Colgate Max Fresh free essay sample

Colgate Max Fresh Throughout history, society has evolved with a numerous set of consumer products that have over a period of time become essentials and have morphed into the daily lives of people without even having them notice it. Personal hygiene is a market that is reflective of this trend as generations have evolved by incorporating new trends and behaviors that the previous generation considered a luxury. Colgate-Palmolive symbolizes the personal hygiene industry in the US, and as an international corporation has established itself as a leading household name in many foreign countries. CP’s most popular brand, Colgate Max Fresh was a roaring success owing to its innovative identity and value that it created for consumers. By incorporating a new breath-strip and a variety of therapeutic techniques Colgate Max Fresh achieved phenomenal success accounting for over 40% of their revenues along with products released after 2000. With a successful product in the US, Colgate-Palmolive decided to target its global audience by marketing to various geographies namely China and Mexico as the case Colgate Max Fresh: Global Brand Roll-out points out. Their global strategy posed immense challenges in terms of overcoming cultural barriers, but the â€Å"must-have† toothpaste market refined CP’s marketing strategy with fewer players to compete with. The Colgate-Palmolive Companys (CP) ambitions did not just include plans to maximize business potential in local markets such as Mexico, but they also aspired to wipe out Crest as competition and dominate the market share in Mexico. Seeing as how Colgate already had 82% value share in Mexico, it was particularly difficult to launch a new product without compromising some sales on the parent brand, particularly because there was relatively flat toothpaste demand—which meant that it was hard to secure incremental shelf space and that Mexicans were probably less likely to try new products. CP decided to brand CMF as a product with extreme freshness benefit and the use of cooling crystals as a unique ingredient. In terms of pricing strategy, CP found that price/value perceptions were above average for CMF, but CMF found that if the price of the product was decreased from $15. 99 to $14. 99, the volume of sales would increase by 25%. As for advertisements, they finally proposed the idea of a joy ride for your mouth, titling the advertisement as Snowsurfer, which effectively positioned the market in this competitive product space. With these marketing and branding strategies, CP hoped to increase sales of CMF s imilar to the levels of success it had achieved in US and China. DAVID’S PART GOES HERE- #Strengths and weaknesses# Historically, CP has been immensely successful in turning a threat to an opportunity (by successfully battling Crest’s patent on fluoride toothpaste). In that way, the company has always gone beyond strategic fit and has instead been focusing on how to exploit the threats as opportunities. One of the biggest challenges and threats the introduction of CMF was the consumer preference concerning toothpaste feature and benefits. Since these preferences differ from the American consumers’, adjustments regarding flavor and color of stripes had to be accommodated. Another big threat was the low awareness and preference of the cosmetic benefits like freshness and whiteness. In Mexico most consumers were only focused on the basic oral care while the therapeutic segment stood for 87% of the total toothpaste market. The price sensitivity was another vast issue that CP had to take in consideration. The CMF was priced in the premium segment which in many cases was too expensive for the consumers in the emerging markets. As a result the consumers were instead buying from competitor brand or other CP products that offered toothpastes at a price that sometimes was a third of the price for CMF. Therefore an issue concerning the cannibalization of the CMF on other CP products was also taken into consideration. Even though one saw the low awareness of cosmetic features as a threat, it was a growing segment that could turn out to be immensely profitable. Colgate could gain first mover advantages if the company targeted emerging markets with awareness campaigns. Other opportunities include CP’s market share and market position comparable to its competitors (both China and Mexico) negligible market share which represented on a well capitalized opportunity on the part of Colgate-Palmolive in these emerging markets. Mexico represented a unique opportunity for CP to consolidate on its huge value share (over 82%) and the fact that Crest is launching a similar product gives CP an excellent opportunity to outdo its competitor. CP’s future plans re integral to the health of the company’s financials, and a good sign of its latest products accounting for over 40% of the revenues represents a positive sign that innovation is evolving and generating positive vibes throughout the organization. Mexico’s market was significantly similar to China’s toothpaste market, and following this sequential strategy of launching products helped CP learn from their Chinese launch. By â€Å"neutralizing† the Crest Cool Explosion s, the fact that many managers argued for an early launch date depicted valid arguments with the competition reaching intense levels for market share. Price had to be a factor in the Mexican consumer’s mind as a country with $4000 per captia income had to plan its household items with limited budget. By branding it through a Snowsurfer ad campaign, and pricing it at 13-15 pesos, CP achieved a growth pattern that it had hoped for in Mexico, and this enabled it to consolidate its share against any erosion from Crest or any local brand. Colgate-Palmolive’s successful branding and marketing in foreign countries represents a valuable opportunity for it to consolidate its gains by leveraging and maintaining its top-tier position. With the toothpaste market already consolidated (with few players like Procter and Gamble/Crest, etc), competition is highly intense, but at the same time provide focus for the companies in creating value as opposed to solely basing it on price. With new age flavors and innovative techniques being incorporated into toothpaste, an interesting battle between global brands is bound to move out of the US and shift to emerging markets like Mexico, China, India where the marketing battles of 21st century will be won and lost.