A presentation given at the Advertising Research Foundation’s (ARF) 2011 Annual re:think convention to show the effectiveness of advertising research. This presentation celebrates the ARF’s 75th Anniversary. Presentation is on the role of research played in Colgate’s success.

1. ADVERTISING RESEARCH
FOUNDATION
75th Anniversary

4. CHANGE

10. THEN
Telex machine

11. NOW
Texting while driving

12. THEN
2 cellphones
per 1,000 people

13. NOW
2,000 cellphones
per 1,000 people

14. THEN:
PUBLIC VIEW OF BUSINESS

15. THEN:
PUBLIC VIEW OF BUSINESS

16. NOW:
PUBLIC VIEW OF BUSINESS

17. NOW:
PUBLIC VIEW OF BUSINESS

18. TODAY
 The role of research in
Colgate’s success
 How this role will continue
to grow

19. INSIGHTS AS THE
NAVIGATOR

20. INSIGHTS AS THE
NAVIGATOR

21. LOOKING BACK

22. OBSERVER
AND
MEASURER

23. MEASURER
AND
INTERPRETER

24. INTERPRETER
AND
NAVIGATOR

25. NAVIGATOR
AND
REPUTATION GUARDIAN

26. YOU HAVE TO PUSH TO
GET THERE

27. RESEARCH

28. COLGATE RESEARCH
 Truthfulness
 Constant push to increase
influence
 Always demand a seat at the
decision table

29. THE ROLE OF RESEARCH
IN COLGATE’S SUCCESS

30. DEFINING “SUCCESS”
 Operating Profit
 Return On Capital
 Growth in Shareholder Value

31. DEFINING “SUCCESS”
 Operating Profit
 Return On Capital
 Growth in Shareholder Value

32. OPERATING PROFIT
($MM)
$379
$296
$231
$206
'85 '86 '87 '88

33. OPERATING PROFIT
($MM)
379
296
206 231
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

34. OPERATING PROFIT
($MM) 3,796
3,615
3,265
2,959
2,567
2,339
2,211 2,239
2,054
1,875
1,773
1,597
1,451
1,315
1,185
1,011 1,067
910
780
626
558
462
379
296
206 231
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

