nown for having a long history of strong relationships with its retail trade partners, Colgate is sharply focused on aligning its strategies and goals with those of its trade partners in order to achieve mutual success.

Colgate people understand that the way we do business is just as important as the results we achieve. Colgate has developed global commercial selling principles that apply to our relationships with all customers, regardless of their size or location. These principles provide specific guidelines on how to achieve business goals, while maintaining Colgate’s commitment to its values and to upholding the highest ethical standards in its business dealings.

Reflecting the importance Colgate places on these principles, the Company’s senior-level general managers around the world led a training workshop, called Implementing Commercial Practices With Excellence, for all commercial personnel. Within a year, more than 10,000 Colgate employees and third-party merchandisers had completed the training either online or in classrooms.

Colgate is also strengthening its retail trade partnerships through its shopper marketing initiatives. Aimed specifically at shoppers, these marketing programs are developed and executed in partnership with our retail customers. In the United States, for example, Colgate learned that in stores with in-house pharmacies, nearly half of shoppers do not buy another product when filling their prescription. However, these shoppers want information on health-related products. As a result, messaging focused on Colgate Total toothpaste and the association between a healthy mouth and a healthy body is being communicated on prescription bags given directly to shoppers who purchase medications for diabetes and heart disease. Additionally, special displays for Colgate Total with similar health messaging are being placed adjacent to the pharmacy. Activities such as these not only build brand equity and sales for Colgate, but also help grow category sales for the retailers.

Another collaborative initiative that benefits both Colgate and its retail partners is Joint Business Planning. This process fosters cooperation through the joint development of commercial plans that align both the customer’s and Colgate’s strategic priorities and business goals. Colgate works with its retail customers around the world to develop together the most effective ways to grow the categories in which we compete and to improve supply chain efficiency, which ultimately leads to better value and service for the shopper. To facilitate the process, Colgate employees learn techniques to help them better understand a retail customer’s strategy from the customer’s point of view, leading to better service for our customers.

Small stores around the world are just as important to Colgate as large ones. In emerging markets, a majority of Colgate’s sales come from small neighborhood stores, often within walking distance of consumers’ homes. In order to better understand the small-store environment, the consumers who shop there and the ways they shop, Colgate employees often immerse themselves in a store for up to a week to experience day-to-day goings-on firsthand.

Based on consumer and shopper insights, the Company works closely with local merchandisers and shop owners to offer a relevant assortment of products and merchandising services to achieve high visibility in each store.

-