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ADVERTISING RESEARCH
    FOUNDATION
   75th   Anniversary
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
CHANGE
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
THEN




Telex machine
NOW




Texting while driving
THEN




  2 cellphones
per 1,000 people
NOW




2,000 cellphones
per 1,000 people
THEN:
PUBLIC VIEW OF BUSINESS
THEN:
PUBLIC VIEW OF BUSINESS
NOW:
PUBLIC VIEW OF BUSINESS
NOW:
PUBLIC VIEW OF BUSINESS
TODAY

 The role of research in
  Colgate’s success



 How this role will continue
  to grow
INSIGHTS AS THE
   NAVIGATOR
INSIGHTS AS THE
   NAVIGATOR
LOOKING BACK
OBSERVER
  AND
MEASURER
MEASURER
    AND
INTERPRETER
INTERPRETER
    AND
 NAVIGATOR
NAVIGATOR
        AND
REPUTATION GUARDIAN
YOU HAVE TO PUSH TO
     GET THERE
RESEARCH
COLGATE RESEARCH

 Truthfulness

 Constant push to increase
  influence

 Always demand a seat at the
  decision table
THE ROLE OF RESEARCH
IN COLGATE’S SUCCESS
DEFINING “SUCCESS”

 Operating Profit

 Return On Capital


 Growth in Shareholder Value
DEFINING “SUCCESS”

 Operating Profit

 Return On Capital


 Growth in Shareholder Value
OPERATING PROFIT
              ($MM)
                             $379


                      $296

       $231
$206




'85    '86            '87    '88
OPERATING PROFIT
                                            ($MM)




                379
          296
206 231




'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
OPERATING PROFIT
                                                                   ($MM)                                                                                                  3,796
                                                                                                                                                                  3,615


                                                                                                                                                          3,265

                                                                                                                                                  2,959


                                                                                                                                          2,567

                                                                                                                                  2,339
                                                                                                                    2,211 2,239
                                                                                                               2,054
                                                                                                       1,875
                                                                                                  1,773
                                                                                          1,597
                                                                                  1,451
                                                                          1,315
                                                                  1,185
                                                    1,011 1,067
                                              910
                                        780
                                  626
                            558
                      462
                379
          296
206 231




'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
DEFINING “SUCCESS”

   Operating Profit

   Return On Capital


   Growth in Shareholder Value
RETURN ON CAPITAL

              Goal
              15.0%
RETURN ON CAPITAL

                        Goal
                        15.0%
                12.7%
        11.6%
10.0%




 1985   1986    1987
37.0%
RETURN ON CAPITAL

                        Goal
                        15.0%
                12.7%
        11.6%
10.0%




 1985   1986    1987            2010
DEFINING “SUCCESS”

   Operating Profit

   Return On Capital


   Growth in Shareholder Value
TOTAL SHAREHOLDER
      RETURN
     Five Years
   12/31/83 – 12/31/88
TOTAL SHAREHOLDER
      RETURN
     Five Years
   12/31/83 – 12/31/88




   +102%




    S&P
TOTAL SHAREHOLDER
      RETURN
     Five Years
   12/31/83 – 12/31/88
                    +152%



   +102%




    S&P          Peer Group
TOTAL SHAREHOLDER
      RETURN
     Five Years
   12/31/83 – 12/31/88
                              +164%
                    +152%



   +102%




    S&P          Peer Group   Colgate
TOTAL SHAREHOLDER
      RETURN
      27 Years
   12/31/83 – 12/31/10
TOTAL SHAREHOLDER
      RETURN
       27 Years
   12/31/83 – 12/31/10




   +1,349%




    S&P
TOTAL SHAREHOLDER
      RETURN
       27 Years
   12/31/83 – 12/31/10
                   +3,556%




   +1,349%




    S&P          Peer Group
TOTAL SHAREHOLDER             +5,342%
      RETURN
       27 Years
   12/31/83 – 12/31/10
                   +3,556%




   +1,349%




    S&P          Peer Group   Colgate
RESEARCH
C-P STRATEGIC
C-P
  INITIATIVES
C-P STRATEGIC INITIATIVES

    What businesses to emphasize,
     which to exit
RESEARCH


DOMINATION
Advertising Research Foundation's 75th anniversary - Colgate
WORLDWIDE TOOTHPASTE
       SHARES


