NAME : MIDHAT ARIF

CLASS: MBA (MKT) 2.5

COURSE: STRATEGIC
MANAGEMENT
COURSE CODE: 621
 COLGATE PALMOLIVE
Colgate-Palmolive Company is an American multinational consumer products company
headquartered on Park Avenue in Midtown Manhattan, New York City. The company
specializes in the production, distribution, and provision of household, health care,
personal care, and veterinary products

COLGATE VISION STATEMENT

Colgate vision statement focuses on how Colgate is a caring and innovative company that keeps
the future of pets, people, and the planet in mind. Thus, they leverage the power and science to
build a brighter future for their consumer. For this, they have planned a sustainable and social
impact goal for 2025, which includes three ambitions focused on the SMILE Strategy i.e. S
(Social Impact), MILE (Millions), and E (Environment).

 Driving Social Impact – For this, the company aims to work for its people and
build a culture of inclusion where everyone who is capable would be treated at par
with each other. Also, the company wants to create useful jobs, education, and
business opportunities for people to succeed.
 Helping Millions of Homes – To help people, Colgate aims to educate people about
healthy habits relating to personal care, home care, and pet nutrition. The company
runs holistic well-being programs as well.
 Protecting the Environment – The company wants to achieve this by reducing its
environmental impact. For this, they encourage saving water, decrease plastic usage,
a zero-waste approach, and conserving nature. As mentioned in “Building a Future
to Smile About, Report 2019“, Colgate-Palmolive’s manufacturing units have
reduced carbon dioxide emissions by 30%, reduced the use of energy by 30%, and
reduced water usage by 50%.

COLGATE MISSION STATEMENT

Colgate-Palmolive’s mission is “To become the best truly global consumer products company.”

Each member of Colgate lives by this mission and ensures providing outstanding products and
customers service to its customers. The company is not only committed to values like integrity
and respect but also aims at improving the community and environment. Let us understand the
key components of Colgate mission statement.
Bright, confident smile: Colgate provides the best products to its customers so that they smile
more confidently. The company focuses on creating products for a healthier life. Healthy smiles
are important as they mean good health and reflect optimism. As the company is encouraging
optimism not only among its consumers but also among its people and partners. The company is
also optimistic about working every day for a healthier planet and smiles.
Power of Optimism: The Company very strongly believes in the power of optimism and how it
can result in significant changes in each one of us and the planet as well. To spread the message
of optimism, the company has involved many intellectual personalities, psychologists, and
people of the Gen Z community.
Better oral health: Colgate has always ensured providing its people with the best-formulated
vegan products. The company has maintained complete transparency when it comes to the
ingredients and components of its products. It also uses sustainable packaging.
Values and Sustainability: Colgate-Palmolive is dedicated to running its operation with
integrity, honesty, and respect while focusing on sustainability. The company understands the
importance of its consumers, business partners, community, shareholders in its growth and
success. So, they continuously work to improve employees’ health and provide a safe
environment to work.
Performance-oriented: This is yet another key area on which Colgate focuses upon. Every
partner of the Colgate Company is committed to the improvement of the business with
innovation. Also, they strive to provide a sustainable product that makes a difference in the
consumer’s lives.
Caring for Planet: Colgate focuses on creating a healthy and cleaner environment because it is
the wise approach considering the current situation and also because it makes good business
sense. The company strives to achieve the goal by promoting renewable energy and reduce
harmful gas emissions. Moreover, it also reduces manufacturing energy, contributes to a zero-
waste approach, and partners with the local organizations.

INCORPORATION OF COLGATE IN PAKISTAN

Colgate-Palmolive Pakistan (PSX: COLG) was incorporated in 1977. The name of the company
back then was National Detergents Limited. In 1990, the name was changed to Colgate-
Palmolive Pakistan when Colgate-Palmolive USA acquired 30 percent shareholding in the
company. Currently the company is one of the top manufacturers of personal care and consumer
products in Pakistan.

The history of the company starts with launching of 'Brite' in 1981 and 'Express Powder' in 1983.
After the licensing agreement with Colgate-Palmolive USA in 1985 products such as 'Max
Dishwash', 'Palmolive' Soap were launched. Toothpaste manufacturing was launched in 1988 and
subsequently 'Colgate' toothpaste was produced for the Pakistani market.

