Term paper of marketing management
On
Colgate cold cream

WASEEM RAJA J&K BANDIPORA
LEC. IN LSB R315B35

LOVELY PROFESSIONAL UNIVERSITY

ACKNOWLEDGEMENT

I would like to express my gratitude for the helpful comment and Suggestions by my teacher. Most importantly I would like to thank my PROF. MR.PARVEEN SINGH KALSI, for her days of supervision. Her critical commentary on work has played a major role in both the content and presentation of our discussion and arguments and I would thank my friends for their help in making of this term paper.
I have extended my appreciation to the several sources which provided various kinds of knowledge base support for me this period.

SHEFALI VIJ

CONTENTS INTRODUCTION 4 EXECUTIVE SUMMARY 4 MARKETING PLAN OF COLGATE-PALMOLIVE 4-12 ENVIRONMENTAL ANALYSIS 13-16 MARKETING STRATEGY 16-20 SEGMENTATION 20 TARGETING 20 MARKET RESERACH 23-24 FINANCIALS 24-31 COMPANY OVERVIEW 32-35 BIBLIOGRAPHY 36

COLGATE COLD CREAM
I. Executive Summary

The Colgate case involves the CHARMIS, which was relaunched into the market in 2000 by Colgate-Palmolive. This marketing plan summarizes the company’s situation at the time the Charmis was introduced, and the different marketing strategies that we believe would be best for colgate and their new cold cream. The marketing strategies include proposed strategies involving product, price, place, and promotion. Included in the marketing plan are pro-forma income statements and balance sheet of colgate if they were to launch the product, and also if they were to choose not the launch the product. Also included is an advertising budget. Marketing plan of colgate-palmolive Situation analysis
The Industry
1. Definition of industry
The purpose and main focus of the oral health care industry is to prevent teeth and gum diseases and to deliver cosmetic benefits. Examples of products in this industry include toothbrushes, toothpaste, dental floss, and mouth rinses.
2 . History of industry
Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments--oral care, personal care, home care, and pet nutrition--that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States

3. Growth Patterns
Consumers first purchased cold creams without much knowledge or information concerning the product’s benefits. As new product development increased, and consumers became better informed about the benefits of cold creams, they began to focus their interest not only as cleansing cream, but also on the health of their skin, and their cosmetic appearance. Because consumer interest and creams purchases began to increase, advertising and promotion also began to increase, which lead to the development and addition of the super-premium product class. The superpremium product class was a “sub-category of cold cream partly offset by downward pressure on average retail prices in mass-merchandiser channels. Consumers began to purchase cold creams based on the specific benefits each cold cream and company had to offer.

B. The Company
1. Brief History

Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments--oral care, personal care, home care, and pet nutrition--that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States

Key Dates:

1806: Company is founded by William Colgate in New York to make starch, soap, and candles.
1857: After founder's death, company becomes known as Colgate & Company.
1873: Toothpaste is first marketed.
1896: Collapsible tubes for toothpaste are introduced.
1898: B.J. Johnson Soap Company (later renamed Palmolive Company) introduces Palmolive soap.
1910: Colgate moves from original location to Jersey City, New Jersey.
1926: Palmolive merges with Peet Brothers, creating Palmolive-Peet Company.
1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company.
1947: Fab detergent and Ajax cleanser are introduced.
1953: Company changes its name to Colgate-Palmolive Company.
1956: Corporate headquarters shifts back to New York.
1966: Palmolive dishwashing liquid is introduced.
1967: Sales top $1 billion.
1968: Colgate toothpaste is reformulated with fluoride; Ultra Brite is introduced.
1976: Hill's Pet Products is purchased.
1987: The Softsoap brand of liquid soap is acquired.
1992: The Mennen Company is acquired; Total toothpaste is introduced overseas.
1995: Latin American firm Kolynos Oral Care is acquired; Colgate-Palmolive undergoes major restructuring.
1997: Total toothpaste is launched in the United States; Colgate takes lead in domestic toothpaste market.
2004: Company acquires European oral care firm GABA Holding AG; major restructuring is launched.
2 Growth
In earlier stages people do not go for these cosmetic products. But after 1991 when liberalization is adopted the people started going for these type of products.

