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colgate palmolive pak

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TABLE OF CONTENTS

1. About Consumer Staples Sector 3

2. Introduction

1.1 About Colgate-Palmolive 5 1.2 Values of Colgate-Palmolive 6

1.3 Products of Colgate-Palmolive 7

3. Departments of Colgate-Palmolive

2.1 Sales Department 9

2.2 Marketing Department 10

2.3 Supply Chain Department 12

2.4 Finance Department 13

2.4 Human Resource Department 14

2.5 Consumer Information Service 15

2.6 Information Technology Department 15

4. Value to customers in Colgate-Palmolive

3.1 Responsive To Customers 16

3.2 Highest Standards for Products 17

3.3 Availability of Products 17

3.4 Relationship with the Environment 18

3.5 Advertising Is Accurate 18

3.6 Respect Of Consumer Privacy 19

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3.7 Innovating Everywhere 19

5. Profitability Analysis of Colgate-Palmolive 20

Colgate-Palmolive is the company belongs to the consumer staple sector. Before the introduction to the company here is introduction to consumer staples sector.

CONSUMER STAPLES SECTOR

What It Is?

Consumer staples are household necessities -- products that most of us use on an everyday basis and would continue to use with little regard to their cost or the overall economic conditions.

How It Works?

Examples of consumer staples include food, drugs, beverages, tobacco, and basic household products (like laundry detergent or deodorant). These are things that people are unlikely to reduce their demand for when times are tough because people see them as basic needs. People often go through

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consumer staples frequently, meaning they usually see a constant level of demand.

Why It Matters?

Since the frequent purchase of staples represents a relatively small portion of most consumers' annual income, demand tends to be fairly stable year-in and year-out. Sales and earnings growth in this sector tend to remain constant in good times and bad. After all, no one cuts back on purchases of food or dishwashing liquid, even during recessions. With this in mind, safe, defensive names in the consumer staples sector can provide investors with a great way to hedge their overall portfolio risk.

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ABOUT COLGATE PALMOLIVEIn 1985 Colgate-Palmolive Company, USA, granted license to manufacture and market their products in Pakistan. In 1990 Colgate-Palmolive Company, joined as equity partner and the name was changed to Colgate-Palmolive (Pakistan) Limited.Colgate-Palmolive Company engages in the manufacture and marketing of consumer products. It operates in Oral, Personal, and Home Care. The Oral, Personal, and Home Care segment offers toothpaste, toothbrushes, mouth rinses, dental floss, and pharmaceutical products for dentists and other oral health professionals; shower gels, shampoos, conditioners, deodorants and antiperspirants, and liquid hand soaps; and dishwashing liquids, household cleaners, oil soaps, and fabric conditioners. The protection of the environment and the health and safety of customers, people and the communities in which we all live and C-P operate is an integral part of Colgate-Palmolive's mission to become the best truly global consumer products company. Colgate-Palmolive is committed to conducting itself in a socially responsible manner and to keeping business operations environmentally sound. It is Colgate-Palmolive’s worldwide policy to manufacture and market products and operate facilities so that they comply with or exceed applicable environmental rules and regulations. The health and safety of customers, employees, and the communities in which company operates must be paramount in all what they do.

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VALUES OFCOLGATE-PALMOLIVE

Values of Colgate-Palmolive are the foundation for their business strategy and are reflected in every aspect of life.

CaringThe Company cares about people: Colgate people, customers, shareholders and business partners. Colgate is committed to act with compassion, integrity and honesty in all situations, to listen with respect to others and to value differences. The Company is also committed to protect the global environment and to enhance the communities where Colgate people live and work.

Global Teamwork

All Colgate people are part of a global team, committed to working together across countries and throughout the world. Only by sharing ideas, technologies and talents can the Company achieve and sustain profitable growth.

Continuous Improvement

Colgate is committed to getting better every day in all it does, as individuals and as teams. By better understanding consumers' and customers' expectations and continuously working to innovate and improve products, services and processes, Colgate will "become the best."

