Report on

Colgate Max Fresh: Global Brand Roll-Out

Submitted by:
Karan pratap-1226114116
Naseer khan-1226114117
Lalit Akhil pillala-1226114119
Sai surya raghava-1226114120
Malavika issar-1226114121

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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"?

Yes Mexico managed its launch of Colgate Max Fresh better than in China as
they were almost in line with the US marketing strategies and no new
advertisement expenses were made like in China which resulted in negative
sales revenues. Since the advertisement costs were minimal owing to the fact
that there was no much psychographic difference in the target audience of US
and Mexico, therefore it a substantially good Operating Profit in Mexico.
Moreover, Mexico also altered its Price in order to gain sales volume.
Moreover, Colgate had a Value share of 82% in Mexico which is far more than
that of China, and had resulted in its acceptance in the country and increased
sales. Colgate dominated the Mexican market in terms of the Value Share. The
toothpaste market was heavily skewed towards the therapeutic toothpastes. The
Launching plan for Colgate Max Fresh had to be changed in China as people in
China would not have connected to Emily Procter’s character, and it required a
local celebrity for the advertisements. COLGATE MAX FRESH – GLOBAL
ROLL OUT 3 Connecting to the youth on the emotional level was a justified
decision taken by the marketing team and the leading of China, Jay Chow was
used in the ad campaigns. . However, there were huge investments involved in
changing the Ad Campaign and the Packaging. In spite of these there was a
steady growth in net sales for the Colgate Max Fresh in China from 20, 303
($000) to 23,773 ($000). Therefore, thought the marketing strategies were in
line with the Chinese market however, the sales did not boost up owing to the
large volume of investment made in achieving goals.
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?

As part of the Global Expansion strategy, Colgate Max Fresh should look for
countries in which the similar advertisement strategies could be used based on
the countries in which it is launched, like China’s ad campaign could be used in
South Eastern countries including Malaysia, Indonesia, Singapore, Thailand,
etc. US marketing Plans could be used in Canada and Mexico’s marketing plan
could be used in countries from South America including Brazil, Argentina,

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Chile, etc. As part of the Short Term Plan, CP should aim in targeting the
countries which have a mixed culture and close to the 3 countries discussed
earlier. It can also look for those countries in which it already has a greater
Value Share as this would ensure in easy penetration in the market. Moreover, it
should also do a research before deciding on the launch plans for these countries
as this would ensure product success of Colgate Mouth Fresh in these countries.
As short term plans it can also look at price alterations before launching the
Colgate Mouth Fresh in Price sensitive countries. The main focus basically
should be in the developed and matured markets which have greater knowledge
of the Product and the benefits it provides. Moreover as part of the future
launches it should prioritize the countries based on the level of Value Share
existing and this would ensure better adaptability of Colgate Mouth Fresh in
these mew markets. Also it can look out for several promotional schemes in
form of Bundled products or discounts in countries COLGATE MAX FRESH –
GLOBAL ROLL OUT 5 which has greater penetration on CP and its products.
This would ensure greater sales and would also provide the consumers with an
option to try out the new product before its actual launch and this might also
reduce burden on the Marketing research team in detailing the plans for the
launch. CP should also look for International Celebrities that might fit in the
advertisements for Colgate Mouth Fresh and might create a global impact and
save operational expenses to a greater extent.
3.What guidelines could Burton propose going forward to optimize new
product introductions for CP worldwide, for the regions, and for the
country subsidiaries?

Colgate Max Fresh is one of the revolutionary products of Colgate. As part of

the initial launch CP focused on the specific target group in US based on the
market research. CMF was launched in the United States in August, 2004. It had
recorded to contribute 34.8% to Colgate’s share. During this time US toothpaste
market was split between therapeutic and cosmetic benefit Toothpastes. It was
the ideal time for CMF to enter the US market. However at this time the market
share of Crest’s value share was increasing the premium segment of toothpaste.
Therefore, in order to counter that Colgate had to launch Colgate Max Fresh to
regain the market share. Colgate Max Fresh was positioned as a high quality
premium brand similar to CWE, which provided whiteness with mini breath
strips. It offered the US market with 2 variants of the product namely Blue Cool
Mint and Green Clear Mint, which also had a different and distinct flavour. The

