Colgate Max Fresh: Global

Brand Roll-Out

Ying-Hui Chen
Prashant Ranjan
Sagar Bansal
Manjari Varshney

Costs of Adaptation of CMF

High manufacturing costs
Opportunity costs
o
o

Cannibalization
Delist lower-performing stock keeping unit (SKU)

Marketing expenses
o
o

Media Advertising
Promotions and Sampling

Benefits of Adaptation of CMF

Increase market share:
o

Contributed to Colgates record share of 34.8% in

2004 in U.S.

Incremental sales and profits

Traded existing colgate consumers up to
higher-priced variants

CMF launch results better in Mexico

Huge Advertising Costs in China - Negative
Operating Profit
o
o

42% of sales in China vs 10% in Mexico

Not major psychographic differences - less celebrity
cost

Change in Packaging standards

o
o

Stand up tube development

Color testing

CMF launch results better in Mexico

82% Market share in Mexico vs 24% in
China in 2004
o

High impact of price sensitivity and sales promotion

+25% increase with decrease of 1 Pe
In store merchandising, sampling, public
relations

CMF Launch Mexico - Issues

CMF Launch didnt capitalize
on Therapeutic benefits
o Possibility of increased
sales
82% Market Share - difficult for
products with new features
Consumers emphasize basic
oral care

Global Rollout Strategy - Emerging Markets

Markets with less value share:
Customizable market strategy to adapt to other neighbouring countries
Product trials with smaller product sizes - consumers can experiment
Tailor premium products to Emerging Market price points - consumers are
price sensitive
Use International/Sports celebrities to avoid huge advertising costs
Unique regional plans
o E.g. regional flavors - e.g. Crest tea flavor in China
o Packaging - clear bottles showing cooling crystals; build brand
awareness

Global Rollout Strategy - Developed Markets

Markets with greater value share and new to freshness concept:
Can include breath strip samples for consumer attraction
Concept testing for finding price volume sensitivity
Advertisements showcasing on therapeutic and freshness benefits
Focus on preserving market share
o Price volume sensitivity
o Competitive pricing
Adapt commercials to cultural values
o Mexico - snowboarding distant idea