Colgate Max Fresh
Case hand-out
Summary
Launching Colgate Max Fresh was a big success for Nigel Burton. CP was operating in 200 countries worldwide with an $10.6 billion turnover in only 2005. Colgate was the market leader in toothpaste and toothbrush brand. To increase growth, CP focused on higher margin. Advertising spending’s where dependent on the sales and high potential market. Mainly in countries like China, Russia, India, Mexico, Brazil and the US. 40 per cent of the company sales were from products that had been launched in the past five years in 2004. CP has announced in December 2004 that CP is going to restructure and building a new business plan. Their goal was to position CP’s global leadership as its core business.
…show more content…
The Consumer Viability Index was 62 % for CMF for an “average” chance of success and stable sales after at least two years. The price of CMF should parity with Crest’s Cool Explosions. CMF should increase the volume by +25% if the price would decrease from 15,99 to 14,99 pesos. Also in Mexico a new advertising campaign was needed like in China. Brand recommendations were to launch CMF in may 2005 with the objective to achieve 5% value share in year 1. There would be 3 flavours (Clean mint, Cool mint and Cinnamint) in two packaging formats (tube-in-carton and bottle). Two sizes would be offeren (75 and 100 ml) the latest would be 94% of the distribution. 100 ml would be prized 13,95 pesos and 75 ml 11,64 pesos. There would be a media investment of two million dollars during the CMF launch and was expected to deliver 14,7 percent of the share of voice. There will be the ‘Snowsurfer’ advertising campaign that communicates the core benefit ‘The new dimension of freshness’ which included in-store merchandising, sampling and PR.
After getting these recommendations from China and Mexico they noted that the US marketing plan had not been tested. So it’s not clear if this plan could get local adaptations. Now they wonder how to add value to the process at this stage. So the main questions right now are:
Did china and Mexico do a good job
In term or product, Unilever should develop this new brand by modifying the formula of Campeiro and thus meet the expectations of cleanliness and fresh aroma of the low-income consumers. Even if consumers prefer cardboard boxes, the new brand will be sold in a plastic sachet since the packaging does not count a lot in the decision criteria process. This new brand should be priced at 1.8. (see Exhibit 2) just a little bit above Campeino price to show the quality of the new product. Unilever will have to maintain low margin for its new brand to reach its target but can reach profitability with high volumes of sales. In term of promotion, Unilever should position its new brand as a very effective product which can be used in everyday life. Advertising should show the satisfaction of a consumer while washing it clothes. In term of communication expenditure, a 70% below the line should be used since we are targeting the low-income segment. Besides it will cost less money to Unilever. The packaging has to be very simple and be different in term of color with the ones of Omo and Minerva. Finally Unilever will sell this new brand in the specialized distributors since it is the distribution channel where low-income consumers shop.
Colgate-Palmolive Co (CP) was an international leader in household and personal care product, with the sales of $6.06 billion and profit of $2.76 billion in 1991. CP set up a five-year plan in 1991, pointing out that company needed to focus on new product launching and entry into new geographic markets by improving the manufacturing, distribution and the continuance of the core consumer products. Started from 1984, CP’s CEO awaked the company from “sleepy and inefficient” to profitable. Both gross margin and annual volume growth increased from 1985. Although everything seemed good, CP was facing the worldwide strong competitions from other companies. In order to have some protections, 170 CP’s
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40.5% of the overall toothpaste market, we decided to increase three sales people into traditional sales channels in the next year. Due to the selling of whole market Economy toothpaste are great, we add advertising investment. At the same time, the poor sell of children's toothpaste prompted us to reduce 5 million budgets on its advertising fee. According to the results of marketing, and sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to stimulate the sales.
* Some of the objectives of creating this union is to create a better flow on the circulation of goods, capital, people and services within the union. Once a good or service is accepted within the union it is protected from customs, taxes and import quotas as long as they remain within the union.
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
Colgate as a company strives to be the best company to have the best dental products. In an article from the website live strong Norma Chew wrote, “Colgate Palmolive Company is one of many companies that provide dental care products to the consumer.” Colgate as a company is expanding their products. Colgate was once only known for selling toothpaste, but now they have a wide variety of dental products to promote clean teeth.
In addition to actual product formulation, the positioning, size, and packaging were all issues to be addressed as well. In regards to positioning, health vs. taste needed to be considered. Given credibility issues due to the unfamiliarity of the Montreaux name in America, should brand be tailored more to the American consumer as well? In regards to size and packaging, would consumers have more interest in smaller squares in stand up package or a 3.5 ounce bar, given growing health and fitness concerns.
Another alternative should be to create a plant in Europe so now they don’t have top ay all the taxes they have to pay so they can export their products, in that way they will be able to give better prices to their clients, and they will supposed to have a better service and more quality because they where the pioneers in those products.
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
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
This market study was based on the well-established Clorox Company which had originally started in 1913. In 2006, after the placement of the new CEO, the company had developed a strategic plan to position them for their 100th anniversary in 2013. The plan was titled “The Centennial Strategy” which focused on long-term accelerated growth and developed metrics to measure the success of the plan. The plan focused on accelerated sales growth which would come from extending existing brands to adjacent categories, entering new sales channels with its existing brands and increasing penetration in countries where Clorox already did business. The Clorox Company developed a “3D” structure consisting of desire, decide and delight. This
With a successful product in the US, Colgate-Palmolive decided to target its global audience by marketing to various geographies, especially the growing emerging markets, such as China and Mexico. Their global strategy posed immense challenges in terms of overcoming cultural
Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?