1. New York Institute Of Technology
14
Components of the
Capstone Project
Colgate-Palmolives
Dima Kleanthi 0899721
Haini Huang 0908285
MRKT 760 Customer Relations and Value Management
Dr. Abram Poczter

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Company Profile
Type: Public
Industry: Personal Care
Founded: 1806
Headquarters: 300 Park Avenue, New York City, New York, United States
Key people: Ian M. Cook – CEO (since 2009), Dennis Hickey – CFO (since 2011)
Revenue: US$ 17.42 billion (2013), US$ 17.085 billion (2012)
Operating Income: US$ 3.556 billion (2013), US$ 3.889 billion (2012)
Net Income: US$ 2.241 billion (2013), US$ 2.472 billion (2012)
Market Cap (mil.): $62,275.85
Employees: 37,700 (2012)
Website: www.colgate.com
Company Perspectives:
Their long history of strong performance comes from the absolute focus on their core global
businesses, combined with a successful worldwide financial strategy. This financial strategy is
designed to increase gross profit margin and reduce costs in order to fund growth initiatives and
generate greater profitability.
History of Colgate-Palmolive Company
When the company was founded by 23-year-old William Colgate in 1806, it only focused on
selling starch, soap, and candles from its New York City-based factory and shop. By entering his
second year of business, Colgate collaborated with Francis Smith, and the company became
Smith and Colgate. The name it kept until 1812 when Colgate purchased Smith’s share of the
company and offered a partnership to his brother, Bowles Colgate. With the name William
Colgate and Company, the firm expanded its manufacturing activities to a Jersey City, New
Jersey, factory in 1820. This factory produced Colgate’s two major products, Windsor toilet
soaps and Pearl starch. Colgate-Palmolive Company’s growth is a result of aggressive
acquisition of other companies, strenuous efforts to overcome 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

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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 Toothpaste Overview:
Colgate Toothpaste has been fighting bad breath and maintaining proper oral health for over 200
years. With an array of 40 different patented toothpastes and 13 classifications of oral care,
Colgate remains competitive in the market place.
Company – Colgate Toothpaste Timeline
 1806: William Colgate starts a starch, soap and candle business on Dutch Street in New
York City,
 1857: Upon the death of founder William Colgate, the company is reorganized as Colgate
& Company under the management of Samuel Colgate, his son,
 1896: Colgate introduces toothpaste in a collapsible tube,
 1911: Colgate distributes two million tubes of toothpaste and toothbrushes to schools,
and provides hygienists to demonstrate tooth brushing,
 1953: Colgate-Palmolive Company becomes company’s official name,
 1956: Colgate opens corporate headquarters at 300 Park Avenue in New York City,
 1968: Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities,
 1996: Bright Smiles, Bright Futures oral health education program expands to 50
countries, and today reaches over 50 million children annually,
 1997: Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market
leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral
health problems,
 2000: Colgate creates, Colgate 2in1 Toothpaste,
 2004: Colgate acquires the GABA oral care business in Europe, with its strength in the
important European pharmacy channel and its ties with dental community,

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 2006: Colgate enters the fast-growing Naturals segment by purchasing Tom’s of Maine, a
leader in that market in the United States
 2007: Colgate launches Colgate Max Fresh toothpaste line,
 2009: Colgate launches Colgate Luminous.
Colgate-Palmolive Slogan
[A slogan is a short, memorable catch phrase, tagline or motto used to identify a product or company in
advertisements.] The advertising slogan, or business slogan for Colgate-Palmolive, is:
"Colgate World of Care."
Colgate-Palmolive Mission and Vision Statement, Goals and Objective
[Mission Statements and Vision Statements are written for customers and employees of corporations. A
Mission Statement can be defined as a sentence or short paragraph written by a company or business
which reflects its core purpose, identity, values and principle business aims. The definition of a Vision
Statement is a sentence or short paragraph providing a broad, aspirational image of the future.]
Colgate – Palmolive Mission Statement (I):
“Colgate-Palmolive's mission to become the best truly global consumer products company. We
are committed to conducting ourselves in a socially responsible manner and to keeping our
business operations environmentally sound. It is our worldwide policy to manufacture and
market our products and operate our facilities so that we comply with or exceed applicable
environmental rules and regulations. The health and safety of our customers, our employees, and
the communities in which we operate must be paramount in all we do”.
Colgate – Palmolive Mission Statement (II):
“To provide Colgate with a significant competitive advantage by reducing total delivered cost,
extending technology resources and developing excellence in purchasing, logistics and sourcing
processes”
Colgate – Palmolive Mission / Vision Statement:
"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."

