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Colgate Palmolive Company Is A Global Leader

879 words - 4 pages

A Colgate-Palmolive Co has a strong customer loyalty as it has become one of the most recognizable products in all 6 continents. Customer in all over the world still preferring to use the products of Colgate Palmolive Co. due to its accessibility, quality and innovation.
Colgate-Palmolive Co is recognized as a leader in sales of oral hygiene products sales. In 1991 the sales of the company exceeded the level of $6 billion and gained profits of $2.76 billion as it brought them 43% of the toothpaste world market. In the world’s largest market, the U.S., the company leads and maintains the number one position in toothbrush sales with 23 % of market share.
Colgate-Palmolive expansion in international market is considered as another strength. The company has introduced 275 new products worldwide and started its production in China and Eastern Europe becoming one of the main companies with outstanding financial stability of 21st century. The international sales reached 64% of total sales and 67% of the total profits for the company.
The Research and Development department has 170 professional employees worldwide. Their innovative approach towards the market has leaded them to a leader position in the international market.

As the innovation in the company constantly grows and the market is always expecting to have something new, it is becoming hard for the company to come up with new ideas. The company definitely needs new ideas and fresh minds. However, the constant innovation on the products of the company is cutting their ability to gain more profit out of the new products as it would bring the product from the “Star” level to a cash cow immediately. Therefore a company needs to low down presenting their innovative progression to a market to prevent the decrease in sales of their already released products. Such issue may lead to another weakness as product recalls. As the market will receive new products that customers will want to get, their old products will be recalled and therefore it may lead in a sales decrease and spending on utilization of old products.
Another important issue is a counterfeit products that are highly damaging to any business. Counterfeit producing may contain poisons chemicals that may do harm to people, which further will lead to product decrease in demand due to awareness of counterfeit products. It definitely will make damage to a company’s reputation and recognition. The Colgate-Palmolive Co does it’s best to prevent such issues and most of the counterfeit products are produced in China and it is expanding in Asian market.

A new opened category “super premium” creates new opportunities for Colgate-Palmolive to increase market share for several reasons. First,...

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