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Competitive Advantage of Colgate Palmolive
WAC for Colgate-Palmolive "The Precision Toothbrush"
Colgate-Palmolive (CP) is a global leader in household and personal care products, with over $6.06 billion in sales and a gross profit of $2.76 billion. CP's five-year plan emphasizes new product launches and entry into new geographic markets and a continuing focus on core consumer products. Although international sales remained CP's strong suit, accounting for 64% of sales and 67% of profits in 1991, the company faced tough competition in international markets from P&G, Unilever, Nestle's L'Oreal Division, Henkel of Germany and Kao of Japan.
In 1991, CP held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP's oral care products increased 12% to $1.3 billion, accounting for 22% of CP's total sales. Toothbrushes represented 19% of CP's U.S. Oral Care Division sales and profits, and CP held the number one position in the U.S. retail toothbrush market with a 23.3% volume share.
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