OPERATIONS MANAGEMENT PROJECT REPORT

ON
SECRET OF COLGATE SUCCESS

SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT OF DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
CHANDRAKANT UPADHYAY
DEEPSHIKHA KHANDAL
SRISHTI RADHIKA
POOJA SINGH
PRAGYA GANDHI
MBA SEM-2
UNDER THE GUIDANCE OF
PROF.DR. PALLAVI MATHUR
JAIPUR ENGINEERING COLLEGE AND RESEARCH CENTRE
(JECRC)
SITAPURA INDUSTRIAL AREA EXTN,
RAMCHANDRAPURA,

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 ACKNOWLEDGEMENT

Apart from the efforts of ours, the success of any project depends largely on the

encouragement and guidelines of many others.

We take this opportunity to express our gratitude to the people who have been

instrumental in the successful completion of this project.

We would like to show our appreciation to the Prof Dr. Pallavi mathur for her support.

Without her encouragement and guidance this project would not have been materialized.

The guidance and support received from all the members who contributed the

nonteaching staff, the library staff was vital for the success of the project.

We are grateful for their constant support and help.

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 ABSTRACT

Colgate Palmolive, the American manufacturer and distributer of consumer goods impersonal

hygiene, healthcare, household cleaning and very recently veterinary care is one of the largest

companies globally and has its presence in the majority of nations. The more than2 centuries

old company has their core values based on three main pillars – global teamwork, care for the

customers community and environment and continuous improvement. Global strategies and

local strength is the basic business strategy followed by the iconic company. This report

analysed the intricate strategic marketing aspects of the company in terms of communication

mix, marketing strategies, logistics, organizational structure, market dynamics, corporate social

responsibility etc. Sustainability and commitment towards improved quality, and innovation are

the strategies which will protect the competitive advantage of the company, and as has

happened in the last 2 centuries, the company is likely to retain its profitability and market

dominance in the future by keeping their focus on their innovative and multi domestic business

strategies.

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TABLE OF CONTENTS
PAGE NO

● CONTENT

● TITLE PAGE 1

● ACKNOWLEDGEMENT 2

● ABSTRACT 3

● TABLE OF CONTENT 4

● INTRODUCTION 5

● SUPPLY CHAIN MANAGEMENT OF COLGATE 6

● LOCATION PLANNING 7

● CAPACITY PLANNING CHALLENGES 8-9

● FINDING THE RIGHT SOLUTION 10

● RESEARCH METHODOLOGY 11-12

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 ● RESEARCH FINDING 13-14

● LIMITATIONS 15

● CONCLUSION 16

● RECOMMENDATION 17

● BIBLIOGRAPHY 18

● APENDIX 19-27

INTRODUCTION

Colgate is an American brand principally used for oral hygiene products such as toothpastes,
toothbrushes, mouthwashes and dental floss. Manufactured by Colgate-Palmolive, Colgate oral
hygiene products were first sold by the company in 1873, sixteen years after the death of the
founder, William Colgate. The company originally sold soap.
Colgate toothpaste was sold in glass jars since 1873. Tubes, as pioneered by Kalodont, Johnson
& Johnson (Zonweiss) and Sheffield, were introduced in 1896.
Colgate became popular in the 1950s, with the slogan “It Cleans Your Breath While It Cleans
Your Teeth”, written by copywriter Alicia Tobin.

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In 2007, the Advertising Standards Authority in the UK told Colgate that it could no longer
make the claim that 4 out of 5 dentists recommended Colgate. Investigation had showed that the
study had telephone surveyed dentists to list toothpastes they recommended, and their
competitors were recommended at similar rates. The claim was deemed deceptive.
As of 2015, oral care products (principally produced under the Colgate brand) were the
Colgate-Palmolive company’s largest source of income, making up around US$7.5 billion, or
47% of net sales globally (with personal care products such as shampoos making up 20%, home
care products such as laundry detergents 19% and pet nutrition making up the remaining 14%).
It also commanded approximately 70% of the oral care market in Brazil.
In 2018, Colgate licensed Calibre technology from Paris-based Bara coda Daily Healthtech
launching the Colgate Smart Electric toothbrush. They currently offer connected toothbrushes
for children and adults under the Hum brand umbrella.
In January 2020, Colgate registered the label for toothpaste containing hemp seed oil with the
U.S. government.
In February 2020, Colgate’s parent company announced an agreement to purchase Hello
Products, a New Jersey company that had earlier in the month introduced toothpaste,
mouthwashes, and lip balms containing cannabidiol

