Colgate Max Fresh : Global Brand Roll-Out

Product Level

Breath strip/cooling crystals

Fresh breath

Therapeutic Benefit

Tooth paste

Teeth cleaning

Core benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Mental Map

Colgate

Protection from germs

Fresh breath

Prevent cavities, reduces plaque

Red & White logo

Family association

Clinically proven

Brand Mantra

Emotional Modifier Descriptive Modifier

Functional Modifier

Maintain performance consistently ,high reliability

Family brand with multidimensional benefits, innovation

Oral Care for longer hours

BRAND FAILURE

Colgate Kitchen Entrées.Not as per the Brand MantraBrand Association with dental care extremely strong

Brand Values

Features and Attributes (Functional) Overall evaluation

Price : Reasonable

Colgate Red and White combination has not changed at all these years.

Reinforced customer’s belief in the product. instant recognition of the brand on the retail shelf hence creating a strong brand pull.

Benefits (Expressive)

Functional Brightness, tooth decay prevention & freshness.

Symbolic: Suraksha Chakra, “Colgate smiles” IDA

Core Value (Central) Best teeth care, Freshest Breath

Judgments

Feelings

Performance

Imagery

Salience

Resonance

• Repeated purchase .Purchase across generations

• Trust• Family

associations• Safe

• Logo-Red & White• Packaging

• Clinically proven• Most fresh.• Innovative

• Quality• Consistency• Delivers as

promised

• Oral care• Teeth whitening

CBBE MODEL

Leveraging Secondary brand Association

Colgate mouthwash Plax

Brand Hierarchy-Contemporary

Question 1

Did China and Mexico each do a good job of adapting the launch to meet local consumer needs? What is the likely profit impact of each plan? Which of the proposed adaptations were “must haves” versus “nice to haves”?

China

China

Freshness though accounted for 28% of consumer reason for a toothpaste purchase was a relatively new concept

The consumer responses were above the norms for new toothpaste products in terms of Purchase intent, believability, value for money, uniqueness and importance of main message

China

The 1st year had sales of 3882 tons, COGS as 50 % of sales and marketing expenses of 78%

The second year had sales of 4370 tons, COGS as 41 % of sales and marketing expenses of 42%

Given this trend, doing some basic back-of-the-envelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 35% we have an operating profit of 985,000$ in year 3

Given these, this adaptation is “a must have” as it clearly demarcates a consumer need that can be satisficed profitably

Mexico

Cavity protection was the major consumer reason for a toothpaste purchase though freshness was an appealing concept

The consumer responses were below the norms for new toothpaste products in terms of Purchase intent, believability, and product expectation

Mexico

The 1st year had sales of 1600 tons, COGS as 47 % of sales and marketing expenses of 15%

The second year had sales of 1850 tons, COGS as 40 % of sales and marketing expenses of 10%

Given this trend, doing some basic back-of-the-envelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 8% we have an operating profit of 700,000$ in year 3

Given these, this adaptation is “a nice to have” as it has slightly below par acceptance yet preventing crest to gain market acceptance

Question 2

From a global CMF perspective, what is the short- and long-term impact of the complexity born out of these local adaptations? Is this added complexity good or bad for the global CMF business?

Implications (China)

Globally, the short-term affects of the complexity born out of these adaptations is rather expensive.

It was expensive to adapt the Chinese advertisements, but in the long-term it will be very profitable because freshness is something that the Chinese are responsive to and sales are increasing.

Implications (Mexico)

In Mexico, the adaptation only cost about a third of that in China, but they did not reach the market as well as they would have liked.

It may have just held off Crest in the short-term for value share, but they need to look at meeting the consumers’ concerns better the next time they adapt a marketing plan to Mexico.

Global Implications

The added complexity is crucial to Colgate Max Fresh’s global business because it shows that they really put a lot of effort into meeting the consumers’ needs and they will respond positively to this.

If they would not have spent the time and money on this, consumers might not take the product as serious and sales would drop.

Burton and Colgate-Palmolive need to make sure that they adapt every aspect of their product to meet the consumers’ needs in all of the local and global markets because, although it may be more expensive in the short-run, it will pay off in the long-run.

Question 3

What guidelines could Burton propose going forward to optimize new product introductions for CP worldwide, for the regions, and for the country subsidiaries?

Guidelines

Global marketing strategy involves:• Understanding and addressing differences

across markets• Balancing the global brand and appeal to

distinct regions• Successful global marketing campaigns,

leveraging similarities to preserve a consistent message and limit costs while also customizing advertising to align with regional cultural preferences.

Four forces to drive the globalization of marketing and demands:

Market Drivers: Global customers Common customer needs “Cooling crystals”

Cost Drivers: Economies of scale potential of campaigns Different icon at different places, regions or

countries Trade-off between icons and opportunistic

locations are important

Continued……

Competitive drivers: Consideration of global competitors at earlier

phase Advantage from first mover advantage Keep in mind the counter threats from

competitors innovation Government drivers:

Keep an eye on regulation and censorship A different strategy for promotion when there

is inability to mention competitors by name

Continued……

When deciding which countries to enter first, we should consider the potential for organizational learning

In order to purposefully grow global brand equity, must be able to:–Identify the antecedents of brand value–Set objectives for brand development–Allocate resources across products

Thank You