News
Colgate-Palmolive raises ad spend by 18%
Colgate-Palmolive increased their worldwide advertising spend by 18 per cent matching their 19 per cent in their international earnings in the last quarter.
Announcing their quarterly figures, the company's CEO Ian Cook reported that the revenues for the consumer packaged goods giant had hit an all-time high of $805.9 million (Dh2.96 billion), an increase of 17 per cent from the previous year's period. Expectantly, the earnings also showed an increase of $493.8m, up about 19 per cent over the previous year.
Earlier, facing higher commodity costs, Colgate had raised prices on many of its items, which the company was able to balance out with an 18 per cent jump in worldwide ad spending.
"Higher advertising spending behind regular and new products worldwide drove market share across categories," Cook said in a written statement. "We are confident the strong top-line growth will continue. Our new product pipeline is full and we plan to support our strong momentum with continued high levels of advertising worldwide."
The statement said part of the detailed report of the company's performance cited Colgate Total Advanced Clean and Colgate Max Fresh as its top performers. The report also stated firm faith in the newcomers to the product range that included Colgate 360-degree Sonic Power battery toothbrush, Irish Spring Moisture Blast and Softsoap liquid soap featuring new packaging were also well received.
Commenting on Colgate-Palmolive's strong performance, Ken Harris, an international marketing analyst, said this comes as no surprise, despite the current economic crunch in most parts of the world.
"People don't stop brushing their teeth in a recession," he said. As for Colgate-Palmolive's strategy of boosting ad spend, "a lot of companies look at downtimes as a way to achieve hegemony in their overall business," he said in a statement to Adweek that prepared an analytical report on the subject.
In an effort to maintain the current growth rate, the group is launching two new products in the third quarter — Max Fresh with Mouthwash Beads and a new Palmolive Pure & Clear dishwashing liquid. The former boasts a clear tube packaging and is the first toothpaste on the market to contain mini dissolvable mouthwash beads, as per Colgate-Palmolive.
Industry observers credit the company with an aggressive approach complemented with their innovative growth in launching new products at the right time. "Their strategy is paying off and at a time when many others are cutting down on ad spend and reluctant to launch new range of products, Colgate-Palmolive is cashing on their aggressiveness," he said.
"In a survey conducted by AlixPartners, Colgate-Palmolive scored highest in category popularity and trust compared to leading brands.
"The survey also revealed that 'good quality merchandise' was a priority among consumers, and which Colgate-Palmolive, with its tradition of product innovation and performance, recognises."
Colgate-Palmolive have also induced confedence in the industry and the entire sector will benefit out of this "against the trend" achievement by the company, comment industry observers.
Harris added that Colgate has been savvy about doing fewer new launches, but making sure each have a high impact.
"If it adds value, that's really the key," he said. What that means: "Fewer line extensions and truly improved product performances."
Announcing their quarterly figures, the company's CEO Ian Cook reported that the revenues for the consumer packaged goods giant had hit an all-time high of $805.9 million (Dh2.96 billion), an increase of 17 per cent from the previous year's period. Expectantly, the earnings also showed an increase of $493.8m, up about 19 per cent over the previous year.
Earlier, facing higher commodity costs, Colgate had raised prices on many of its items, which the company was able to balance out with an 18 per cent jump in worldwide ad spending.
"Higher advertising spending behind regular and new products worldwide drove market share across categories," Cook said in a written statement. "We are confident the strong top-line growth will continue. Our new product pipeline is full and we plan to support our strong momentum with continued high levels of advertising worldwide."
The statement said part of the detailed report of the company's performance cited Colgate Total Advanced Clean and Colgate Max Fresh as its top performers. The report also stated firm faith in the newcomers to the product range that included Colgate 360-degree Sonic Power battery toothbrush, Irish Spring Moisture Blast and Softsoap liquid soap featuring new packaging were also well received.
Commenting on Colgate-Palmolive's strong performance, Ken Harris, an international marketing analyst, said this comes as no surprise, despite the current economic crunch in most parts of the world.
"People don't stop brushing their teeth in a recession," he said. As for Colgate-Palmolive's strategy of boosting ad spend, "a lot of companies look at downtimes as a way to achieve hegemony in their overall business," he said in a statement to Adweek that prepared an analytical report on the subject.
In an effort to maintain the current growth rate, the group is launching two new products in the third quarter — Max Fresh with Mouthwash Beads and a new Palmolive Pure & Clear dishwashing liquid. The former boasts a clear tube packaging and is the first toothpaste on the market to contain mini dissolvable mouthwash beads, as per Colgate-Palmolive.
Industry observers credit the company with an aggressive approach complemented with their innovative growth in launching new products at the right time. "Their strategy is paying off and at a time when many others are cutting down on ad spend and reluctant to launch new range of products, Colgate-Palmolive is cashing on their aggressiveness," he said.
"In a survey conducted by AlixPartners, Colgate-Palmolive scored highest in category popularity and trust compared to leading brands.
"The survey also revealed that 'good quality merchandise' was a priority among consumers, and which Colgate-Palmolive, with its tradition of product innovation and performance, recognises."
Colgate-Palmolive have also induced confedence in the industry and the entire sector will benefit out of this "against the trend" achievement by the company, comment industry observers.
Harris added that Colgate has been savvy about doing fewer new launches, but making sure each have a high impact.
"If it adds value, that's really the key," he said. What that means: "Fewer line extensions and truly improved product performances."