REPORT ON BRAND VALUATION

METHODS OF COLGATE &

DABUR
Report Submitted to Dr. Vedha Balaji
As part of CIA 3 of Marketing Metrics
By

Tony Maliakkal 2027816

Mariam Elias 2027847

Jis Maria Sebastian 2027849

Vishaal Kumaran 2027825

Shreyas V 2027912

Shubham Tiwari 2027808

Trimester 4

September, 2021

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1. About Colgate

The Colgate-Palmolive Company is a multinational consumer goods company located on Park

Avenue in New York City's Midtown. It is a manufacturer, distributor, and provider of
household, health care, personal care, and veterinary products. Since 1873, Colgate toothpaste
has been offered in glass jars. Tubes were first introduced in 1896 by Kalodont, Johnson &
Johnson (Zonweiss), and Sheffield.The slogan "It Cleans Your Breath While It Cleans Your
Teeth" made Colgate famous in the 1950s.

Colgate was advised in 2007 that it could no longer make the claim that 4 out of 5 dentists
approved it by the Advertising Standards Authority in the United Kingdom. The study had
telephone canvassed dentists to determine which toothpastes they suggested, and their
competitors were also recommended at similar rates, according to the investigation. It was
determined that the assertion was false.

Oral care products (mostly under the Colgate brand) were the Colgate-Palmolive company's
greatest source of revenue in 2015, accounting for about US$7.5 billion, or 47% of global net
sales (with personal care products such as shampoos making up 20 percent, home care products
such as laundry detergents 19 percent and pet nutrition making up the remaining 14 percent).
It also controlled nearly 70% of the Brazilian oral care market.

In the year 2020, a consumer holds a bottle of Colgate with hemp seed oil. Around January
2020, Colgate registered the label for toothpaste containing hemp seed oil with the US
authorities. Colgate's parent company announced a deal to buy Hello Products, a New Jersey

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firm that had debuted cannabidiol-infused toothpastes, mouthwashes, and lip balms earlier that
month Is revenue, while the food division generates 11% and the foreign business unit
generates the rest.

2. About Dabur

Dabur India Ltd is an Indian multinational consumer goods corporation located in Ghaziabad,
Uttar Pradesh, and founded by S. K. Burman. It is one of India's leading fast-moving consumer
goods (FMCG) enterprises, producing Ayurvedic medicine and natural consumer items. The
consumer care business generates roughly 60% of Dabur's revenue, while the food division
generates 11% and the foreign business unit generates the rest.Dabur is the key brand for basic
healthcare products, whereas Vatika is for high-end personal care, Hajmola is for digestives,
Réal is for juice and beverages, and Fem is for bleaches and skincare. Hair Oil, Oral Care,
Health Care, Skin Care, Home Care, and Foods are some of the primary consumer product
categories in which it operates today. The ayurvedic company has a large distribution network
that encompasses 6.7 million stores and has a strong presence in both urban and rural areas.

The 135-year-old ayurvedic firm, founded by the Burman family in 1884 as an Ayurvedic
medicines company, began operations in 1884. It has gone a long way from its humble origins
in the backstreets of Calcutta to become one of India's largest privately held consumer goods
corporations, with the world's largest herbal and natural product range. Overall, Dabur has
effectively transitioned from a family-run firm to a professionally managed enterprise. Its

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capacity to adapt ahead of the curve and create new standards in corporate governance and
innovation sets it apart from the competition.

3. Annual report analysis of Colgate

The factors that the firm indicates are important;

1) Generating strong cash flow performance and utilizing that cash effectively to enhance
total shareholder returns, leading to enhance total shareholder return

This could be understood from their cash flow statement March 2021

Particulars March 21 st

Profit before tax 1350.22

Net Cash Flow from Operating Activity 783.86

Net Cash Used in Investing Activity 71.35

Net Cash Used in Financing Activity -956.46

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 Net Inc/Dec In Cash and Cash Equivalent -101.24

The total equity for the year ended 31 march 2021 is 1,165,86.30 in Lakhs. Under statement
st

of changes in equity it is showcased the equity share capital for the year ended march 2021 =
27,19.86

2) Leading to win by staying true to organization’s culture and focusing on its

stakeholders. This could be understood from their values and Annual CSR report from
the annual report.

