COLGATE-PALMOLIVE COMPANY

COMPANY HISTORY:

Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments--oral care, personal care, home care, and pet nutrition-that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States. Colgate has been ruling the Rs 2200 crore oral care segment for long with a market share of over 50%.The flagship brand of this multinational giant is The Colgare Dental cream which alone has a market share of 35%.The toothpaste segment can be divided in to three segments : white, Gel and herbal based on the product characteristic. Colgate had enjoyed higher market share all through the years despite stiff competition from the likes of HLL and a host of regional brands. But the gaint shed its lethargy and stood up, fought the war and won.

When Colgate was enjoying its leadership position in the market, HLL successfully entered the market with a googly. It created a new segment with Close- up gel. While using Pepsodent to fight the Colgate Dental Cream (CDC), it created a market for itself with the gel that came in funky colours and excellent advertising.Every marketer has then signed Colgate off saying that it cannot fight with the marketing giant HLL.But colgate struck back with the launch of Colgate fresh energy gel and the famous campaign " TALK TO ME" starring the charming VJ Purab that stole the gel category from HLL . Close up never recovered from that blow.Then the multinational faced the onslaught of regional brands like Ajanta , babool that gave these guys a run for their money by selling toothpaste for ridiculously low price .These regional brands

quickly gained market share from these MNC,s and a lot was written about the rise of regional brands.

Colgate and HLL responded to this threat by coming out with low priced flanking brands. Colgate launched low priced Cibaca to counter the regional brand while HLL had Aim to counter it.The current figures show that the regional brands are finding it difficult to sustain the market share.Colgate' s flagship brand CDC had consistantly positioned itself in the germ fighting platform. It had the famous " suraksha chakra " platform from where it had built its brand to this level. All marketers know that it takes lot of smart thinking to keep the brand alive in a market. So Colgate launched many variants to ward off threats from the niche players and adapt to the changing tastesof the market. For example, it launched the herbal toothpaste when every one talked about the efficacy of herbs. The came the advanced whitening formula to fight the threat from Pepsodent whitening variantThe latest addition is the Colgate with power of active salt. The brand is developed after a careful study on the customers: the company says. Colgate undertook a study of a "day in the life of a customer" that gave lot of inputs about the customer's trigger and touch points.

Channels for Advertising: Television channels, Radio, Newspaper, Magazines, Posters and Journals

PLACE: Colgate-Palmolive Colgate Main Street, (India) Research Hiranandani Limited Centre, Gardens,

Powai, Mumbai - 400 076.

Chairman, President and Chief Executive Officer: Mr. Cook joined Colgate in the United Kingdom in 1976 and progressed through a series of senior management roles around the world. He became Chief Operating Officer in 2004, with responsibility for operations in North America, Europe, Central Europe, Asia and Africa. In

2005, Mr. Cook was promoted to President and Chief Operating Officer, responsible for all Colgate operations worldwide and was promoted to Chief Executive Officer in 2007. Elected director in 2007 and Chairman in January 2009. ANNUAL INCOME: 31-Mar2010 31-Mar2009 31-Mar2008 31-Mar2007

Period Ending Total Revenue Cost of Revenue Gross Profit

20,210,000 17,512,000 15,206,000 13,343,000 8,852,000 7,899,000 6,734,000 8,472,000 6,299,000 7,045,000

11,358,000 9,614,000

Total Operating Expenses Operating Income or Loss Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest

15,470,000 14,182,000 12,332,000 11,040,000 4,740,000 3,331,000 2,874,000 2,303,000

4,740,000 (15,000) 648,000 (15,000)

3,331,000 (15,000) 603,000 (25,000) 2,858,000

2,874,000 (12,000) 693,000 (9,000) 2,358,000

2,303,000 (10,000) 471,000 1,484,000

Net Income From Continuing Ops 4,341,000

Net Income

4,341,000

2,858,000

2,358,000

1,484,000