C. The Product | | | Palmolive Charmis Cream 100g | | | | | | | Price | : | Rs. | 46.00 | | | | | | | | | | | | | | | | | | Palmolive Charmis Cream 50g | | | | | | | Our Price | : | Rs. | 36.00 | | | | | | | | | | | | | | |

1. Development and history
Colgate-Palmolive today announced the launch of 'Palmolive Charmis' - its new moisturising cold cream revitalized, with scientifically proven Vitamins E, C and A known to nourish and protect the skin. The cream replenishes the lost vitamins in your skin thereby making it soft and younger-looking.
Palmolive Charmis is a triple action cream specially developed to work on the skin's vitamin levels which get depleted during the course of the day. The Palmolive Charmis formulation is enriched with:
Vitamin E - a nourishing agent known to give skin the essential nourishment it needs to make it soft and keep it that way.
Vitamin C - known to protect skin from pollution and harsh weather (sun, dust etc.) and keep it young and fresh.
Vitamin A - known to replenish old tissue. It encourages the growth of healthy tissue replacing old worn out tissues.
Announcing the launch, the Palmolive spokesperson said, "Palmolive Charmis has been revitalised to suit the modern woman's lifestyle. It is no longer just a skin cream with Vitamin E only. It has been enriched with Vitamins C and A as well to offer the added benefits of protection and replenishment." He added, "Today's fast paced life leaves women with barely any time to indulge in a prolonged skin care regimen. Add to that the ravages of pollution, dust and harsh weather and you are left with dull, lifeless skin screaming for attention. With its triple action formula, new Palmolive Charmis now rejuvenates and moisturises skin to give it that healthy, nourished glow."
2. Design/quality
Colgate-Palmolive (India) Limited is a leading provider of quality personal care products under the brand name Palmolive, with its moisturising cold cream - Palmolive Charmis, - its range of quality soaps - Palmolive Naturals for the popular segment and Palmolive Extra Care for the premium category - and its Palmolive range of toiletries for men. The Company also markets scientifically proven quality oral care products under the brand name Colgate, which is the largest selling brand of toothpastes, toothpowder, toothbrushes and oral pharmaceutical products in India. Colgate was rated India's premier brand across all categories in 1999 by A&M magazine's annual survey of India's Top brands - the seventh time in eight years that Colgate has been ranked first.

3. Goods classification
The Charmis cold cream can be classified as either a homogeneous or heterogeneous shopping product. Some consumers may see it as a homogenous product because they see all cold creams as the same, and place their attention on the lowest prices. Others may see the cold cream as a heterogeneous product because they see the need to “inspect for quality and suitability” 4. Price
Under a niche-positioning strategy Colgate-Palmolive Charmis rolls out in 200ml (Rs.97.00), 177ml (Rs.79.00), 100ml(Rs.56.00), 60ml(Rs.37.00), and 35ml (Rs.21.50) jars and is available in general stores, chemists and supermarkets across the country.

5. Branding
Colgate is a rejuvenated brand in India. After a long period of stagnation, it has started growing with a force in FY 2000-01 and looks like carrying it forward in the current year as well. Not only that, it is confidently growing the Palmolive category also. At its current valuations, Colgate appears set to create wealth for medium to long term investors

6. Promotion

The launch will be supported by a trendy multi-media advertising campaign and consumer promotions. At the trade level, it is being promoted through displays & point of sale material to ensure high visibility and brand awareness. These include 'Palmolive Charmis' image units at key supermarkets, shelf strips and displays, backing sheets and danglers.
Colgate-Palmolive (India) Limited is a leading provider of quality personal care products under the brand name Palmolive, with its moisturising cold cream - Palmolive Charmis.
7. Positioning
The position of the colgate cold cream could be niche or mainstream. If the position were to be niche, concentration would be placed on the prevention of skin disease, and “retail sales would represent 3% volume share of the cream market in year 1 and 5% in year 2.” If the position were to be mainstream, concentration would be placed on “being the effective cream on the market, [and] volume shares would be 10% in year 1 and 14.7 in year 2,” .
The decision on where to place the new cream on retail shelves is another important aspect of positioning. Colgate-Palmolive chose to place the cold crem in between one of their existing products and a competitor’s product. D. The Market

1. Location

The personal care market is spread worldwide mainly targeting grocery, drug, convenience, and large retail stores. The cream market in the past had few types of creams, while today’s market carries many various types of creams. This may have been due to lack of consumer concerns with what type of cream they desired.