SUPPLY CHAINE MANAGEMENT OF COLGATE

LOCATIONS PLANNING
• Colgate Palmolive Co Corporate Headquarters and Office Locations. Colgate Palmolive Co is
headquartered in New York, NY and has 5 offices located throughout the US.
 • Colgate-Palmolive's chief manufacturing plant is located in Burlington, New Jersey,
producing all of the fragrance and flavor oils for the company's facilities around the world.
 • MahaKumbhMela is a mass gathering of Hindu pilgrims and Colgate’s unique strategy helped
them tap into this consumer genre. To reach its target audience, the company built a virtual
circle around the pilgrimage site and used location-based targeting. As a result, when pilgrims
entered the circle, they got a call and were greeted by an Indian radio personality named Amin

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Sayani. Amin encourages the pilgrims to stop by the Colgate booth for free samples and the
chance to win prizes.
 • The results were a whopping 300% per cent increase in the foot traffic at Colgate’s booth.

LOCATIONS DECISION
• Colgate has moved higher by 3% at Rs 1,170 on reports that the oral and dental hygiene
products manufacturer has begun construction work at its upcoming plant site in Sanand,
Gujarat with an investment of Rs 200 crore.
 • This will be Colgate's fifth plant after Aurangabad, Baddi in Himachal Pradesh, Hyderabad
and Kundaim in Goa which is expected to commission by late 2014,” the report suggests.gujrat
government has allotted 100,000 sq metres of land at the upcoming GIDC industrial estate in
Bol village in Sanand to Colgate for the plan .

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• CPIL has made investments of over US$ 10million in the new manufacturing facility
inHimachal Pradesh to meet local demand.
 • Colgate is planning to increase exports to Sri Lankaand Bangladesh.
• Colgate plans to extend usage of e-auctions intonew areas such as freight, insurance etc. The
company conducted 19 e-auctions in 2003.

Capacity planning challenges:

Staff/Skill levels: Staff can be trained over time to be more flexible in their contribution to the
Process. The operation can benefit from the learning curve, where a new employee can Become
more efficient at a given process and therefore be quicker at their job, which can
Increase the capacity of the operation.

• IT facilities/Technology: This can be a small or very significant improvement to a process.

The investment in ICT can reduce process time or even completely change the nature of the
Process itself.

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• Materials availability: A change in the supply of raw materials can increase the capacity
Potential of an operation. If there is a restriction in availability of materials or a timing problem
And this is released, the capacity could be improved.

• Product or service mix: Adjustments in the other products or services made by the facility
Can restrict the capacity of the operation. This is because different products and services may
Use different quantities of resources per unit; therefore a change in the product mix may result
In a change in capacity.

• Storage: This can affect the capacity of an operation if there is a resource constraint that is
Affected by timing in the process. If the operation has the ability to store work in progress or
Finished goods it can improve the capacity of the process in the short term. The swings and
Fluctuations in demand can be mitigated by the ability to store products and allow the full
Capacity of the operation to flow.
• Working schedules and access to facilities: This can also dictate the full availability of
Capacity.
These factors should be considered in a short-term capacity planning of Colgate.

Getting Smarter about ‘Machine Health’ to Improve Supply Chain

Reliability
At Colgate-Palmolive, we’ve been bolstering our supply chain reliability by moving toward
predictive maintenance of our machinery -- a model that preserves “machine health” through
24/7 monitoring via wireless sensors combined with analytics powered by artificial
intelligence .

