Presentation on Colgate Toothpaste
- 2. SECTOR INFORMATION 50% 31% 19% FMCG Segment Contribution Household and Personal Care Health Care Foods and Beverages • Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy and is valued at US$ 52.8 billion in 2017-18. • Household and Personal Care accounts for 50% of the sector followed by Health Care(31%) and Foods and Beverages(19%). • Growing awareness, easier access and changing lifestyle have been the key growth drivers for the sector.
- 3. MARKET OVERVIEW • FMCG market reached US$ 52.75 billion in FY18. • The rural FMCG market reached US$ 23.63 billion in FY18. • FMCG sales at India's organised retail stores rose 22 per cent year-on- year in 2018. • Revenues of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18.
- 4. PORTER’s FIVE FORCE MODEL THREATS OF SUBSTITUTES BARGAINING POWER OF SUPPLIERS COMPETITIVE RIVALRY BARGAINING POWER OF BUYERS THREATS OF NEW ENTRANTS 1) High – Presence of multiple brands 2) Price war 1) High – Highly fragmented industry as more MNCs are entering 1) High - Low switching costs induces the customer’s product shift. 2) Availability of similar alternatives 1) Medium – Huge investment in setting up distribution and promoting brands. 2) Spending on advertisement is aggressive 1) Low – Big FMCG Companies are able to dictate the pricing through local sourcing from a fragmented group of key commodity suppliers
- 5. COMPANY OVERVIEW • Colgate Palmolive Company is an American multinational consumer products company focused on household and commercial cleaning products, dental and other personal care products in more than 200 countries and territories worldwide. • Started in 1806 by William Colgate. • Noel R. Wallace is the CEO of Colgate Palmolive SWOT ANALYSIS •It‘s great mint taste freshens breath •Extremely popular brand and high brand awarenessSTRENGTHS •High dependence on a single category i.e. Oral Care •Immense competitionWEAKNESS •Growth in emerging markets – rural and semi-urban •Focus on innovationOPPORTUNITIES •Increasing commodity prices for manufacturing can affect Colgate •High competitionTHREATS
- 7. COMPETITOR ANALYSIS 46% 20% 11% 5% 4% 5% 9% MARKET SHARE COLGATE PALMOLIVE HUL DABUR P&G GSK PATANJALI OTHERS • COLGATE PALMOLIVE, a US multinational company present in 175+ countries, lead the market share in India with 46% value share followed by HUL(20%), Dabur(11%). • Biggest competitors of Colgate Palmolive are Crest, Closeup, Pepsodent, Sensodyne, Patanjali, Aim, Oral-b, Aquafresh And Dabur.
- 8. PRODUCT INFORMATION • Colgate was the first toothpaste in a collapsible rube, introduced in 1896. Before it was sold in jars. • Today, Colgate has wide no. of products under its umbrella like toothpaste, toothbrush, mouthwash, specialty products,etc. SWOT Analysis of Colgate Toothpaste STRENGTHS WEAKNESS OPPORTUNITIES THREAT 1) Helps fighting tooth cavities 2) India’s No.1 brand recommended by doctors. 1) Lower price variants are not available. 1) Capturing rural markets. 2) More campaigns 1) Many National and International brands with gel variants of toothpaste are available.
- 9. SEGMENTATION TARGETING POSITIONING SEGMENTATION Colgate segments its offerings across Oral, personal & Home care product categories based on demographics, psychographics & behavioural factors. Such as different Deo’s for men & women, Oral care products for different age & income groups meant to satisfy different needs TARGETING Colgate products are targeted to mass population but Middle class is where most of its sales comes from. POSITIONING Colgate is a toothpaste with calcium and minerals to get an all round cavity protection. Colgate is positioned as the brand itself as of a high quality product with a premium price among its competitors.
- 10. PRODUCT LIFE CYCLE OF COLGATE PALMOLIVE 1) Colgate toothpaste is in maturity stage.
