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Colgate Max Fresh Case Study

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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 …show more content…

| 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

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