Colgate Max Essay

1117 words - 5 pages

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 ...view middle of the document...

The concept of breath strips was new so it was replaced by, “Cooling Crystals” and the Chinese consumers did not catch the “Max Fresh” phrase so it was launched as, “Icy Fresh”.
The Colgate company targeted the younger segment, in which there was a growing trend of fresh breath feature by using an “extreme living” concept. The problem was that they chose Jay Chow, a new edgy celebrity, who had high celebrity, “Talent fees”. Another problem was the packaging standards and even though it was tested that they preferred the clear tubes, this kind of packaging was ignored. There was a problem of flavors selection of the toothpaste too, which was corrected by choosing the flavors of Tea, Citrus, and Mint with a lighter shade. This color selection alone took four weeks and cost the company $7000.
Colgate Max Fresh was launched by advertising on the internet, through a website, a public relations event, in store displays, trade support, consumer sampling, and advertising.
In Mexico though Colgate had a big market share of 82% but they faced problems in launching the Fresh Max venture. The Mexican consumer strongly believed in the therapeutic aspect and the Fresh Max launch did a poor job of portraying this concept. The consumers were concerned about the lack of cavity protection because the product claimed freshness only. The advertisement did not include the important cavity -fighting aspect. The Mexican consumers were very price sensitive too and they wanted to get the therapeutic protection at a lower rate.
Another problem was about the entry date in the market. They wanted to introduce it before the November 2004 launch of its rival company’s Crest Cool. Colgate Palmolive missed the deadline. And some managers claimed it did not make much difference because Colgate Palmolive had a much bigger share already, i.e. 82% versus 10%.for Procter& Gamble.
The Colgate Company decided to change the flavors to Cool Mint, Clean Mint, and Cinnamint which satisfied the local taste. Also the company would advertise by showing a “Snow surfer” using Colgate Fresh Max to get a, “Joy ride for your mouth” They would campaign this image by using in-store merchandising, sampling and public relations.

Options:
IN China the Colgate Palmolive used a good...

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