- 11. ORGANISATION STRUCTURE MD & CEO ADVISOR Chief of corporate affairs & strategic planning Chief financial officer Chief marketing officer Head of customer care department Head of engineering Head of human resource Chief technical officer Head of billing & it
- 12. JOB DESCRIPTION & JOB SPECIFICATION 1) Marketing 2) Finance 3) Human Resource SELECTION PROCESS 1) Apply through recuiter or online 2) The next step is phone interview 3) Personal interview with senior management 4) Finally, offer is made TRAINING & development 1) A pragmatic initiative for Social and Economic Empowerment of the underprivileged and marginalized youth 2) High profile rotation program
- 13. ORGANISATIONAL CULTURE PROS 1) Great benefits, good team, very little conflict occurs. 2) Good HR support, well organised processes. 3) Salary and benefit, opportunities to grow and learn, caring culture, great co workers. 4) Great place to learn and work. CONS 1) Limited progression unless willing to move. 2) Minimal career progression opportunity. 3) Constantly fighting against red tape trying to find responsible for minor change in process or technology. 4) Toxic atmosphere at times. If the boss doesn’t like you this place can be hell. No progression. No recognition of hard work or personal sacrifices made. Have seen examples of bullying not properly addressed. Interns not given fair go at meaningful work. Letting all the best staff go not willing to keep anyone with experience.
- 14. COLGATE PALMOLIVE FINANCIAL ANALYSIS WORKING CAPITAL Working capital (2019) = Current Assets - Current liabilities = 1,010,15.86 – 1,051,10.47 = -4094.61 DEBT EQUITY RATIO Debt Equity Ratio = Total Liabilities Shareholders Fund = 117972.98 144675.32 = 0.81 FIXED ASSETS ADDED DURING THE YEAR 2019 2019-2018 = 1,616,32.44 – 1,503,13.82 = 11318.62
- 15. COLGATE Income Statement Analysis •Operating income during the year rose 6.6% on a year-on-year (YoY) basis. •The company's operating profit increased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.7% in FY19 as against 26.6% in FY18. •Depreciation charges increased by 1.7% •Other income grew by 0.5% YoY. •Net profit for the year grew by 15.2% YoY. •Net profit margins during the year grew from 15.9% in FY18 to 17.2% in FY19.
- 16. COLGATE Balance Sheet Analysis •The company's current liabilities during FY19 stood at Rs 11 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 7.0%. •Long-term debt stood at Rs 777 million as compared to Rs 0 million during FY18, a fall of 0.0%. •Current assets fell 5% and stood at Rs 10 billion, while fixed assets rose 7% and stood at Rs 14 billion in FY19. •Overall, the total assets and liabilities for FY19 stood at Rs 26 billion as against Rs 26 billion during FY18, thereby witnessing a growth of 2%.
- 17. CONCLUSION As per the finding, FMCG are the products that are sold quickly and at a relatively low cost. It is the 4th largest sector in indian economy. It constitutes of household and personal care, foods and beverages, healthcare. Colgate started by William Colgate in 1806 with selling wares is one of the world’s best selling household and personal care products. It has a lot of products under its portfolio such as toothpastes, mouthwash, toothbrush, specialty products. Brands such as colgate, Palmolive, protex, sanex, softsoap, hills, gard, sorriso, etc. Colgate has 46% market share in India. Main competitors of colgate Palmolive are Crest, Sensodyne, Pepsodent, Closeup, Oral-B, AIM, Aquafresh, Dabur & patanjali. Strategies like customization, green initiatives, promotion and offers are adopted by Colgate Palmolive so as to fight in competitive market. Profit earned by colgate Palmolive in march 2019 is 775,66.51. Total assets of worth 1.010,15.86 is owned by colgate Palmolive with total liability of 1,179,72.98. The reviews by employees of Colgate Palmolive are positive. Maximum employees are satisfied with working in Colgate Palmolive. Traings are provided to employees in order to keep them updated and motivated. All and all with the product line spanning household & personal care, foods & beverages and healthcare, Colgate Palmolive is on the road to forging ever stronger relationships with the people who have spent their money on the company’s products.
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