COLGATE

Presented By:Saloni Bhatia (03)Stuti Buch (07)Namrata Gupta (15)Shweta Gupta (17)

Objective

“To get an overview of Colgate & an insight into its sales & distribution strategies for maintaining its market leader position”

Industry Overview

The toothpaste market is dominated by two players:

Colgate -49% market share HUL -30% market share

Rest is being with players like Dabur, Ajanta & Anchor –Lower segment

Mission

To win the shopper at the point of purchase; wherever, whenever and however, the shopper chooses to buy.

Colgate India

•Offering oral care, personal care, household surface, fabric care and pet nutrition products

•Undisputed market leader in toothpaste

•Superior quality, innovation and value for money -‘The Most Trusted Brand’ in India

•Stimulating work environment that helps each individual realize their potential & give their very best.

Brand Portfolio

Colgate Dental cream Colgate Total Colgate Herbal Colgate Advanced Whitening Colgate Active Salt Colgate Fresh Energy Gel

Competition: HUL- The Challenger

Used the novelty element in gel toothpaste to make steady inroads into Colgate's dominance in the oral care market.

Close-Up helped HUL become the second largest paste brand

Renewed focus on its other brand Pepsodent in an attempt at offering a low priced brand

Close Up addresses the youth with new benefits and value-driven propositions

Pepsodent is firmly entrenched on the family health platform with variants catering to oral health.

Growth -Dabur

Dabur has managed to grab a 7.2% market share with the acquisition of Balsara's oral care brands: Babool Promise Meswak

Dabur Red (targeted to capture consumers shifting from toothpowder to toothpaste)

Top 5 Brands

Colgate Dental CreamClose-Up Active GelPepsodentColgate Cibaca TopColgate Fresh Energy Gel

Core Values @ Colgate

Caring Colgate people, customers, shareholders and business

partners. Acting with compassion, integrity & honesty in all situations. Protecting the global environment.

Global Teamwork A global team-committed to work together across the worldSharing ideas, technologies and talents.

Continuous Improvement Understanding consumers' & customers' expectations Improving products, services & processes

Management @ Colgate

Employees Function Heads Managing Director

Divisional Function Head

Global Category Head.

Opportunity of handling a broader portfolio and developing a holistic view of the business.

The Sales Dept.

Achieve the three bests – best distribution, best display and best customer service

Sales team makes sure that there is a Colgate product on the shelves of every single retailer

Ensure that the merchandising of their products in the store is attractive

Aggression and Speed- Colgate Sales team, both are a way of life

Ethics @ Colgate

Colgate Code of Conduct applies to all including Directors, Officers, and all employees of the Company and its subsidiaries around the globe.

Vendors and Suppliers are also subject to these requirements as adherence to the Code is a condition for conducting business with Colgate.

Complying with Ethical Std.

Am I authorized to do this?

Is the action the right thing to do?

Is the action legal and consistent with the Code of Conduct or other policies?

Would I be proud to report this action to someone I respect?

Will the action further enhance Colgate’s reputation as an ethical Company

Overview of Workplace

People are the greatest resource

Efforts of talented & skilled people have made it possible

Dedicated to attracting, developing & retaining exceptional people

Various awards & incentives are given regularly

Best Place to Work

Recruiting & retaining people of all backgrounds

Providing training, education & growth opportunities that enhance development and career advancement

Creating a motivating & rewarding work environment

Promoting on-going communication that keeps people connected

Paying for performance and recognizing outstanding efforts

•Encouraging a healthy balance between work and personal responsibilities

Contd…

All Colgate employees are responsible for practicing the five principles of Managing with Respect:

Communicating Effectively Giving and Seeking Feedback Valuing Unique Contributions Promoting Teamwork Setting the Example

Recap

Industry overview

About Colgate India, its competitors, portfolio

Growth prospects

Brief about the sales dept

Ethical standards

Work culture at Colgate

Sales Force

Management

Recruitment Process for SalespersonApplication ShortPreliminary Assessment- Case Analysis and presentationFinal InterviewMedical Evaluation