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PRODUCTS OF COLGATE PALMOLIVEORAL CARE

1-TOOTH PASTE

Colgate Total Fresh Colgate CDC Colgate Herbal Colgate Herbal White Colgate Whitening Colgate Fresh Energy GEL Sparkle

2-TOOTH BRUSH

COLGATE Navigator Plus COLGATE Plus COLGATE Premier COLGATE Extra Clean COLGATE Super Flexible

PERSONAL CARE

Personal Care products of Colgate-Palmolive are aligned with the family’s current changing needs. Colgate-Palmolive offers a range of beauty, skin germ protection & carbolic soaps that cater to these needs.

Beauty Soap Palmolive Naturals Carbolic Soap - Azadi Skin Germ Protection Soap - Protex

SURFACE CARE

Surface care products of Colgate-Palmolive provide thorough and superior cleaning by removing grease effectively, while being gentle on hands. Our

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wide portfolio includes Dishwashing Bars, Liquid, Scourers, Bleach and Pastes. Our full ranges of household’s cleaning products provide a pleasant usage experience and are economical as well.

MAX BAR AZADI DISH BAR MAX SCOURCES MAX LIQUID MAX ANTIBACTERIAL

FABRIC CARE

Fabric care products have complete line of detergents caters to the needs of every segment with a promise to keep your fabrics clean and fresh. Our brands are household names that have earned the confidence and trust of consumers all over Pakistan.

Brite Total Express Power Bonus

DEPATRMENTS OFCOLGATE-PALMOLIVE

SALES MARKETING SUPPLY CHAIN FINANCE

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HUMAN RESOURCE INFORMATION TECHNOLOGY CONSUMER INFORMATION SERVICE

SALES DEPARTMENTThe mission of the Sales Department in Colgate-Palmolive is to win the shopper at the point of purchase; wherever, whenever and however, the shopper chooses to buy.

Geared up to achieve the three bests, 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. Colgate-Palmolive plan, manage and implement its business with professional standards; it ensures that the merchandising of products in the store is attractive; they understand and realize the needs of their customers to build competitive advantage, and build partnerships with consumers. 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 difference is that they also apply the latest technology to develop innovative ways of selling.

Field Sales – Research shows that between 40% and 60% of purchase decisions are made at the shelf and Field Sales team in C&P is responsible for delivering exceptional in-store execution. This includes product ranging, promotional execution, product presentation, shelf layout planning / execution and providing professional advice and recommendations to retailers on our brands.

Multi-Functional Selling Teams – Our MFST’s are responsible for developing close relationships with our key customers to develop category and promotional strategies which are successful and profitable for both Colgate and our retail partners.

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Customer Marketing – Our Customer Marketing Team builds on our knowledge of both the retailers’ perspective and shopper needs to develop overall category and retail environment strategies.

Some of the specific activities you may experience in Sales roles are:

Ensure optimal presentation of C-P products in-store Analyze promotional activities and recommend future enhancements Develop Go To Market strategy for a specific retail environment Present new products to customers Negotiate promotional programs with key retailers Exceed shopper expectations and add value to the category through

effective category management Develop shelf layouts to maximize return for C-P and customers.

MARKETING DEPARTMENTThe marketing department in Colgate-Palmolive plays an important role in building and strengthening our brands so they remain at the forefront of consumers' minds. They also work hard to develop and export their products to the rest of the world. Marketing involves understanding consumer needs, desires and expectations, identifying opportunities and learning how to successfully launch innovative products that exceed consumers' expectations.

CONSUMER MARKETING

Colgate’s products are sold to millions of people worldwide. As a result, we offer some of the most sophisticated marketing challenges available in today’s global marketplace. Our Marketing Team develops and implements marketing plans that will establish and maintain current and long-range vision for the brands to increase sales, margin and profitability for the brand. We offer exciting opportunities in:

Brand Management in base business new product innovation

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Consumer Insight and Research Advertising and Media Management

KEY RESPONSIBILITIES OF CONSUMER MARKETING UNIT

Strategic development and management of the brand/category Implement brand/category strategy Manage the brand; lead and manage annual budget process for the

brand/category Liaise with key stakeholders including other functions, subsidiaries,

Global teams and Senior Management.

SUPPLY CHAIN DEPARTMENT

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The Product Supply Chain Team at Colgate-Palmolive oversees the purchasing, manufacturing and logistics/customer service for the company. From sourcing materials, selecting suppliers to negotiating and developing contracts are the activities take place in Colgate-Palmolive.