By Warren Pruitt, VP, Global Engineering

May 2020
Until recently, supply chain reliability was the worry of supply chain people. But in a post-COVID-19 world,
they’re no longer alone. Everyone worries about their favorite products making it to the shelf.

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At Colgate-Palmolive, we’ve been bolstering our supply chain reliability by moving toward predictive
maintenance of our machinery -- a model that preserves “machine health” through 24/7 monitoring via wireless
sensors combined with analytics powered by artificial intelligence [AI].

Unlike preventative maintenance [scheduled routine check-ups for equipment] this digitally enabled method
diagnoses problems early, allowing for quick remediation and minimized downtime. It’s analogous to always
wearing a glucose monitor or EKG rather than waiting until your annual doctor’s visit to discover something’s
amiss.

Even better, the data fed from our machines to our partner Augury’s software platform gets compared to their
learnings from over 80,000 other machines operating around the world. That massive analytical scale brings us
insights on how to optimize the performance of equipment and make ever-smarter choices on how and where
we deploy it. What’s possible only gets more compelling as this AI solution harnesses more data to create better
“health outcomes” for our machines and our business.

Finding the Right Solution

This conversion process started a few years back as we searched for a robust way to do predictive maintenance.
Like Goldilocks, it took some trial and error to find the “just right” solution.

Bluetooth sensors needed a person with a smartphone to collect the data. Wired sensors came with a high price
tag. But the wireless-sensor solution we’re now using automates that data collection and analysis -- monitoring
vibration, magnetic flux (energy use) and surface temperature. When issues arise, reliability professionals
remotely alert and collaborate with our plant teams as needed. 

Although early diagnosis of problems is a key advantage here, there are additional savings from extending use
of equipment past what would be typical preventative maintenance schedules. Instead of stopping production as
a matter of course, say, every six months, we monitor the near real-time health and performance of our
machines and if all is well, we can safely keep them running nine months or longer. This has increased our

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available manufacturing capacity, allowing higher production volumes, which has been invaluable during the
COVID-19 crisis.

METHOD OF DATA COLLECTION

The data which is collected for the purpose of study is divided into 2 bases:

● Primary source: Primary data is the data which is new we use the primary source to

collect the primary data. The primary data comprises information survey in respect of
Cadbury’s product. the data would be collected directly from the respondent with the help
of questionnaires.

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 ● Secondary sources: The secondary data which is already in existence is known as

secondary data. Secondary source includes website, various papers, and magazine
published from time to time. Historical documents and other sources of published
information. The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of population was
selected on the basis of convenience.

● Data sourceThe secondary data is collected from the internet, Reference from library.

Few data would be taken from the websites, various papers and magazine.

● Sample Design It include size of the sample & the technique that we used for selecting

the different items from the sample a sample design is definite plan for obtaining a
sample from a given population.

● Sample sizeThe samples of 28 people are taken on the basis of convenience. The actual

consumer was contacted on the basis of random sample. For the purpose of present study
a related sample of population was selected on the basis of convenience.

Statistical tools to be used this work is carried out through self-administrated questionnaires.
The question included were open ended, dichotomous anoffered multiple choices.

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RESEARCH FINDINGS

1. We have choose 86.66 % of respondents in the age group of 18-30 as they have the
capability to think critically and analysis the product in every way to find out there pros and
cons and provide us with an accurate feedback.

2.56.7% of the responds have been filled with female respondents as the have an more
experience of purchasing .

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 3 . 70% of response it collect by students.

4.93.33% of respondents are enjoying while brushing there teeth this states that the are
comfortable with the taste of colgate and have become habitrate to it which make them not to
hesitate to buy the product.

5. 56.7% of respondent brush twice in a day it means they have an extra contact to the product
and can examine it in a better way as it is an regular use product it should be according to the
preference and taste of the customer.

6.43.3% of respondent can shift to close up if there is lack of availability or scarcity of Colgate
so it is much important to have the availability and a proper supply of the product to ensure that
colgate have an larger market for there product and ensure that Colgate does not loses there
customers.

