Colgate Answers Final

Assignment 5: Case – Colgate Max Fresh: Global Brand Roll-Out  Jennifer Mroz & Jake Pregler Pregler

1. Assess the CMF launch in the US.  In 200! U.S. tooth"aste #arket $as e%enl s"lit 'et$een tooth"astes that e#"hasize( thera"eutic 'ene)ts an( those that stresse( cos#etic 'ene)ts. CMF "ositione( the#sel%es as a "re#ier 'ran( along $ith C*+. Colgate e#"hasize( freshness $ith a $hitening reassurance $hile using #ini 'reath ' reath stri"s. Accor(ing to 1st ear statistical s tatistical results! #e(ia a(%ertising contri'ute( to ,- ,- of that ear/s 'u(get. As a co#"an! the 'egan stri%e to$ar(s their target #arket $hich consiste( of a(ults a (ults 'et$een of 1- $ith a fe#ale ske$ s ke$..

2. *ere *ere CP China/s changes to the CMF #arketing launch "rogra#  usti)a'le3  4he changes to China/s CMF launch $ere $ere usti)a'le 'ecause it $as a(a"te( to the Chinese #arket. #arket. 4he co#"an realize( that the #arketing strateg nee(e( to 'e altere( for the "ro(uct to 'e success in the Chinese #arket. +5hi'it 6 sho$s the a(%ertise#ent #a(e for the Chinese #arket. 4he co#"an foun( out that the Chinese like the thought of freshness! so the geare( the a(%ertise#ent to 'e 'ase( aroun( fresh con)(ent 'reath. 4he also nee(e( to change the na#e of 'reath stri"s to cooling crstals. 4he na#e change $as necessar for the Chinese #arket to un(erstan( that the tooth"aste is for fresh clean 'reath. +5hi'it 11 sho$s ho$ the $ill a(%ertise using a cele'rit.  4he co#"an nee(e( to change the 7cele'rit8 7cele'rit8 in the a(%ertising a(%ertising ca#"aign 'ecause "eo"le in China fa%or (i9erent cele'rities cele'rities than "eo"le in the U.S. an( Me5ico. -. :i( CP Me5ico #anage its CMF launch 'etter than CP China3  4he CMF launch in Me5ico Me5ico $as to neutralize the antici"ate( antici"ate( launch of C*+! $hich threatene( the #arket (o#ination of CP. 4he "ricing of CMF $as at "ar $ith Crest/s Cool +5"losions. Canni'alization $as not a 'ig issue 'ecause Crest $oul( lose #ore than fair share as co#"are( to Colgate. Consu#er a""eal of CMF $as strong 'ut the consu#ers sus"ecte( a corres"on(ing lack of ca%it "re%ention an( $hitening 'ene)ts. 4he #e(ia a(%ertising $as 'ase( on the a(%ertising that co#'ine( the e5"losi%e "o$er to freshen $ith e5tre#e e5tre#e li%ing. Pro#otion Pro#otion acti%ities inclu(e( instore #erchan(ising! sa#"ling an( P; to "ro#ote the core 'ene)ts. CMF is not essential to the Me5ican "ortfolio as the tooth"aste #arket #arket is gro$ing at a slo$ rate. 4he CMF launch in China $as a $hole ne$ (i#ension of freshness. 4he Chinese #arket is hea%il ske$ere( ske$ere( to$ar(s lo$er "rice( local 'ran(s. 4heir "re#iu# #arket #arket is -0. I feel that China/s CMF launch $as 'etter than

Me5ico/s 'ecause the #a(e s#art a(a"tations. So#e launch changes that $ere #a(e inclu(e the na#e of the "ro(uct a%ors an( ne$ "ackaging. I feel that the co#"an ga%e China/s launch #ore attention an( thought. 4he stu(ie( the Chinese #arket an( #a(e the necessar changes in or(er for their "ro(uct to 'e successful. . +%aluate the glo'al rollout of CMF. ?ur tea# feels that the glo'al rollout of Colgate Ma5 Fresh $as successful. 4he "ro(uct $as (i9erent fro# other 'ran(s 'ecause it ha( the (issol%a'le 'reath #int stri"s. 4heir tooth"aste 'eca#e con%enient for custo#ers 'ecause of the t$o in one "ro(uct. 4he no longer ha%e to $orr a'out using alternate 'reath freshening "ro(ucts. 4he onl (o$nsi(e $as that this ne$ "ro(uct ha( a higher #anufacturing cost. Colgate Ma5 Fresh $as "ositione( as a "re#iu# 'ran( an( uni@ue. Peo"le $ant clean teeth an( fresh 'reath an( are $illing to s"en( the "re#iu# "rice. 4he s"ent a lot of ti#e an( #one a(%ertising that their "ro(uct $ill gi%e ou ulti#ate fresh 'reath. o$e%er! consu#ers sus"ecte( a corres"on(ing lack of ca%it "re%ention an( $hitening 'ene)ts. I (on/t think the Chinese #arket $as $ell a$are of the e9ecti%eness of the (issol%a'le 'reath #ints. In +5hi'it - of the case! it sho$s Colgate Ma5 Fresh conce"t state#ent. I feel that the state#ent is accurate an( infor#ational. It has the "o$er to in>uence custo#ers to recognize that it is a great "ro(uct to "urchase. In e5hi'it B the (i9erent "ro(uct 'o5es are "icture(. 4he la'els are 'right! ee catching! an( "ro#ote freshness.

B. *hat are the costs an( 'ene)ts of a(a"tation3 Colgate has lots of changes to #ake $hen entering the Chinese #arket. 4he co#"an has to 'e a$are an( kno$le(gea'le of the Chinese culture an( their "urchasing #oti%es. 4his #a lea( to an increase in a(%ertising costs! if the ha%e to alter the $a the a(%ertise in China. 4he co#"an $oul( ha%e to create a uni@ue an( ne$ a(%ertising ca#"aign an( #etho(. 4hat can 'e %er e5"ensi%e. A 'ene)t $oul( 'e that the Asian #arket fa%ore( freshness therefore it $oul( 'e eas to launch the "ro(uct in China. 4he i#"act of the Chinese launch $as high #e(ia costs an( high costs for re"ackaging a%ors! $hich $ill hel" 'ring in custo#ers $ith (i9erent >a%or "references.

A(a"tation can 'e a great $a for a co#"an to learn a'out a (i9erent countrEculture. It $ill also o"en u" o""ortunities to sell one or all of their "ro(ucts in that countr. A(a"tation also has its (o$nsi(e! as it can 'e %er e5"ensi%e. A(a"tation ena'les our co#"an to succee( in in(i%i(ual #arkets ' (e%elo"ing a thorough un(erstan(ing of local re@uire#ents an( #o(ifing (i9erent as"ects of our #arketing strateg. Pro(uct infor#ation on the "ackaging an( in the (ocu#entation also #ust re>ect local re@uire#ents. If ou are entering #arkets $here our "ro(uct is unkno$n! our co##unications shoul( focus on #arket e(ucation. A(a"ting our "ro(ucts to local nee(s is i#"ortant 'ut ti#econsu#ing.