Student’s Name: Muhammad shahreyar

riaz.
Subject: Principles of Management.
Course Code: MGMT201.
Student’s ID: 2021 3058.
Class: TMM 1A Semester: 3rd.
Teacher’s Name: Sir Adnan Mehmood.
Topic: Term Report on Colgate.
Content

1. Acknowledgement

2. Company’s Profile

3. Introduction

4. History & Background

5. Core Values
 Caring
 Team Work
 Continuous Improvement

6. Contributions
 Global Art Contest (GAC)
 Bright Smile Bright Future (BSBF)
 Scholarship Program
 360-Degree Campaign
 Jamapunji

7. Planning
 Mission
 Vision

8. Financial Summary

9. Company’s Goals

10.SWOT Analysis
 Strength
 Weakness
 Opportunities
  Threats

11.Corporate Social Responsibilities

12.Future Outlook

13.Innovation

14.Decision Making

15.Strategy Against Competitor

16.Hierarchy

17.Board of Directors
 Chief Executive And Chairman
 Chief Executive Officer, MD, And Executive Director

18.Recruitment

19.Process

20.Challenge & Constraint

21.Leadership Style

22.Management Style

23.How To Motivate Employees

24.Check & Balance

25.Conclusion

26.References
 Colgate

Acknowledgement:
The success and completion of this report required a lot of guidance and assistance. We are
extremely grateful to all those who helped. We would like to pay thanks to our honorable
teacher, Sir Adnan Mehmood, for providing us with this opportunity.
Company’s Profile:
Colgate company is an American multinational consumer products company headquartered
on Park Avenue in Midtown Manhattan, New York City. It specializes in the production,
distribution and provision of household, health care, personal care, and veterinary products.
The company was founded in 1806, founder of this company was William Colgate. Being in
the industry of household care, personal care, and veterinary products it owns Colgate
(toothpaste), Palmolive (soap), Brite, Lemon Max, Bonus, Express, and Softlan. Through
these products they have created their name globally.

Introduction:
Colgate-Palmolive Company is an American multinational consumer products company
headquartered on Park Avenue in Midtown Manhattan, New York City. It specializes in the
production, distribution and provision of household, health care, personal care
and veterinary products. It is one of the leading company globally. It has created a big name
in the market. It manufactures products; oral care (Colgate toothpastes, Colgate toothbrushes,
Colgate plax, whiting kit), personal care (Palmolive soap, Palmolive shampoo), fabric care
(Bright, Express), surface care (Max bar, Max liquid). It has US $15.5 Billion revenue in
2018, according to Wikimedia.
History & Background:
In 1806, devout Baptist English immigrant soap and candle maker William
Colgate established a starch, soap, and candle factory on Dutch Street in New York
City under the name William Colgate & Company. In 1833, he suffered a severe heart attack,
stopping his business's sales; after a convalescence he continued with his business. In the
1840s, the company began selling individual cakes of soap in uniform weights. In 1857,
Colgate died and the company was reorganized as Colgate & Company under the
management of his devout Baptist son Samuel Colgate, who did not want to continue the
business but thought it would be the right thing to do. In 1872, he introduced Cashmere
Bouquet, a perfumed soap. In 1873, the company introduced its first Colgate Toothpaste, an
aromatic toothpaste sold in jars. In 1896, the company sold the first toothpaste in a tube,
named Colgate Ribbon Dental Cream (invented by dentist Washington Sheffield). Also in
1896, Colgate hired Martin Ittner and under his direction founded one of the first applied
research labs. By 1908, they initiated mass sales of toothpaste in tubes.

Core Values:

 Caring:
The Company cares about people: Colgate people, customers, shareholders and
business partners. Colgate is committed to act with compassion, integrity, honesty and
high ethics in all situations, to listen with respect to others and to value differences.
The Company is also committed to protect the global environment, to enhance the
communities where Colgate people live and work, and to be compliant with
government laws and regulations.
  Teamwork:
All Colgate people are part of a team, committed to working together. Only by
sharing ideas, technologies and talents can the Company achieve and sustain
profitable growth.

