As discussed earlier, Colgate-Palmolive’s, or Colgate’s (CL), five fundamentals are:
- Engaging directly with consumers
- Building market share in emerging markets
- Implementing commercial strategies, and
- Generating savings to fund growth
Dependence on innovation
Colgate and other companies like Procter & Gamble (PG), Unilever (UL), and Clorox (CLX) believe that innovation is the key that drives growth. Colgate’s innovation for whitening teeth behind its Optic White brand increased its market share in North America to 19.3% in 2Q15. The company plans to focus on the fast-growing whitening market, which is the second-largest segment in the oral care category, according to comments by CEO Ian Cook.
Innovations in the enamel health segment under Colgate Maximum Cavity Protection with Sugar Acid Neutralizer and the toothbrush with charcoal bristles, which increased sales in the US and Asia, respectively.
The Metabolic Plus Mobility Canine Food (under the Hill’s brand), which offers aid to dogs heal with arthritic problems, also increased sales in the pet nutrition segment in the US and the UK. Unlike Colgate, CLX and UL do not have a presence in pet nutrition. To learn more about Colgate’s pet nutrition product segment, please read How Colgate Is Capitalizing on the Pet Nutrition Market.
In the personal care segment, the introduction of Protex antibacterial bar, which provides long-lasting anti-bacterial protection, increased its market share of bar soaps to 22.6% in two top markets: South Africa and Russia. In addition, Sanex introduced body lotions in France and the UK. According to Cook, the product is already two share points up just two months into the launch.
Focus on regional innovation
The company plans to expand is portfolio by introducing a rinse-free formula to Suavitel fabric conditioner in Latin America. This will help in enhancing the company’s top-ranked position in Latin America.
CL has exposure in the iShares Core S&P 500 ETF (IVV) with 0.3% of the total weight of the portfolio.