Using progressive technology, Colgate-Palmolive’s professionals increase efficiency by continuously improving manufacturing processes. In manufacturing, every one is responsible for quality improvement and executing capital investment. Every one is responsible for a broad range of other duties such as the company's environment and safety programs customer service logistics to optimize our distribution network, minimizing freight and warehouse costs and improving customer service through reliable deliveries.

We offer exciting opportunities in: Materials Sourcing - work collaboratively with global purchasing

teams to source raw and packaging materials in the most cost effective way.

Operations lead key capital projects; implement continuous improvement initiatives in a dynamic manufacturing environment; lead a team in a High Performance Work environment.

Packaging Customer Service & Logistics- be at the interface between the

supply and demand chains; take a lead role on the strategic direction of moving product.

Demand Planning work closely with key customers in ensuring Colgate-Palmolive products 'own the shelf' in key market categories.

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Production work with a team of talented and motivated people across a range of production related tasks - from making and formulating products to quality assurance procedures and laboratory testing to finishing end products on the plant floor.

FINANCE DEPARTMENTThe vision for the Finance Department is to be a valued partner in business and financial competency. The department plays a key collaborative role in achieving Colgate Palmolive’s mission of being the leading consumer products company in the fast growing China region.

The finance team is responsible for budget planning, financial reporting and analysis, credit control, accounting, treasury and working capital management, and internal control activities. Through teamwork, the Finance Department at Colgate Palmolive has evolved from managing the financial controls to becoming an effective business partner. The challenge faced by those in the finance role is in understanding the past and leveraging this knowledge to influence business decision in the current dynamic environment.

This challenge requires competent well-rounded financial leaders. At Colgate Palmolive, financial people’s core competencies are developed by rotation through the various finance functions, which facilitates learning of detailed financial analyses, consultation and management, with the aim of driving the overall business growth.

KEY RESPONSIBILITIES OF FINANCE DEPARTMENT: Financial and business analysis Supporting competitiveness by making fact-based decisions that

support business strategies, financial goals and future profitability.

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HUMAN RESOURCE DEPARTMENT

Colgate's HR team plays an important part in hiring, developing and retaining employees and in designing and supporting programs as they strive to build leadership. To accomplish this task, managers and employees work together to ensure they have the skills, resources, and leadership ability needed to succeed and reach their full potential.

Human Resources function, including: Staffing & Succession planning Leadership Development HR Generalists / Support Compensation & Benefits Learning & Development Performance Management

Below are some opportunities that you will have in helping driving Colgate's people strategies:

Design, implement and administer corporate programs such as compensation and benefits.

Responsibilities include competitive analysis, costing and funding of plans, external reporting, vendor management and plan administration.

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Partner with line organizations to recruit the best talent. Develop sourcing strategies and advise hiring team regarding

qualifications and salary recommendations. Develop and support cutting-edge human resources technology,

systems, databases and computer support tools.

CONSUMER INFORMATION SERVICEColgate-Palmolive’s Consumer Information Service responds to consumers who contact the company, in a way that sustains or regains consumer goodwill and future business.

KEY RESPONSIBILITIES OF CONSUMER INFORMATION SERVICE

Listen to and correspond with consumers on their feedback on our products. Report consumer feedback to key decision makers within the company.

Information technology department

VALUE TO CUSTOMERSReputation of Colgate-Palmolive has been built upon the quality and safety of our products. Its commitment to quality and safety is essential to the continued growth and

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success of their Company. Customer satisfaction is the first priority for Colgate-Palmolive to sustain in the market. So they give special care to their consumers and as it is a consumer staples company so if their consumer will not be happy there will be no use of existence of Colgate-Palmolive’s. Following are the some key point to make their customer permanent.