Values towards employees

· The people's health and safety have always been their top focus. They have given the staff
with health screening services as well as a variety of ‘Live Better' initiatives.

· Temperature-monitoring booths,

· UV sanitization box for sanitizing personal protective equipment (PPE), invoices, and papers.

· Individuals' self-declaration by individuals before boarding a work vehicle

· Weekly sanitization of departments and floors.

Values towards community

In keeping with its basic beliefs, Colgate has prioritized thoroughly caring for and supporting
the people and communities it serves. They took a multi-fold approach to support the
communities across the nation, which were adversely impacted through the following
initiatives:

· Meals, food rations, and hygiene kits were provided to impoverished families,
including migrant workers, daily wage earners, and COVID-affected individuals.

· Hundreds of millions of health and hygiene goods, as such as hand sanitizers, were provided
to communities that couldn't afford them in their time of need.

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· They collaborated with the government to provide long-term medical infrastructure, including
ICU and fowler beds, oxygen tanks, and medical supplies.

In CSR report it is showcased that the company is focused on the stakeholders. It is extracted
in the Annual report that, Colgate ensures all its stakeholders, including customers,
shareholders, employees, business partners and the national community, are cared for. They
work towards protecting the environment, as well as continually improving and enhancing the
quality of life of individuals and communities through a multitude of partnerships and
associations.

3) Delivering world class innovation and working with its distributors and retail partners

• Colgate Vedshakti for all around mouth protection - Colgate Vedshakti Mouth Protect
Spray is a travel-friendly version of the popular Colgate Vedshakti mouthwash -remedy
with ayurvedic components that provides immediate relief germs are killed with a minty
sauna flavour.
• Colgate Special Diabetic Toothpaste - In conjunction with dentists and diabetes experts,
they investigated and created their ground-breaking Colgate Special Toothpaste for
Diabetics, which destroys anaerobic bacteria in the mouth, which is the underlying
cause of many oral health problems in diabetics. It's a clinically validated product with
an ayurvedic ingredient.
• Colgate Visible White Instant is a superior whitening technology that gives you a
sparkling smile.
• Given the high demand for teeth whitening in India, Colgate introduced Colgate Visible
White Instant, which features a unique optical brightener’s technology that begins
whitening from the first brushing.
• The Colgate Zig Zag Antibacterial Toothbrush – It provides exceptional
overall protection.
• Colgate Zig Zag was released in a brand-new antibacterial avatar. Colgate Zig Zag
Anti-bacterial has a unique silver-ion bristle technology that prevents bacteria from
sticking to the multi-angled bristles that eliminate germs between teeth.

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 4) Growing sales through greater engagement with consumers

In the statement of profit and loss account it is clearly shows that the revenue from operation
for the year ended March 31 2021 is 4, 841, 21.56 and the previous year it was 4, 525, 08.34
st

so it has increased up to 31,613.22.

5) Driving the efficiency on every line of the income statement to increase margins

Under performance highlights the gross margin is showed as 67.8 percentage increase in
margin. In addition to that Under the statement of profit and loss account all the increased
margin are shown for example

Particulars Year ended march 31 st

Year ended march 31 st
Increase
2020(In Lakhs) 2021(In Lakhs)
(In Lakhs)

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 Revenue 4,525,08.34 4,841,21.56 438913.22

from operation

Profit for the year 816,46.60 1,035,38.54 21891.94

Total comprehensive 800,93.99 1,038,62.97 23768.98

income

4. Brand valuation techniques (explanation of 5 methods)

i. PE RATIO (WITH DATA AS OF 09-09-2021)

