Colgate Max Fresh: Global Brand Roll-Out Case Solution

1. Assess the CMF launch in the US.

Colgate Max Fresh was launched in U.S in the year 2004. Both CP and P&G were giving each other tough competition and were focusing on product development in order to become the market leader. Analysis of exhibits shows that during late nineties, primary focus of U.S market was on teeth whitening and cavity protection. As a result, during these years Total and Crest were competing. Since both the brands were giving each other tough competition, product development was at the heart of their core activities. In 2004, market shifted its focus from functional to cosmetic benefits. CP recognizing this change responded by launching CMF. CMF had all the attributes that fit in customer needs, and expectations i.e. it was whitening and gave fresh breath. Another major reason for the success of CMF in U.S was the intense marketing strategy adopted to sell brands. They chose the CSI Miami star Emily Proctor as brand ambassador. Since Emily Proctor role in CSI was to look beyond the surface of things, her role as brand ambassador resonated with the positioning of the brand. The brand was positioned as the premium brand which target youngsters. Using Emily as brand ambassador further enhanced the brand image of CMF among youth. Also, the company was the first one in the market to introduce cooling crystals in packet. This helped attract the experientialist and increase sales.

2. Were CP China’s changes to the CMF marketing launch program justifiable?

CP launched in CMF in 2004 in US. Seeing the success of this product in US market CP decided to launch it in China. Even though the brand CMF already had an established marketing plan and product features, but since the china target market differ greatly from that of US, numerous changes were made before launching it. Firstly, marketing plan was changed. Since Emily was an unknown star among Chinese youth, using such brand ambassador was of no use to the company. Secondly, simple translation of brand slogan from English to Chinese was not easy to communicate. Therefore, it was changed. Thirdly, the shape of the bottle was changed to a tube because of Chinese people habit of using it. Fourthly, the color of the tube was changed in order to make it more appealing and fresh. Lastly, since Chinese market is price sensitive, small size packaging was also manufactured. All these changes were done in order to incorporate the regional and habitual differences among Chinese and US people. Both these nations belong to different regions, and there people have different lifestyles. If CP wants to sell its product among China market, it must introduce changes in its strategy in order to incorporate these differences. If company uses the same global strategy rather than localizing it to the needs of its target market, it might end up losing its market share all across the globe.

3. Did CP Mexico manage its CMF launch better than CP China?

CMF was initially launched in America. Seeing its success, company decided to launch it in Mexico and China. Unlike US market, both these markets belonged to emerging economies and provided CP with a good chance to expand. Numerous changes were also made in the product launch program in order to incorporate regional differences among the target markets. Analysis of case study shows that even though Mexico has less regional differences from US than China, numerous changes had to be made in both of them. In both markets, price was adjusted in a way to gain maximum market volume. Neither a high price was chosen as it might lead to a drop in sales, or too low as it might lead to low quality brand image. Management of both subsidiaries was efficient enough to gather data that reflect the characteristics of target market. Both developed their own marketing campaigns in order to promote their product. This shows that management of both the subsidiaries was trying to make the launch of CMF in their market a success. However, a deeper analysis of case study shows that even though Mexico market was gathering market data; it was not customizing CMF according to the needs of its target market. While, for Chinese market, both brand slogan and packaging was changed, no such changes were made for Mexican market. Only pricing and advertisements were customized. Therefore, it can be concluded that CP China managed CMF launch better than CP Mexico.

4. Evaluate the global roll-out of CMF.

CP had always been a market leader at a global level in oral care. With the launch of CMF in US, it tried broadening its product portfolio. Since the management feared cannibalization of sales with CMF, it initially launched CMF in US only. Seeing the success the product experienced in US, CP decided to roll out this product and make it global. Therefore after a year the product was launched in Mexico and China. There were two strategies that the company had, either stick to the global principles and follow standardized principles, or localize it and penetrate the market. The strategy that CP adopted was to glocalize itself i.e. keep few things global and make other local in order to incorporate the differences among the target market. Since CP is adopting glocalize strategy for its roll out; therefore, numerous changes were made in the launch strategy of CMF. These changes comprised of adapting the product in terms of packaging, brand slogan, price and marketing strategy. Since all these changes were made in the product, company’s roll out of CMF proved to be a success.