Sarah, Put yourself in the shoes of a Colgate-Palmolive employee.

Pretend that you are an

employee and that you are writing a report for your boss. In this manner, your report should become more specific on how you can help your boss market a specific product under the prevailing micro and macro environments. Use as many business models to justify your response.

Introduction The exterior factors that determines the company’s operations either directly or indirectly is known as the business environment. Marketing environment is a constituent of business environment that influences the company’s capability to encourage and execute operations on the market. The companies in FMCG (Fast Moving Consumer Goods) industry must be aware and cope with changes that takes place in the marketing environment, as it has hugely affects how marketers change and develop their own marketing strategies. These companies interact with two types of environments which are the microenvironment and macro environment.

Microenvironment factors interact directly with the company and creates pressure that bring into being certain behaviour of the company. The microenvironment can be classified into internal micro-environment and external micro-environment. The internal micro-environment is made up of the departments within the company, the firm’s management structure and the organisation’s strategies and objectives. The company’s ability to serve its customers can be affected by the characteristics of the firm’s internal micro-environment. External micro-environment comprises the external factors that affects directly to the company and exerts influence such as the company itself, competitors, customers, publics and suppliers. On the other hand, macro environment analyses the general business climate as it pertains to the organisation, but has nothing to do with the organisation itself. The macro environment is mainly concerned with major issues and forthcoming changes in the environment. ‘PESTLE’ is an acronym for Political, Economic, Socio-cultural, Technological, Legal and Environmental factors, this model is used to analyse the macro environment of a company.

specialty per food. Oral Care. However. dishwashing detergents. In 1857.This should be a brief introduction to the company and the product (you can put a more detailed explanation of the company and product in the Appendix). In 1928. Colgate first introduces toothpaste in jars in 1873 and by 1896 the toothpaste was sold in a collapsible tube. 2012).Palmolive-Peet Company and by 1953. the company’s official name became Colgate-Palmolive Company. 2010) It is a $15. reorganized the company as ‘Colgate and Company’ and introduced perfumes soap and perfumes in 1866 (Our company: history. Current Status Colgate-Palmolive Company serves people in more than 200 countries with consumer products that make lives more enjoyable and healthier. fabric conditioners. the better it is. . Samuel Colgate. household cleaners. You should be more specific on which Colgate-Palmolive you are speaking about. Personal Care and Pet Nutrition. the background) to the issues facing the company in l Colgate-Palmolive Company Put this in the Appendix. deodorants/ antiperspirants. his son. Colgate merges with Palmolive-Peet becoming Colgate. History Colgate-Palmolive started as a family business in 1806 when William Colgate opened a candle. the more specific your answer is. Are you speaking about the worldwide operations or their Malaysian operations? Remember. what I am really looking for is an introduction (in other words. Colgate has a defined strategy to raise market shares for core products like bar and liquid soap. soap and starch company called ‘William Colgate & Company’. You can give a general overview of their product portfolio in your Appendix. toothbrushes and toothpaste.6 billion global company which focuses on strong international brands in its core business in Home Care. (Colgate-Palmolive Company.

bear in mind that Colgate Palmolive has many toothpaste brands. Oral Care. logistics and sourcing processes. Objectives Use the SMART objective format. You can show their brands in your appendix. The executive management team is made up of five members. . If it is toothpaste. You can use perceptual maps. Also. but focus on one in your main text. Personal Care and Pet Nutrition. vis-à-vis their toothpaste competition. You may make assumptions and justifications on it. for the main body of your text. You can show the target markets (say in Colgate Palmolive Malaysia) using what I discussed on market segmentation. stick to toothpaste throughout.However. (Our company: executive management team. 2012). The remainder of your paper should strive to meet your objectives. global teamwork and continuous improvement which is also part of everything the company does. (Global procurement and mission and goals. Vision Statement The vision statement is their three fundamental values which are caring. 2012). 2012). as discussed in class. Management and Organisation This comes under the Appendix Colgate-Palmolive Company has four core businesses which are Home Care. pick a single product and focus on it. Mission Statement The mission statement is to provide Colgate with a significant competitive advantage by reducing total delivered cost. extending technology resources and developing excellence in purchasing. (Our company: living our values.

‘Colgate will become the best. They are the CFO. Colgate-Greater Asia. ethics and compliance. development and supply. Europe. You may even use a SWOT analysis here if you like. Colgate has been recognised as the best toothpaste for its diversity. Colgate organisational objectives and their performances Colgate is dedicated to improving as individuals and as teams every day in everything it does.’ In more than hundred countries. Hill’s pet nutrition. External micro-environment Company . finance department. emerging markets. nominating and corporate governance department and personnel organisation department. human resources and social responsibility. Departments within the company There are fourteen departments within the Colgate Company. in terms of their strengths and weaknesses. By better understanding consumer’s and customer’s expectations and continuously working to innovate and improve products. (Governance: board of directors. services and processes. no date). Firm’s management team Colgate Company has nine board members and nineteen committee members from four different departments which are the audit department. Be more specific on how the microenvironment affects the specific toothpaste product you have selected. (Colgate-Palmolive. technology. legal and secretary. Show Colgate-Palmolives ability to perform under these circumstances. global oral care. customer development. 2012). corporate communication.Microenvironment affecting the company Internal micro-environment Too general.

