Ethic issues and Major Strategies:
To handle the situation:
Possibility to change the advertising without affect the customer loyalty:
Effect on the management right :
In this study I going to introduce the main issues of the partnership of Colgate with Hawley and Hazel, a big company selling a toothpaste “Darkie” in the Asian Market. Colgate bought 50% of the company and not received the management right. Colgate wanted to expand the brand all around the world and discovered difficulty of ethic with the brand name and the logo. We will see on this study various aspect of the intercultural management, as the Ethic, and the various culture is Asia country. I will describe the strategies and the management of Colgate.
Ethic issues and Major Strategies:
Ethic issues is very difficult to resolve, because when we work at global, there are various strategies than we can use it in other country due to the ethic. Colgate has known a difficult situation in 1980, with a partnership located in Asia (Hawley and Hazel). This partnership is based on a 50% of equity by Colgate and builds a relation to use Asian products to worldwide. But in the strategy of Hawley and Hazel, they defined to keep all the decision in the management of the brand. The ethical issues began: The logo on the toothpaste that is Darkie; is a black man toothpaste. Hawley and Hazel have got a strong image and a good notoriety during a long time ago (Since 1920). In Asia the logo in non-offensive arrive in USA and are remarked as offensive on the USA market. This logo had given a business of millions of dollars to Colgate and Hawley and Hazel joint Alliance. The US culture is different because on this market there are more black people compare to the Asian market. According to their culture, attitude believe and norms that logo and trademark identify them as a black people. US culture, no one can identify according to their color. As Colgate had given a statement indicating that there position may be different if products sell in any western country, one can understand that Colgate knew what they were done in Asian market. Colgate is a US company, based in New York and does his business in USA, but they don’t want to sell something not adapted to his market. Because them customer will be offense of this logo and slogan. The black man is not the right thing to touch the good target in USA. In the Same time the name was not adapted and has to be changed has the logo.
Colgate has to manage his operation to adapt the product to his market. But on the contract of the partnership they can’t have anything decision on the management of the product. There are the ICCR are coming to request the name and the logo changing! Colgate has to build strong strategies. They thought a new strategies during long years to expose to the organisation on Human Right the objectives and new directives of the marketing. Colgate has worked during 3 years to change the logo on the product and the name. They decided to change the name Darkie by Darlie. They keep the same logo of the black man with his hat. On the product’s package we can see the change of name, and the communication on the change. Now the product will be called Darlie. With a black package but with the same product inside to maintain them loyalty customer since 60 years. In a second part, they change the logo of the product. The picture of a black man with a big white smile can be admitting in USA. So they change the picture by a white man in suit with the same hat as before. On the right picture we can see the evolution during this years. During few years, the company feared to be boycott by them customers. This strategic decision allows advancing in project to expand worldwide. This...
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