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Colgate-Palmolive SWOT and PESTLE Analysis

ID : 52320353| Jan 2020

COMPANY PROFILE -Colgate-Palmolive

Business Sector :FMCG (Fast Moving Consumer Goods)

Operating Geography :United States, Global

About Colgate-Palmolive :

Colgate-Palmolive is a global Fast Moving Consumer Goods (FMCG) company which started in New York City with a small soap and candle business by William Colgate in 1806. Colgate manufactures and markets oral care, personal care, home care and pet nutrition products. The company is mainly known as a global manufacturer of toothpaste with a global market share of 40% under its control. Its headquarters are located in Midtown Manhattan, New York City. The company merged with Palmolive-Peet in 1928 and took on the name of Colgate-Palmolive-Peet which was later shortened to Colgate-Palmolive in 1953.
The company currently operates in over 80 countries with products being sold in around 200 countries. Approximately 75% of the company revenue is generated from sales outside the US with the majority being sourced from emerging markets of Latin America, Asia, Eurasia, Africa and Central Europe.
Colgate-Palmolive acquired PCA Skin and Elta MD in 2018 in order to step into the professional skin care segment. It made another major acquisition in 2019 by buying the French skin care company Laboratoires Filorga for a price of $1.7 billion. This deal is an important step as it will propel the company into the premium personal care product segment.
According to Colgate, its three fundamental values – Caring, Global Teamwork and Continuous Improvement – are part of everything it does. The mission statement of the company reads, “As a Company that strives to be the best truly global consumer products company, we are committed to doing business with integrity and respect for all people and for the world around us and Continuous Improvement will continue to drive our future initiatives.” The company has a workforce of around 34,500 employees as per early 2019 records.

Colgate-Palmolive Revenue :

US$15.50 billion - FY ended December 31, 2018 (y-o-y growth negligible)
US$15.45 billion - FY ended December 31, 2017 (y-o-y growth of 1.5%)
US$15.19 billion - FY ended December 31, 2016

Competitive Analysis of Colgate-Palmolive

The SWOT analysis of Colgate-Palmolive is presented below:
1. Global diversified presence with popular brands
2. Strong consumer engagement
3. Continuous innovation for growth
4. Strong Research and Development
1. Saturated market
2. Dependency on a single product category
1. Potential in emerging markets
2. Mergers, Acquisitions and Divestitures
1. Global and local competitors
2. Foreign currency fluctuations
3. Threat from counterfeit products
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Detailed SWOT Analysis of Colgate-Palmolive


1. Strong Engagement: Engaging customers is the key ingredient in the growth strategy for Colgate-Palmolive. The company is strengthening its engagement through digital media and it accounts for 20%-25% of the working media expenditure. The company knows it well through its research that emotional connection with the consumers has a strong impact on them. One of the examples of a social media video campaign is the Tom’s of Maine brands in the U.S. In this campaign, women shared a video of why and when they decided to switch to Tom’s natural deodorant. This led to increase in the sales of Tom’s of Marine brand by 12% in 2016.

2. Strong Popular Brands: The Company has internationally recognized brands and did worldwide net sales of 47%, 20%, 18% and 15% in oral care, personal care, home care and pet nutrition respectively by the end of 2016.Colgate is a market leader in many product categories of personal care. It is a global leader in liquid hand soap which it sells under the Softsoap, Palmolive and Protex brands.

3. Innovation for Growth: The Company invests in innovations to identify how well they can serve the needs of the customers from different geographies and culture. They launched Colgate Naturals toothpaste with twin lotus flower in China and Colgate CibacaVedshakti toothpaste in India, knowing that a section of consumers value the natural ingredients.

4. Strong Research and development: Colgate-Palmolive has a state-of-the-art research and development centre in New Jersey. The company spent $289million in 2016, higher than the previous two years. The Colgate Technology centre with a team of more than 200 scientists, engineers and clinicians is committed to improve oral health with advance-edge technologies. It also has laboratories, on-site consumer testing site where visitors from the areas of different geographies and dentistry meet the scientists. They discuss products, experience, needs and technologies to improve the oral health and quality of life of the patients.


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Check Out Analysis of Other Relevant Companies

References used in Colgate-Palmolive Analysis Report

1. Colgate-Palmolive Company 2018 Annual Report -

2. Colgate-Palmolive Company 2017 Annual Report -

3. Colgate-Palmolive company profile -

4. Colgate-Palmolive Company website -

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Colgate-Palmolive SWOT and PESTLE Analysis - SWOT & PESTLE.COM

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In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Colgate-Palmolive SWOT and PESTLE analysis has been conducted by Dhammapriya Kamble and reviewed by senior analysts from Barakaat Consulting.

Copyright of Colgate-Palmolive SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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