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Their three fundamental values are part of everything they do, they are the foundation of their
business strategy and are reflected in every aspect of their work.
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.
Global Teamwork: All Colgate people are part of a global team, committed to working
together across countries and throughout the world. 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.
Colgate – Palmolive Goals:
“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”
Colgate – Palmolive Objective:
“Our objective is to live our Managing with Respect principles by fostering an inclusive
workplace that mirrors the diversity of the global marketplace. Such an environment will provide
all Colgate people with the opportunity to make unique contributions to our overall business
success”
SWOT Analysis
 SWOT is an acronym for the internal strength and weakness of a firm and the environmental
opportunities and threats facing the firm,
 SWOT analysis is a widely used technique through which managers create a quick overview of a
company’s strategic situation,

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 The technique is based on the assumptions that an effective strategy derives from a sound “fit”
between a firm’s internal resources (strengths and weakness) and its external situation
(opportunities and threats)
Internal Factors
Strength
- Colgate Dental Cream offers all-around cavity protection, even where a toothbrush
cannot reach,
- It‘s great mint taste freshens breath,
- It protects against root caries,
- It cleans & makes teeth whiter and repairs early decay spots,
- Extremely popular brand and high brand awareness due to advertising,
- Focus on innovative and new product launches,
- Colgate business planning initiative,
- Diversified business operations,
- Strong financial performance
Weaknesses
- A high dependence of the company on a single category i.e. Oral Care,
- Reduction in advertisement expenditure in order to maintain growth,
- Product research,
- Because of high rates of taxes prices are high.
External Factors
Opportunities
- Leverage on the fact that Colgate has been ranked as the most trusted brand in India
from 2003 – 2007,
- Focus on innovation and new product launches by deploying advanced technologies,
- Growth in emerging markets – rural and semi-urban,
- Implementing new products majorly to attract youth.
Threats
- High competition from competitive brands like Pepsodent from HUL,
- Increasing commodity prices for manufacturing
- Political conditions are not stable.

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[Quick] PEST Analysis
[PEST analysis ('Political, Economic, Social and Technological analysis''') describes a framework of
macro-environmental factors used in the environmental scanning component of strategic management. It
is a part of the external analysis when conducting a strategic analysis or doing market research, and gives
an overview of the different macro-environmental factors that the company has to take into consideration.
It is a useful strategic tool for understanding market growth or decline, business position, potential and
direction for operations.]
Political Environment: Every government is willing to impose more taxes in order to gain more
profit. Moreover, the unstable political conditions disrupt the business to operate the ongoing
activities.
Economic Environment: The overall economic growth has remained stable so far, but at the
time of inflation, the change in the interest rate affects the company.
Social Environment: The massive social interactions via communication channels make a huge
contribution to the company’s productivity. Consumers are now more aware about the market
trends and therefore, Colgate caters each market segment keeping in mind the cultural/societal
trends of the consumers.
Technological Environment: The Research and Development department of the company are
committed to improve oral health through the advanced leading-edge technologies. The
technologies are updated on the prevention and treatment of oral diseases.
Marketing Mix
 Product: customer needs and wants,
 Price: cost to satisfy,
 Place: convenience to buy,
 Promotion: communication
Product
Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria. Specifically:
 Toothpaste contains abrasive materials that physically scrub away plaque. In addition,
toothpaste abrasives help remove food stains from teeth and polish tooth surfaces,

