the company masks deep problems domestically. In 1989, foreign operations contributed 64 percent of Colgate's $5 billion in sales and 63 percent of its $481 million in operating profits. In the United States, however, the situation was more problematical: "Even though it owns such famous brands as Colgate toothpaste, Palmolive dishwashing detergent, and Ajax cleanser, the company earns most of its U.S. profits from an obscure line of pet foods. Colgate's domestic operating margins for household products are less than half the 9.8 percent it enjoys overseas and have shown essentially no improvement in years" ("Can Colgate Import Its Success from Overseas?," 1990: p. 114).
Freeman (1989) finds that the new-product development of Colgate is a process in need of retuning and that this is in sharp contrast to the success of the company overseas. Freeman writes: "Of the past six major new products introduced in the U.S., only two have made it: Palmolive Automatic dishwasher detergent, the liquid segment leader, and Colgate Tartar-Control toothpaste. . ." (p. 12). On the failure list were a number of products, including Lournay skincare products for sensitive skin, Fab 1 Shot, a combination laundry-care product, Colgate Tartar-Control mouthrinse, and Dentagard anti-plaque toothpaste.
Colgate-Palmolive has managed to retain its position as number three worldwide in the personal and household products business as a whole, a position it has had for decades. However, it was clear to Mark, as Grigs
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