Originally uploaded by Gregory Barbier.

In a recent press release in December 2004, Colgate announced to reduce its worldwide workforce by approximately 4,000 jobs, which accounts for 12% of the total workforce, and to close a third of its factories. This aims to save money which will be then allocated to initiatives in Sales and Marketing.

Colgate was still considered as being a real practical Marketing school few years ago, as well as Procter & Gamble currently. But during the last years the company has neglected this department and it has lost numerous market shares on various markets.

But markets such as Latin America, China, India or Eastern Europe are currently developing. These markets are actually the target of all global companies. If Colgate wants to be competitive and so to continue to be a profitable company, it has not to lose these new opportunities. In order to take profit of them, the toothpaste maker has to stimulate its Marketing and Sales departments.

How? First the company will hire marketers who are able to understand the needs of these new markets, to take successful initiatives and finally to be able to foresee their developments and so to adapt the strategy. These people will also have to be able to work under pressure because money which they will spend on Marketing actions has been saved thanks to 4,000 dismissals.

We will see in three or four years if the decisions taken were the right ones. At least it is a real gamble.