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packaging of the COLGATE MAX FRESH – GLOBAL ROLL OUT 2 products
was also quite attractive owing to the clear plastic cover that showcased the
containing mini breath strips. Advertising was also a major challenge as proper
positioning was required to convince the target segment. It spent about 73 % of
the marketing budget of Colgate. It was positioned to infuse freshness to the
users and mainly targeted at fresh breath experimentalists whose primary
objective was to have clean mouth at all times with fresh breath. It used Emily
Proctor in its visual ads and this campaign was a huge success in the US market
and it increased the sales considerably and about 40% of the target group
provided positive intent to buy the product. Moreover, the sales increased as US
market is highly concerned getting Fresh Breath all the time and Colgate Max
Fresh provided the US market with the same with a brand new packaging style.
This also increased Colgate - Palmolive’s market share in US in the Premium
Toothpaste segment. Moreover, the sales boosted in US owing to the increase in
the consumers who preferred Premium multi Benefit Toothpaste.

Case Analysis:-
In February 2005, Nigel Burton, in his third year as president of global oral care
company in Colgate-Palmolive (CP), had every reason to be optimistic. World
stock markets were strong and Colgate Max Fresh (CMF), a new toothpaste,
Colgate has helped drive the share of a record in the important U.S. market, has
been in the global pipeline for 2005. Burton was on his table the proposed
marketing plan to launch CMF in China and Mexico. Each plan sought to
maximize the business potential of the local market. Burton was to assess the
plans from a global point of view.

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Cp organisational structure:-

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 Reasons of buying toothpaste:-

CMF Market in China

•$868 million retail toothpaste market
•1.1%decrease of value shares in2004 of Colgate Equity from 2001
•8.4% increase of value shares in2004 Crest from 2001
•“Fresh breath” top reason for buying toothpaste in China

CMF Adaptation Strategies in China

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CMF Market in Mexico:-
•$348 million retail toothpaste market
•82% market value share of Colgate
•10% approximated market share of Crest
•Relatively flat toothpaste demand

CMF Adaptation Matrix:-

China adapted to their local market better than Mexico, according to concept
and product tests. However, better test results do not necessarily mean that there
will be better profits.

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CMF Comparative Media Investments:-

CMF Launch Pro-Forma Profit-and-Loss2005 & 2006

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 Projected CMF Growth &Marketing Campaign ROI

CMF Launch Pro-Forma Profit-and-Loss2005 & 2006

Swot analysis
Strength
1) Focus on innovative and new product launches.

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2) Colgate business planning initiative
3) Diversified business operations.
4) Strong financial performance
Weaknesses
1) Product research
2) Highly leveraged
3) Because of high rate of taxes prices are high
Opportunities
1) Emerging market growth
2) Deploying advance technologies
3) Implementing new products majorly to attract youth.
Threats
1) Competitive landscape from other private label growth
2) Increasing commodity prices
3) Political condition is not stable
PORTER’S 5 FORCES MODEL

Incumbent Rivalry:
Consumers in the consumer-products category enjoy a multitude of choices For
everything from cleaning products to bath washes. While many consumers
prefer certain brands, switching costs in this industry are quite low. Hence, there
is a high degree of rivalry.
The Bargaining Power of Suppliers
More than likely, consumer-products companies face some amount of supplier
simply because of the costs they incur when switching suppliers. Hence power
for both the firms and their suppliers is probably limited.
The Bargaining Power of Buyers:
Consumer-products companies face weak buyer power because customers are

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fragmented and have little influence on price or product. But if we consider the
buyers of consumer products to be retailers rather than individuals, then these
firms face very strong buyer power.

The Threat of New Entrants:

Given the amount of capital investment needed to enter certain segments in
household consumer products, the threat of new entr ants is fairly low for the
company. The main test is whether the small manufacturer can get its products
on the shelves of the same retailers as its much larger rivals.