2. Purchasing characteristics
Transforming a purchase intention into a purchase decision could be influenced by attitudes of others – cosmetics used are seen as a reflection of the kind of person one is
4. Market needs

People buy different goods and services over a lifetime and according to their age. At different age consumer has different tastes. The age and stage affect the consumer behavior. For young girls colgate launched its segment named Palmolive
In most cases consumers only need two to three pack of cream a year.
“Sixty-five percent of consumers had more than one pack , 24% of women kept a Creams at work, and 54% had a special cream for special occasions,”

5. Buying behavior patterns

Many consumers base a lot of their purchase decisions on how it prevents their skin from dust, skin diseases like pimples, blackheads etc. How comfortable it is on the skin, for different skin types, some buy only due to low price. When it comes time to purchase a cream, there are three different consumer groups. These groups include personal care, cosmetic, and low price category. Personl care are concerned with skin care problems. They use to prevent disease and for cosmetic it uses to glorify the skin.some sectors go only due its low price.

E. The Competition

1. Identification of competitors * Pond’s * Ayur * Loreal * Gariner

2. Competitive Strengths Low price:- The product of colgate is of low price. Which help them to target on the sector which prefer oniy low price products. this is product having high demand even in low income group. As it has no much prices so people from every income group can go for it. And it has many type of qualities as added as its values.
Good quality cosmetic product :- It is of very good quality used not only as cosematic product but also for prevention of skin diseases.

2. Weaknesses of Competition

Many competitors striving to succeed in the personal care market such as Pond’s and Ayur know that in order “to be a leader in the personal care category, companies have to be able to compete in all areas of the personal care,” besides only the cold cream. Because there are many primary competitors in the personal care market, product innovation is a key factor to a company’s success. Colgate-Palmolive not only had to worry about cannibalizing their own products, they also had to worry about the new line of products that were being introduced by such companies as lakme, loreal, pond’s etc.
With companies holding such large shares of the market, Colgate-Palmolive had to worry about the innovation of new products that could compete with the charmis. Companies that hold large market shares can afford to pay for more advertising for a newly developed product. It was to Colgate-Palmolive’s advantage that they had their share of 4-5% of market share.

Competitive advantage 1. It is of very low price as compare to their competitor’s products.the lakme and loreal products are very costly as compare to Charmis. And it has many type of qualities as added as its values. 2. Palmolive Charmis is a triple action cream specially developed to work on the skin's vitamin levels which get depleted during the course of the day.

III. ENVIRONMENTAL ANALYSIS

If we look over the various factors affecting fabric marketing plan are-

Macro environmental factors * DEMOGRAPHIC FACTORS

Culture, subculture and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s want and behaviour.The growing child acquires a set of values,perceptions,preferences and behavior through his/her family.
The cultural factor also influencing the consumer behavior of the creams. In United States girls are more exposed to cosmetics .but in India the young girls are not exposed to these cosmetics .The values of Indian culture do not allowed young girls to go for cosmetics.

* SOCIAL FACTORS

Social factors such as reference groups and family that affect the buying behavior.
REFERENCE GROUPS

A person’s reference group is all the groups that have a direct or indirect influence on their attitudes or behaviour.Groups having direct influence is called membership groups. Some of these are primary groups such as family, friends, and neighbors.
FAMILY
The family is the most important consumer buying organization in society and family members constitute the most influential primary reference group. In the family of orientation consists of parents and siblings. From parents person knows his values, religion, love and self worth. In India mostly parents lived with their children. This affects the consumer behavior to buy and use creams. In these families creams are not allowed to girls.

Economic factors
Product choice is greatly influenced by economic circumstances. If the consumer is economically sound then he/she may go for brands As it is well an economic crisis has hit the whole world so it would surely affect our plan also, as it will affect our pocket to spent more on promotion which could affect the success of charmis.