Recruitment

Pre recruiting Reservoir

Sourcing TalentJobsitesResume

Recruitment

Sector knowledgeBrand loyalty Field-sales experience Convincing, concise and credibleBelief in what Colgate doesA consultative styleInfluencing abilitySensing their needs and spotting opportunities

Job Analysis: Sales Officer

Field Sales: in-store execution. product range, promotions &presentation, shelf layout, professional advice

Multi-Functional Selling Teams: developing close relationships develop category and promotional strategies

Customer Marketing: builds knowledge of both the retailers’ perspective and shopper needs

Sales Organization

Managing channel wise Distribution of Stockiest Analyzing Raw Sales DataImproving Distribution Claim SettlementLeading a team of Pilot Sales Representatives & Stockiest SalesmenCoordinating with C&F to ensure Smooth transfer of stocksDeveloping New Markets

Job Description of Sales Officer

Company Policy Ensuring Primary & Secondary targetsControl the entire ZoneCoordinate with the Company and the DistributorManage a team of distributors, salesmen and merchandisers5P executionAttainment of monthly target

Job Description of Sales Officer

Sales TraineeSelling of products in a channel – wise distribution. Reporting the daily sales report to the respective District Manager with computer – generated stock report

Customer Development Executive (In-store)Sales Territory or Zone assignedBudgetary controls and allocation of fundmanage the 300 top retailersbusiness mapping

Sales CoordinatorReports – Daily and Monthly reports on: Zone/District, Stockiest, Brand wise performance Target and Incentive Analysis

Job Profiles

Job Profiles

Supply chain manager: Opportunities include

Operations

Materials Sourcing

Customer Service and Logistics

Demand Planning

Production

Cross Border Sourcing

Skill development Formal classroom studySharing best practicesPractical work applicationsTraining at Colgate

Main topics of training programs Sales InductionSales Excellence & promotionsImproving ROI/ CSI)Merchandising &Handling stockiest operationsSales Planning and ForecastingCommunication techniquesSales & Customer Information

Sales Training

Business Leadership Program: 1year, cross-functional trainingSales Management Trainee's program:

Sales(7 months)Customer marketing(1 month)Supply chain(1 month)

Sales Training

SALESOn the Job Training- Sales territory, team leaderPeer to Peer- Shadow District ManagerImpromptu Discussion- brand, systems, processes and ideas

CUSTOMER MARKETING On the Job Training- “Getting the shopper to buy".

SUPPLY CHAINLecture- Overview

On-Going Feedback and Coaching

Sales Meeting

BLP Sales Training

Competitive compensationMarket DataInternal StructurePotential & Performance of the employee

Compensation and Reward System

“Pay Performance”Benefit Plans

Financial assistanceVarious Insurances like Medical, Dental, Life, Long Term Disability Share Match SchemeBonusStakeholder PensionEAPHoliday Package

Reward System

Performance review year for ColgatePalmolive is January-DecemberJanuary-Objectives for the yearDecember- Appraisal

Performance standards QuantitativeQualitative

Day to Day coaching & Feedback

Performance Appraisal

Career Development

Colgate practices its approach through: Individual Development Planning (IDP) Succession Planning

Careers advancement Vertical Growth Lateral Growth

Distribution Channel

A logistical marvel that spans around 3.5 million retail outlets across the country, of which the Company services 9.40,000 outlets directly

Direct reach of 0.8 million using 1600 stockiest, whereas 24000 wholesalers service the balance1.8 million customers

“Colgate Dental Cream” the best distributed brand in Urban India

Controlled by their main base at USA

Products are generally marketed by a direct sales force at each individual operating subsidiary or business unit.

Exceptional capability of handling out of stock situation

Formation of Bandhan Club for Whole sale channel development

Contd…

Colgate plans to increase its rural reach to 60,000 villages from the present 30,000

One million retail outlets at the end of the year.

Colgate Products at a retail store

Products come in cardboard boxes displaying company’s logo, size of product and the features of what is being sold.

