A comprehensive background of Colgate-Palmolive containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.

2. History & Origin . . . . . . . . . . . . . . . . . . . 3
Early Evolution . . . . . . . . . . . . . . . . . . 4
Modern Business . . . . . . . . . . . . . . . . 6
Global Expansion . . . . . . . . . . . . . . . 9
Company Structure . . . . . . . . . . . . . 11
Recent Efforts . . . . . . . . . . . . . . . . . . 13
Company DNA . . . . . . . . . . . . . . . . . 21
Summary . . . . . . . . . . . . . . . . . . . . . . 23
Social Media Accounts . . . . . . . . . . 24
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3.  Established in 1806 and founded by William Colgate
 Once called William Colgate and Company
 First priority was to manufacture and sell soaps and candles
 After William’s death, Samuel Colgate, William’s son, inherited the
company in 1857
 Samuel produced new and improved scented soaps in 1866
 Colgate launched Cashmere Bouquet, the America’s first milled,
perfumed soap in 1872
 A year later, Colgate launched toothpastes sold in jars
 Peet Brothers of Kansas City and B. J. Johnson Soap Company of
Milwaukee were its major competitors
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4.  In 1890, Colgate toothpaste’s first real breakthrough came when the
company introduced the collapsible tube which was refined in 1908
 In 1898, with B.J. Johnson Soap Company, Caleb Johnson made a
new breakthrough in creating soap by using olive palm oil
 In 1909, St. Louis Exposition, a French machinery was discovered for
making hard-milled soaps
 Caleb immediately purchased and from that moment, Palmolive
assumed its modern form.
 In 1910, Charles Pearce, Johnson’s Sales and Advertising Manager
together with Lord & Thomas advertising agency crafted a long-running
campaign that created a whole new category: “luxury soap”
 The luxury soap costs more, Pearce’s solution was a value-based
promotion – buy two, get one free. It turned out well and company
was renamed the Palmolive Company
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5.  In 1911, Colgate distributed 2 million tubes of toothpaste and
toothbrushes to schools and sent in hygienists to demonstrate
brushing techniques
 Simply getting more people to brush their teeth has remained a key
strategy up to this day
 Toothpaste was Colgate’s key differentiator
 In 1927, Palmolive Company merged with Peet Brothers Company
 In 1928, they finally merged with Colgate Company that created
$100 million turnover business
 The newly merged company was initially ran by Palmolive-Peet’s
management
 In 1933, Colgate-Palmolive stock bottomed at 7.
 Colgate family bought back control, positioned Bayard Colgate as
President, with Charles Pearce being the Chairman
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6.  In 1960’s, Colgate - Palmolive made no purchases
 Appointed new president, George H. Lesch, successfully shifted some
of the foreign success back into the parent company.
 George’s initiatives shaped the modern day company: a ramped-up
innovation program, funded by an aggressive and constant pressure
on costs.
 Task forces were set up:
 Look at every aspect of product cost
 Process and management
 Taking out anything that did not add consumer value
 In 1967, sales doubled the 1961 record of $500 million
 In 1970’s, purchased Wilkinson Sword razor and blades, Kendall &
Company, Helena Rubinstein cosmetic business, Ram Golf Company,
Bancroft Racket Company and Penfold Golf Balls
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7.  The acquisition that had a long-term benefit came in 1976, with the
purchase of Riviana Foods
 Toothpastes and washing needs’ format, became powerful product
innovation tools
 In 1983, launched Colgate Total toothbrush
 Two years after, launched Protex antibacterial soap
 Purchased Softsoap and Vipont Pharmaceutical’s oral hygiene
products in 1987
 In 1990’s, acquired Murphy-Phoenix Corporation, Mennen Co. and
S.C Johnson’s liquid soap brands in Europe and Australasia
 This made Colgate the worldwide leader in liquid soap.
 In 1992, Colgate Total toothpaste was launched overseas.
 Its launch in America was delayed for five years, owing to a
convoluted FDA approval procedure for its gingivitis-fighting claim
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8.  It was the company’s biggest-ever launch.
 It then enjoyed market leadership in the U.S for the first time.
 In 1995, the company penetrated Central Europe and Russia
 Major acquisitions such as Kolynos Oral Care in Latin America, rapidly
extend their market share.
 The oral care in Latin America market reached a staggering 79%.
 Further progress in the oral care market, with Colgate Simply White
Gel and Total Plus Whitening
 The continued growth of Hill’s convinced them that its future was
more in these two areas than in a toe-to-toe laundry care battle with
P&G.
 In 2000’s, Colgate began to shed its detergent products.
 Sold its Mexican brands to Henkel in 2001 and 2003
 German American Business Association (GABA), increased Colgate’s
total European market share from 27% to 33%.