 Continuous Improvement:
Colgate is committed to getting better every day in all it does, as individuals and as
teams. By better understanding consumers’ and customers’ expectations and
continuously working to innovate and improve products, services and processes,
Colgate will “become the best”.

Contributions:

 Global Art Contest (GAC):

This year as well, an overwhelming response of entries was received and a child from
Karachi bagged a spot in the Global Art Calendar 2018, representing Pakistan on an
international stage.
 Bright Smile Bright Future (BSBF):
Focusing on the importance of oral hygiene and improving children’s oral health from
an early age, the ‘Bright Smiles Bright Futures’ oral health education program’s reach
spans from urban to rural areas. Children from private and government schools alike
bene-t from the educative, engaging and interactive material of this program.

 Scholarship Program:
The brand launched various campaigns to engage its consumers. Colgate Scholarship
was an integrated marketing campaign that awarded 20 scholarships worth Rupees
One Lac each to students, laying the foundation of their bright futures.
  360-Degree Campaign:
The brand rolled another 360-degree campaign, leveraging the communication
platform of ‘Na Cavities Ka Dar, Na Pyar Mein Jhijhak’ with a new packaging and a
reason to believe – the ‘Plus Calcium formula.’

Jamapunji:
Jamapunji is a project by Colgate-Palmolive it is an Investor Education initiative of Securities
and Exchange Commission of Pakistan (SECP) which aims to equip the general public with
skills and knowledge to make informed financial decisions and manage their money wisely.
SECP’s Jamapunji campaign aspires to improve the financial knowledge and competence of
the masses across the country which can help them make sound financial decisions through
the provision of general financial education ranging from banking and insurance to investing
and retirement planning
as well as general
money management.

Planning:
We will discuss few topics in planning that will show their mission their vision and
company’s goals. Here are the following:

 Mission:
Colgate-Palmolive is committed to act with compassion, integrity, honesty and high
ethics in all situations, to listen with respect to others and to value differences. The
Company is also committed to protect the global environment, to enhance the
communities where Colgate-Palmolive people live and work, and to be compliant
with government laws and regulations.

 Vision:
Our vision is to be the best consumer product company, but our key values are to
deliver continuous improvement, caring and global teamwork. I think we want to be
market leader in our strategic category while the same time caring for our people and
for the community
where we work in. As
we plan our strategies
to sustain growth for
the years to come, our
core values of Caring,
Global Teamwork and
Continuous
Improvement will
continue to drive our
future initiatives.
Company’s Goals:
The strategic organizational goal of Colgate comes from the marketing strategy. They plan to
maximize customer exploitation, from urban to rural areas, through introducing new and
innovative opportunities of oral care, skin care, and surface care for costumers. It was all
started with soaps and candles, and now the company is running with great success in oral
care, personal care, and surface care.

Currently, the main goals of Colgate are to better understand consumers behavior, launching
new products through innovation, increasing effectiveness and efficiency as well as
strengthening the leadership worldwide.

They are enjoying market leadership but on a big scale because their business is well
established also very well-known all over Pakistan. Spreading awareness about their
company and collecting potential costumer is also on their list of organizational goals. They
have arranged operational goals in a way that keep their groups of individual employees
motivated and dedicated towards polishing the name of the company.