MICRO ENVIRONMENTAL FACTORS

* COMPETITORS :- Then colgate needs to have look on the pricing strategies of competitors that is mainly on Pond’s for middle income group and Lakme a premium product which have high market share in this segment.

| | | | | Price | : | Rs. | 37.00 | | | | AYUR HERBAL COLD CREAM 100g | | | | | | | | | Palmolive Charmis Cream 100g | | | | | | | Price | : | Rs. | 46.00 | | | | | | | | | | | | | | | | | | Palmolive Charmis Cream 50g | | | | | | | Price | : | Rs. | 36.00 | | | | | | | | | | | | | | | | | | | | Ponds Cold Cream 100g | | | | | | | Price | : | Rs. | 60.00 | | | | | | | | | | | | | | | | | | Ponds Cold Cream 200g | | | | | | | Price | : | Rs. | 105.00 | | | | | | | | | | | | | | | | | | | | Ponds Cold Cream 30g | | | | | | | Price | : | Rs. | 21.00 | | | | | | | | | | | | | | | | | | Ponds Cold Cream 30g | | | | | | | Price | : | Rs. | 21.00 | | | | | | | | | | | CUSTOMERS Customers interest changes day by day, so we have to move according to their interest otherwise it would have a severe affect on our strategies. Customer’s psychology plays a vital role while making a decision.Many customers think that price is an indicator of quality.High priced products are perceived to possess better quality.In case of Pond’s the prices are up and they are perceived to be of better quality they are providing high quality product at medium price
IV. Marketing Strategy

A. MISSION
Mission of colgate is to capture its no. 1 position in personal care market as it use to be in oral care. so it again launched its one of the best product charmis on 11 oct. 2000.

B. OBJECTIVE
Objective that is where we want to position its market offering.because clearer the objectives, the easier it is to set the price. The objective of colgate in cold cream segment is survival. Because at this stage colgate feels intense competition from Pond’s ,Lakme etc.and also change in the customer wants.

C. General marketing strategy
1. Niche/mainstream positioning strategy
The main focus of niche positioning would be placed on consumers who are concerned about the prevention of skin. There would be many positive benefits to the company if Colgate-Palmolive were to position the Charmis as a niche product. These benefits would include one, by targeting the segment of consumers who are worried about skin; Colgate-Palmolive would be able to charge premium prices. Two, Colgate-Palmolive would be able to differentiate the Charmis from other cold creams , because of cold cream’s technological superiority over the other creams already on the market. Three, it is safe to say that SKU’s would not decrease if Colgate-Palmolive were to position the charmis as a niche product. And four, if costs were to decrease then it enables Colgate to reduce the losses of Charmis if it were not successful. Niche positioning not only offers positive benefits, but it also offers negative ones as well. The negative benefits if Colgate-Palmolive were to position the Charmis as a niche product would include one, sales in mass merchandisers would decrease, and two, retail sales would be less if niche positioning were used. Mainstream positioning would place emphasis on the Charmis as being the most appealing and effectivecold cream available on the market. The advantages of using mainstream positioning for the cold cream would be one, most retail stores are under a mainstream position rather than a niche position. Two, in the super-premium category, charmis would be the most superior product. And three, by positioning the charmis as a mainstream product, it would in return increase name recognition for Colgate. Negative advantages of using mainstream positioning for the Cold cream are one, although cold cream would be superior to the other super-premium cold creams the prices for the charmis and other cold creams would be equal. Equal prices would then lead to increased competition, which in return could cause prices to go up. A second disadvantage could also lead to the cannibalization of Colgate-Palmolive’s other super-premiumcold creams, the Colgate-palmolive. And three, a mainstream position would probably lead to the reduction and removal of one or more SKU’s.

The first challenge that the cream industry had to face was to undo the negative connotations attached with "Being harmful". They had to dispel the fears that CREAMS are harmful for the skin. They had to help the people to learn to adopt cosmetics as an essential part of daily grooming.
In this industry positioning is carried out mainly by advertisements. COLGATE has always advertised in the various mass media available. It also has a very good distribution network. For instance, its premium brand PALMOLIVE has followed the path of Chambor, and is placed only in large and reputed retail stores

2. Product differentiation strategy

By differentiating a product, it creates a difference that sets certain products apart from other products, and also targets certain market segments.
Colgate-Palmolive will need a product differentiation strategy that will make the cold cream unique from all other cold cream already available on the market. The company will also need a strategy that will appease to certain consumer segments. By coming up with this strategy, it in return will cause Colgate-Palmolive to increase profits and market share. The main area of this strategy’s focus should be placed on the design and packaging of the cold cream. For example, we suggest Colgate make sure the consumers know that the their product is very effective for skin and not only used for glorify the skin but also cure the face problems
. We suggest that a picture is placed on thecold cream package showing the different characterstics. This way the consumer will be able to differentiate thecold cream from all cold creams.We suggest that Colgate-Palmolive package the cold cream differently than the other companies. We think that the cold cream’s packaging should be very colorful in order to draw customer attention away from others.The name charmis should also be placed on the packaging in a distinct font.