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 Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel
weakened by acid attack, making it more resistant to future acid attack from plaque
bacteria and food,
 Technological improvements in some toothpaste contain ingredients that chemically
hinder the growth of plaque.
Colgate’s brands consist of a multitude of unique toothpastes lines, specializing in the
preservation and treatment of oral hygiene. Colgate has created an array of 40 different patented
toothpastes keeping Colgate competitive in the market place. There are 13 different
classifications and varieties of Colgate toothpastes. Colgate’s toothpastes feature; cavity
protection, plaque & gingivitis prevention, long lasting fresh breath, tartar control toothpastes,
tooth whitening, baking soda and peroxide, enamel strengthening, sensitivity relief and
toothpaste designed for children.
Various Types of Colgate: Colgate Regular, Colgate Tartar Control Toothpaste, Colgate Total,
Colgate Total Advanced Whitening, Colgate Total Advanced Clean, Colgate Total Advanced
Fresh Gel, Colgate Total Clean Mint Pate, Colgate Total Mint Stripe Gel, Colgate Oxygen
Bubbles Toothpaste, Colgate 2in1 Toothpastes, Colgate Sparkling White Toothpaste, Colgate
Sensitive Multi Protection, Colgate Pro Clinical, Colgate Max White with mini Bright Strips,
Colgate Max Fresh with Mini Breath Strips, Colgate Max Fresh with Mouthwash Beads, Colgate
Dora the Explorer Mild Bubble Fruit, Colgate SpongeBob Mild Bubble Fruit, Colgate My first
Toothpaste, Colgate Pop Stars, Colgate Luminous.
Price
Colgate features products in the oral health isle of almost all stores carrying oral health products.
Colgate usually has a large shelf space that illustrates the wealth of variety Colgate offers. The
subtotal of all of Colgate’s products per ounce is 28.58 equaling $0.81 per ounce, making it the
most expensive brand of many toothpaste category leaders. The most expensive toothpaste per
ounce is the Colgate Pro Clinical while the least expensive toothpaste per ounce is the Colgate
Regular super tube.

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Place
Colgate’s product distribution is immense. Colgate toothpastes are available at every
convenience place to facilitate its customers. So, customer purchases it with a very little
shopping effort. Colgate use different channel (retailers and wholesalers) to search and delivers
the prospective customers. Colgate use the distribution channel which is very efficient, effective
and which is not only meets customer needs but also provide them the valuable services.
Almost all super markets, discount chains and pharmacies such as Wal-Mart, Albertsons, Target,
Walgreens and CVS carry Colgate Toothpaste. Colgate toothpaste is physically located in the
oral health isle of stores and it can sometimes be found in more prominent locations when on
sale or launching new products into the market.
Promotion
 Website: Colgate has a dynamic website with the title, “Colgate World of Care,” that
details products, oral care, company history, e-newsletter and special offers. The website
also has a social networking page called Colgate Smile to engage the consumer to get
involved with their oral health and the Colgate-Palmolive Company. Colgate also has
social media pages on Facebook and Twitter.
 Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers
section of the website. Colgate coupons can also be found as cutouts in the weekend
coupon sections of 500+ newspapers around the country.
 Television: Colgate and its advertising agency produce several television advertisements
a year using humor and pseudo-scientific displays to appeal to consumers.
 Magazines/Outdoor: Colgate’s marketing campaigns have been known to use historical,
sexual, cultural and social inferences in their advertisements.
 Donations: Colgate donates millions of dollars annually to the ADA’s “Give a Kid A
Smile.” Colgate is a direct partner with this ADA program.

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STP Analysis
Segmentation
 Colgate’s market segmentation is very broad because all their products are of need to
most people so those people share a similar interest in product needs.
 Colgate uses a segmentation bases by knowing that certain groups of people need Colgate
toothpaste for a specific similar reason like yellow teeth, sensitive teeth or just teeth with
cavities.
 Colgate also uses the family life cycle because they make toothpaste that could be used
for grownups and children.
 Also, toothpastes are made to attract young children with cartoon characters and different
tastes and are less strong so that it would not damage their gums.
Targeting
Everyone who brushes their teeth are considered a target market for Colgate-Palmolive
Company. However for different sorts of consumers it has developed different toothpastes with
different characteristics. For example:
 MAX FRESH: Colgate targets youth with the introduction of this toothpaste, as this helps
in refreshes breath,
 ACTIVE SALT: Elder people are targeted in this segment as it makes teeth stronger and
provides protection from cavities,
 COLGATE TOTAL: Colgate Total contains the anti- microbial ingredient triclosan,
which reduces the number of bacteria that cause gingivitis, cavities and halitosis
Basically it is for kids but mothers are targeted as they are very concerned about their
kids.
 COLGATE SENSITIVE: People who have sensitive teeth are targeted in this segment
who have problem in their gums.
 KIDS TOOTHPASTE: Often small children do not like to brush teeth, so for them this
toothpaste was launched. Colgate had focused on taste aspect to encourage kids to brush
teeth.