SWOT Analysis:

 Strength:
Colgate being the household name it is, has high brand recall & visibility.
Excellent advertising and brand visibility of products with a strong customer loyalty
for brands had helped the brand to compete with other players, thereby emerging as
one of the topmost brands in the FMCG market. It offers product categories namely
oral care, personal care, household surface, fabric care and pet nutrition having deep
assortments across the product categories. In FMCG, the more in depth your product
 line, the more chances of success increases because the cost of logistics drops
further. With extensive distribution network in rural & urban markets, Colgate
ensures that it reaches a wide customer make, thereby making the product available.
Product availability is the major concern in this highly competitive market as brand
switching is very easy. Being 2 centuries old company and having operations in 200
countries has built a strong financial base for Colgate. Thus, it is able to take on the
likes of HUL due to its deep pockets. With high penetration in the market, Colgate
has managed to hold their market share and some products / brand
extensions are market leaders in particular regions.

 Weakness:
With large number of local & national players fighting in personal & oral care
segment, the market has become saturated & there is little scope for growth while all
companies are eating each others market share. The brand’s toothpaste category under
Coalgate brand name was so successful that the name itself has been commoditized
and now it is being used for different brands of toothpaste. This has hampered
the brand recognition of other products of the same brand. Majority of its properties
have been on rent basis resulting into high cost of operations due to which its profits
are decreasing. Due to high cost of operations, Colgate products are also priced higher
than the rivals. Colgate have limited brands under a particular product category and
they have limited offerings under different segments unlike their competitors like
P&G,HUL etc.

 Opportunities:
By following product line stretching & product line filling strategies they can increase
their sales, create offerings and give value for different segments. It is one of the
major challenges that every FMCG company is facing nowadays. With urban markets
close to saturation, the rural markets are the only hope for reaping profits for the
company. It’s one of the smart strategies followed by global companies to sustain and
expand in the overseas market. However Colgate is yet to capitalize the market by use
of such strategies. People need to be made aware about the optimum usage rate for
these products so that the market utilizes the product as forecasted by the company.
This can happen only through advertising /word of mouth/doctor prescription. Many a
times companies forecast wrong because they assume a higher usage rate in the
market.

 Threats:
With increasing number of local & national players it’s becoming very hard for the
companies to differentiate themselves from others. There is also threat from
counterfeit products destroying its brand image in the market. As the competition
rises, the margins for companies are dropping and companies find that they have to
 give more and more discount to sustain in the same channel. Increasing price of raw
material will result in further increase in the price of Colgate. Over a period of time,
justifying the high price compared to competition will become difficult in a saturated
market. Further increase in price will result in decrease in sales & brand switching by
consumers. The “Ethical Consumer Research Association” once recommended that its
readers should not buy Colgate because of its use of animal testing. In the digital age,
information like this will affect the brand Colgate. With highly diversified personal &
Oral care consumer market where there are lots of brands claiming different sorts of
benefits, it’s very difficult for consumers to stick to a particular brand & hence results
into brand switching where consumer got power to select a brand based on several
factors  like availability, reference group recommendation, preference & price.

Corporate Social Responsibility

Since its inception, an estimated 10 million children have benefitted from our oral health
education program ‘Bright Smiles, Bright Futures’. This globally successful oral hygiene
awareness and education program is now reaching school-going children across urban and
rural Pakistan. Our trained educators conduct these interactive awareness sessions in schools
using program’s educational components like animated video, class room and take-home
materials which not only ensure oral health education in the class room but extends its
practice at home involving the whole family. Teachers are also trained to give reminders to
children on importance of good oral hygiene and how to maintain it. Another important Oral
Health Education initiative is ‘My Bright Smile’ Global Art Contest that successfully
organized its 17th consecutive contest. Growing in popularity, the global art contest attracts
participation from schools and children from across Pakistan. We have yet another record
breaking year of participation where 115,595 artworks were received. The contest provides
Pakistani children an opportunity to express and display their artistic abilities nationally and
at an international level. In the process they also become more aware of good oral health
practices through an interesting and engaging ‘My Bright Smile’ art contest theme. The ‘Oral
Health Month’ organized at national level reiterated Company’s commitment to improve oral
health in Pakistan. Leading dental institutes and clinics were engaged in various cities during
this initiative to provide facilities of free dental checkups, professional advice and oral health
education to people from all walks of life. The program is organized in urban centers, smaller
towns and rural areas. Free dental checkups in large numbers were conducted during this
year’s Oral Health Month. Specially designed mobile dental units manned by qualified
dentists are increasing the reach of this public health program to people in small towns and
rural areas with no access to dental care services. The Company made donations amounting
to PKR 18.0 million for health, education & social welfare projects.
Future Outlook
The economic and political outlook of the country remains uncertain. Currency devaluation
on account of worsening balance of payments and increase in inflation is expected in the
short term. The inflationary headwind and resultant increase in commodity prices are
anticipated to build pressure on margin that Company plans to manage with competitive
pricing strategy, margin favorable pack mix and premiumization with new product launches.
Building on our distribution led competitive edge; Company will continue to invest in
developing a more technologically advanced distribution network enabling our brands to
widely reach both our urban and rural consumers. As the challenge of increasing competition
across all categories intensifies, Company’s focus is on remaining relevant to consumers and
offering products based on assessed needs of our consumers. The Company realizes the
importance of investing in advertising and promotion of its key brands and new launches and
plans to continue increasing this crucial input for stronger brand equities and business growth
in future.