RESPONSIVE TO CUSTOMERS

The business of Colgate-Palmolive is consumer products, so their success depends upon consumer satisfaction, trust and goodwill. In addition to traditional research, initiatives include visiting consumers in their homes, accompanying them as they shop, known as “shop-along,” and communicating with them in nontraditional ways. Consumer needs are constantly changing, so they listen to what people want and use their creativity to satisfy these changing needs.They achieve their objectives and serve the needs of consumers by following a consistent, fair and sensitive program of consumer communication. They believe that consumer opinions, concerns and inquiries communicated to the Company regarding our products are important sources of information. When a consumer expresses dissatisfaction, they address the problem promptly, courteously and fairly, and make every reasonable effort to sustain or regain the consumer’s goodwill and his or her continued purchase of Colgate products.

HIGHEST STANDARDS FOR PRODUCTS

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Colgate-Palmolive is committed to insuring that consumers can continue to trust Colgate products for their reliability, quality and superior performance. In addition, to serve the billions of people in the markets where they do business, it must constantly strive to produce products in the most efficient way possible so that they are affordable to the greatest number of consumers. Products sold by Colgate must not only meet all safety standards set by law, but also often more stringent Company standards. They participate in programs to provide prompt assistance to consumers in case of product tampering or misuse. Consumer health, safety and well-being are of paramount concern to COLGATE-PALMOLIVE.

AVAILABILITY OF PRODUCTS IN MARKET

Colgate-Palmolive more emphasize on the availability of their products in the market, so that their customer will not be dissatisfied when they need of any product. Colgate-Palmolive absolutely focus on consumers, and consumers are the key to sustain in the market, they say that if consumer will be dissatisfied with our service ad products than there is no need of Colgate-Palmolive.

A key one is the development of multifunctional selling teams that have been organized for all major trade customers. These teams consist of Colgate’s professionals specializing in different functions (i.e. sales, Finance, customer service, logistics) to serve each customer’s multidisciplinary needs. The team collaborates with the customer to share expertise and develop the most efficient ways of growing categories by identifying the right mix of products, determining how best to promote them and how to better use resources customer.

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RELATIONSHIP WITH THE ENVIRONMENT As a global company dedicated to consumer products that contribute to the overall quality of life, Colgate-Palmolive recognize and constantly reaffirm the value of a healthy and clean environment.

We are committed to manufacturing; packaging and selling quality products that meet or exceed health and safety rules and regulations.

The health and safety of our customers, our people and the communities in which we operate is paramount in all that we do.

We are dedicated to source reduction, recycling and other responsible methods of waste management.

We will continue to improve our products and packaging and invest in innovations that protect the environment.

ADVERTISING IS ACCURATEOne of the most important aspects of Colgate-Palmolive’s business is advertising. Advertising should be creative and competitive, but at the same time honest and not misleading. Their advertising also avoid any stereotyping of individuals based on factors such as race, religion, national origin, ethnic origin, color, gender, age, citizenship, marital status or disability. Advertising creates more than a product image. It creates reputation for reliability, dependability and trustworthiness. In addition, they exercise care in the selection of the media in which advertising messages appear. They observe standards of commercial fairness in devising, using and selecting advertising and trademarks, so that their products succeed on the strength of their own quality and reputation, rather than by imitation or trading on the good will of competitors. Colgate’s integrated marketing communications span all forms of media and promotions, from traditional TV ads and in store displays to Internet contests and event sponsorships. Connecting with consumers in all aspects of their lives is a key to Colgate’s continued success.

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RESPECT OF CONSUMER PRIVACYThey respect and honor the privacy rights of our consumers. It is Colgate’s policy to collect personal information from consumers only for legitimate business purposes and to take all reasonable steps to safeguard such information. In their interactions with Colgate, through requests for product information or participation in Company-sponsored competitions for example, consumers may provide certain personal information, such as names, street addresses and e-mail addresses, to the Company. We use such information only for the reasons it was supplied to us, unless a consumer consents to other uses, and as necessary for our record-keeping purposes. It is policy in Colgate-Palmolive not to share personal information about consumers with third parties, unless required to help us provide services to our consumers, and then only if such third parties agree to protect the privacy and security of such personal information. We also adhere to local legal requirements regarding the protection of personal information.

INNOVATING EVERYWHERE

Strong emphasis on innovation across all functions and activities is a key Colgate strategy for delivering profitable growth. While developing innovative new products remains a corner-stone, developing innovative ways to become more efficient, to reach new consumers and to use technology is equally important.