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 COLGATE WHITENNING – A whitening toothpaste that is "Clinically-proven to
whiten in 14 days”. Its whitening ingredient is hydrogen peroxide, which gradually
bleaches the teeth. Focus is given on group of customers in this segment those who are
already suffering from plaque in their teeth.
 COLGATE 2in1: People who want both strongest and fresh breath are targeted.
Positioning
 Colgate dental cream positions itself as toothpaste that has the necessary calcium and
minerals to provide decay protection, strong teeth, germ protection and fresher breath.
 Colgate positioned several toothpaste so that people would like the products more like
adding a different style or taste to the toothpaste.
 Colgate repositions their products because with the way they market and promote their
products, consumers know that these products are way better than other brands and
competition that is out there.
 Lately with competition from indigenous “vegetarian” toothpastes, Colgate dental cream
has also positioned itself as an “always 100% vegetarian” toothpaste. The tagline of its
advertisements, “trusted by generations to make teeth stronger".
 Colgate total12 have been projected as the “most advanced toothpaste” that provide 12 hr
germ protection even after eating and drinking by building a protective shield around the
teeth.
 Colgate Max Fresh positions itself on the basis of “freshness”. The tagline “new
dimensions brings” home this very point.
 Colgate kids toothpaste tries to position itself based on emotions which is apparent in its
tagline “makes fighting cavities fun”.
Competitive Advantages Broad Scope
In order for a company to compete with success in the toothpaste products market, it must
implement both a cost and differentiation leadership strategy. To begin with, companies within
the personal care industry, in order to effectively and essentially use and promote a cost
leadership strategy, have to emerge as a cost leader. Via economies of scale and control of the
low input costs, companies, in our case Colgate-Palmolive, are able to effectively integrate a cost
leadership strategy. Yet, being a cost leader is not always enough as the industry requires

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differentiation of product, which focuses on product innovations, brand recognition, research and
development. With these strategies firms are able to compete and maintain a competitive
advantage against its competitors. Moreover, implementing these characteristics helps to the
overall objective to maintain a better value chain in comparison to competitors.
Competitive Advantage Analysis for Colgate
“Product quality and innovation, brand recognition, marketing capability and acceptance of new
products largely determine success in the Company’s business segments.” (2013 10-K pg. 2)
Product quality for toothpaste is necessary because of the high competition between companies.
In order to effectively promote products, Colgate Company has to focus on improving the
quality, otherwise it may lose customers and market share. For Colgate, quality plays an
important role in adding value to the firm and has as a result an increase in gross profit margin.
Economies of scale: Colgate-Palmolive promotes what they refer to as a supplier
diversity team. They have this team in order to meet investor’s expectations for quality, speed,
innovations and cost effectiveness. Lower costs would boost company's growth. This would
allow Colgate to lower their prices and claim a larger market share. It would also reduce the
threat of new entrants into the toothpaste industry since new companies will not be able to
compete with low prices. This team also seeks to gain supplier relations with small businesses,
so they can have higher growth in the company and also higher funding for growth. Last but not
least, Colgate tries not only to make the product variety better, but also to make a simpler
product design which would reduce the input cost of the product as well.
Lower input costs: Colgate makes efforts to lower its input costs, in order to have a
competitive advantage over the industry. It tries that by being innovative with their product
designs and by utilizing its assets. Companies in the same industry often have the same suppliers,
thus it would be hard to cut costs in that area. However Colgate tries to find new suppliers that
might not be as big, but offer a lower price.
Product innovation: Product innovation also plays a role to the overall firm’s value and
thus Colgate Company invests a lot of money for research and development. Furthermore,
Colgate’s investments in research and development have increased over the past three years.
According to Colgate’s 2013 10-K, "the Company’s spending related to research and
development activities was $267 million in 2013, $259 million in 2012 and $262 million in
2011." In addition, having always in mind customer's needs and wants, contribute to the overall

