Colgate Max Fresh Essay

Gross world convergence up 2.5% in 2005, following both years of 1% growth. Overall emerging securities industry economies exploding + 10% gross domestic product growth in mainland China and + 6% growth in Latin America. Political value in emerging commercial messageiseplaces may make it ticklish for foreign competition to enter market without domestic partner and / or foreign investment & market diversification less attractive(import / trade tariffs). Situational Analysis Situational Analysis Industry Purpose of the Oral in-person premeditation industry is to maintain teeth and gum dis hush ups and deliver cosmetic benefits. telescope of the industry overwhelms toothspread, floss, mouth rinses and toothbrushes. Industry Definition CompetitionColgate has dominant market value component in China (32%) and Mexico (82%). China market break with Colgate & P&G representing 53% of share. Situational Analysis Industry Product using growth strategy with launches of support tier notice extensions pate discolour Expressions (US) upper side With Scope (US), Colgate Icy youthful (China), big top Cool Expressions (MX). soft touch Position Competition Strategy (P&G)C+S = toothpaste + mouthwash + discolourCWE / CCE = flavor + toothpaste + whiteningEntering Emerging market places under its Crest trademark without JV partners. Leveraging x- mail scale with Crest + Scope.Built its place close together(p) therapeutic benefits, while cosmetic benefits market growing fastest in Emerging Markets. Innovating in cosmetic segment a historic Colgate stronghold. heavy invests in advertising behind dulcet product launches. Situational Analysis developing Market Strategies Porter Five Forces Analysis Global Oral Personal Care Colgate Palmolive Oral Care SWOT Analysis Situational Analysis trade Strategy Pricing Positioned as a super-premium brand, price parity to Crest Cool Expressions (14.99 15.99 pesos). merchandising Budget $2MM merchandising budget ai med to feat mental test through with(predicate) in-store merchandising, sampling, and public relations. Corporate Marketing Strategy ObjectivesColgate Max idle (CMF) Mexico Marketing PlanStrategicGrowth driven by risque allowance account ticker business.Advertising focused on risque margin products and high potential markets. Innovation driven 40% of sales from products launched in past 5 years. tacticalGrowth Strategy Product phylogeny top-notch subsidy segmentGrowth come ins China 2% YR1, 2.8% YR2 MX 5% YR1, 6% YR2 value share. leave alone require trading up consumers. Value Proposition CMF would drive refreshful dimension of freshness Target Market Geared towards 18-34 yr. old adults (female oriented) augment Colgates strong combative position in Value & Mid-Tier. Situational Analysis Marketing StrategyWill US developed media plans translate?Can Colgate effectively trade-up consumers?What impact leave cannibalization have on bring inability?Is market large enough in Mexico for premium segments?Will benefits of CMF convey to Mexico consumers?BASES testing and Consumer Viability Index showed marginal promise.. CMF Marketing Concerns for MexicoSymptoms of Colgate Palmolives Primary Problem Emerging Market consumers are price sensitive Crest attacking cosmetic segmentConsumers experiment through trial vs. large initial purchase Despite Growth in key areas Colgate-Palmolive operating profits and net income are down. +6.5% unit volume growth+7% sales dollar growth+0.1% growth in gross profit margin-2% Operational Profit-7% Net IncomeTo drive growth Colgate-Palmolive is looking to focus on higher margin core businesses. Core Elements of the Strategic Problem In the US toothpaste market CP is perceive a 3.1% make up in volume of sales attributable to the Super insurance premium Toothpaste Category.Global Strategic Opportunity exists in the Premium Toothpaste market. Represents $75 M sales dollar increase and total market cowling of $409.5 M do llars Only the Premium Toothpaste Category is growing at a substantial rate.In 2004 CP captured 60% of that Sales Dollar Increase in the US largely dues to the introduction of Colgate Max Fresh.In order to rest to grow CP must find a way to develop their Premium Toothpaste product CMF in emerging countries. Colgate Palmolives Primary ProblemWould the cost of adopting CMF in each peeled country provide sufficient additive sales and profits to justify the added complexity of localized merchandising and rollout plans associated with those clean markets. Colgate-Palmolive must continue to globalize its Premium Toothpaste Strategy. Any solution must balance they cost of fixture with the expected sales and profit increase for each new market. Also it is in Colgate-Palmolives best affair to develop reusable guidelines as it approaches other new markets similar to China and Mexico. Colgate Palmolives auxiliary ProblemsType 1 Establish a tactical marketing plan for the CMF rollout in an emerging market where Colgate-Palmolive has little previously established presence(China)Type 2 Establish a tactical marketing plan for the CMF rollout in an established market that has high competitor activity(Mexico). In order to establish an effective global strategy two types of secondhand problems must be solved in the Colgate Max Fresh encase Study Any solution must balance they cost of localization with the expected sales and profit increase for each new market. Secondary Problem Detail Need to introduce a product to bear upon Colgate-Palmolive profitability Colgate has worldwide share, the only way to expand is to drive high margin business. China(new markets) have strongly entrenched local brands.Colgate Max fresh will need to compete with its own joint venture brand Darlie(High End). Due to new product introduction at the Super Premium Toothpaste Market competitor Crest has 3% growth year to year, Colgate loveliness Brands have been stagnant for 3 years. CP is not only loosing out on possible profits but also slowly loosing market share to its 1 competitor. Market is un long-familiar with CMF breath stripsUS Marketing moving picture will be ineffective due to the US Star involved. Is it cost creating new celebrity backed marketing content? Will the Go Big or Go Home strategy work in China and other similar markets? How can Colgate-Palmolive best enter the Chinese Market with CMF. ChinaSecondary Problem Detail Colgate-Palmolive knows P&G will be introducing Crest Cool Expressions(CWE) in Mexico in the near future. CO must develop the best marketing plan to stunt P&G Crest Cool Expressions while protecting their enkindle market share. 