                        31.0




16.2        17.0




  Comp. 1     Comp. 2     Colgate
WORLDWIDE TOOTHPASTE
       SHARES


                          31.0




16.2          17.0
       14.6




  Comp. 1       Comp. 2     Colgate
WORLDWIDE TOOTHPASTE
       SHARES


                           31.0




16.2          17.0
       14.6
                     9.0




  Comp. 1       Comp. 2      Colgate
WORLDWIDE TOOTHPASTE
       SHARES
                                  44.3



                           31.0




16.2          17.0
       14.6
                     9.0




  Comp. 1       Comp. 2      Colgate
EXITING STRATEGICALLY
NON-VIABLE CATEGORIES
WORLDWIDE DETERGENT
      SHARES
 46.4
          2001




           19.8


                      7.9



Comp. 1   Comp. 2   Colgate
C-P STRATEGIC INITIATIVES

    What businesses to emphasize,
     which to exit


    Accelerate new product process
BEFORE



U.S.-CENTRIC
 RESEARCH
BEFORE



LOCAL NEW PRODUCT
  INDEPENDENCE
RESEARCH

       GLOBAL
CONSUMER INSIGHT AND
 INNOVATION CENTERS
CONSUMER INSIGHT AND
 INNOVATION CENTERS
RESEARCH

 NEW PRODUCT
ROLL-OUT SPEED
BEFORE



     LENGTHY
COUNTRY-BY-COUNTRY
     PROCESS
Advertising Research Foundation's 75th anniversary - Colgate
20 languages, single execution
C-P STRATEGIC INITIATIVES

    What businesses to emphasize,
     which to exit


    Accelerate new product process


    Improve global creative
     excellence
RESEARCH

  IMPROVE GLOBAL
CREATIVE EXCELLENCE
NEW AGENCY
COMPENSATION SYSTEM
IMPORTANCE OF THE
 BIG CREATIVE IDEA
LEADERSHIP STEPS
TO CREATIVE EXCELLENCE
   Be the best client they have
   Really care
   Mutual trust
   Ask for excellence
   Clear direction
   Look for the big idea
   Ensure agency profitability
MEDIA SELECTION
SPENDING TESTS
SHOPPER MARKETING
   EXPLORATION
NEW MEDIA TESTING
RESEARCH


DEFINING AND BUILDING
   GLOBAL VALUES
    AND CULTURE
CULTURE AND
WALL STREET
RESEARCH

VALUES
COLGATE’S VALUES

 Continuous   Improvement

 Global   Teamwork

 Caring
COLGATE’S VALUES

 Continuous   Improvement

 Global   Teamwork

 Caring
NORMAL CURVE
GLOBAL CURRICULUM




    270+ Courses
3,000 CERTIFIED
COLGATE INSTRUCTORS
Advertising Research Foundation's 75th anniversary - Colgate
COLGATE’S VALUES

 Continuous   Improvement

 Global   Teamwork

 Caring
GLOBAL PLAN FOR
 PROFESSIONAL
RECOMMENDATION
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate
COLGATE’S VALUES

 Continuous   Improvement

 Global   Teamwork

 Caring
CARING AND RESPECTING:
 Consumers


 The   world we live in

 Each   other

 Integrity   of the organization
CODE OF CONDUCT
DIVERSITY
SUSTAINABILITY
FUTURE
CONSUMERS
OVER 500 MILLION CHILDREN
  REACHED WORLDWIDE
BUT…
CURRENT BUSINESS CLIMATE
 BRINGS NEW OBLIGATIONS
NOW:
PUBLIC VIEW OF BUSINESS
BUSINESS DISHONESTY
PERCEPTION EXCEEDS
     REALITY
RESEARCH HAS A
BIG OBLIGATION
MUST CONSTANTLY
OBSERVE THE WHOLE
 ORGANIZATION AND
   ALL ITS PARTS
OBSERVE GOOD
 PRACTICES AND
DETECT PROBLEMS
PROBLEMS/GOOD PRACTICES

      Products

      Environmental

      Human

      Regulatory
THEN WHAT?
THE ROLES OF
  NAVIGATOR AND
GUARDIAN ARE VITAL
YOU ARE A MAJOR FACTOR
 IN CURRENT AND FUTURE
    BUSINESS SUCCESS
ONLY YOU
CAN DO IT
Advertising Research Foundation's 75th anniversary - Colgate
Advertising Research Foundation's 75th anniversary - Colgate

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Advertising Research Foundation's 75th anniversary - Colgate