Innovation:
Innovation is a cornerstone of Colgate’s strategy to drive profitable growth.
While innovation in new product development is key, equally important
is innovation throughout all of the Company’s business functions and processes. For instance,
Colgate Active Salt toothpaste is built on the traditional insight that salt is good for oral care.
Colgate expands opportunities for innovation by partnering with academia, leading research
firms, suppliers that are technical leaders and other outside experts. New Colgate Wisp is the
result of one such collaboration. Developed in close partnership with Swiss manufacturer
Trisa, the patented single-use mini-brush, designed for on-the-go teeth cleaning and breath
freshening, contains unique cleaning bristles and a breath-freshening bead that dissolves as
you brush. The first of its kind, Colgate Wisp has just launched in the United States, with
positive feedback from retailers. Colgate and other companies like Procter & Gamble (PG),
Unilever (UL), and Clorox (CLX) believe that innovation is the key that drives growth.
Colgate’s innovation for whitening teeth behind its Optic White brand increased its market
share in North America to 19.3% in 2Q15. The company plans to focus on the fast-growing
whitening market, which is the second-largest segment in the oral care category, according to
comments by CEO Ian Cook. Innovations in the enamel health segment under Colgate
Maximum Cavity Protection with Sugar Acid Neutralizer and the toothbrush with charcoal
bristles, which increased sales in the US and Asia, respectively. The Metabolic Plus Mobility
Canine Food (under the Hill’s brand), which offers aid to dogs heal with arthritic problems,
also increased sales in the pet nutrition segment in the US and the UK. Unlike Colgate, CLX
and UL do not have a presence in pet nutrition. To learn more about Colgate’s pet nutrition
product segment, please read How Colgate Is Capitalizing on the Pet Nutrition Market.
In the personal care segment, the introduction of Protex antibacterial bar, which provides
long-lasting anti-bacterial protection, increased its market share of bar soaps to 22.6% in two
top markets: South Africa and Russia. In addition, Sanex introduced body lotions in France
and the UK. According to Cook, the product is already two share points up just two months
into the launch The company plans to expand is portfolio by introducing a rinse-free formula
to Suavitel fabric conditioner in Latin America. This will help in enhancing the company’s
top-ranked position in Latin America. CL has exposure in the iShares Core S&P 500
ETF (IVV) with 0.3% of the total weight of the portfolio.

Decision Making:

As we embark upon a new decade, Colgate is presented with tremendous opportunities and
new challenges in the area of sustainability. We begin this new decade with great momentum
and a sense of accomplishment as we finish the last year of our 2015 to 2020 sustainability
strategy. We are now determined to position ourselves for further growth and are setting our
sights on something even bigger as we announce our 2025 Sustainability Mission.