3. Price/quality differentiation strategy

Our main focus here is on the customers. We want them to be able to get the most for their money. By producing a good cold cream, that offers more qualities than the other available on the market, at or around the same price as the competition, consumers will hopefully want to purchase it over the others. There will be more qualities offered at no extra charge.The price of Charmis if positioned as a mainstream product will have to be equal to the prices of the others already available on the market. If it is profitable and there is a high percentage of consumer demand, then Colgate-Palmolive might want to consider increasing the price of thecold cream by a small margin.

4. Mission marketing strategy

Colgate-Palmolive’s mission strategy is to be successful in the cold cream market, and hope the Charmis cold cream is not a failure. They will strive to gain a competitive advantage over other companies, while producing a profit, and satisfying the wants and needs of buyers. A goal of Colgate-Palmolive is for the Charmis cold cream to add utility or value to its consumer’s lives.

B. Target markets

Over the last decade, people have become more confident and the positive attached to high quality cosmetic . People have accepted cosmatics an essential part of life. People buy different goods and services over a lifetime and according to their age. At different age consumer has different tastes. The age and stage affect the consumer behavior. For young girls colgate launched its segment named Charmis.
Segmentation
The creams market con is broadly divided into two segments:

* Organized sector dominating 36%of the market. * Unorganized sector catering to 64% of the market
TARGETING
The segments that are targeted are as follows:

1. Age * Youth segment (20 - 30yrs): goes for Glowing skin * Old segment (35+): goes for wrinkle-less skin
2.Price

Target on the low income group by having low price. Communication Strategies

1. Promotion pricing

It has been proven that increasing promotion has lead to an increase in consumer demand. Both colgate and their competitors spent a lot of money on the promotion of their new products. The launch will be supported by a trendy multi-media advertising campaign and consumer promotions. At the trade level, it is being promoted through displays & point of sale material to ensure high visibility and brand awareness. These include 'Palmolive Charmis' image units at key supermarkets, shelf strips and displays, backing sheets and danglers.
Colgate-Palmolive (India) Limited is a leading provider of quality personal care products under the brand name Palmolive, with its moisturising cold cream - Palmolive Charmis.
1. Advertising Budget

Because competition was increasing, these companies saw it necessary to increase their spending on promotion. Companies began to offer purchase deals, such as discounts, special percent off coupons, and many other.

2. Advertising programs

“Total media spending for the category, primarily on television advertising, was estimated to total 55 crore,”. Between the years 2000 and 2007, colgate ran four different commercials. Each commercial had its own marketing situation, platform, execution plan, and tag line.

Distribution

1. Types of Distribution

Aside from convenience stores and large retail stores, many food stores played a key role in the distribution of personal health care products. “Mass merchandisers gained share due to increased in-store promotional support”
(Harvard). Because of the increase in the demand for personal care products, stores began shelving more personal care products. This was a big advantage for
Colgate-Palmolive because there would be more room in the stores for them to market the new cold cream.

1. Strengths/Weaknesses of Distribution

Since many of the food stores began to open more shelf space for personal care products, this would allow for Colgate-Palmolive to situate the Charmis where they thought it would gain attention from consumers. The only drawback about distribution for Colgate-Palmolive was skin specialists. Colgate-
Palmolive did not hold the market share for the distribution of cold creams in
Skin specialists’ offices. “With a dedicated sales force, lakme dominated this market”
Without dominating the skin specialist market for cold creams, Colgate-
Palmolive would have to focus more strongly on other retail locations, considering in 1992, “22% of all cold creams were expected to be distributed to consumers by skin specialists” (Harvard

VI. MARKETING RESEARCH

In marketing research we go through various steps:-

* Define the problem and research objective * Objective that is where we want to position its market offering.because clearer the objectives, the easier it is to set the price. The objective of colgate in cold cream segment is survival. Because at this stage colgate feels intense competition from Pond’s ,Lakme etc.and also change in the customer wants. * Develop the research plan
Then we have to a plan for conducting our research so that we could earn maximum information.in this we research that what qualities to be added in our cold cream which make i different from others.

