appropriate to each individual.

2. Tracking channel partner’s health using predictive analytics

To drive sustainable growth using predictive analytics to diagnose channel partner

health on various business and non-business parameters has helped Marico
implement an early warning system, which enables timely interventions to ensure a
healthy and stable network.

3. Drive cost-to-serve efficiency in rural through geolocation technology

To improve resource utilization and cost-to-serve in rural operations, Marico has

deployed technologies such as geo-tracking of van routes. This helps them
ascertain the total distance and trip completion time for every route and using this
information, Marico optimizes the travel routes and resources to service high
business potential routes daily.

 P&G

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Social Factors:

P&G believes in a holistic product. It believes that its consumers interact with the
merchandise, package, and the way they feel about the brand, how they experience it within
the store or online, and whether it truly creates value for them versus the alternatives he or
she has got to choose between. These factors need to be considered to obtain a positive
category growth and build a competitive advantage. With changing trends, people are
looking for better quality/high-quality products at affordable rates.

With the inclusion of Ariel and tide pods into its fleet of products the corporate has proven
that social needs are what drive innovation. P&G has been awarded the best company in
terms of social inclusion and gender inclusion. With its policies treating all genders equally,
P&G has made a mark in this segment. Most of the edible products are needed to be healthy
for the buyer and thus these changing trends provide a chance for the corporate to combine
and match or create newer and better products thus helping society grow and make life
easier.

Technological Analysis :

P&G relies on technology for both its operations as well as marketing and consumer sales.
With the increase in the online market, the necessity for analytics to be implemented through
its system is justified. Using this technique, it's been ready to optimize distribution,
merchandising, shelf sets, targeted sampling, and marketing.

Also, having the ability to research the changing trends, Procter and Gamble can specialize
in products that sell more and generate the majority of its revenue. ‘Reduced complexity in
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its operations’ is what the corporate believes in. To deliver better products in lesser time, the
corporate has opened its first smart lab dedicated solely to research and development. With
the creation of Oral-B Genius X, P&G has managed to bring AI to the oral health segment.
Keeping a tab on changing technologies within the industry is vital.

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