P/E ratios method: the P/E (price to earnings) brand valuation method multiples the brand’s
profits by a multiple derived from similar transactions of profits to price paid based on the
value of reported brand values. P E Ratio method is one of the widely used metrics by
investors and other parties to determine whether the company’s stock is undervalued or
overvalued. In short, the P/E shows what the market is willing to pay today for a stock
based on its past or future earnings. A high P/E could mean that a stock's price is high
relative to earnings and possibly overvalued. Conversely, a low P/E might indicate that the
current stock price is low relative to earnings.

ii. Residual Income Valuation Method

Under this method of brand valuation there is an underlying assumption that the present cost
of stock of the company shows the value of the future incomes of the company, upon which
discounting is done based on cost of equity.

As per this method the formula goes as follows;

→ Residual Income = Net Income – Equity Capital * Cost of Equity

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Here, there are additional calculation which are done to arrive at the cost of equity which can
be calculated using dividend capitalization model or CAPM model.

As per the Dividend Capitalization Model,

→ Cost of Equity = (DPS/CMV) * GRD

Where;

• DPS – Dividend per share

• CMV – Current market value of stock
• GRD – Growth rate of dividends

If Net profit is considered as a brand valuation method, then in the long run it will not show
the truest value as there will be variations based on the cost of equity. As per this method, the
value of a company is analysed based on the residual income, which is a metric which already
takes into account this cost of equity.

iii. Excess earnings method:

The Excess Earnings method is one of the important metrics of evaluation to value the private
firms and helps to arrive at the company’s goodwill too. With Net Worth, Net Profit (for a
particular year) and the Return on Tangible Equity the Excess Earnings of a firm can be
calculated. The Excess Earnings can basically value a company into two medium the Tangible
and the Intangible value.

iv) Brand Equity Ten (Aaker)

Brand equity, as described by Aker, is a collection of a company's obligations and assets. Brand
equity is made up of five elements: brand awareness, brand loyalty, brand association,
perceived quality, and other proprietary assets, according to him.

Bill Moran, a marketing executive, created a brand equity index by multiplying three factors:

Brand Equity Index (I) = Effective Market Share (%) x Relative Price (I) x Durability

Effective Market Share is a weighted average of market share. It is the sum of a brand's market
shares in all categories in which it competes, weighted by the proportion of that brand's total
sales that each segment represents.

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Relative Price is a ratio. It represents the price of goods sold under a given brand, divided by
the average price of comparable goods in the market.

Durability is a measure of customer retention or loyalty. It represents the percentage of a

brand’s customers who will continue to buy goods under that brand in the following year.

Brand equity = Brand awareness + Brand loyalty + Brand association + Perceived quality +
Other proprietary assets

(v) Inter Brand Valuation

In this Method Strong brands usually enhance business performance by influencing three key
stakeholder groups, whether current or prospective: customers, employees, and investors. They
influence customer choice and create loyalty; attract, retain, and motivate talent; and lower the
cost of financing.

Interbrand’s brand valuation methodology has been specifically designed to take all Of the
stakeholders and value-creation levers into account.

The Function of Understanding buying behaviour and measuring the brand's influence on the
elements that drive demand and choice requires brand analysis.

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Brand strength analysis assesses a brand's ability to maintain demand in the future as well as
its risk-reduction potential. It takes into account both "internal" (management and employee)
and "external" (customer) aspects. Finally, these factors are coupled with a comprehensive
financial model of the company to determine the brand's current and future ability to generate
economic value for its owner.

5. Calculation and Justification for chosen method

Both Colgate and Dabur have been a leading toothpaste companies and have set up a bench
mark of their brand in high level in the minds of the consumers. As a part of calculating the
Excess Earnings Method of Colgate Palmolive India and Dabur India it can be evaluated under
the following ways.