The company launched 'Bonus' detergent powder in 1992 targeted towards the middle-class. This
detergent has gone on to become one of the best-selling detergents in Pakistan.

Colgate-Palmolive Pakistan is part of the Lakson Group which is one of the biggest groups in
Pakistan with presence in various industries. The group includes companies like Century Paper,
Century Insurance, Lakson Investments.

Historical Performance Over the year Colgate-Palmolive Pakistan has shown excellent growth.
The company achieved its first billion rupees sales in 1996, crossed 5 billion rupees in 2006 and
hit the 20 billion rupees mark in 2012. From 2003 to 20013 gross sales CAGR of the company
was 20 percent. At the end of FY2015, the company crossed 30 billion rupees in gross sales.

During the last five years, the company has improved on all metrics. Expenditure on in-store
promotion, advertisements and the distribution network has been regulated which has translated
into revenue growth and customer retention. During FY13 the company's financial had a slow
year because of exchange rate surge which resulted in gross margin decline as price of raw
material went up.

In FY14, as the exchange rate stabilized, the performance of the company got back on track. The
competition in the soap market increased as imported products started to hit the stories which
meant that market share of Palmolive, the flagship soap product of the company, market share
went down. Imported soaps pricing was quite lower and it put pressure on the company to reduce
its prices as well. On the other hand, toothpaste segment maintained its leadership position in the
market.

In FY15 and FY16, the sales of the company grew but not at the same pace. The law of large
numbers and high base caught up with the financials. Also, competition in all the segments
increased tremendously. During these years, home care and personal care segments saw many
infiltrate the Pakistani market. The company was able to increase its gross margins in such an
intense competition phase because of prior investment in plant and machinery.

HISTORY OF COLGATE PALMOLIVE’S EXISTANCE:

Colgate-Palmolive’s history traces back to the early 19th century when William Colgate,
a soap and candle maker, began selling his wares in New York City under the name William
Colgate & Company. After his death in 1857, the company was run by his son, Samuel Colgate,
under the new name Colgate & Company. In 1890 Madison University in Hamilton, N.Y., was
renamed Colgate University in recognition of the Colgate family’s longtime financial support.
The current corporate name was adopted in 1953.

Colgate & Company sold the first toothpaste in a tube, Colgate’s Ribbon Dental Cream, in 1896.
In 1928 the firm was bought by Palmolive-Peet Company, whose founder, B.J. Johnson, had
developed the formula for Palmolive soap in 1898. At the turn of the 20th century, Palmolive—
which contained both palm and olive oils—was the world’s best-selling soap.

In 1955 Colgate-Palmolive lost its number-one ranking in the toothpaste market when the rival
consumer-goods manufacturer Procter & Gamble Co. began selling Crest, the first toothpaste
with fluoride. Colgate-Palmolive added MFP fluoride (sodium monofluorophosphate), an enamel
strengthener and cavity reducer, to its toothpaste in 1968. Colgate Total, a line of toothpaste
designed to protect against a number of conditions including gingivitis, was introduced in Europe
in 1992 and in the United States in 1997.
In addition to toothpaste, Colgate-Palmolive manufactured a number of successful personal-care
and household products in the United States and other countries, including Palmolive
dishwashing liquid and Irish Spring bar soap. The firm’s acquisition of a variety of companies
from the 1960s onward enabled it to expand both its market share and its product lines in the
United States, Latin America, Europe, and East Asia. In 1976 Colgate-Palmolive acquired Hill’s
Pet Nutrition, a worldwide leader in veterinary and pet-nutrition products, and in 1987 it
purchased Softsoap liquid soap. From the 1990s Colgate-Palmolive was a major producer of all-
purpose cleaners, wipes, and sprays.
After years of criticism and boycotts by animal-rights groups, Colgate-Palmolive established a
moratorium on animal testing for its adult personal-care products in 1999. Major product
categories remain toothpastes and mouthwashes, toothbrushes, deodorants, bar soaps and liquid
soaps, dish soaps and dishwasher detergents, floor- and surface-cleaning products, and pet food.