SWOT Analysis of Colgate Palmolive
Competitive Positioning
·
Colgate-Palmolive India ranked
second in overall cosmetics and toiletries in 2007 with a value share of 6%.
The company’s strongest product area is oral hygiene, where it had a strong
lead with a value share of 38% in 2007.
·
The company’s share declined
during the review period, dropping from 8% in 2002. However, decline slowed
towards the end of the review period, with the company retaining a fairly
steady share in 2006 and 2007. Much of the share decline seen during the review
period was due to the company exiting bar soap, in order to focus on more
dynamic and value-added product areas. However, bar soap continues to have huge
sales, being considered the most important product in cosmetics and toiletries
by many consumers, with this thus having a major impact on the company’s sales.
·
The company is present in many
dynamic areas and also proved successful in these. It shifted its focus from
bar soap to body wash/shower gel in the much of the review period and continued
to grow its share in this dynamic product area towards the end of the review
period, gaining a percentage point in value share in 2007 over the previous
year. However, the company’s main product area is oral hygiene, which grew at a
slower rate than overall cosmetics and toiletries in 2007 over the previous
year.
·
The company offers a wide range
of products in its main product areas. In toothpaste, for example, it offers a
wide range of products, with the most significant being Colgate Dental Cream,
Colgate Tooth Powder, Colgate Total, Colgate Cibaca and Colgate Herbal.
·
The company’s domestic
production enables it to offer lower prices than many other multinationals
competing in India. This, combined with its strong global image for Colgate and
Palmolive, gives it a strong advantage in appealing to a wide range of income
groups.
The company benefits from
Colgate-Palmolive Co’s huge global research and development budget and is an
innovator in its product areas. In 2006 and 2007, the company continued its
launch of new variants within toothpaste, launching Colgate Max Fresh and
Colgate Active Salt. The company also launched Colgate Pokemon toothpaste
targeting children and the Colgate 360º toothbrush.Colgate-Palmolive India Ltd
Strategic Direction
·
The company is expected to
continue its focus on oral hygiene during the forecast period. In order to
improve household penetration for toothpaste and manual toothbrushes, it will
continue to invest in consumer oral health education campaigns across the
country, notably targeting children and young adults. The company hopes to
instil good oral hygiene habits in the next generation of Indian consumers.
·
Elsewhere in cosmetics and
toiletries, the company will continue to focus on offering value-added products
at affordable prices. Domestic production enables the company to ensure that
its products are affordable to a wide range of consumers, while the company
benefits from Colgate-Palmolive Co’s strong global investment in research and
development, ensuring that it remains an innovator in terms of new product
development.
Company Background
·
Colgate-Palmolive India Ltd is
a 51% -owned subsidiary of US company Colgate-Palmolive Co.
·
The company has been a leading
player in oral hygiene in India since the 1950s. It benefits from offering
Colgate, one of the oldest oral and most popular oral hygiene brands in India.
·
In addition to oral hygiene,
the company also has a presence in bath and shower products, men's grooming
products, skin care and household care.
·
Colgate-Palmolive has among the
widest distribution coverage in India within fast-moving consumer goods
players. The company has four offices located in the metro cities of Delhi,
Mumbai, Kolkata and Chennai. Through these and through its various
distributors, the company reaches across the country, selling its products
through four million retailers. It has a strong presence in
supermarkets/hypermarkets, parapharmacies/drugstores and convenience stores but
also in independent small grocers.
Production
·
Colgate-Palmolive India has its
production facilities located mainly in North and West India. The company’s
facilities are located at Mumbai and Aurangabad in Maharashtra in West India
and in Baddi, Himachal Pradesh in North. The company’s plant at Baddi is its
latest addition, opening in 2005 and manufacturing toothpaste.
·
The company imports some
products into India. The company operates a facility in Nepal that catered
mainly to Indian sales for much of the review period. However, the facility
ceased to manufacture toothpaste in July 2005 due to political uncertainty.
·
Colgate-Palmolive India also
exports products to other countries in the region. Its exports were estimated
at Rs145 million for fiscal 2006. The company’s Indian production is well
placed strategically for sales across the region.
If you want SWOT Analysis Reports on Colgate-Palmolive Contact Mahasagar Publications.
