Colgate Max Fresh:
Global Brand Roll-Out
Executive Summary
The United States, Mexican and Chinese markets all took very different approaches to the release of Colgate-Palmolive’s (CP) newest oral care product in 2004-2005. The new toothpaste is called Colgate Max Fresh (CMF). It is a cavity preventing gel with breath-freshening strips suspended in it that dissolve while consumers brush their teeth. The technology behind the breath strips is patented, and Colgate was hoping the product would be a big success by providing unique freshness.
In the United States, research was done and new bottling was designed to optimize the appearance of the new toothpaste. The advertising was also focused on the freshness that result from the
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| New flavors cost $200,000 to research and develop. New graphics, aesthetics, advertising campaign cost $1.5 million. New packaging (that failed) cost $1.5 million, and would have increased variable cost by 20%.New green color developed for $7,000. | New advertising campaign cost $500,000 total.Not many other expensive changes were mentioned.Package size is different from the U.S., but with similar packaging types (and probably similar to other Colgate toothpaste packages). |
In Mexico the promotional campaign was completely changed from the U.S. campaign and a third product flavor was introduced. The original two flavors were not changed, reducing costs compared to China. Costs in Mexico were kept low, and in the first two years Colgate saw a net profit in the Mexican market with Colgate Max Fresh. In China, however, many aspects of the marketing mix were changed, increasing costs tremendously. The product was changed by eliminating one of the two original flavors, changing the color of the other, and adding two new flavors. CP China’s management also tried a variety of packaging styles before choosing to use one that would increase the variable cost by 20% per unit. It turned out, however, that the design they chose was not up to CP’s global standards and after spending $1.5 million the idea was thrown out. The advertising campaign was changed to a riskier
Prices Include 2 flavours of choice out of 30 options. Each additional flavour is $20.00
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
“Makes tooth brushing an enthusiastic habit” is a popular quote used by Sanitol Chemical company during the 1900s. From the moment, we first learn to brush our teeth, we are taught that we should always keep them clean and white. Sanitol tooth powder made this possible during the early 19th century. Having pearly white teeth is seen as an attractive quality to have. Therefore, Sanitol made various ads to display the beauty of having white teeth in their ads. Although both advertisements are from 1911 and, one ad targets the female audience by presenting sanitol tooth powder as being a beauty product and the other ad targets parent by presenting sanitol tooth powder
Since diabetes depresses wound healing and creates blood vessel changes, Alice is at an increase risk of gingivitis and periodontitis. I can provide periodontal therapy if Alice is diagnosed with gum disease (Little et al., 2013, p. 236).
After thorough examination of the Vividata toothpaste research, what follows is the most relevant information about the subject.
According to Brazil basic social characteristics, and several other major competitors’ product, we decided our product types covered by the child toothpaste for the kids, healthy toothpaste for the elder, white toothpaste for young people, economic toothpaste for family. Our team pricing standards are to ensure that company earnings, guaranteed price competitive enough in the market, and guaranteed consumers can afford the price.
Solving for the extreme point where the color and nutrient lines intersect subtract the two equations:
In order to meet consumer demand CP could introduce the toothbrush as a niche, super-premium or amainstream, professional product. It could also introduce the product using standard naming conventions or introduce anew labeling system by calling it the “Precision by Colgate.” CP could leverage existing industry relationships and makean effort to form new ones in order to gain a competitive edge. At launch, CP could plan to offer competitive promotions,a popular offering that was slowly becoming standard practice in the oral care industry. The company could also increaseits advertising budget to include educating the public on the dangers of gum disease. Depending on how it chooses tointroduce the Precision toothbrush to the market, 1992 could serve as an important year for CP to establish itself as thedefinitive oral health care company.
Every company must analyse the marketing mix, i.e. Product, Price, Promotion and Distribution while planning their market entry strategy. Since the American management were successful while launching the brand previously, in the USA and Japan, they thought it best to use the same formula in Europe. They were met
For a start, Colgate-Palmolive are struck with quite a blow, losing their chance to patent the formula, which has a direct impact on their product and market strategy. The company’s plan had been to ride on the success of the mouthwash formula to gain a competitive advantage over other players, which has been foiled now. Colgate-Palmolive will now have to think of some alternative and innovative strategy to keep its hold over the mouthwash segment of the oral care market. This patent if granted would have allowed Colgate to introduce some new variety to its mouthwash product portfolio and cater to the increasingly health conscious consumers.
Promoting oral health: Colgate’s flagship “Bright Smiles, Bright Futures” (BSBF) program is among the most far-reaching, successful children’s oral health initiatives in the world.
The Procter &Gamble Company (P&G) was the first one to launch the over-the-counter tooth-whitening product, Crest Whitestrips, which is able to be used at home to the market. After two years, Colgate followed to launch the rival product, Simply White, and snatched big part of the market share from P&G. The market share of Whitestrips dropped from 80% to 37% while Simply White achieved almost 50%. Apparently, Colgate has won this teeth-whitening competiton.
Well in the fact that there are a lots of the same product but not the same brand and company which are now competing in the market. Like Happy toothpaste, Close-up, Sensodyne and many more because now on consumers are now sensitive enough in choosing what product might them to choose. The Colgate product is still the same compare to others. But this said product has something to patronize because in my own observation where Colgate is more highly recommended than other product because Colgate has the quality and ability to sustain their product and also it really gives very big and full impact for us the consumers will continue purchasing in a single sachet or in a large portion where people can also buy in a easy way where some can save money and can afford it.
Colgate’s Ribbon Dental Cream was the first ever product to be introduced in yje market way back in 1896. However, new Colgate creams were later ushered into the market. This led to the disappearance of the original product. Colgate Total toothpaste was introduced in the US market in 1997. It bombarded the market and gained a lot of popularity. It later reached the maturity stage coupled with an improvement in sales but at a diminishing rate. The volume of sales remained stable for some time. However, the sales began to drop gradually. Currently, the popularity and volume of sales of Colgate is below par owing to a number of factors such as stiff competition and high cost of production.
The cost policy of CCE depends on the cost dynamics relative to its rivals and also the estimation of its products. In the global market, the strongest rival of CCE is Pepsi Inc. these companies, there are different taste merchandises, but adopt the same cost. Thus, it makes impression that consumers buy new merchandise, but do not consider too much differently, due to PepsiCo Inc. is a powerful rival, and two enterprises almost accept similar pricing. The supermarkets in Turkey, the cost of Coke is higher by 15 to 20 kuruş, if compared with PepsiCo. However, affordable cost where consumers realize that they expend extra pricing against cheaper substitute products for responsiveness demands, greater quality, and dependability of merchandise.