A Report covering wide aspects on Fast Moving Consumer Goods Industry along with Colgate Palmolive a Global Giant and leader in oral & homecare segments. Follow on LinkedIn: https://www.linkedin.com/in/rabneet-sharma For more such information. I hope you find this report useful!

1. FINAL PROJECT
Rabneet Sharma

2. SECTOR INFORMATION
FMCG is the 4th largest sector in the Indian economy, The FMCG
sector in India is expected to advance to US$ 103.7 billion in 2020
from US$ 68.38 billion in FY18.
Source- AC Nielsen

3. Growth pattern observed – last 5 years
Indian FMCG sector is forecasted to
report revenue growth of around 11-12 per
cent.
In the last few years, the FMCG market
has grown at a faster pace in rural India
compared with urban India.
Asia pacific segment dominates the global
FMCG market and expected to retain its
dominance.Source- AC Nielsen

4. Threat of New Entrants – L
Resistance is low
Huge Investments
Complex Industry Structure
Bargaining Power of Buyers – H
Low Switching Cost
Influential Marketing
Similar Alternatives
Suppliers Bargaining Power- L
NO Monopoly
Big Players Dictate Price
Threat of Substitutes – H
Multiple Brands
Narrow Product Differentiation
Competitive Rivalry- H
Price competition
Distribution channels
PORTER’S FIVE FORCES MODEL OF FMCG SECTOR

5.  $15.5B global consumer products
company, founded in 1806.
 Products sold in over 200 countries
 Four core categories
– Oral Care
– Pet Nutrition
– Personal Care
– Home Care
Colgate Overview

6. Market Share
42%
58%
Market Share
Colgate Palmolive
Others
16.3
C O L G ATE PAL MO L IV E
(REVENUE IN 2019)
(IN BILLION DOLLARS)
Source- Forbes

7. Net Sales – 2018
Developed
Markets
52%
*Includes Latin America, Asia (ex. Japan),
Africa/Eurasia and Central Europe
Emerging
markets
48%
Latin
America
23%
North
America
22%
15%
Europe
Asia Pacific
18%
Pet Nutrition
Hill’s
16%
Africa/Eurasia
6%
Net Sales by Division
– Q3 2019

8. Oral
Care
Personal
Care
Home
Care
Pet
Nutrition

9. Competitors Analysis
INDIAN MARKET
INTERNATIONAL MARKET:
The Unilever Company
The P & G Company
Rupees 80 billion- Toothpaste market
Rupees 15 billion- Herbal toothpaste market
COMPANY MARKET SHARE
Colgate Palmolive 52.4 %
Hindustan Unilever Limited 17.0 %
Dabur 12.6 %
Patanjali 8.4 %
Others 9.6 %
Source- Business Standard (2018)

10. STP of Colgate Palmolive
GEOGRAPHIC DEMOGRAPHICS PSYCHOGRAPHIC BEHAVIOURAL
REGIONS AGE LIFESTYLE BRAND LOYALITY
NORTH AMERICA 2 - 12 YEARS INNOVATORS COLGATE- HIGH
LATIN AMERICA 12 - 24 YEARS EARLY ADAPTERS PALMOLIVE- AVERAGE
EUROPE ADULTS LAGGARDS HILLS- MEDIUM
ASIA PACIFIC SENIOR
AFRICA/ EURASIA OLD AGED PERSONALITY USAGE RATES
ANALYSTS
COUNTRIES GENDER DIPLOMATS ORAL CARE
200+ MALES SENTINELS TOOTHPASTE-
FEMALES EXPLORERS ONCE OR TWICE
NATIONALITY
DIFFERENT PRODUCT
RANGE IN ALL REGIONS
INCOME
LOW
LOWER - MIDDLE
UPPER - MIDDLE
HIGH
SOCIAL CLASS
UTRA-PREMIUM
PREMIUM
AVERAGE
VALUE
ECONOMY
FAMILY SIZE
0-2/ 0-3/ 0-4/ 0-6
HOUSEHOLDS
SUB-FAMILIES
UNRELATED SUBFAMILIES
ALL OTHERS
PERSONAL CARE
BODY / HAND WASH-
ONCE A MONTH
HOME CARE
ONCE OR TWICE

11. STAR QUESTION
I
N
D
U
S
T
R
Y
S
A
L
E
S
G
R
O
W
T
H
RELATIVE MARKET SHARE
BCG Matrix
DOGCASH
Oral, Personal and Home Care Asia Pacific, Africa, Eurasia
Industry Sales Growth – 5%
Relative Market Share- 0.2253

12. Sales Comparison
15000
15100
15200
15300
15400
15500
15600
JAN 1, 2016 JAN 1, 2017 JAN 1, 2018
SALES COMPARISON
(PAST 3 YEARS)
Selected Financial Data (US$ in millions) Net sales
• Approximately
70% of the
Company’s Net
sales are generated
from markets
outside the U.S.
• Approximately
50% of the
Company’s Net
sales coming from
emerging markets.

13. Business Finance
Company Financials 2018 Notes
US $ in Millions / %
Direct Cost 6994 COGS + Employee Benefit
Indirect Cost 6895 Depreciation and amortization expenses + Tax Expense + Other Expenses
Working Capital Requirement 452 Current Assets – Current Liabilities
Current Ratio 1.13 Current Assets/ Current Liabilities
Quick Ratio 0.63 TotalQuick Assets / Current Liabilities
Debt to Equity Ratio 4.3 Long TermDebt / Shareholders Fund
Debt Ratio 0.52 TotalDebt / TotalAssets
Asset Turnover Ratio 1.28 Net Sales / TotalAssets
Debtors Turnover Ratio 11.1 Net Sales / Receivables (Net)
Gross Profit Margin 59.38 100 × Gross profit/ Net sales
Operating Profit Margin 23.26 100 × Operating profit / Net sales
Return on Invested Capital 30.37 100 × Net operating profit after taxes / Invested Capital

14. Global Growth and Efficiency Program
 Savings are projected to be in the
range of $550–575MM after-tax,
once all projects are approved and
implemented.
 Rate of return greater than 30%
 Payback averaging 3–4 years
 Sustained global process
with systematic tracking
of savings initiatives.
 Generates funds to reinvest
in the business for growth.
 Deeply ingrained way of
working.

15. 3.2% 3.3%
3.8%
4.4% 4.3%
3.9%
3.6%
2.8%
0%
5%
2011 2012 2013 2014 2015 2016 2017 2018
Capital Expenditure
% to Sales

16. Cost-Saving Capital Spending
2011 2012 2013 2014 2015 2016 2017 2018
After-Tax IRR 69% 56% 71% 70% 52% 45% 64% 54%
($MM)
Effective Deployment of Cash Flow
 Capital expenditure for growth and savings
 Acquisitions
 Dividends

17. Colgate Values
Caring
Global Teamwork
Continuous Improvement