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profitability of the firm. Also, Colgate-Palmolive has to focus on developing and funding
technological innovations (Colgate-Palmolive 2013 10-k). This element allows for a competing
strategy towards everyone else in the market and provides additional value to Colgate’s
underlying key success factors.
Brand recognition: With retailer’s strength in bargaining power, Colgate-Palmolive has
to increase brand recognition so they can maintain positive and good relationships with retailers.
The company can do that by applying marketing strategies through effective advertising.
Marketing strategies such as advertising or introducing a new product to regain attention from
the consumers is considered almost as an investment to the Company by helping increase net
sales.
Colgate Toothpaste Key Attributes
Brushing with Colgate toothpaste is one simple step everyone can incorporate into his daily
routine to help keep his mouth healthy, and it can have a positive effect on his overall health. But
what do customers see as key attributes of the Colgate toothpaste? After in depth interviews of
Colgate's management and a small sample of customers below you can find the main stated
attributes of the product:
 strengthens enamel  fights bad breath
 fights cavities  prevents tooth decay
 reduce plaque  prestige of brand
 protects against tartar build-up  reliable product
 helps prevent tender gums  good price
 reduces gingivitis  American Dental Association
recommendation
 leaves nice taste in mouth  attractive packing
 whitens teeth  variety of product
 remove stains (tobacco use,
consumption of dark-colored liquids,
aging)
Questions and scales based on the findings of the interviews

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Q1. Which is your favorite brand of toothpaste?
o Colgate
o Sensodyne
o Aqua fresh
o Oral B
o Other (specify) __________
Q2. Which factors attract you during a purchase of a toothpaste?
o Quality
o Packing
o Flavor
o Price
Q3. What do you prefer to buy in general?
o Paste variety
o Gel variety
o Pump variety
Q4. What are preferences toward ingredients present in your toothpaste?
o Abrasives
o Fluoride
o Anti-bacterial agents
o Colors
o Foaming agents
o Other (specify) __________
Q5. Which brand of Colgate toothpaste did you most recently purchase?
_____________________________________________________
Q6. Please rate the following sources of information in terms of importance when purchasing
Colgate toothpaste
Not important Somewhat important Important
In-store advertising o o o
Advertisements seen outside of shops o o o
Memories of previous toothpaste purchases o o o
Information of packing o o o
Staff o o o
Friend or family o o o
Professional advice i.e. dentist or doctor o o o
Q7. Please rate Colgate on the following attributes on a scale of 1-7 (with being the highest)

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1 2 3 4 5 6 7
strengthens enamel o o o o o o o
fights cavities o o o o o o o
reduce plaque o o o o o o o
protects against tartar
build-up
o o o o o o o
helps prevent tender
gums
o o o o o o o
reduces gingivitis o o o o o o o
leaves nice taste in
mouth
o o o o o o o
whitens teeth o o o o o o o
remove stains
(tobacco use,
consumption of dark-
colored liquids,
aging)
o o o o o o o
Strong teeth o o o o o o o
Fresh breath all day o o o o o o o
Tastes good o o o o o o o
Price o o o o o o o
Familiar brand that
you have used before
o o o o o o o
Packing o o o o o o o
Q8. Do you use coupons when you purchase a Colgate toothpaste?
o Yes
o Yes, but only sometimes
o Rarely, as the prices are already good
Q9. How satisfied were you in terms of product effectiveness the last time you used Colgate
toothpaste?
Very dissatisfied Dissatisfied Not sure Satisfied Very Satisfied
Please select
level of
satisfaction
o o o o o
Q10. Have you ever had any side-effect using a particular product of Colgate?

