DATE:January 9, 2010
RE:Calgate Max Fresh: Roll out Brand
In February 2005, Nigel Burton, in his third year as president of global oral care at Colgate- Palmolive Company (CP), had every reason to feel optimistic. Worldwide market shares were strong and Colgate Max Fresh (CMF), a new tooth paste that had helped drive Colgate to a record 34.8% value share in the important US market, was in the global pipeline for 2005. Burton had on his desk the proposed marketing launch plan for CMF in China and Mexico. Each plan sought to maximize business potential in the local market. Burton needed to assess these plans from a global standpoint, and he wondered if the benefits of adapting the marketing programs in each country outweighed the costs.
By January 2005, CP was a $10.6 billion global company operating in 200 countries worldwide. Colgate-Palmolive (CP) is a worldwide company that specializes in oral, personal, home care and pet nutrition. Colgate is an oral care brand that is recognized throughout the world. Some CP’s most distinguished brands are Colgate, Palmolive, Speed Stick, Ajax, and Hill’s Science Diet.
Colgate-Palmolive has the majority market share in the United States, Mexico, and China. In each country, Procter and Gamble’s (P&G) Crest toothpastes are ranking next in market share. In the U.S. and China the market shares are very close. In 2004, Colgate had 34.8% and Crest had 31.6% of the market shares in the U.S.; in China Colgate had 23.6% and P&G’s 21.2%. However in Mexico, the difference between CP and P&G is enormous, CP has market share above 80%.
CP executive was pressured to compete hard against Crest’s new product called Crest Whitening Expressions (CWE). In August 2004 CP launched a new toothpaste product called Colgate Max Fresh (CMF) in the United States. CMF was advertised as first-class toothpaste that would provide a complete new breadth of freshness. The product was so successful in...