Oligopoly brief: Colgate-Palmolive
Colgate-Palmolive is a US-based company that, together with Unilever and Procter & Gamble, dominates the personal and domestic care product industries. Each of these three companies is a leader in several categories in these sectors, and each has interests outside this sector. But these companies all have a worldwide market while their biggest rivals, almost inevitably, are each other.
n fact, Colgate-Palmolive has claims to being one of the first multinationals. The Colgate firm was founded in 1808 and merged with the Palmolive soap company in 1928. But already in the '20s, it had started selling its products abroad, first in France, then in the UK, Italy, Germany, Mexico, Australia, Brazil, Argentina, and the Philippines. As a consequence, the company, which had sales in 2002 of $9.2 billion, had 70% of those sales outside the United States.
And while the company has constantly extended its reach overseas, with new plants and extended sales efforts, it has been relatively conservative about new acquisitions. The company had a flurry of acquisitions in 1teh early '90s, acquiring the Javex bleach company, Murphy Oil soap, the Mennen deodorant company, and the Kolynos dental care brand in Latin America. In recent years there have been no acquisitions, as Colgate-Palmolive concentrates in expanding sales of existing brands worldwide. For example, Colgate toothpaste is sold in over 100 countries. It has a major investment in introducing Western dental care in China.
What it has done instead of mergers is extend out its branded lines with new categories (a recently introduced dish wipe) or variations, such as Irish Spring vitamin soap, Palmolive aromatherapy dishwashing liquids, and Colgate Herbal White toothpaste. There are relatively few local brands under its corporate umbrella.
The company is a particularly strong #1 in toothpaste and dental care products, as well as in liquid soap. Its most non-central division sells Hill's Pets food, which sells premium, "health -conscious" food for dogs and cats.
| Category |
Brands |
Chief Competitors |
| Oral care (toothpaste, brushes, whitener, floss |
Colgate, Plax, Kolynos |
Procter & Gamble, Unilever |
| Deodorants |
Crystal Clean, Speed Stick, Lady Speed Stick, Teen Spirit |
Procter & Gamble, Unilever, Gilette |
| Personal Soap |
Palmolive, Irish Spring, Protex, Softsoap |
Procter & Gamble, Unilever, Dial |
| Shaving cream |
Colgate, Palmolive |
Gilette |
| Aftershave |
Afta, Skin Bracer |
Gilette, Procter & Gamble, Sara Lee |
| Shampoo |
Caprice |
L'Oreal, Procter & Gamble, Unilever |
| Dishwashing soap |
Palmolive, Vel, Ajax, Crystal White, Paic |
Procter & Gamble, Unilever |
| Houshold cleaners |
Ajax, Javex, Murphy's , Fabuloso |
Procter & Gamble, Unilever, S.C. Johnson, Sara Lee |
| Bleach |
Javex |
Clorox, Dial |
| Laundry detergent |
Fab Dynamo, Ajax, Soupline, Fleecy, Artic |
Procter & Gamble, Unilever |
| Fabric Softener |
Suavitel, Soupline |
|
| Pet Food |
Science Diet, Presciption Diet |
Nestle, Mars |
Colgate-Palmolive represents a strategy that has been unusual in consumer products companies. It has concentrated on a relatively few core brands, and worked on strengthening them and making variations within the brands. That's enables the company to make solid profits, avoid excessive debt, and maintain clear marketing messages. And it's a strategy that Unilever and Procter & Gamble have only lately started to move to as well.
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