The Threat of Substitute Products:

Within the consumer-products industry, brands succeed in helping to build a
competitive advantage, but even the pricing power of the brand can be eroded
with substitutes such as store-branded private-label offerings. Hence, there is a
high threat of substitutes

BRAND PORTFOLIO

Colgate Max fresh

 It is the first and only toothpaste infused with
Colgate-Palmolive, the world leader in oral care, is
redefining the gel segment of toothpaste in India,
with the introduction of new Colgate MaxFresh Gel.

Maximum Fresh Cool Mint

 cooling crystals that dissolve in the mouth

completely upon brushing, releasing an intense
rush of breath freshening power.

Maximum Fresh Clean Mint

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  This patented formula gives a whole new
dimension of freshness to its users everyday.

Brand hierarchy
A brand hierarchy is a useful means of graphically portraying a firm’s branding
strategy by displaying the number and nature of common and distinctive brand
elements across the firm’s products, revealing the explicit ordering of brand
elements. It’s based on the realization that we can brand a product in different
ways depending on how many new and existing brand elements we use and how
we combine them for any one product. We can construct a hierarchy to
represent how products are nested with other products because of their common
brand elements.

COLGATE TOOTHPASTE

Colgate Colgate Colgate Colgate colgate Colgate

Dental Total Herbal Active Max Fresh
Cibaca
Cream Salt

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BRANDING STRATEGY OF COLGATE
 Every company requires a system of continuous growth and up gradation
For maintaining the Brand Equity in the market. Colgate may give
emphasis on Research and Development Projects in order to develop new
products.
 By introducing some Ayurvedic Oral Care Products The colgate aims at
reaching to the rich and consuming customers of rural India
 Colgate may launch some oral care products specifically targeting the
urban youth and the urban rich class In order to strengthen its' Brand
Image in the urban market of India.
 Colgate Branding Strategy aims at introducing some special oral care
products which will focus on functional benefits. The Brand can launch
specific oral care products for different age groups.
 The Branding Strategy of Colgate also plans to customize its packaging
techniques, based on price points. This, in a way will establish a new
pricing strategy.
Colgate Branding Strategy has a objective strengthening its' business promotion
network. The company is undertaking advertising strategies and campaigning
programs with the objective of reaching to the customers of India across income
classes.

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 MARKETING MIX

CUSTOMER WANTS
PRODUCT AND NEEDS

PRICE COST TO SATISFY

PLACE CONVIENCE TO BUY

PROMOTION
COMMUNICATION

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1. Product :-
 The product, the Precision toothbrush, is a product that
should add value to a buyer’s life.

 It should also add utility, and meet the wants and needs of targeted
consumers.

 The product should be unique and different from all similar products that
are already available on the market.

 The strategy is to differentiate the product’s design and packaging, which

in return will cause the toothbrush to stand out.

VARIOUS TYPES OF COLGATE

2. Price:-
 The price of a product says something about the quality.

 Even though the quality of the Precision toothbrush will be significantly

higher than other leading toothbrushes, the price of the toothbrush will be
determined by the prices of the other toothbrushes already in the market.

 This pricing strategy is a result of positioning the toothbrush as a

mainstream product rather than a niche product.

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COLGAT 20g 40g 50g 75gm 80g 100g 150g 200g 300g
E ms ms ms s ms ms ms ms ms
Dental 5rs ---- 14rs ---- ---- 30rs 45rs 56rs 86rs
cream
Max fresh --- --- 15rs --- 32rs 35rs 55rs ---- ---
Total ---- ---- --- 35rs --- --- 65rs --- ---

Sensitive --- --- 35rs --- --- 60rs --- --- ---

Kids --- 26rs --- --- --- --- --- --- ---

Advance --- --- --- 27rs --- --- 53rs --- ---
whitening
Active salt ---- --- 14rs ---- ---- 30rs ---- 54rs ----

Cibaca --- --- --- --- --- 18rs --- 28rs ---

Herbal --- --- 14rs --- --- 30rs --- 55rs ---
Fresh --- ---- ---- ----- --- --- 55rs 60rs ---
energy gel

3. Place:-
 Place represents the location where a product can be purchased.

 The most important part of marketing is how a product will get from the
seller to the buyer.