Let’s have a short view on their future predictions and management’s decision making means
how they will implement these things, and what they have done for the implementation of
these things. They have decided to control waste of plastic, save water, and many other social
works. They are also planning to change the tube so there will be as less wastage as possible.

For all these plans, teams will form and management for individual tasks. They will work and
try the best and will find the best solution for this. They will make decisions, and reach to
there dream place by taking risks, being one of the most popular and successful brands and
also it has been one of the major ruling industries for the more than last two hundred years.

Strategy Against Competitor:

One of the top brands of the world and the leading brand in Oral hygiene, Colgate is known
for its dominance for the past few decades when it concerns tooth paste, tooth brush or even
dental hygiene. Colgate has implemented fantastic marketing strategies over time, including
roping in dentists to brand the product, which has resulted in Colgate being the leader in the
oral hygiene industry.

With so many product offerings in toothpaste category & differentiating benefits Colgate

toothpaste is star. It has emerged as a market leader and it has become household name in
many developing nations even synonymous for toothpaste. However, there are many
competitors for the product as well.
Colgate is surrounded by giant competitors. FMCG giants like HUL, P&G & many others
local players have extensive products in the Oral, personal & Home care category but some
companies are dominant in some category whereas some in others. HUL and P&G are more
known for their detergents and soaps as well as other FMCG products. Whereas, in all of
them, for oral hygiene, Colgate is the leader.

Hierarchy:

Board of Directors:

 Chief Executive and Chairman:

Iqbal Ali Lakhani, current chairman and chief

executive of Colgate Palmolive. He was born on
24 July 1948 in Gondia, Maharashtra, India. He
holds a degree in economics from the University
of Karachi. Iqbal Ali Lakhani has over 43 years
of top management experience in group
 companies in finance, marketing, manufacturing industry and government relations.
His special interests include marketing, finance, total quality management and re-
engineering. Lakhani is Chairman of the Corporate Boards of 4 Lakson Group.

 Chief Executive Officer, MD & Executive Director:

Presently, Zulfiqar Ali Lakhani occupies the position

of Chief Executive Officer, MD & Executive
Director at Colgate-Palmolive (Pakistan) Ltd. In his
past career he was Non-Executive Director at Clover
Pakistan Ltd. Mr. Lakhani received an MBA from
The Wharton School of the University of
Pennsylvania, an undergraduate degree from Stanford
University and a graduate degree from the University
of Pennsylvania.

Recruitment:

Recruitment is an important process of any organization. Every employee goes through a

recruitment process in Colgate Palmolive. Colgate Palmolive have diversity in searching
employees. They have employees of every age and every class. Employees, which have to
work on machines, have different job description and employees, which have to control the
paper work, have different job description.

Process:
 First they identify the job vacancy.

 They analyse the job description and requirements.

 Review applications.

 Screen and shortlist the candidates.

  Call them for interview.

 Select the right candidate for right post.

Challenges and Constraints:

Company works on daily challenges. There are targets set for each and every employee on
weekly basis which they are expected to complete. There are some major challenges and
external constraints that the company faces and it is the lack of social awareness about their
products and services specially in rural areas. They find it difficult to make people realize the
importance of daily entertainment and socializing in their lives. But they are planning and
working on it, and being the market leaders their future seems bright.

Diversity:

The culture of this firm is diversified. In Colgate Palmolive there are people of different age
groups working together, and their main purpose is to make the firm progressive. There are
people of all religions, cast, colours and creeds working here. They are judged on the basis of
their productivity and ethical code of conducts. The management tries to maintain just and
fair environment.

Leadership style:
Colgate adopts their leadership style according to the certain condition. They emphasize on
autocratic style because they have individual control over all the decisions. They have goals
that they want to achieve, so for effective work they controls it. But sometimes they have to
change their leadership style into Laissez-faire style when the situation is different. In this
situation employee or manager can take decision on the spot for the betterment of
organization but they have to give the explanation to the head. Laissez-faire style also bring
innovation in the work.