* Collect the information

Now we collect the information regarding our needs, through various procedures & methods such as questionnaires, market analysis etc. It is the most expensive part of research plan. We collect information regarding constituents and about competitor’s product.

* Analyze the information
Then we have to analyze that information accordingly to make it purposeful.

* Present the findings
Then we have to present the findings that are relevant to major marketing decisions facing management.

* Make the decision
After going through the procedure at last we make the decision to go through our plan.
FINANCIALS
Colgate-Palmolive has announced broad top-line growth for its second quarter on the back of strong sales, adding that hefty restructuring charges hit profits.
Net income for the quarter stood at $283.6m, a 17 per cent drop from the $342.9m reported for the corresponding quarter in 2005.
Restructuring charges were a hefty $115m for the second quarter, compared to $28m for the corresponding quarter in the previous year. The company introduced its restructuring program in 2004, leading to to slash its workforce and synergize its production facilities.
The restructuring program is scheduled to last a further two years and is eventually expected to help the company save approximately $300m a year.
The company pointed out that excluding the restructuring and stock compensation charges, second quarter profits actually stood at an all-time high of $407.8m.
Analysts have acknowledged the underlying growth, with the results largely falling slightly ahead of expectations.
Colgate CEO Ruben Mark said that the company had achieved its objectives for its gross margin, with spend on advertising, and profitability all being extended as a consequence.
"Our core businesses are robust, with our oral care sales growing 12 per cent worldwide, led by double digit growth in North America, Latin America and Greater Asia," said Mark.
On a regional basis Latin America has been providing the company with outstanding growth. During the quarter sales were up 14 per cent to reach a total of 25 per cent of the company's total sales.
Colgate said that almost every country in the region contributed to the growth, with Brazil, Mexico, Venezuela, Central America, the Dominican Republic and Argentina leading the way.
New products contributing to the sales gain in the region were Colgate Max Fresh Toothpaste and the relaunch of colgate Total
In North America sales grew at 2.5 per cent, accounting for 21 per cent of total company sales - a respectable figure for this mature and highly competitive market.
The company said that future sales in this region would focus on the naturals market, boosted by its recent purchase of Tom's of Maine, a leading natural oral care player.
In Europe sales stood at 24 per cent of the company's total sales with growth said to be flat compared to the same period last year. The company said that strong gains in markets such as the UK, Denmark, Holland and Poland had been offset by volume declines in France, Italy and Germany.
Meanwhile in Greater Asia and Africa sales stood at 16 per cent of the company total, up 8 per cent. The country said that sales were led by gains in Hong Kong, Malaysia, Thailand, India and Philippines, while sales for greater China grew by 4 per cent.
Looking at the company performance as a whole, Ruben also pointed out that other key business fundamentals were looking good, with overheads down and gross margins up, giving the company room to offset increases in material costs.
Likewise aggressive ad campaigns have helped to boost sales, giving the company reason to believe that it will deliver a good performance in 2007, curtailed by pre-budgeted restructuring and stock compensation charges.

In the personal care sector, charmis has suffered a setback. A worsening market environment in the cold cream sector, plagued both by over-capacity and intense price-competition, has slowed this sector.

To turnaround the business in the first phase, your Company has kickstarted several proactive initiatives. A cohesive, well-orchestrated, customer-focused manufacturing and marketing strategy has been blueprinted. As you are aware, we have already contemporised the colgate brand, pegging it on the new superior quality range launched.

The distribution and retail network has been given a shot in the arm. The ‘lakme’ and ‘loreal’ brands have become more visible today than ever before supported by aggressive marketing. Apart from these endeavours, we have recoursed to relentless cost cutting.