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o Yes (specify) __________
o No
Q11. What do you think results in healthier teeth?
o The number of times one brushes his teeth
o The manner in which one brushes his teeth
Q12. How often do you use Colgate toothpaste?
o Not at all
o Once a day
o Twice a day
o More than three times a day
Q13. Does Colgate toothpaste usually meet your expectations?
o Yes
o No
o Not always
Q14. Overall, how satisfied are you with Colgate products?
o Not at all satisfied
o Somewhat satisfied
o Satisfied
o Very satisfied
o Delighted
Q15. Have you ever contacted customer service?
o Yes
o No
Q16. If you contracted Colgate’s customer service, have all problems been resolved to your
complete satisfaction?
o Yes, by representatives
o No, the problem was not resolved
Q17. Based on your awareness of Colgate toothpaste, is it better, the same, or worse than other
brands?
o Much better
o Better

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o About the same
o Worse
o Much worse
Q17. Based on your experience with Colgate’s products, how likely are you to buy them again?
o Definitely will
o Probably will
o Might or might not
o Probably will not
o Definitely will not
Q18. Based on your experience, would you recommend these products to a friend?
o Definitely will
o Probably will
o Might or might not
o Probably will not
o Definitely will not
Questions and scales based on the finding of loyalty
1. How well do you feel that Colgate Company satisfies your needs?
o Extremely well
o Quite well
o Moderately well
o Slightly well
o Not at all well
2. Compared to our competitors, is Colgate toothpaste and related products quality better,
worse, or about the same?
o A great deal better
o Somewhat better
o About the same
o Somewhat worse
o A great deal worse
o Don’t know
3. Compared to our competitors, such as, Crest, are our prices higher, lower, or about the
same?
o A great deal better
o Somewhat better

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o About the same
o Somewhat worse
o A great deal worse
o Don’t know
4. Do you like Colgate Company?
o Like a great deal
o Like a moderate amount
o Like a little
o Neither like nor dislike
o Dislike a little
o Dislike a moderate amount
o Dislike a great deal
5. How well did our customer service representative answer your question?
o Extremely well
o Quite well
o Moderately well
o Slightly well
o Not at all well
6. How well did you feel our customer representative understand your questions?
o Extremely well
o Quite well
o Moderately well
o Slightly well
o Not at all well
7. Are we responsive to your questions or concerns about our product?
o Extremely responsive
o Quite responsive
o Moderately responsive
o Slightly responsive
o Not at all responsive
8. How knowledgeable do you think of our customer representative?
o Extremely knowledgeable
o Quite knowledgeable
o Moderately knowledgeable
o Slightly knowledgeable
o Not at all knowledgeable

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9. Was your experience with customer service at Colgate Company better than you expected
it to be?
o A great deal better
o Quite a bit better
o Somewhat better
o About what was expected
o Somewhat worse
o Quite a bit worse
10. How likely is it that you would recommend Colgate toothpaste, toothbrush, and other
products to a friend or colleague?
o Very likely
o Somewhat Likely
o Neutral
o Somewhat unlikely
o Very unlikely
Questions and scales based on FRM
1. How often do you purchase from Colgate?
o Often
o Sometimes
o Never
o Do not know
2. How many times in a year do you use Colgate toothpastes or other related products?
o Less than 5 times
o 5-10 times
o More than 10 times
o Never used
3. When was the last time you purchased Colgate products?
o Less than three months ago
o Three months to less than a year ago
o One year ago or longer
o Never
4. If Colgate toothpastes or other related products were available today, how likely would
you be to buy this product?
o Extremely likely

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o Very likely
o Moderately likely
o Slightly likely
o Not at all likely
5. How likely are you to use our Colgate toothpastes or other related products again?
o Extremely likely
o Very likely
o Moderately likely
o Slightly likely
o Not at all likely
6. How competitive do you find the prices at this store?
o Very Competitive
o Somewhat Competitive
o Not Very Competitive
o Not At All Competitive
o Do not know
7. What is your annual income?
o Less than 10,000
o 10,000-30,000
o 30,000-50,000
o 50,000-70,000
o More than 70,000
8. How much money, in U.S. dollars, do you spend on Colgate products in a typical month?
o Less than 10
o 10-20
o 20-30
o More than 30
o None
Survey Analysis and Recommendation:
Sample size:
The survey was carried out through levels of the customers and the sample size was 30.
Tool used:
The analysis is based on the survey results in the simple percentage format.
Customer classification system

