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Colgate Max Fresh Global Brand Rollout Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 1267 | 306 Words (2 Pages) | John A. Quelch, Jacquie Labatt-Randle | Harvard Business School : 508009 |
A Word File
Colgate Max Fresh is a brand of toothpaste produced by the highly recognized Colgate-Palmolive Company. The company had revenues of around $10.6 Billion in 2005 and is operating in more than 200 countries worldwide. The products churned out by the company are competing in the oral personal and home care market segments. The objectives of the organization primarily revolve around consistency in unit volumes, revenue, and gross margin growth. The focus of the organization is on high-margin core business. Despite the growth, the company still faced declining profits and net income.
Case Analysis for Colgate Max Fresh Global Brand Rollout
Colgate Max Fresh was launched in the United States in 2004 and was faced with much less cannibalization as was expected. In 2005, launches were recommended and expected in China and Mexico. In China, it was key to address the communication challenges due to the unique market and language. In Mexico, however, the debate was whether to launch effectively or speed to enter the market.
The world economy was picking up at 2.5% gross world product in 2005 and developing economies such as Latin America were recording phenomenal growth. Moreover, emerging markets were adapting to cultural values of the West. Focus was shifting towards the cosmetic attributes of the products. Major competition was from Procter & Gamble; whereas in Mexico Colgate was the market leader regarding value, in China, the market was more fragmented with local products available.
The growth strategies for Colgate were to launch premier tier brand extensions to the products and position the product regarding functionality i.e. toothpaste, mouthwash, and whitening.
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