Colgate Max Fresh Case

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Question 1. Analyze the factors leading to Colgate Max Fresh's success in the US market………………………………………………………………………………………..4

Question 2. Critically evaluate CMF's adaptation strategies in China and Mexico. From a global CMF perspective, what are the short-term and long-term impacts of these adaptations?.............................................................................................................................6

Question 3. Suggest guidelines for optimizing new product introductions for Colgate Palmolive worldwide. Provide appropriate justifications……………..……………………………….11

Question 4. Write an outline marketing plan, focusing on product, price and promotion for the launch of CMF as a global brand. Provide brief justifications for each……………….…...13

Bibliography……………………………………………………………………………….16

Appendix1…………………………………………………………………………………17

Question1.

The article Colgate Max Fresh: Global Brand Roll-Out presented a case of Colgate-Palmolive Company and the process of taking a new product, Colgate Max Fresh, global.

Colgate-Palmolive symbolizes the personal hygiene industry in the U.S., and as an international corporation has established itself as a leading household name in many foreign countries. Having strong historical records as a producer of dental cream, in 2004 Colgate-Palmolive had the leading value market share of toothpaste in the U.S. Colgate also had a commanding lead in the international market with a global toothpaste market value share of 39.7%, compared to Procter & Gamble with only 14.7% (Table-A). From Table-B in the case, CP and P&G are on a head to head competition for the 2004 value share of the U.S. toothpaste market with 34.8% and 31.6% value share respectively.

The company’s U.S. and world leadership in the toothpaste markets with its world-known brand was undoubtedly one of the reasons why the next product – Colgate Max Fresh – built its success on the US market.

The company’s success in the U.S. market is also attributed to the company’s investment into R&D and new technologies in order to fit the needs, wants and expectations of the consumers. CP looked to continue its dominance in the toothpaste market by taking advantage of the demand increase in cosmetic attributes to toothpaste. Exhibit-2B qualifies the consumer benefit data between years 2000 and 2004. There is a dwindling importance of the therapeutic benefit such as ‘anti-cavity/tartar’ at -22.7% while there is a growth in cosmetic benefits-whitening’ at +16.4% and ‘freshening/cleaning’ at +2.9%. For 2004, therapeutic benefits total at 53.4% while cosmetic benefits add up to 46.6%. CP had a good awareness of cosmetic and therapeutic characteristics in the toothpaste segment and managed to combine them in a new product - Colgate Max Fresh. With an increasing demand for cosmetic benefits the CMF release was “just-in-time”.

CP also followed the right positioning strategy – positioning in a premium segment. Volume sales in toothpaste super premium and premium segments increased by year 2004 and CP was developing faster than the market - +5.4% (super premium) and +2.1% (premium).

CMF was a roaring success owing to its innovative identity and value that it created for consumers. By incorporating the unique sales proposition (USP) - new dissolvable mini breath-strips in the toothpaste to freshen peoples’ breath, to whiten teeth and a variety of therapeutic techniques Colgate Max Fresh received a point of differentiation.

CMF targeted the “right” audience – 18-34 adults,– “fresh breath experientialists, active, social, who enjoy interacting with others and for whom a clean fresh mouth is a top priority”. This age group is usually referred to as Innovators – “brave people pulling the change” or Early Adopters- “opinion leaders, try out new ideas” (Rogers model for the adoption and diffusion of innovations, 1962 – give full reference in the reference list on page 16) who are...
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