Balance sheet of colgate PERIOD ENDING | 31-Dec-07 | 31-Dec-06 | 31-Dec-05 | | | | | Assets | 428,700 | 489,500 | 340,700 | | Current Assets | - | - | - | | Net Receivables | 1,680,700 | 1,523,200 | 1,309,400 | | Inventory | 1,171,000 | 1,008,400 | 855,800 | | Other Current Assets | 338,100 | 279,900 | 251,200 | | Total Current Assets | 3,618,500 | 3,301,000 | 2,757,100 | Long Term Investments | - | - | - | Property Plant and Equipment | 3,015,200 | 2,696,100 | 2,544,100 | Goodwill | 2,272,000 | 2,081,800 | 1,845,700 | Intangible Assets | 844,800 | 831,100 | 783,200 | Accumulated Amortization | - | - | - | Other Assets | 361,500 | 228,000 | 577,000 | Deferred Long Term Asset Charges | - | - | - | | Total Assets | 10,112,000 | 9,138,000 | 8,507,100 | | Liabilities | Current Liabilities | | Accounts Payable | 2,826,100 | 2,518,300 | 2,214,800 | | Short/Current Long Term Debt | 294,000 | 950,800 | 528,200 | | Other Current Liabilities | 42,600 | - | - | | Total Current Liabilities | 3,162,700 | 3,469,100 | 2,743,000 | Long Term Debt | 3,221,900 | 2,720,400 | 2,918,000 | Other Liabilities | 1,067,200 | 1,115,900 | 838,000 | Deferred Long Term Liability Charges | 264,100 | 309,900 | 554,700 | Minority Interest | 109,900 | 111,800 | 103,300 | Negative Goodwill | - | - | - | | Total Liabilities | 7,825,800 | 7,727,100 | 7,157,000 | | Stockholders' Equity | Misc Stocks Options Warrants | - | - | - | Redeemable Preferred Stock | - | - | - | Preferred Stock | 197,500 | 222,700 | 253,700 | Common Stock | 732,900 | 732,900 | 732,900 | Retained Earnings | 10,627,500 | 9,643,700 | 8,968,100 | Treasury Stock | (8,903,700) | (8,073,900) | (7,581,000) | Capital Surplus | 1,517,700 | 1,218,100 | 1,064,400 | Other Stockholder Equity | (1,885,700) | (2,332,600) | (2,088,000) | | Total Stockholder Equity | 2,286,200 | 1,410,900 | 1,350,100 | | Net Tangible Assets | ($830,600) | ($1,502,000) | ($1,278,800) |

FINANCIAL REVIEW AND ANALYSIS

Highlights (Rs. in Crores) 2005-2006 2006-2007 % Change
Gross Turnover 5,582.4 4,982.3 12.0
Net Turnover 4,821.7 4,272.6 12.9
Operating Other Income 18.0 17.1 5.3
Non-Operating Other Income 89.7 71.2 26.0
PBIDT 911.5 756.3 20.5
Interest 238.8 256.1 (-)6.8
Depreciation 251.9 237.0 6.3
Profit Before Tax &
Extra-Ordinary Items 420.8 263.3 59.8
Profit on transfer of undertaking 18.4 - -

Employee Separation compensation 11.4 17.8 (-)36.3
Profit Before Tax 427.9 245.5 74.3
Tax 50.0 12.4 304.9
Profit After Tax 377.9 233.1 62.1

Turnover

Gross revenues have grown by 12% YoY to Rs.5,582.4 Crores on account of strong growth in sales volumes and realization of Cement, VSF and Chemicals.
The gross revenues of Cement and Fibre divisions have risen by 17% and 14% respectively, while that of the Chemical division has registered an improvement of 26% YoY in FY 2007.

Other Income

Apart from interest and dividend income, your Company’s other income consists of operating receipts of the units and bill discounting charges. Other income increased by 22% YoY from Rs.88.3 Crores in FY 2006 to Rs.107.7 Crores in FY 2001, mainly on account of increase in interest and dividend income.

Profit (PBIDT)

Improved asset utilisation, better operating efficiencies and ongoing cost cutting measures have enabled your Company post superior operating profits.
Your Company’s operating margins have improved from 17.7% to 19.3%, in turn pushing profits by an impressive 21% YoY Rs.911.5 Crores in FY 2007.

Interest

Interest charges have gone down by 7% YoY to Rs.238.8 Crores in FY 2007 due to the positive impact of debt restructuring and repayment carried out during the year. The raising of low cost funds for part financing capex and general corporate requirements enabled the Company reduce interest charges even further.

Depreciation

Depreciation charges have increased by 6% YoY from Rs. 237.0 Crores to Rs.251.9 Crores because of the commissioning of the new cement plant in Tamil
Nadu during April 2006.

Income Tax

Consequent to an impressive 74% YoY growth in pre-tax profits, tax provisions have gone up from Rs.12.4 Crores in FY 2000 to Rs.50.0 Crores in FY 2007.

