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SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats

facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

Colgate-Palmolive Company
Colgate-Palmolive Company (Colgate) is one of the leading consumer products company in the world. It offers products in various categories including oral care, personal care, household surface, fabric care and pet nutrition. The company has operations in over 200 countries across the world. It operates in North America, Latin America, Europe/South Pacific and Greater Asia/Africa. It is headquartered in New York and employs about 36,600 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)


Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths

Weaknesses

Focus on innovation and new product launches Market leadership position across a range of geographies Diversified business operations

Product recalls

External

Opportunities

Threats

Restructuring initiatives Colgate business planning initiative

Threat of fake products Changes in retail

Growing global oral hygiene market Hispanic population in the US

scenario globally Global Economic Conditions

Colgate Dental Cream Logo Parent Company Category Sector Tagline/ Slogan USP Colgate-Palmolive FMCG Personal Care - Toothpastes All Around Decay Protection No. 1 Brand Recommended by Dentists STP Segment Target Group Positioning Personal Care Oral Hygiene - Toothpaste All Indian Households Toothpaste with calcium and minerals to get an all round cavity protection SWOT Analysis 1. Colgate Dental Cream offers all-around cavity protection, even where a toothbrush cannot reach 2. Its great mint taste freshens breath 3. It protects against root caries 4. It cleans & makes teeth whiter and repairs early decay spots 5. Extremely popular brand and high brand awareness due to advertising 1. High dependence of the company on a single category i.e. Oral Care 2. Reduction in advertisement expenditure in order to maintain growth 1. Leverage on fact that Colgate has been ranked as the most trusted brand in India from 2003 - 2007 2. Focus on innovation and new product launches by deploying advanced technologies 3. Growth in emerging markets rural and semi-urban 1. High competition from competitive brands like Pepsodent from HUL 2. Increasing commodity prices for manufacturing Competition

Strength

Weakness

Opportunity

Threats

Competitors

1. Pepsodent 2. Oral B 3. Anchor

Colgate Toothpowder Logo Parent Company Category Sector Tagline/ Slogan USP Colgate Palmolive FMCG Personal Care Tooth Powder Super Rakshak Stronger, Healthier Teeth STP Segment Target Group Personal Care Oral Hygiene Tooth Powder Rural Areas lacking oral hygiene Colgate Tooth Powder is the Only Tooth Powder in India with the amazing power of two ingredients Calcium and Minerals for Stronger, Healthier Teeth SWOT Analysis 1. Colgate Toothpowder is the only tooth powder in India with the power of two ingredients calcium and minerals 2. Super Rakshak formula that makes teeth up to 2 times stronger 3. A 100% vegetarian tooth powder 4. Good distribution ensures availability in rural areas 5. Available in 3 sizes to suite all consumer requirements 1. Offering of toothpowder limited only to rural markets, not a

Positioning

Strength Weakness

product used in the urban areas where toothpaste is more widely used 2. Less brand awareness in semi-urban areas, which is also potential target group 1. Need to tap rural migrants to urban areas 2. Product can be very useful to tap the rural markers where oral hygiene is still not very prevalent 3. The company developed a three-pronged strategy: consumercentric promotional initiatives, impactful visibility and an ad campaign featuring film actors for the tooth powder brand 1. People shifting from toothpowder to toothpaste as the awareness and penetration levels increase 2. Various local variants of tooth powder available in markets 3. Ayurvedic Tooth Powder claim better properties and advantages as compared to the conventional tooth powders Competition 1. Ayurvedic Tooth Powders 2. Vicco Tooth Powder 3. Dabur Lal Tooth Powder

Opportunity

Threats

Competitors

Colgate-Palmolive Logo

Parent Company Colgate Palmolive Category Consumer Products Sector FMCG

Tagline/ Slogan Colgate World of Care USP Colgate toothpaste brand is one the most respected brands in the world STP Segment Products and services for daily needs Target Group Every household especially the middle class Positioning A company which makes products for caring for its consumers Product Portfolio Brands 1. Colgate Dental Cream 3. Colgate Sensitive 5. Colgate Cibaca 7. Colgate Plax 9. Colgate Zig Zag 11. Halo Shampoo 13. Palmolive Aroma 15. Aroma Hand Wash 17.Palmolive Charmis 2. Colgate Total 12 4. Colgate Max Fresh 6. Colgate Active Salt 8. Colgate 360 10.Colgate Toothpowder 12. Palmolive Naturals 14.Palmolive Thermal Spa 16.Palmolive Shave Cream

SWOT Analysis Strength 1. It is one of the biggest brands in the personal care consumer products industry 2. It has over 38000 employees globally 3. One of the market leaders globally with excellent R&D 4. Colgate focuses on four core businesses: Oral Care, Personal Care, Home Care and Pet Nutrition 5. Colgate has excellent reach and distribution and its products are available in over 200

countries 6. Excellent advertising and brand visibility of products with a strong customer loyalty for brands Weakness 1. Market share is limited due to presence of other strong FMCG brands 2. Fake brands are supplied under their brand names Opportunity 1. Tap rural markets and increase penetration in urban areas 2.Mergers and acquisitions to strengthen the brand 3.Increasing purchasing power of people thereby increasing demand Threats 1. Intense and increasing competition amongst other FMCG companies 2.FDI in retail thereby allowing international brands 3. Competition from unbranded and local products Competition Competitors 1. Marico 2. L'Oral 3. Nirma Ltd 4. HUL 5. ITC 6. Procter and Gamble 7. Dabur