Colgate Palmolive India:

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Total Assets (as of March 31, 2021) – Rs. 2,894,01.48 Lakhs

Total Liabilities (as of March 31, 2021) – Rs. 1,728,15.18 Lakhs

Net Worth (as of March 31, 2021) = Rs. 1,165,86.30 Lakhs (Total Assets - Total Liabilities)

Net Profit (as of March 31, 2021) – Rs. 1,035,38.54 Lakhs

Return on Tangible Equity (as of March 31, 2021) = 88.8% (Net Profit / Net Worth *100)

Therefore, for calculating the Excess Earnings,

a) Take ROTE from the Net Worth = 88% of Rs.1,165186.30 Lakhs

= Rs. 102,595.944 Lakhs
b) Then Subtracting Rs. 102,595.944 Lakhs from Net Profit

Hence, Excess Earnings = Rs. 1,035,38.54 Lakhs (Net Profit) - Rs.102,595.944

= Rs. 942.596 Lakhs

Dabur India:

Total Assets (as of March 31, 2021) – Rs. 7,504,16 Lakhs

Total Liabilities (as of March 31, 2021) – Rs. 2,112,94 Lakhs

Net Worth (as of March 31, 2021) = Rs. 5,391,22 Lakhs (Total Assets - Total Liabilities)

Net Profit (as of March 31, 2021) – Rs. 1,381,89 Lakhs

Return on Tangible Equity (as of March 31, 2021) = 25.63% (Net Profit / Net Worth *100)

Therefore, for calculating the Excess Earnings,

a) Take ROTE from the Net Worth = 25.63% of Rs. 5,391,22 Lakhs
= Rs. 1,381,76 Lakhs
b) Then Subtracting Rs. 1381,796 Lakhs from Net Profit

Hence, Excess Earnings = Rs. 1,381,89 Lakhs (Net Profit) - Rs.1,381,76 Lakhs

= Rs.13 Lakhs

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Hence by evaluating under the Excess Earnings method of Tangible assets value it is found
that the Excess Earnings of Colgate Palmolive India is Rs.942.596 Lakhs and the Excess
Earnings of Dabur India is Rs.13 Lakhs.

So, Colgate’s excess earnings is far higher than Dabur India showing that it performs well and
has a higher goodwill than Dabur India.

6. Calculation of 8 metrics

i. NET PROFIT= TOTAL REVENUE-TOTAL EXPENSE

= 1,035,38.54

The net profit of the company for the financial year 2020-21 is standing at a good position
when compared to its competitors

This particular metric is important since it tells us if the company is generating enough sales
and whether the operating cost and overhead cost has been covered.

ii. EPS = 38.07

EPS tells us how much the company makes for each share of its stock and is a widely used
metric in order to understand the corporate value of the company. compared to its competitors,
for example Dabur, Colgate’s EPS is more whereas Dabur’s is only 9.58.

iii. ROI= PAT/ total asset*100

1,035,38.54 /2,894,01.48*100= 35.7%

ROI shows the profitability of an investment. These metrics are important when it comes to
business financing. Colgate’s competitor’s ROI stands at 15%

iv. Revenue market share= sales revenue/ total market revenue

(UNDERPERFOMING)

4,841,21.56/ total market revenue

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Total market revenue= sales revenue of Colgate+ dabur+ Patanjali= 2418668

Revenue market share of Colgate= 20%

Revenue market share states the rate of sales generated by a particular company in an industry.
From the above calculation it is evident that Colgate holds only 20% of the total sales in the
personal care products under FMCG industry. This is one of the underperforming metrics of
Colgate compared to its competitors.

v. Relative market share (under-performing)

COLGATE= Brand market share of Colgate / largest competitor’s market share

20% / 40.8%

=49.01961%

PATANJALI

37.30%/40.8%

= 91.42%

The next underperforming metrics is the relative market share. The relative market share shows
the firm’s market share against one of the leading competitors. As per the analysis, we could
understand that Colgate holds only 49% of market against dabur, whereas Patanjali holds
nearly 91% of the market share against dabur.

vi. Yearly sales growth rate

March 2021 March 2020

Revenue from operations 4,841,21.56 4,525,08.34

Yearly sales growth rate - 4,841,21.56 - 4,525,08.34/4,525,08.34 = 6.10%

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 This metric measures the increase in sales over the years. This metric will show you a
picture of how your business has grown over the years or is experiencing a downward trend.
The company’s sales have gone up to 6%. this is a good sign which shows that the company
is experiencing a growing trend and not a downward trend.