Net Profit

Your Company’s net profits have soared from Rs.233.1 Crores in FY 2006 to Rs.377.9 Crores in FY 2007, reflecting a growth of 62% YoY. Net Profits excluding profit on sale of undertaking increased by 54% to Rs.359.5 Crores. Earnings Per Share thus grew by 62% from Rs.25.4 per share in FY 2006 to
Rs.41.2 per share in FY 2007 while Cash Earnings Per Share has gone up from Rs.51.3 to Rs.68.7 during this period.

Intrinsic Value Purchase Price Dividend Yield
$ 84.98 $ 75.37 2.1% Competition
Colgate Palmolive faces competition from other strong Household Products companies, and store brand products. There is a tendency for consumers to trade-up, therefore putting CL and other name brands in a better position to win market share. Competition is tough with innovation, product refreshing as two strategies that prove effective. Advertising and promotional strategies are very important in the Consumer Products industry.
Procter & Gamble (PG) - $70.18
Clorox (CLX) - $62.70
Unilever (UNIA.AS) - $23.70

Company Specific Strengths
· Recent acquisition of Tom’s of Maine brings in a health conscious addition to the oral care portfolio
· Colgate is pursuing aggressive marketing strategies in the Latin American emerging markets
· Hill’s Pet Nutrition is the world leader in specialty pet nutrition products for cats and dogs
· No customer accounts for more than 10% of sales revenue
· Increased focus on high-frequency store (convenience store) sales
· Significant product development and innovation is in progress; kitchen soaps, and oral care
· Consistency across earnings, and dividends for the last twenty years

Company Specific Threats
· There are risk factors associated with international scope of the business

company overview
There are many brands and types of care products in Malaysia. Colgate-Palmolive is one of them. Colgate-Palmolive nearly 200 operating companies manufacture and market thousands of branded health care products in hundred of categories.
In this final project, I am going to do a research on the marketing plan of Colgate-Palmolive. These marketing plans are the importance way to make them successful to obtain their goals.
I will mention about their Marketing plan in consumer segment especially in some famous products in Malaysia. At the last of this report, there will be a conclusion, an opinion and some of m
. . .
So overall Colgate-Palmolive had very successful in their marketing for the three main categories for oral, personal and Fabric care product.
It was on the roof of one of Colgate’s factory buildings there that the first Colgate Clock, its face measuring 37112 feet in diameter and covering an area of 1,104 square feet, was installed in 1908. Colgate-Palmolive seeks to establish relationships with organizations that share its philosophy on business conduct, particularly as it pertains to Credo responsibilities. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns and discounts to customers are provided for as reductions in determining sales in the same period the related provision, are based on estimates derived from current program requirements and historical experience.
Treat of new entrants is a segment’s attractive varies with the height of its entry and exit barrier are low. Forward-looking statements may be identified by the use of words like “plans”, “expects”, “will”, “anticipates”, “estimates” and other words of similar meaning in conjunction with, among other things, discussions of future operations, financial performance, the Company’s strategy for growth, product development, regulatory approval, market position and expenditures. Food and Drug Administration and accepted by the America Dental Association for protection against cavities, gingivitis and plaque.
Then at 1864 the Palmolive company had success on the soap products, had success in their soap items productions and this had lead Palmolive company to become a more success company in soap production that provide laundry soup,160 different kinds of toilet soap and 625 varieties of perfume.
The Colgate-Palmolive Learning Services Group is an internal consulting practice that helps our autonomous operating units around the world address workforce performance issues related to business goals.
Consumer Perception of Price and Value
Colgate-Palmolive firstly will consider the consumers’ perception of prices and values as it sets a price for the target market.
Today, competition is not only rife but growing more intense every year.
So Colgate-Palmolive products distribution channel will control by their main base at USA on the distribution of their own products then those product will be locate at a main warehouse of the Colgate-Palmolive company that located in each country then only they distribute to hypermarket, ,mini-market, shops and etc. Successful companies design and operate systems for gathering continuous intelligence about competitors. Six years later, Cashmere Bouquet, the first milled perfumed toilet soap, was registered as a trademark.

BIBLIOGRAPHY :- MARKETING MANAGEMENT BY KOTLER, KELLER, KOSHY,JHA. www.hul.co.in www.ponds.com www.ayur.com www.charmis.com