Key indicators for success include: It is also crucial to consider the overall strategy of positioning and target markets. Despite the perception that the issue of caries has been solved by the previous technological advancements within the oral care industry, caries remain a significant threat to public health in many countries, both developing and developed.
With this in mind, investors, hoping to sleep easy even in painful selloff periods would do well to hold a diversified equity portfolio, including a healthy mix of growth stocks and more-conservative, defensive-oriented issues.
Shares of Colgate-Palmolive CLwhich have been relative standouts this year, particularly on a risk-adjusted basis, fall into the latter category.
But it still appears to have plenty of investment merits. The Business New York City-based Colgate-Palmolive Company, founded back in and incorporated in Delaware inis a leading consumer products manufacturer and marketer, primarily focused on oral care, personal care, home care, and pet nutrition.
Strengths Oral Care Leader: These positions enable the company to deliver annual organic sales advances in the mid-single digits on a consistent basis. Colgate-Palmolive invests heavily in its brands, not just in terms of advertising and marketing, but from a product-development standpoint. This helps drive volumes, especially when new items launch in fast-growing categories, such as whitening toothpastes.
The Optic White line has been a huge homerun for the company since debuting in While the company is a market leader in oral care, commanding lots of shelf space at domestic drugstore chains like CVS CVS and Walgreens WBAit is playing catch-up in many of its noncore product categories, from soap and other cleaning agents to pet supplies.
This can be viewed optimistically as an opportunity, in the sense that the firm has ample room to enhance its market position in these areas. But, for the moment, the weaker positions render Colgate more vulnerable to price competition.
And, without the scale advantages and retail relationships it has in oral care, share advances in these noncore categories may be harder to come by in the coming quarters.
This positioning has long been considered a virtue, considering the huge populations in emerging nations like Brazil and Venezuela, and the seemingly greater emphasis on glamour and personal appearance in that part of the world.
Moreover, Latin America has been plagued by a fair amount of political unrest of late, which, along with high inflation and wild currency swings, is making it difficult for U.
The business will be accounted for as an investment, rather than an operating unit. The move, while resulting in a costly one-time write-down, should limit the earnings drag from Venezuela going forward.
While developed markets are experiencing lukewarm growth the U. Even China, where GDP growth has been notably decelerating, is growing nicely on an absolute basis. This is good news for Colgate, which, in the March interim, generated organic sales growth of 7. While capitalizing on the industrialization movements in these nations and the rise of many from poverty into the middle classthe company should also be able to gradually gain share from competitors.
We see this happening as the company rolls out new oral care products and further leverages its best-of-breed sales force and distribution footprint in these up-and-coming countries. The company, importantly, has historically done an excellent job of modifying its products to conform to local tastes, introducing such items as charcoal-infused toothbrushes and a Colgate Plax line of natural mouthwashes with fruit extracts.
And we expect the commitment to innovation to continue well into the future. Product development should be emphasized just as much on the home front, where we still see room to drive volumes and raise prices. The opportunities appear especially plentiful in noncore categories, most notably pet nutrition, in which the company is still playing catch-up.
The company certainly has the free cash flow and financial wherewithal to pursue accretive transactions, however. This market continues to grow at a brisk clip, as more consumers shun artificial ingredients in favor of more-organic items.COLGATE MAX FRESH: GLOBAL BRAND ROLL-OUT An Analysis Nachiket Mujumdar Introduction Colgate Max Fresh’s (CMF) introduction to the US market drove Colgate-Palmolive’s (CP) US market’s value share up to % ahead from Procter & .
Case Study (Colgate Max Fresh: Global Brand Roll-Out) Colgate-Palmolive company (CP) is a global company operating in countries worldwide selling Oral, Personal, and Home Care; and Pet Nutrition.
CP developed a new product called “Colgate Max Fresh” and launched the product in U.S, China and Mexico The company spent a lot of time and efforts to release the product in each country%(13). According to Exhibit 13 in the case, in its first year Colgate Max Fresh had net sales of about $20 million and net expenses of about $30 million, leading to a $10 million loss.
In the second year sales increased by about $ million, expenses were reduced, and the net loss was only about $ million. Colgate Max Fresh is one of the revolutionary products of Colgate. As part of the initial launch CP focused on the specific target group in US based on the market research.
CMF was launched in the United States in August, Colgate Max Fresh 5. Colgate Cibaca 6.
Colgate Active Salt 7. Colgate Plax 8. Colgate 9. Colgate Zig Zag Colgate-Palmolive SWOT Analysis.
Strengths. Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Colgate-Palmolive: 1. It is one of the biggest brands in the personal care consumer products industry. Colgate-Palmolive, an international company that deals with the production of personal, oral and home care, and pet nutrition in spite of being well known and commanding a large share of the market in the industry, is facing challenges in launching and marketing of one of its new products (Colgate Max Fresh) in China and Mexico.