vii. Return on sales

ROS= EBIT/SALES= 1,350,21.91/ 4,841,21.56

= 0.27890 * 100

=27.89

ROS is the best tool to understand how efficiently a business transforms its sales in to profit.
Organizations content with a 5-10% ROS. But it depends from industry to industry. Here
Colgate has got more than 20% of return on its sale. It means Colgate is cost effective in
providing services in the market.

viii. Gross Margin

Gross margin is calculated as shown below.

total revenue- COGS/ total revenue

(4,841,21.56- 1,249,58.34)/ 4,841,21.56 (Mar 2021)

= 74.18864%

(4,525,08.34- 1,350,33.47) / 4,525,08.34 (Mar 2020)

= 70.1589 %

The higher the gross margin, the more the company earns from each sale.

From the analysis it is evident that the gross margin of Colgate for the financial year ending
2021 is higher when compared to the financial year 2020. It shows how much income is left
with the company even after paying off its expenses related to its production or
manufacturing of the products.

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7. Dashboard

8. Measures that provide an estimate of ROMI

Return on investment says whether an action was successful or in other words it shows if the
investment was profitable or no. Return on Marketing Investment (ROMI) is a derivative of
ROI. This focuses only on the incremental profit and cost that can be attributed to a specific
campaign. This method for calculating the financial value attributed to a certain set of
marketing initiatives (net of marketing spending), divided by the marketing ‘invested' or risked
for those initiatives.

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It is extensively utilized in many firms in some form because it: adds a layer of control and
predictability to future cash flows; improves marketing effectiveness; and gives a formulaic
approach to marketing accountability that helps finance departments gain confidence and
understanding.

The measures which provide an estimate of return on marketing investment are,

• Net profit

Marketers can calculate the return on their marketing activities towards net profit by deducting
additional expenses from gross profit. It shows us if the overhead cost and operating cost are
contained. It gives a picture of company’s overall financial health.

• Total sales

By looking at the total sales/ sales growth etc, that have been generated from a particular
marketing campaign, marketers get an overall picture of their return on investment.

9. Measurement of company blogging and advertising

The dynamic world of today’s advertising;

The dramatic growth in the global digital economy, internet and smartphone adoption over the
past 2 decades have transformed the way companies are marketing to the market. Various
emerging trends in the digital marketing world are being employed by companies in exceeding
numbers. The Digital Marketing Industry has been growing at a rapid rate since the year 2000,
and according to Statista the market size for the same in 2020 alone was 199 billion Rupees
(Statista Research Department, 2021). According to Internet Live Stats, each second there are
more than 90,000 Google searches occurring all over the world (Internet Live Stats, 2021).
With over 560 million internet users, India is the second largest online market in the world,
ranked only behind China (Keelery, 2020). It is estimated that by 2023, there would be over
650 million internet users the country (Keelery, 2020). India’s Smartphone using population is
also on a constant rise, and is estimated to reach over 760 million in the year 2021 (Statista
Research Department, 2021).

Due to this increasing number of smartphone users, the Digital Marketers of today’s world
have an almost a 24/7 access to their audience. A study revealed that almost 77% of customers
only make online purchases after they have conducted their own research like reading through
reviews. It was also found that Facebook was being used as a major advertising platform by

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more than 3 million advertisers. Furthermore, 93% of purchases made by online shoppers were
influenced by social media (Heitzman, 2017).

In recent years, there have been many new avenues that have emerged in the field of digital
marketing. These include. SEO (Search Engine Optimization), Content Marketing, Social,
Media Marketing, PPC (Pay-Per-Click), Affiliate Marketing, Influencer Marketing, E-Mail
Marketing, Digital Marketing Analytics, Content writing, copywriting, graphic design, website
building, affiliate marketing, SEM, etc.