 Many products go through a channel of distribution, which involves

manufacturers, wholesalers, retailers, and consumers.

 The distribution strategy proposed for the Precision toothbrush is through

dentists, plastic surgeons, drug stores, grocery stores, large retail stores,
and department stores.

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  The product is available in the all India market, including semi-urban &
rural markets which are their primary focus.

4. Promotion :-
 Product promotion is communication spread through advertising,
Publicity and sales promotion.

 Promotion represents all of the communication that marketers use in the

market.

 We suggest that Colgate-Palmolive advertise their products by using

commercial, magazine ads, the radio, ads that are to be placed in dentist
offices, billboards, and the sides of buses.

 Advertising is done to promote new products, remind consumers of

existing products, and also promote the image of the company at hand.
We also suggested that Colgate offer special coupons and rebates through
their other products, and also food products.

 Also, Colgate could benefit from the usage of in-store displays.

 Most of the promotional activities would be T.V. media.

 T.V., FM radio for urban population.

 Promotion towards rural population also.

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 BCG MATRIX

 The BCG matrix or also called BCG model relates to marketing. The
BCG model is a well- known portfolio management tool used in
product life cycle theory.

 BCG matrix is often used to prioritize which products within company

product mix get more funding and attention.

 The BCG matrix model is a portfolio planning model developed by

Bruce Henderson of the BOSTON CONSULTING GROUP in the early
1970’s.

 The BCG model is based on classification of products (and implicitly

also company business units) into four categories based on combination
of market growth and market share relative to the largest competitor.

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 STP ANALYSIS

SEGMENTATION :-

 Colgate’s market segmentation is very broad because all their products

are of need to most people so those people share a similar interest in
product needs.

 Colgate uses a segmentation bases by knowing that certain groups of

people need Colgate toothpaste for a specific similar reason like yellow
teeth, sensitive teeth or just teeth with cavities.

 Colgate also uses the family life cycle because they make toothpaste that
could be used for grownups and children.

 Also, toothbrushes are made to attract young children with cartoon

characters and different tastes and are less strong so that it wouldn’t
damage their gums.
(2) TARGET GROUP:-

 MAX FRESH :– Colgate targeted youth with the introduction of this

toothpaste, as this helps in refreshes breath.

 ACTIVE SALT :- Elder people are targeted in this segment as it

makes teeth stronger and provides protection from cavities.

 COLGATE TOTAL :- Colgate Total contains the anti-microbial

ingredient triclosan, which reduces the number of bacteria that cause
gingivitis, cavities and halitosis Basically it’s for kids but Mothers are
targeted as they are very concerned about their kids. This toothpaste
safeguards teeth for 12 hours.

 COLGATE SENSITIVE :- People who have sensitive teeth are

targeted in this segment who have problem in their gums.

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  KIDS TOOTHPASTE :- Often small children don’t like to brush
teeth, so for them this toothpaste was launched. Colgate had focused on
taste aspect to encourage kids to brush teeth.
CONCLUSION:-
As Burton reviewed the recommendations from China and Mexico, he noted
that the U.S. marketing plan "as is" had not been tested by either management.
Accordingly, it was hard to evaluate whether the time and cost of the proposed
local adaptations would deliver results over and above what the base U.S. plan
would have achieved. Burton wondered how he could add value to the process
at this stage.

 By the Detailed study on the product and market of COLGATE it

was able to get a clear picture of the past and present of the products and
was able to get in to the assumptions about the future of the product.

 The Brand “COLGATE” has been sold successfully and has

created a good demand all the time.

 It is also holding a good place in the toothpaste market with a

share of around 10% - 15%.

 As like for all other products Colgate is also facing a tight

competition in the toothpaste Market.

 Since the competition is too strong the company has to keep on

watching market closely for avoiding any sudden collapse for the
product.

 Finally, it should note that the company may have to face lot of
threats in coming years like political threats, legislation threats ongoing
economic crisis, changing life style of the people etc. If the company is
able to overcome all the threats and can prepare themselves for facing the
problems in advance it can achieve a good growth for “COLGATE”.

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