21. Huang & Dima 20
Analysis:
The customers who are mercenaries are those are price conscious, they do not look at the quality,
customer service, and the function of the Colgate products, not to say the brand name; they only
focus on the price, if they notice the low prices of toothpaste or related products from other
companies, and they will immediately switch to that brand. From the above survey results, there
are 20% of respondents are Mercenary, which indicates that these six people purchased Colgate
products because of Colgate’s’ low prices and regardless the Colgate’s toothpaste’s and its
related products’ quality, functions, and other.
The customers who are loyalists are those like Colgate brand, its products, its quality, and
they are likely to recommend Colgate to their friends and relatives. From the above, there are
50% respondents are Colgate’s loyal customers, they are very satisfied with Colgate’s brand,
products, service, quality, and so on. They are the important ones for Colgate Company.
The customers who are hostages are those have limited choices on toothpastes or related
products. There are some possible reasons why they become hostages of the Colgate Company
in the current oral product industry, such as, according to their income, Colgate is the lowest
price in the toothpaste market of their countries, and if they switch to other products, they will
pay more.
The customers who are terrorists are those who dislike Colgate products and they spread
negative comments on Colgate products. From the above chart, there are 29% of total

22. Huang & Dima 21
respondents dislike Colgate, they might think Colgate ingredients are unsafe, therefore, they do
not like the company because of its irresponsibility to the society; maybe Colgate products have
brought side effects to them, and so on. Every business has terrorists, nobody can stop their
negative emotions toward the products, but themselves, therefore, Colgate just needs to be nice
to them.
Early recovery system
The Early recovery system helps to prevent problems before the problems inevitably occur.
Therefore, the customer service needs to resolve the immediate issue for the customer, and
address the underlying cause of the problem. From the above analysis, Colgate Company is
unable to attract its Terrorist customers; however, Colgate can improve its products, services, or
even make an adjustment in prices to covert its mercenary, hostage customers to its loyal
customers. In order to do so, the company needs to first contact customers who are not satisfied
with Colgate prices, product features, or other, and find out the root of the problems and make
improvements. From the survey, there are 10 out of 30 respondents are not satisfied with
Colgate toothpaste’s features, some thought Colgate toothpaste needs to have more flavor
choices, some thought Colgate needs to add new features. For instance, the Colgate 360 optic
whitening has good whitening attribute, however, sometimes it irritated the gum, therefore, if
Colgate 360 optic whitening add an attribute that can alleviate their discomfort, they will be
100% satisfied, hence, become loyal customers to Colgate.
In other words, customer is the king, if Colgate’s customer service department can keep
good connections with its customers, give immediate attention to those show unsatisfied
emotions, communicate with them to find out their concerns, and improve the future products
and service based on their requirements, the Colgate Company should be more successful.
Development of an appropriate “house of quality”
House of quality is one of the tools of QFD. It is a graphic technique for defining the
relationship between customer’s voice (their needs and wants) and the product. There are six
steps of building a “house of quality.”

23. Huang & Dima 22
The first step of building a “house of quality” is to identify customers’ wants and needs.
From the survey, customers want to have a toothpaste that has anti-bacterial and whitening
function, has cheaper price, more flavors.
Here, according to customers’ demand, we have determined these important ratings (out of 4)
Antibacterial It is the first that a customer
demands in any toothpaste.
Consequently, the toothpaste
must contain this function.
1
Whitening It is the least important
because some customers are
very health conscious; they do
not like toothpastes because
the whitening function was
made of chemicals.
4
Cheaper price It is the second most important
factor according to the survey.
Toothpaste is the necessity;
customers always tend to
purchase such merchandise
that have low monetary value.
2
More flavor People can get tired of one
flavor easily, it is important to
add more flavors to the
toothpastes to attract
customers, to make their
toothbrush time more
enjoyable.
3
Second step is to identify how the product will satisfy customers’ wants. In this step, we
need to add customers’ expectations. Colgate Company will provide toothpaste that has
strawberry, apple, bubble gum flavors; it has anti-bacterial function that made of herbal
ingredients; it has a whitening function that made of strawberry and lemon. Third step is to
identify relations between “hows”, many attributes are related to each other. Therefore, we use a
black dot to connect two attributes. Forth step is to find out the importance ratings, we
determined the important ratings by multiplying the customers’ wants and “hows.” In the fifth
step, we need to find out the competitors’ ratings; in this case, we use Crest and Sensodye as
Colgate’s competitors. The last step is to determine the technical attributes and checking our
performance with products in the same market.

