Case: Colgate Max Fresh: Global Brand Roll-Out
Case in a Nut Shell This case presents the devised strategies of Colgate-Palmolive Company to take their new product Colgate Max Fresh, which was very successful in US markets, global especially China & Mexico. This presents a classic case of challenges faced by a company in introducing their successful markets in global markets.
In 2004, Colgate-Palmolive is the leader of US toothpaste market with a value market share 34.8% and Crest from Proctor & Gamble is closing behind at 31.6%. Colgate Max Fresh played a pivotal role in regaining the market share from Crest, making Colgate leader in US toothpaste market. