BCG Matrix of Colgate-Palmolive Company

his is the detailed BCG matrix analysis of Colgate-Palmolive Company which is one of the renowned
company operating in consumer goods industry. It’s headquartered in USA, New York and has long history
of decades. It has approx. 40,000 employees which is providing their services to serve consumer around
the globe. Colgate-Palmolive revenues & profits goes down in the recent years due to heavy competition
from direct competitors which includes but not limited to;Marico,L’Oréal, Nirma Ltd, HUL, ITC, Procter and
Gamble and Dabur.
Introduction
Colgate-Palmolive Company has extensive experience of operating in the global market, as reflected
through the more than 200 years of operations. The firm has initiated its operations focusing on the
manufacturing and supply of soap and candles. Within the 200 years, the range of products offered by
Colgate-Palmolive Company has significantly expanded. Currently, the company is manufacturing products
under the category of personal healthcare, household and pet care products (Colgate-Palmolive Company,
2015). The products manufactured by the company are supplied to more than 200 regions across the
world, making it a truly global firm. The following section details the BCG Matrix for Colgate-Palmolive
Company, including discussion of the products falling under the category of cash cows, stars, question
marks and dogs.
Cash Cows
When a product becomes a source of sustained income and financial stability of an organization, it is
placed in the category of cash cows. The strong market presence of the product makes it a source of
constant financial support for the firm, along with the strong market share that adds to the probability of
success of the product. For Colgate-Palmolive Company, the cash cow includes its toothpastes and
toothbrush range which has been a steady source of earning for the firm from the past decades. The
financial downturn has affected the consumption of other products, but the demand of toothpaste and
toothbrush has retained a steady pace. The large market share has helped Colgate-Palmolive Company to
be positioned as a significant toothpaste supplier in the US as well as other regions across the globe (Trefis
Team, 2013). A few of the toothpastes that are in high demand include Colgate max fresh, advanced fresh,
Colgate total etc.
Stars
The products that are strong in terms of financial performance and have the potential to grow further into a
leading source of earnings are identified as stars. These products in the portfolio can achieve greater
market share as the industry has room for further growth of these products. Stars can become cash cows if
they progress to such an extent that they hold a large market share and bring in large earnings and
financial potential to the firm. In this case, Colgate-Palmolive Company has some products that can be
identified as stars due to the significant market share, along with the market share growth potential of these
products. The mouth wash range offered by Colgate is one such example as it is a growing segment of the
oral healthcare industry. In addition to this, the pert nutrition has been a progressing part of the business,
as illustrated through the gradual growth in sales and revenues connected to the sales of pet nutrition items
(Colgate-Palmolive Company, 2015). Another product that has experienced growing demand and can
become a source of financial progress for Colgate is its teeth whitening toothpastes (Segrave, 2010).
Question Marks
The products that are termed ass question marks are considered as items that seem to have uncertain
future prospects. These products could either become a success in the future or these products can
become a failure owing to the low demand of these items among the consumers. In either case, the
uncertainty for the product future is high, keeping it in the question mark category. In case of oral
healthcare products, Colgate-Palmolive has not been able to create a similar strong market presence
through its toothpaste for kids. In comparison to the toothpaste manufactured for adults, the sale of
children’s toothpaste has not achieved similar results. The management has been trying to bring some
improvement in the sales volume of the children’s toothpaste. Success of such endeavors can push this
toothpaste into the category of stars, however that depends on the market share that is gained by the kid’s
toothpaste in the market. The question mark can be turned into a star by adopting a promotional and
marketing plan that is aligned with the needs of the target market and creates adequate level of interest
among the buyers. In case if the kid’s toothpaste doesn’t trigger interest in the toothpaste, the product will
remain have an uncertain future in the oral care industry.
Dogs
The products that have been identified as dogs have some key features. One of the central identification
feature of a dog is that it is not giving the firm a solid financial growth. Apart from the low financial input,
these products are not seen as adding any value to the financial growth of the firm. As a result, these items
are not a likely means of organizational growth and strong market presence. Due to this reason, the
decision makers are not likely to continue investing the organizational resources in managing the
operations of these products. Since dogs are a constant source of burden for the financial resources of
Colgate-Palmolive, the company needs to identify the Dogs and manage them in an appropriate manner to
control the unnecessary expenditure in this domain.
For the company, the products that can be considered as Dogs include Colgate toothpowder that has not
been able to achieve significant demand in the target market. The consumers have been more interested in
buying toothpastes and mouth wash products rather than spending money on purchase of Colgate tooth
powder. As a result of this low consumer interest, the management at Colgate may have to decide about
selling this part of the business or stop further investment into this venture. In addition to the tooth powder,
the company has not been able to achieve strong sales in the domain of talcum powder (Colgate-Palmolive
Company, 2015). Another issue that has reduced the growth chances of Colgate talcum powder is the
complaints about the quality of the product and the issues it was causing among the users. According to
Worthington and Caron (2015) the use of talcum powder manufactured by Colgate was found to be linked
with the occurrence of Mesothelioma. This finding has caused a lawsuit for the company, which resulted in
the payment of a fine of $13 million to the individual suffering from talcum powder related Mesothelioma.
eferences
Colgate-Palmolive Company (2015). Annual Report. Retrieved
from http://files.shareholder.com/downloads/CL/3913710756x0x882566/C197DA96-7ECE-425D-8969-
6E5465F055A5/Colgate-Palmolive_2015-Annual-Report.pdf
Segrave, K. (2010). America Brushes Up: The Use and Marketing of Toothpaste and Toothbrushes in the
Twentieth Century. USA: McFarland and Company Inc.
Trefis Team (2013a, Jan 30). Colgate-Palmolive’s Emerging Markets Growth And Oral Care Unit In Focus.
Forbes. Retrieved from http://www.forbes.com/sites/greatspeculations/2013/01/30/colgate-palmolives-
emerging-markets-growth-and-oral-care-unit-in-focus/#452d52761ad6
Worthington and Caron (2015, May 1). Jury Finds Colgate-Palmolive Talcum Powder Causes
Mesothelioma, Awards $13 Million. PR Newsiwre. Retrieved from http://www.prnewswire.com/news-
releases/jury-finds-colgate-palmolive-talcum-powder-causes-mesothelioma-awards-13-million-
300075727.html