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9.  In 1913, Colgate Canadian subsidiary was set up and Palmolive
subsidiary began exporting Palmolive soaps to Britain
 In 1920s, started exporting Colgate products to Australia, United
Kingdom, Germany and Mexico
 In 1933, Colgate subsidiaries were set up in several South American
countries and a factory was established in the U.K.
 Colgate Company acquired Cadmun in France, Binder-Ketels in
Germany and local operations in Sweden, Italy, Poland and
Switzerland
 In 1938, Goodwin & Sons of Manchester, England fell to Palmolive,
whose UK production began in October 1939
 In 1940, German bomb flattened the London Colgate factory
 In 1949, Colgate Britain production had been re-established at the
Manchester Palmolive factory
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10.  Brands such as Ajax cleanser and Fab detergent, both launched, and
quickly became very successful
 New factories appeared in France, Italy, Denmark, Switzerland, Spain,
Greece, Belgium, Portugal and Ireland.
 In 1950s/60s, European successes encouraged Colgate-Palmolive to
look further afield
 Set up operations in developing markets such as Malaysia, Thailand
and India, that only produce Colgate products
 As early as 1961, over 50% of sales were coming from outside the
United States
 In 1970’s, Colgate-Palmolive was well established throughout Europe,
Asia, South America and even Africa
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11.  The structure of Colgate-Palmolive remained extremely consistent,
with little to distract managers from their day jobs of generating
growth and cutting costs
 The company competed in four core segments with a tightly focused
range of key brands:
 Oral care (primarily Colgate brands)
 Personal care (Palmolive, Mennen, Irish Spring, Softsoap)
 Home care (Ajax, Fab detergent, Suavitel fabric softener,
Murphy’s)
 Pet nutrition (Hill’s Science Diet, Hill’s Prescription Diet)
 They now operate in over 200 countries, in 4 regions, North America,
Latin America, Europe and Asia/Africa
 In 2006, a structural change came when it was seen that the regional
arrangement was too crude
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12.  The developing Eastern European markets were moved to the
similarly developing Africa/Asia region.
 The developed Australia/South Pacific moved the other way into
developed Western European Group
 Only Hill’s is geographically undifferentiated.
 Operating as a discrete 5th division of the company.
 It remained responsible for worldwide sales of its brands, primarily
through vets and specialist pet food stores
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13. 2004
 For the company, this year was a milestone.
 Sales topped $10 billion for the first time, driven by a 7% increase in
sales, led largely by volume growth.
 Colgate toothpaste reached a record of 35% market share.
 The company increased its global toothpaste market share by 1.2%,
across more than 100 countries, with a record 33% in China and a
rapidly rising 17% in Russia.
 In the Philippines, Palmolive Naturals and Aromatherapy shampoo
brands had added 10 points to their shampoo market share
 Colgate Max Fresh and Colgate Simply White were complimented by
new formats of existing brands
 Mennen was extended from stick format to roll-on and aerosol
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14. 2005
 Volume growth increased sales by nearly $1 billion
 A volume growth of 6.5% after three years in the doldrums in America
 Products like Ajax Ruby Red Grapefruits, Palmolive Oxy Plus washing-up
liquid, Irish Spring MicroClean soap, Softsoap Kitchen Fresh Hands
and Softsoap Shea Butter liquid soap exemplified Colgate’s skill in
extending brands, through both line extensions and across categories.
 Colgate Total, Colgate Luminous and Colgate Max Fresh produced
further market share gains.
 A company-organised network of dental hygienists helped refine
advertising for the Colgate 360 manual toothbrush
 In support, global advertising spend increased by 12% to a record
high of almost $1.2 million, a 33% increase in only three years.
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15. 2006
 A 7% increase in sales volume, added almost another $1 billion to the
top line, with every division performing well.
 Their strategies embodied tight focus on the consumer, increased
marketing spending, new ways of communicating, building
consumption in emerging markets and steady stream of innovation
 80% of sales were now coming from outside North America
 In newly emerging markets, India and China, meant reaching millions
of small outlets whose small purchases accounted for the majority of
retail sales
 Colgate products were now available in 5 million outlets.
 Sales in Latin America grew 15% to $3 billion, driven by a 10% increase
in volume, on top of a 16% growth the previous year, with sales
growing in every single market
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16.  The company’s primary drivers were its premium brands
 Colgate Total
 Colgate Sensitive
 Colgate Max Fresh
 Colgate 360 toothbrush
 Palmolive Nutri-Milk
 Lady Speed Stick
 It sold the Latin American and Canadian bleach brands Javex, Agua
Jane and Nevex
 Acquired Tom’s of Maine, a natural toothpaste business that sold
through health and specialty stores.