7.43.3% of respondent have not used there mouth freshener so they could use some marketing
techniques to ensure that every user who purchase that toothpaste should also considered that
different products like their mouth fresheners.

8.40% of respondent have ensure that they like the quality of Colgate most least answer where
done as the packaging and size of the Colgate so Colgate need to improve certain areas as
improving the packaging, like providing with different packages and provider range of sizes
which Can attract the customer more.

9. 80% of respondents are not aware about free dental check up which is organised by Colgate
as it is not more familiar people are not educated about it so it is very important for Colgate to
promote all those activities which can help them to be unique , compete with their competitors
and increase their sales

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 10.80% of respondents believe that marketing strategy used by Colgate helps them to create
people trust on their brand and create awareness about it as it is an old company and they use
subs sensitive topics in their marketing strategy which create loyalty and builder the trust of the
consumers

11 . 76.7 percentage of respondent answers that Colgate bring innovation on the product as the
always try to bring something new in there product which may be much attractive and
beneficial to the customers which helps them to increase the brand awareness and brand
establishment in the market.

12.80% of respondent think that Colgate segmentation and targeting strategy helps them a lot as
Colgate has the different product according to the different needs of the customers like
sensitivity whitening, cavity extra and the position there product according to the segment
created which help them to ensure a large market share.
13 . 73.33 % of respondents does not care about the taste of the toothpaste as it is an necessary
product it is very important to have the best utilization out of it rather than focusing on the
taste.

14.67.7% of respondent purchase Colgate in a monthly basis as it is used in a small quantity and
Colgate also has every size according to their needs family person will purchase a bigger pack
and a bachelor or a student will purchase a smaller which lead to satisfy customers.

15 . 50% of respondent feel satisfy of purchasing Colgate as it full fill their Desire which they
are expecting from an toothpaste brand.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of the fact constraints were at play during the formulation of
the project.

The main limitations are as follows:

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∙ Due to limitation of time only few people were selected for the study. So the sample of the
consumers was not enough to generalize the finding of the study.

∙ The main sources of the data for the study were primary data with the help of self-
administrated questionnaires. Hence, the changes of unbiased information are less.

∙ People were hesitant to disclose the true fact.

∙ The chance of biased response can’t be eliminated though all necessary steps were taken to
avoid the some.

CONCLUSION

● This paper was written to discuss the business case of Colgate-Palmolive Company and it
explored the company's products, business growth prospects, competition, business
environment, economic environment and the FMCG industry in which the company
operates.

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 ● Some key findings of the study ,It was found that the company is a strong brand with
significant performance over 100 years successfully staying ahead in the competition.
● The company has sustained itself with profits even during the time of recession and have
paid increasing dividends to its stakeholders every year for 100 years of its operations.
● Its flagship brand is Colgate with its toothpaste line having global market share of 44.7%.

● North America is the oldest and most mature geographic segment for the company in 7
continents. The company is now expanding into developing markets as they are less
mature.
● Colgate-Palmolive presents a strong case for study as the company was able to sustain a
strong and profitable brand over a long time span of over 100 years.

RECOMMANDATION

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 ⮚ Colgate should hire celebrities for the advertisement.

⮚ They should also increase their CSR activities because they have very good image in the
market.
⮚ Target market should be clearly emphasized in the advertisement. Colgate should
emphasize on digital branding i.e., online purchase.
⮚ Colgate should use colorful paste to create uniqueness.

BIBLIOGRAPHY

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 https://www.colgatepalmolive.com/en-us/who-we-are/stories/machine-health-supply-
chain-reliability
https://consumergoods.com/colgate-palmolive-streamlining-supply-chain-boosting-ad-
spend

https://www.ukessays.com/essays/marketing/successful-marketing-strategy-with-colgate-
palmolive-marketing-essay.php

https://caseturbo.com/harvard-business-school/colgate-palmolive-company:-marketing-
anti-cavity-toothpaste/recommendations.php

APENDIX

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