Aim. Colgate has several target groups for its toothpaste products.The company itself can affect its ability to serve its customers due to the cohesion between different departments. Publics . the bedrock that it runs on and the internal working of the company. (Colgate-Palmolive Company. Sensodyne. setting of personal goals and thorough communication of Colgate’s strategies by integrating Colgate’s global values of caring. global teamwork and continuous improvement. According to Palmer and Hartley (2002. Jason. Colgate Total toothpaste was introduced in the U. as it does not take much for customers to switch brands which set the manufacturers at a disadvantage. ACTIVE SALT targets elderly people. COLGATE SENSITIVE aims at people with sensitive gums and KIDS TOOTHPASTE for small children. a market leader in the United States in 2006 to penetrate the fast-growing Naturals segment. Arm & Hammer. firms are able to provide a base for expansion and product development and to protect themselves against the strength of intermediaries and competitors. Moreover. MAX FRESH targets youth. For instance. Pepsodent.’ Crest. The major factor of Colgate’s current success and strong business results is the outstanding personal leadership of employees at all levels of the organisation. occasional one-on-on feedbacks. 2011). In 1997. Colgate produce leaders through a formal. and rapidly became the market leader.S. Close Up. 2010) Competition Competition is the most essential factor when dealing with FMCG products. Customers The centre of all the activities in a business is always the customer’s needs and wants. Colgate purchased Tom’s of Maine. p. multifaceted process that consists of an understanding of how each employee’s work contributes to the company’s general objectives. Colgate has provided a whole range of toothpaste that are differently priced and promoted as well as targeting different groups of consumers.192) ‘the process of branding is the heart of the company’s effort to remove themselves from fierce competition between generic products. Through adding value that will attract customers. Peelu are competitors of Colgate in the toothpaste industry (Covelli.

the company always considers the availability. Suppliers One of the key components of external micro-environment is suppliers. human resource supplier. 2009). raw material supplier and technology supplier. wastewater loading by 31 percent and water use by 44 percent (Colgate-Palmolive Company. the company can be affected by the government publics when they pass legislations and laws that can restrict the company’ actions. Macro environment affecting the company Too general. (Micro environtal factors. Colgate people have worked to cut down the company’s environmental footprints from innovative energy-efficient manufacturing to water use efficiency technologies and new cleaning method. environmental and minority groups which are citizen-action publics can question the actions of a company and place them under the public spotlight. Moreover. 2011). Be more specific on how the macroenvironment affects the specific toothpaste product you have selected. When making a procurement decision. Show Colgate-Palmolives ability to perform under these circumstances Political .Publics refer to any group that has an interest or impacts the company’s ability to achieve its objectives in terms of marketing microenvironment. machine supplier. Examples of the company’s suppliers are capital supplier. Colgate has reduced manufacturing – related greenhouse gas emissions by 21 percent. quality. Goods and services that are produced and market by Colgate-Palmolive require thousands of suppliers globally. For instance. (Sudip. Colgate is dedicated to run its business in an environmentally manner. services and other factors. They supply the company with the resources they need to fulfill their business activities. Media publics can publish articles of interest through newspapers and magazines concerning the company and editorials that may affect the customer’s opinions. price. Between 2002 and 2010. no date). Colgate is dedicated to extend its responsibility of upholding to high standards across its value chain to their suppliers.

each country does have their own antitrust laws and it is Colgate’s policy to comply with these laws. Colgate is committed to contributing to the overall quality of life through consumer products. They are dedicated to manufacturing.Political factors play a very important part for the businesses existing in the country. If the global financial markets were to worsen and the financial institutions that support the company were to declare bankruptcy or become insolvent. That is why Colgate toothpaste which is sold in USA and Pakistan or Saudi Arabia has different taste and ingredients. As Colgate and its associates do business in many different countries. suppliers or trade customers due to the tighter credit markets which may impact the company’s business. the International Emergency Economic Powers Act. Furthermore. (ColgatePalmolive Company. Colgate. This is because there are customers who are sensitive towards dental care and others who take it lightly.S. 2008). beliefs. packaging and selling quality products that . Colgate-Palmolive will have less borrowing capacity or unhedged against certain foreign currency exposures or interest rate.Palmolive could suffer from a material adverse effect due to the ongoing instability in the global financial markets and the economic downturn in markets.S. the related Executive Orders and U. therefore they always reaffirm the value of a clean and healthy environment. lifestyle.S. Commerce Department regulations. opinions and values of the society affects the decisions made about the product as the company has to take into account the cultural and religious factors of the consumers in that country for the company to survive in the industry. Colgate-Palmolive Company changes how they operate due to the different government policies in each country. Economic The economic environment is another significant macro environment that affects the decisions made by the company. Treasury Department and the Trading with the Enemy Act that are enforced by the U. For Islamic countries such as Pakistan or Saudi Arabic. For instance. Socio-cultural Social and cultural factors such as attitudes. This is because consumers will repulse the product that go against or cannot be accepted by their cultural or religious background. there may be business disruptions for some of their contract manufacturers. trade restrictions under the U. there are certain ingredients in toothpaste that are banned hence Muslims do not use those toothpaste.