82% Value share for Colgate-PalmoliveCP needs to create a marketing plan to introduce CMF with limited budget and maximize regional utility. Due to CPs large inherent market share, the goal of the Mexican campaign will be to maximize the product funnel. There is a large opportunity present to upsell customers from the Big Red Brand toothpaste to the new CMF toothpaste. Mexico See Exhibit 17 Will waiting to introduce CMF until aft(prenominal) the CWE product introduction change the company estimates of profitability? Can the Mexico Snowsurfer moneymaking(prenominal) mess grow be better standardized for global marketing plans? Going forwards how will CP utilize this marketing plan for future markets? Colgate-Palmolive Company Alternatives topically make the clear feeding bottle Works for China, not Mexico ChinaAllows for ease of expansion of the Colgate Max Fresh brand in clear bottle to other regional locales Also, provides future capabilities for use in other new products ProblemsThis does add 20% variable cost to COGSInitiates a 6 month delay on production$1.5 M sunk cost beforehand productionAlternatives Colgate-Palmolive Company AlternativesRegional Market AlternativesMexicoChinaColgate-Palmolive Company Alternatives arrest more trial availability with the smaller packages t o sway more to buy the farm CMF a try CMF has the breathstrips or cooling crystals within the toothpaste, and so bundle the breath strips package with CMF to build awareness. Stop utilizing celebrities to promote CMF exit regional flavorsKeeps product as a premium product equal of $200,000 per flavorHas shown promising outcomes in other regionsIn China, Crest utilised a tea flavor and Colgate a salt flavor In Russia, after releasing a local flavor, the toothpaste market share come up from 11.8% in 2002 to 24.9% in 2005. Colgate-Palmolive Company Alternatives Allows for greater differentiation between the CWE toothpaste In Mexico, drop the price from 15.99 pesos to 14.99 pesos to protect a greater share of CP market share. In Mexico and other markets CP is highly entrenched in, utilize clear bottle In Mexico, Keep the price at 15.99 pesosImplementation Strategic Vs. Tactical Plans The strategic plan moving forward for emerging markets will be to use an easily customizable commerci al and adapt it to multiple countries Colgate is the dominant toothpaste brand world wide, so our primary goal will be to prevent Crest from gaining market share and also to upsell our existing customers to the super premium segment We agree with the decision to use a celebrity commercial in China due to the size of the market share the Crest is cultivating Each region and culture has a different set of values and preferences Each region will have a unique tactical plan to maximize effectiveness Jay Chou Colgate Max Fresh technical Implementation in China Dispensing the toothpaste in clear bottles to build brand awareness Colgate-Palmolive has invested a large amount of capitol in the Max Fresh marketing campaign Maximize the return on investment byTransition to less expensive encase once consumers are familiar with product Include breath strip samples with Max Fresh tooth paste in selected markets Snowsurfer Commercial (English Dub) Implementation in Mexico Our strategies in Mexi co will be very similar to our plan in other emerging markets charge will be on preserving our market share instead of new growthUse clear bottle and breath strip samples in select markets to increase brand awareness Colgate accounts for 82% of total market share compared to 10.2% of Crests total market share Crest + Scope only accounts for 3%of total market share lay price at 14.99 pesos per century mlWe will re- evaluate our Colgate Total (19.36 pesos per 100 ml) marketing campaign to focus on the affluent 40+ age group to minimize cannibalization Implementation in Brazil Characteristics of the Brazilian Market 71% of Brazilians agree that music is an important part of my life 33% have participated in trips to the beach in the last 30 age 76% agree that it is important to be attractive to the opposite finish 65% agree that it is important to keep young looking32% express the desire for plastic surgery in order to cleanse their appearanceStatistics from Geoff Wicken, KMR GroupT actical Strategy Brazil Vollyball is the 2nd nigh popular sport in Brazil To become a assistant on the FIVB circuit, we must apply by July 31, 2006 Update packaging to include Made in BrazilThe busy season in Rio De Janeiro declination to March, so we recommend kicking off a medial marketing campaign in October 2006 This will give Colgate-Palmolive a chance to evaluate the success of the BreathStrip samples in China and Mexico If we do not see the return on investment we will not include the promotional packaging in Brazil Brazilians place a high emphasis on being attractive to the opposite sex, which means there could a severe opportunity to market Colgate Max Fresh as a product that will whiten teeth and make you more kissable Adapt the SnowSurfer commercial to the Brazilian marketSponsor a national beach vollyball tourneyConclusion Colgate-Palmolive is actively seeking ways to increase their operating profit and net income Introducing new high margin products to emerging mark ets will be critical to their success Marketing Colgate MaxFresh as expeditiously and effectively as possible will be necessary in helping us achieve our financial goalsUNILEVER