Management styles:
They use teamwork management style because they believe that teamwork is more
productive than individual work and when some event is organise everyone is involved in
it.But they work in hierarchy system and every department have their own hierarchy and
different management. The employee is focused on his own task.

How to motivate employee:

Every organization wants their employees to be motivated towards their job. Colgate provide
different facilities to provide comfort zone to them and their families.

 Annually increments.

 Promotions.

 Educational and health funds.

 Family lunch and gatherings.

 They provide different facilities according to the position of employee.

CHECK AND BALANCE:

Managers keep control on employs by daily reports and decision making with stake holders.
Moreover, they keep mid-year reviews on probation period. They make sales report on daily
basis. On Mid-year reviews they discuss where they are and how much they have reached up
to the goals. They set quality standards, building winning relationships with suppliers.
Updated with innovation. Receive goods and services and approve payments.
Conclusion:
The purpose of this report was to analyse a realistic management system and to see how it
can be related to our knowledge from book.We are pretty satisfied to see that Principle of
Management is quite a practical subject and its used to make a company profile. The
company we chose was up to the mark and had every small detail required to complete this
report.

We have learned that without a management companies can never grow at a good extent.
Management plays a very important role in success of a company, it help the company to
watch a dream and than to complete it. Management has a vital role behind the success of a
company.

If the company has strong management if will definitely come over its weaknesses and make
work on their strengths and make them more strong.

References:
 https://www.google.com/url?sa=t&source=web&rct=j&url=https://colgate.com.pk/
&ved=2ahUKEwiT0dS7hYTtAhX_A2MBHf13BsAQFjAOegQIGxAB&usg=AOvVa
w3kwiP_yM5LxZLxsvbIbrRX

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://jamapunji.pk/
&ved=2ahUKEwjRkOTLhYTtAhXGBGMBHUU9CLgQFjAAegQIDhAD&usg=AO
vVaw24qoKukX1nryOi-neNwmcM

 https://en.m.wikipedia.org/wiki/Colgate_(toothpaste)

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
m.economictimes.com/colgate-palmolive-(india)-ltd/infocompanymanagement/
companyid-
13873.cms&ved=2ahUKEwipmtT5hYTtAhXs6eAKHS_iCPAQFjASegQIBRAB&us
g=AOvVaw0QFtzWCkGkYoWfN0iy6jXN

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.wsj.com/
market-data/quotes/CL/company-
people&ved=2ahUKEwipmtT5hYTtAhXs6eAKHS_iCPAQFjARegQIARAB&usg=
AOvVaw1Ctd9WX0-8uQ9oINKilZRv

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
investor.colgatepalmolive.com/news-releases/news-release-details/colgate-palmolive-
announces-management-
 changes&ved=2ahUKEwipmtT5hYTtAhXs6eAKHS_iCPAQFjAUegQIChAB&usg=
AOvVaw0WOR___ItQ904BZ2ALstfb

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
www.marketing91.com/marketing-strategy-of-colgate/&ved=2ahUKEwjwy-
GbhoTtAhVE2-AKHXOPCBgQFjAAegQIChAB&usg=AOvVaw3kChI_YD0-
ykjy9wTKl8R-

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
www.referralcandy.com/blog/colgate-marketing-strategy/&ved=2ahUKEwjwy-
GbhoTtAhVE2-
AKHXOPCBgQFjAKegQIEhAB&usg=AOvVaw0A1OCgGVNz8HCtBCxvofij

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
www.marketingweek.com/colgate-palmolive-to-increase-marketing-spend-to-
maintain-growth/&ved=2ahUKEwjwy-GbhoTtAhVE2-
AKHXOPCBgQFjALegQIExAB&usg=AOvVaw3GNGclOchX8lyLSUcz1GbN

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