Whitening tooth paste come in the separate boxes

Products are placed on multiple shelves

Tooth paste tubes are of 130 mL and 75mL

Market Potential of Colgate

Large untapped market

Rural regions in India has a great potential

Penetration level for toothpaste is 80 - 85% in urban markets, whereas in rural markets it is 35 – 40% for toothpowder.

Various scientific campaigns and educating rural regions the need of oral care

Competition in Oral Care Industry

Major competitors of Colgate in India are:

Global competitors areThe Clorox Company; S.C. Johnson & Son, Inc.;

The Gillette Company; Johnson & Johnson

Competition in India

HUL is the closet rival of Colgate with a share of 32% with its Pepsodent and Close-up brands.

The latest entrant in the organized sector is LG

Contd..

Major players are facing competition from regional low priced competitors

Anchor Healthcare & Ajanta India priced their offerings at over 40% discount, giving market leaders a run for their money.

Colgate revitalized one of its existing brands, Cibaca as Colgate-Cibaca

Colgate Cibaca managed to garner whopping 50% of the market share in the discount segment

Sales Promotions

Contd..

“Talk To Me” Colgate Fresh Energy Gel advertising campaign launched this year with an innovative catch phrase – “Talk To Me” using the television, outdoor and online media to connect with the youth

National Oral Health Programme - Initiated “Smile Through The Millennium National Oral Health Programme”

National consumer promotion called Colgate `ke andar kya hai'. - The objective is to spur volumes. The idea is to break through the clutter.

Trade Promotion

Company launched "Hero No. 1" program, which is a way to boost their morale, motivate them and reward them for outstanding achievements

"Dil Se" loyalty program for wholesalers (3,000 odd) to ensure that they give prominence to push company’s products across all the categories

Medical schemes have been introduced for the wholesalers and retailers

Industry OverviewCore Values of ColgateManagement of selling, general and administrative expensesAn overview of Colgate’s sales departmentIntroduction to Colgate’s ethical standards

Recap

Recap

Recruitment Process Job Analysis of Sales Officer: Sector, Field-sales exp, Convincing, concise, credible etc Sales Organization: Field Sales, Multi-Functional Selling Teams, Customer MarketingSales Training and the main areas covered in it: Sales Induction, Sales Excellence & promotions, Improving ROI/ CSICompensation and Reward System: Fixed plus variable

Recap

Introduction to Colgate’s Distribution ChannelColgate’s initiatives towards Rural Distribution management Extensive Distribution channel Sales promotions standard Trade promotions at ColgateCompetition in Oral industry and their respective market potential

Clear cut set of core values and following them with complete integrity is very important and that’s why Colgate is the Best place to workIt always pays to understand one’s target market and change the approach to reach them accordingly, as Colgate has different strategies to address rural needs (Cibaca and dant manjan), urban youths’ needs (max fresh gel), children’s needs (kid’s toothpaste) and elder people (Colgate Shakti) Similarly it is very imp to recognize workforce as an asset and to treat them with due respect and care.

Learning

A dedicated workforce at Colgate is their Competitive Advantage, which is trained and geared up strategically to meet any challengeGeared up to achieve the three best: best distribution, best display and best customer service; the highly trained and dedicated Sales team makes sure that there is a Colgate product on the shelves of every single retailer across the length and breadth of the country.They try to ensure that the merchandising of their products in the store is attractive; they understand and realize the needs of the customers to build competitive advantage, and build partnerships with their consumers.

Learning

The two words associated with a great Sales team are aggression and speed. In the Colgate Sales team, both are a way of life.The Colgate Code of Conduct applies to all Colgate peopleColgate has penetrated to the roots of the Indian consumers. This is only possible by understanding the psyche of the consumers Colgate understands the importance of its traders and stockiest and thus treats them as a family

Learning

It has established a “Bandhan club” so that distributors can enjoy all the benefits of company which will ultimately help Colgate in achieving the long term goal of organisation. Due to all these policies Colgate has regained its strong position in FMCG market.

Constantly understanding the needs of consumers and giving them what they wants is one of the key for its success

This is attributed to its R&D department. It has a well equipped laboratory where constantly tries to innovate their products and thus have a edge to their competitors

Learning

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