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PROFITABILITY ANALYSIS OF COLGATE PALMOLIVE

Over the years, Colgate-Palmolive has maintained an overall positive financial position and is one of the leading companies in our country today.Colgate-Palmolive's profitability depicted a commendable performance. Colgate-Palmolive Reports Earnings Results for the First Nine Months of 2007; Provides Earnings Guidance for the Full Year of 2008 Colgate-Palmolive reported earnings results for the first nine months of 2007. For the period, the company reported that profit rose to $1.32 billion, from $952.2 million. Revenue increased 12% to $10.15 billion from $9.03 billion in 2007. The company expects continued strong performance and predicts the company can sustain double-digit earnings per share growth through the end of 2008.Colgate-Palmolive Reports Earnings Results for the Third Quarter of Fiscal 2007Colgate-Palmolive reported earnings results for the third quarter of fiscal 2007. For the quarter the company reported earnings climbed to $420.1 million, from $344.1 million, or 63 cents per share, in the previous year. Excluding restructuring and other charges, earnings totaled $466.4 million, or 86 cents per share, compared with $402.6 million, or 73 cents per share, a year earlier. Quarterly revenue rose 12% to $3.53 billion from $3.14 billion in the prior year. The company reported that its third quarter profit rose 22% on strong sales across all regions and improved cost controls.

Total net sales volume increased by around 28% over the last year, resulting in a consequent rise in the gross and net profits. The cost of sales also showed an increase, primarily due to increase in raw material prices and as a result rising prices of petroleum based products. However, tighter controls on selling and administrative expenses ensured that the effect of rising cost of goods sold was mitigated. Consequently, the net profit increased by around 65% compared to the previous year, and owing to a laudable profitability performance, the net and gross profit margins, as well as the return on assets have shown a rising trend.Colgate-Palmolive has shown a positive liquidity trend over the years, enjoying a strong liquidity position over the years. The net cash flow stood at around 400 million during 2006, indeed an enormously affirmative indicator of the

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company's efficient allocation of assets. The net current assets of the company have shown a rise in terms of cash, inventories and receivables, as have the current liabilities, especially the payables. However, greater percentage rise in current assets, overall liquidity position of the company is surely laudable.A manifestation of an efficient credit policy, the days sales outstanding of the company have been following a declining trend, showing that the company is receiving cash against its receivables on a shorter period over the years. The inventory turnover ratio followed a rising trend till 2005, until it declined again in 2006. This can be attributed to better credit policies and marketing practices that enabled the company to sell off its inventories to its customers more effectively and efficiently. Overall, the operating cycle declined for Colgate-Palmolive over the years, showing that the company has improved on its performance in terms of receiving cash against its inventories.Total assets turnover ratio was disappointing as it steadily declined over the years. Even though the net sales showed a phenomenal growth by over 27.7%, 17.1% and 22.4% during the years respectively, total assets of the company increased by an even greater percent, exceeding 37% over the last year. Major portion of this increase in assets was in plant and equipment, cash and bank balances, and inventories, however, asset turnover did not show a positive trend indicates that the company needs to work more on maximizing the gains from an increase in assets.Even though Colgate's short-term debts showed an increase in the creditor's liabilities and taxation, the long term liabilities portrayed a considerable decrease, especially in the long term loans and the liabilities against assets subject to finance leases. Both the total assets and equity increased over the years, and the overall effect was manifested in a declining debt-to-asset and long-term-debt-to-equity ratio.Owing to a magnanimous increase in the operating profit over the years, especially during the last year when it increased by 62.5%, and a decline in the financial charges of the company, the Times Interest Earned ratio of the company improved. This is a positive indication of the fact that the company is managing its financial obligations well and is generating enough operating profit to cover up its interest and financial expenses.The net earnings per share increased by 64.7% compared to the last year, reflecting the consistent underlying strength of the business. The book value of the business increased in equity facilitated by a steady rise in reserves over the years.The average market price increased considerably over the years, increasing by approximately 77%, 9% and 82% during 2004, 2005 and 2006

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respectively. Colgate-Palmolive has been a profitable and praise-worthy company that has managed to adapt itself to the changing marketing environment and needs of its customers.

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