35. DEFINING “SUCCESS”
 Operating Profit
 Return On Capital
 Growth in Shareholder Value

36. RETURN ON CAPITAL
Goal
15.0%

37. RETURN ON CAPITAL
Goal
15.0%
12.7%
11.6%
10.0%
1985 1986 1987

38. 37.0%
RETURN ON CAPITAL
Goal
15.0%
12.7%
11.6%
10.0%
1985 1986 1987 2010

39. DEFINING “SUCCESS”
 Operating Profit
 Return On Capital
 Growth in Shareholder Value

40. TOTAL SHAREHOLDER
RETURN
Five Years
12/31/83 – 12/31/88

41. TOTAL SHAREHOLDER
RETURN
Five Years
12/31/83 – 12/31/88
+102%
S&P

42. TOTAL SHAREHOLDER
RETURN
Five Years
12/31/83 – 12/31/88
+152%
+102%
S&P Peer Group

43. TOTAL SHAREHOLDER
RETURN
Five Years
12/31/83 – 12/31/88
+164%
+152%
+102%
S&P Peer Group Colgate

44. TOTAL SHAREHOLDER
RETURN
27 Years
12/31/83 – 12/31/10

45. TOTAL SHAREHOLDER
RETURN
27 Years
12/31/83 – 12/31/10
+1,349%
S&P

46. TOTAL SHAREHOLDER
RETURN
27 Years
12/31/83 – 12/31/10
+3,556%
+1,349%
S&P Peer Group

47. TOTAL SHAREHOLDER +5,342%
RETURN
27 Years
12/31/83 – 12/31/10
+3,556%
+1,349%
S&P Peer Group Colgate

48. RESEARCH

49. C-P STRATEGIC
C-P
INITIATIVES

50. C-P STRATEGIC INITIATIVES
 What businesses to emphasize,
which to exit

51. RESEARCH
DOMINATION

53. WORLDWIDE TOOTHPASTE
SHARES
31.0
16.2 17.0
Comp. 1 Comp. 2 Colgate

54. WORLDWIDE TOOTHPASTE
SHARES
31.0
16.2 17.0
14.6
Comp. 1 Comp. 2 Colgate

55. WORLDWIDE TOOTHPASTE
SHARES
31.0
16.2 17.0
14.6
9.0
Comp. 1 Comp. 2 Colgate

56. WORLDWIDE TOOTHPASTE
SHARES
44.3
31.0
16.2 17.0
14.6
9.0
Comp. 1 Comp. 2 Colgate

57. EXITING STRATEGICALLY
NON-VIABLE CATEGORIES

58. WORLDWIDE DETERGENT
SHARES
46.4
2001
19.8
7.9
Comp. 1 Comp. 2 Colgate

59. C-P STRATEGIC INITIATIVES
 What businesses to emphasize,
which to exit
 Accelerate new product process

60. BEFORE
U.S.-CENTRIC
RESEARCH

61. BEFORE
LOCAL NEW PRODUCT
INDEPENDENCE

62. RESEARCH
GLOBAL
CONSUMER INSIGHT AND
INNOVATION CENTERS

63. CONSUMER INSIGHT AND
INNOVATION CENTERS

64. RESEARCH
NEW PRODUCT
ROLL-OUT SPEED

65. BEFORE
LENGTHY
COUNTRY-BY-COUNTRY
PROCESS

67. 20 languages, single execution

68. C-P STRATEGIC INITIATIVES
 What businesses to emphasize,
which to exit
 Accelerate new product process
 Improve global creative
excellence

69. RESEARCH
IMPROVE GLOBAL
CREATIVE EXCELLENCE

70. NEW AGENCY
COMPENSATION SYSTEM

71. IMPORTANCE OF THE
BIG CREATIVE IDEA

72. LEADERSHIP STEPS
TO CREATIVE EXCELLENCE
 Be the best client they have
 Really care
 Mutual trust
 Ask for excellence
 Clear direction
 Look for the big idea
 Ensure agency profitability

73. MEDIA SELECTION

74. SPENDING TESTS

75. SHOPPER MARKETING
EXPLORATION

76. NEW MEDIA TESTING

77. RESEARCH
DEFINING AND BUILDING
GLOBAL VALUES
AND CULTURE

78. CULTURE AND
WALL STREET

79. RESEARCH
VALUES

80. COLGATE’S VALUES
 Continuous Improvement
 Global Teamwork
 Caring

81. COLGATE’S VALUES
 Continuous Improvement
 Global Teamwork
 Caring

82. NORMAL CURVE

83. GLOBAL CURRICULUM
270+ Courses

84. 3,000 CERTIFIED
COLGATE INSTRUCTORS

86. COLGATE’S VALUES
 Continuous Improvement
 Global Teamwork
 Caring

87. GLOBAL PLAN FOR
PROFESSIONAL
RECOMMENDATION

90. COLGATE’S VALUES
 Continuous Improvement
 Global Teamwork
 Caring

91. CARING AND RESPECTING:
 Consumers
 The world we live in
 Each other
 Integrity of the organization

92. CODE OF CONDUCT

93. DIVERSITY

94. SUSTAINABILITY

95. FUTURE
CONSUMERS

96. OVER 500 MILLION CHILDREN
REACHED WORLDWIDE

97. BUT…

98. CURRENT BUSINESS CLIMATE
BRINGS NEW OBLIGATIONS

99. NOW:
PUBLIC VIEW OF BUSINESS

100. BUSINESS DISHONESTY

101. PERCEPTION EXCEEDS
REALITY

102. RESEARCH HAS A
BIG OBLIGATION

103. MUST CONSTANTLY
OBSERVE THE WHOLE
ORGANIZATION AND
ALL ITS PARTS

104. OBSERVE GOOD
PRACTICES AND
DETECT PROBLEMS

105. PROBLEMS/GOOD PRACTICES
 Products
 Environmental
 Human
 Regulatory

106. THEN WHAT?

107. THE ROLES OF
NAVIGATOR AND
GUARDIAN ARE VITAL

108. YOU ARE A MAJOR FACTOR
IN CURRENT AND FUTURE
BUSINESS SUCCESS

109. ONLY YOU
CAN DO IT