2007
 Gained another $1 billion, up by 7%
 Reported a record margin of 57.3%.
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17.  Toothpaste, manual toothbrushes, mouth rinse, bar soaps, shower gels
and fabric conditioners made new global market share records.
 Colgate Total Advanced Clean and Colgate Max Fresh BURST were
driving sales and margins.
 A moisturizing technology had been incorporated into Palmolive and
Soft-soap ranges
 Hill’s range benefited from new variants of Prescription Diet and
Science Diet ranges
 Produced Colgate 360 manual toothbrush with Colgate 360 Sonic
Power battery toothbrush
 Launched a pharmacy-based information campaign about Colgate
Total’s ability to fight gingivitis.
 Bright Smiles, Bright Futures, a 17 year-long campaign, goes through to
over 500 million children in 80 countries.
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18. 2008
 Increased by 11% in the top line to a new high of $15.3 billion
 An increase of 5.5% was recorded from price increases
 In Latin America, net selling prices increased by 9.5%.
 Prices in Europe/South Pacific rose by 5.5%
 Hill’s prices rose even more, by a full 10.5%.
 Innovation process continues to deliver more winners like Suavitel
Magic Moments and was taking Latin America and Europe by storm
 Dedicated teams of research and development staff focused on
conducting early research and energetically researching innovation
inside and outside the company, linking hopeful technology to
consumer needs
 Colgate formed an alliance with The Forsyth Institute to increase the
size of the professional sales force.
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19. 19
2009
 The continued price rise by 6% finally had an impact.
 With flat sales and volume, the gross profit margin increased by 2.5%.
 Resulted in a new sales high of 58.8%
 Promoted Colgate Wisp, a new portable mini-toothbrush, with a
breath-freshening bead for use without water
 Colgate Total Enamel Strength, Colgate Sensitive Enamel Protect and
Colgate Max White with Mini White Strips made useful progress across
several markets.
 In Latin America, Colgate’s share of the soap bar market, helped by
the launch of Palmolive Nutri-Milk, reached a new high of 28%, on top
of the company’s dominance in oral care.
 3% volume growth in Latin America came with prices hikes of 13.5%.

20. 2010
 Greater Asia/Africa increased its sales by $350 million
 A 10% increase in volume, primarily in China, Thailand, Philippines,
Malaysia, Turkey, Russia and India
 Shares of the growing toothpaste market reached a record of 51.5%.
 North America, sales grew by 3.5%.
 Volume declined further by 2%, despite price reductions.
 Worst hit were the U.S., Russia, Japan, France and Germany,
prompting more price reductions and decrease in pack size
 Differing set of challenges in the two halves of Colgate’s business,
developed and developing markets.
 In North America, price pushed down by 3%, but improved volume by
2%
 In the end, the gross margin rose to 59.1%.
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21. Emerging Markets
 Colgate’s geographic spread is astounding.
 A brand strength and brand leadership in the 21st century’s fastest
growing economies.
 In 2011, Colgate was ranked as the Most Trusted Brand by The
Economic Times of India, not just in toothpaste but across all product
categories.
Relationships with Professionals
 Power of professional recommendations in driving new products and
establishing long-term loyalty has reaped enormous dividends and
been backed by considerable resources.
 Professional input is sought extensively in product and advertising
development.
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22.  Colgate also courts professionals in emerging markets.
 Giving the best not only to their consumers but also to their
employees, by awarding them dental check-ups.
 Colgate is now the toothpaste most recommended by dentists in 37
countries.
 It was a depth of relationship exceptionally hard for a competitor to
loosen.
Cost Control
 Keeping the business simple, it moves far beyond slash and burn
approaches and using creativity to find cheaper, better ways to do
things.
 On-going Funding-the-Growth initiatives have usually generated
between $300 and $700 million in savings each year.
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23.  Colgate-Palmolive has always been the underdog but to have
survived and prospered in the face of such competition is testament
to both sustained brand strength and sustained management skills.
 Remained more tightly focused in terms of product categories and
more expansive and imaginative in terms of geographical location.
 Trading consumers up to premium products, divesting low margin
businesses, acquiring high margin ones, developing strong brands
that can support premium prices, and always keeping the tightest of
grips on costs; those have been its highly successful tricks of the trade.
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24. Website: www.colgate.ph/app/Colgate/PH/HomePage.cvsp
LinkedIn: www.linkedin.com/company/colgate-palmolive
Facebook: www.facebook.com/Colgate?fref=ts
Twitter: www.twitter.com/Colgate
Youtube: www.youtube.com/user/colgatepalmolive
Google+: plus.google.com/106351051814080824546/videos
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