The growth of the Digital Marketing industry has continued to grow over the past decade and
its projections all point to a flourishing industry, especially in the Indian Context. Hence it is
important for companies to implement digital as part of their advertising strategy. But more
importantly, companies must also effectively measure how well both Digital as well as
Traditional marketing efforts are contributing to the company’s profits.

How companies can measure the effectiveness of Advertising and Blogs;

Blogs are a great way in keeping an audience aware and interested in the product and services,
as well as the overall brand presence of a company. Having blogs and article on the company
website can also help in SEO purposes. The impact of such online content on the profits
generated by the company can be measured with ease, but only partly. Using tools such as
Google Analytics, companies can easily track their user base and the flow of traffic from one
webpage to another. In this case, if a customer arrives at the page where the conversion takes
place through a referral link within a blog/article, and subsequently makes purchases then that
can be measured. For most companies, a website content campaign is often part of a broader
marketing campaign. This will mean that companies should focus on metrics that can provide
insight into the effectiveness of marketing campaigns as a whole. For this the main metrics that
companies could focus on and measure are;

Bounce Rate

The bounce rate is a metric which shows the percentage of users who visit a particular webpage,
but do not take any further action within the webpage, nor the website and exits. The Bounce
rate is an indication to the marketeer regarding the quality of the content. A very high bounce
rate is a hidden cost to the company as it not only reduces the SEO score in the eyes of search
engines like Google, but it leads to reduced conversions in the long run leading to a diminished
ROI.

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Conversions

A conversion is a process where a particular ‘goal’ is achieved on a website. These goals are
set up by the website owner, and can take the form of sales, e-mail newsletter signups, etc.
Each time a goal is achieved the conversion rate is increased. This is a powerful metric that
marketeers can use as it shows the exact effectiveness of the online content, or other advertising
efforts that direct customers to the website.

Engagement Rate

Engagement rate is a metric that shows companies how well their users/customers are
interacting with their website content. It is a metric that is influenced by the number of shares,
likes, comments, etc that is directly generated from a blog/article. The engagement rate is
worthwhile to measure because it can reveal salient facts about the quality of content provided
to the users. Furthermore, increased engagement rates are one of the best ways to boost the
page authority of a website, which leads to better SEO, which leads to better visibility to
customers, and thereby driving more traffic to the website. However, it is important to note that
engagement rate does not directly tell the company the effectiveness, hence if not effectively
analysed, engagement rate may become a Vanity metric.

ROI

In the case of blogs, tracking ROI effectively can be challenging. The reason is because sales
and profit generation often come through the combined efforts of holistic marketing activities
carried out by the company. To ensure that this ambiguity is reduced to the maximum possible
extent, companies should consider the following key metrics (The Chief Outsider, 2015);

• Incremental Sales/Revenues
• Gross Margin
• Total investment into marketing
• Customer Acquisition cost
• Revenue per new customer

Customer Retention Rate

Customer retention rates show the number of customers that the company ‘keeps’, or retains
over a certain period of time. Most companies will have a regular duration for which such a
metric is measured, such as monthly, weekly or yearly. In order to use this metric to measure

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marketing effectiveness, this period should be the periods prior to the start of the marketing
campaign and a significant period after the campaign is no longer being actively pursued by
the company. This can show the difference in the retention rates of customers, and is a direct
indicator of the campaign effectiveness and ROI in the long run.

10. Business and Marketing decisions impacted by 8 metrics discovered

NET PROFIT- this metrics can help the brand understand where they can trim unnecessary
expenses. Resource allocation could be done effectively and efficiently. Talking about
marketing decisions, the brand can cut down or permanently remove or avoid an unsuccessful
campaign. This shows the overall success of the company which is indeed an important
information for analyst and shareholders.

EPS- EPS estimates the corporate value of a company. which means it enhances the brand
image. To investors, a higher EPS will attract them to pay more for the company’s share. This
decision could be made looking at the EPS value.

