MEMORANDUM
RE: Colgate Max Fresh: Global Brand Roll-Out
Summary:
The Colgate Palmolive (CP) had a global lead in personal care and household products. The company’s largest business was the oral care products. The introduction of Colgate Max Fresh gave the company a leading share of toothpaste in U.S. of 34.8% as compared to its rival company Procter and Gamble (P&G) at 31.6%. The Colgate Company also had a global share of 39.7% while Procter and Gamble had only 14.7% in 2004. Nigel Burton, company’s president for global oral care division looked to introduce Colgate Fresh Max in China and Mexico. They wanted to continuous their dominance in those regions by taking advantage of the increased demand for cosmetic benefits i.e. freshening and whitening while the rival company, Procter and Gamble, had dominated in the therapeutic segment of anti-cavity formula. Burton had to analyze the project by making sure that that the launch would create enough profits while finding a right fit for the local consumer’s needs. He also had to find the overall added value to the company brand franchise and respond to the introduction of P&G’s Crest Whitening Expressions in China and Mexico.
Problems/Opportunities
The Colgate Palmolive had to overcome many problems in the course of adapting to their marketing strategy including the language barrier, flavor selection, pricing and message delivery. In China Colgate was already leading the market with a share of 32.1% including a joint project with Darlie and San Xiao, the local brands. Originally local people favored the therapeutic feature but there was a growing trend for the fresh breath aspect which was a plus for the launch of Colgate Fresh Max. The consumers preferred the lower- priced products as compared to the premium products that made a big market for the product. The biggest challenge was getting the consumer communication correctly. The concept of breath strips was new so it was replaced by, “Cooling...