Environmental . Accessing and sharing company information seem perfunctory activity with the effective usage of the email and intranet system.1 million respectively. employees. Technological Many international companies today are increasingly more dependent on the opportunities afforded by instant global communication. In order to ascertain its comprehensiveness. the Company spends $241. For Colgate-Palmolive. while in 2007 and 2008 the Company spends 247.5 million in research and development activities. Colgate is able to sustain its many brands with technologically sophisticated products due to strong research and development capabilities and alliances in order to meet consumer’s home. In 2006. All Colgate people has to practise the Colgate Code of Conduct which are the directors. 2010) Legal Colgate has a Code of Conduct which promotes the highest ethical standards in all its business dealings.0 million and 253. Colgate Legal provides advice and knowledge in the international business arena and in wide-ranging fields of specialty from corporate acquisitions to product trademarks and patents. (Work with us: careers at Colgate. the ability to reinforce core values cheaply and easily has made the task of global unity seem much more tangible. oral and personal care as well as pet nutrition needs. (Colgate-Palmolive seeks tomorrow’s global leader: Searching for success in the international or exceed health and safety rules and regulations as well as persist to invest in innovations that protect the environment. (ColgatePalmolive Company. The Code of Conduct has been used as a guide for their daily business interaction which reflects their standard of proper behaviour as well as corporate values since 1987. Members of Colgate Legal are considered as integral members and strategic business partner of the management team as they help drive global business initiatives and assist in solving business/legal issues. officers and its subsidiaries around the world as well as suppliers as the Code is a condition in order to do business with Colgate. 2004). 2012). the Code of Conduct frequently reissued and updated.

The Company showed obligation to reduce environmental impact by doing more than just reducing waste and recycling papers in more than 60 of their manufacturing operations worldwide. Colgate has designed programs to ascertain their facilities and operations meet or exceed the standards established by applicable environmental rules and regulations. if a natural disaster like a tsunami were to occur. Colgate people attend programs that cultivate diversity and inclusion. Colgate people plans to meet or exceed the goals after setting their 2002 to 2010 goals to reduce greenhouse gas emissions. Therefore. For example. These people then get employed and raise their income which results in higher rate of cash flow. training and work-life balance that helps them to stay healthy and feel appreciated as well as recognised for their efforts. the environmental control facilities capital expenses costs $24 million. if prices of the products increase in the future. If any changes in the environment occur. water use and wastewater loading which is defined as chemical oxygen demand. the environment plays a large part especially businesses with production facilities.In many businesses. energy use. multinational companies offer higher remuneration to people looking for jobs. businesses in many industries will be affected as the supply of raw materials for many industries can be destroyed by the tsunami. 2010). In 2010. price of a product as well as their debt and saving facilities. The Colgate’s people have worked to decrease the company’s environmental footprint from innovative energy-efficient manufacturing processes to water use efficiency technologies and new cleaning method. The consumer’s buying people relies on their earning ability. Colgate has nine global consumer . career development. consumers tend to buy products and store them. Changes in macro environment affect marketing decision Economic It is important to always consider the consumer’s buying ability when making a marketing decision. Colgate employees remain in the Company for an average of thirteen years although they work in an economy where people frequently change their jobs. Colgate has 39000 employees and is dedicated help to work as well as to thrive. Colgate is dedicated to carry out its business in an environmental friendly manner. (Colgate-Palmolive Company. many businesses will be affected by the change. Changes in consumer’s income due to the increase in rate of inflation and unemployment causes consumer’s buying ability to decrease. However.

Nevertheless. Technological The constant change and development in the technological environment has helped many multinational companies to expand and progress as well. Any company would be able to promote growth and development as well as improve the effectiveness and efficiency of the company if changes are well supervised. Show whether or not Colgate Palmolive is able to meet its objectives (as per the SMART objectives you are supposed to define). It is necessary for every company to change as they cope with the ever changing global market place in order to survive. Colgate’s new product which is Colgate Sensitive Pro-Relief toothpaste provides instant and lasting relief from the pain due to sensitive tooth.innovation centres that drive innovation based on insights into consumer behaviour. 2010). This product driving widespread market share gains for Colgate in the fast-growing sensitivity sector. habits and desires. it is hard to predict future development and changes accurately. Colgate developed an online proprietary tool that assists in organising the timing and consistency of the Company’s marketing messages across all media channels. Innovation widens away from new products to business functions at Colgate-Palmolive Company. It is through the advancement of technology that Colgate is able to communicate with its people around the world ease as well as invent new toothpaste product. . Conclusions & Recommendations Companies in FMCG industry such as Colgate must prioritise and monitor its microenvironment and macro environment in order to survive in the competitive business world. For example. Show the tangible and intangible benefits when showing your recommendations. Write as though you are writing for your boss. (PEST analysis.

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