24. Huang & Dima 23
Integrating with production, promotion, and cost the improvements
In order to improve the sales of Colgate toothpaste and its related products, first, the company
needs to follow the principle of “Kaizi,” during the production process, to continuously improve
its products’ quality and create more attributes to retain and attract customers. In this procedure,
Colgate needs to hire new engineers and purchase new equipment. Second, the Colgate
company needs to use good promotion approaches to keep customers’ brand awareness and
improve the brand reputation. Good promotion approaches always involve high costs; therefore,
how to avoid the costs is crucial to Colgate’s development.
Since toothpastes are necessity for people’s daily life, from the survey, not too many
respondents are price-sensitive to Colgate toothpastes; hence, the mass production is a good

25. Huang & Dima 24
choice to increase the company’s supply, and ultimately generate more revenue. The amount
increases in sales can offset the costs that occurred from the advertisement, the product
improves. Hence, Colgate cannot only save cost of product improvements, but also effectively
increases its sales.
Incorporating product/service improvements into value chain
Porter’s value chain consists of five parts; they are inbound logistics, operations, outbound
logistics, marketing and sales, and service. They are shown in the following:
Inbound
logistics:
Colgate
receives raw
materials
from its
suppliers and
they deliver
to Colgate
Company as
required
Operations/fin
al products:
The process
of Colgate
transforming
the raw
materials into
finished
toothpastes
that created
by creative
engineers and
advanced
equipment
Outbound
logistics:
Once Colgate
finished the
products
production,
they will sell
toothpastes
through
different
selling
distributions.
Marketing
and sales:
To attract
more
customers,
Colgate can
add its real
customer’s
testimonials
and offer
coupons.
Service:
Colgate’s
customer
service
must
connect
with
customers
to hear
their
voices, it
can find
out the
merits and
drawbacks
of the
products.
Infrastructure
Human resource management
Technologydevelopment
Purchasing

26. Huang & Dima 25
Extension to new domestic and international market segments
Colgate is a well-known personal care brand, which focus on producing toothpastes. In order to
expand its domestic market and international market, the company first needs to find their target
market segment, such as, toothpaste for children. Second, company needs to know what kinds of
toothpastes or products, customers desire, the company can find out these answers by using
surveys and feedbacks from parents or dentists. Third, create a unique value proposition, in this
case, the company needs to produce a kid’s toothpaste, which should be safe to swallow, good
flavor, and contains organic ingredients, the function of this toothpaste is to prevent children’s
tooth decay. Last, determine the sales and distribution channels. In the domestic market
segment, the company can sell products directly from the factory because the U.S. customers are
familiar with Colgate products. In the international market segment, where customers are not
familiar with Colgate, it is important to use celebrity endorsements and other promotional
approaches that are suitable to the culture and new market and therefore, attract customers.
Conclusion:
In this project, we have discussed and analyzed Colgate- Palmolive Company by giving the
strategic view, the tactical view, and survey analysis. By working on this project, we have
understood that customer is the king and improvement is the key to the company’s prosperity.
Therefore, a successful company should always have high customer involvement, understand
customers’ desires through surveys, research, and direct interviews; based on the information
received from the customers, the company needs to improve its existing products and create new
products, to either attract customers, or to compete with the competitors.
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27. Huang & Dima 26
"COLGATE PALMOLIVE CO 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States
Securities and Exchange Commission. April 25, 2014,
"Colgate-Palmolive, Form 10-K, Annual Report, Filing Date Feb 21, 2013", secdatabase.com.
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