ROI- ROI is one of the most important metrics where the company review its spending by
looking at the returns from each investment. This is one of the most important metrics when it
comes to financing. It is the major metrics to measure success over time. This is important
when it comes to business and marketing decisions. Talking about marketing decisions, the
brand can review the unsuccessful campaigns and take decisions accordingly.

REVENUE MARKET SHARE- Revenue market share states the rate of sales generated by a
particular company in an industry. Revenue market share helps marketers to find out the most
revenue generating markets and focus more on those.

RELATIVE MARKET SHARE- this indicates a brand’s market share against its leading
competitor. This helps managers in understanding the brand’s relative position across different
market and helps in evaluating the type and degree of competition in those markets. Managers
can take immediate actions to cope up with the competition in the market.

YEARLY SALES GROWTH RATE- growth rate could be used to assess company’s
performance and future prediction. The managers can understand if the company is growing/
not growing etc. accordingly the managers can take corrective actions. Until we track the
growth of the business, we won’t get to know if the business is declining, growing or no.

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RETURN ON SALE: ROS helps a firm in understanding how cost effectively it is delivering
products in any market. by looking at the ROS the company can take corrective measures. For
businesses not having a satisfactory ROS, can avoid incurring further cost and keep the revenue
same and reduce expenses. Later they can boost sales and increase cost as required. The
ultimate aim of any company is to boost its’ revenue, make profit and cut down expenses. ROS
helps in understanding how profitably is the company serving the market.

GROSS MARGIN- by looking at the gross margin, we can get an idea how much income the
company has left with them even after paying off their expenses. With this, they can take
investment decisions and decide where and how to utilize this income. This is the application
of gross margin used as a metrics on the decision making in an organization.

11. Data used to calculate metrics

1. Net Profit= Rs.1,035,38.54 Lakhs

2. EPS=38.07

3. ROI:

• PAT= 1,035,38.54
• TOTAL ASSET= 2,894,01.48Lakhs

4. Revenue Market Share:

• Sales Revenue= 4,841,21.56

5. Relative Market Share (Under Performing):

• Brand Market share of Colgate = 20%

6. Yearly Sales Growth:

• March 2021= Rs.4,841,21.56

• March 2020= 4,525,08.34

7. Return on Sales:

• Sales= 4,841,21.56

8. Gross Margin:

Total Revenue= Rs.4,841,21.56

COGS= 1,249,58.34

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12. Suggestions for the company

• Although advertising and promotional expenses have been lowered over the years, we
feel that they must not be reduced because, while this has had no influence on sales
over the last three years, we are confident that sales will not stay long enough if
sufficient spending is not made.
• The firm can think outside of the box and focus on the organization's high-performing
goods and advertising.
• The firm should consider diversifying its advertising budget and focusing on
exhibitions and sponsorships that will appeal to Gen-Z and millennials, who make up
a large portion of the market.
• Every product category should have its own promotional campaign, just like other
FMCG does with its advertisements.

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References

Heitzman, A. (2017, Januany). How Digital Marketing Transformed the Consumer Buying
Process. Retrieved from Inc.: https://www.inc.com/adam-heitzman/how-digital-
marketing-transformed-the-consumer-buying-process.html
Keelery, S. (2020, July 7). Internet usage in India - statistics & facts. Retrieved from Statista:
https://www.statista.com/topics/2157/internet-usage-in-india/
Marketing Schools. (2020, November 30). Traditional Marketing. Retrieved from
marketingschools: https://www.marketing-schools.org/types-of-marketing/traditional-
marketing/#section-0
Statista Research Department. (2021, May 10). Number of smartphone users in India in 2015
to 2020 with a forecast until 2025. Retrieved from Statista:
https://www.statista.com/statistics/467163/forecast-of-smartphone-users-in-india/
The Chief Outsider. (2015, March 13). Key Marketing Metrics for Revenue and Profit
Growth. Retrieved from chiefoutsiders: https://www.chiefoutsiders.com/blog/key-
marketing-metrics-for-revenue-and-profit-growth

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