Protection from germs Clinically Fresh proven breath Colgate Prevent Family cavities,association reduces plaque Red & White logo
Emotional Modifier Descriptive Modifier Functional ModifierMaintain performance Family brand with Oral Care for longer hoursconsistently ,high multidimensional benefits,reliability innovationBRAND FAILURE Colgate Kitchen Entrées. Not as per the Brand Mantra Brand Association with dental care extremely strong
Features and Attributes (Functional) Overall evaluationPrice : ReasonableColgate Red and White combination has not Reinforced customer’s beliefchanged at all these years. in the product. instant recognition of the brand on the retail shelf hence creating a strong brand pull.Benefits (Expressive)Functional Brightness, tooth decay prevention & freshness.Symbolic: Suraksha Chakra, “Colgate smiles” IDACore Value (Central) Best teeth care, Freshest Breath
CBBE MODEL •Repeated purchase .Purchase across generations Resonance •Clinically proven •Most fresh. •Trust •Innovative • Family associations Judgments Feelings •Safe • Quality •Logo-Red & White • Consistency Performance Imagery •Packaging•Delivers as promised Salience • Oral care •Teeth whitening
Did China and Mexico each do a good job of adapting the launch to meet local consumer needs? What is the likely profit impact of each plan? Which of the proposed adaptations were “must haves” versus “nice to haves”?
Freshness though accounted for 28% of consumer reason for a toothpaste purchase was a relatively new concept The consumer responses were above the norms for new toothpaste products in terms of Purchase intent, believability, value for money, uniqueness and importance of main message
The 1st year had sales of 3882 tons, COGS as 50 % of sales and marketing expenses of 78% The second year had sales of 4370 tons, COGS as 41 % of sales and marketing expenses of 42% Given this trend, doing some basic back-of-the- envelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 35% we have an operating profit of 985,000$ in year 3 Given these, this adaptation is “a must have” as it clearly demarcates a consumer need that can be satisficed profitably
Cavity protection was the major consumer reason for a toothpaste purchase though freshness was an appealing concept The consumer responses were below the norms for new toothpaste products in terms of Purchase intent, believability, and product expectation
The 1st year had sales of 1600 tons, COGS as 47 % of sales and marketing expenses of 15% The second year had sales of 1850 tons, COGS as 40 % of sales and marketing expenses of 10% Given this trend, doing some basic back-of-the- envelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 8% we have an operating profit of 700,000$ in year 3 Given these, this adaptation is “a nice to have” as it has slightly below par acceptance yet preventing crest to gain market acceptance
From a global CMF perspective, what is the short- and long-term impact of the complexity born out of these local adaptations? Is this added complexity good or bad for the global CMF business?
Globally, the short-term affects of the complexity born out of these adaptations is rather expensive. It was expensive to adapt the Chinese advertisements, but in the long-term it will be very profitable because freshness is something that the Chinese are responsive to and sales are increasing.
In Mexico, the adaptation only cost about a third of that in China, but they did not reach the market as well as they would have liked. It may have just held off Crest in the short- term for value share, but they need to look at meeting the consumers’ concerns better the next time they adapt a marketing plan to Mexico.
The added complexity is crucial to Colgate Max Fresh’s global business because it shows that they really put a lot of effort into meeting the consumers’ needs and they will respond positively to this. If they would not have spent the time and money on this, consumers might not take the product as serious and sales would drop. Burton and Colgate-Palmolive need to make sure that they adapt every aspect of their product to meet the consumers’ needs in all of the local and global markets because, although it may be more expensive in the short-run, it will pay off in the long-run.
What guidelines could Burton propose going forward tooptimize new product introductions for CP worldwide, forthe regions, and for the country subsidiaries?
Global marketing strategy involves:• Understanding and addressing differences across markets• Balancing the global brand and appeal to distinct regions• Successful global marketing campaigns, leveraging similarities to preserve a consistent message and limit costs while also customizing advertising to align with regional cultural preferences.
Market Drivers: Global customers Common customer needs “Cooling crystals” Cost Drivers: Economies of scale potential of campaigns Different icon at different places, regions or countries Trade-off between icons and opportunistic locations are important
Competitive drivers: Consideration of global competitors at earlier phase Advantage from first mover advantage Keep in mind the counter threats from competitors innovation Government drivers: Keep an eye on regulation and censorship A different strategy for promotion when there is inability to mention competitors by name
When deciding which countries to enter first, we should consider the potential for organizational learning In order to purposefully grow global brand equity, must be able to: –Identify the antecedents of brand value –Set objectives for brand development –Allocate resources across products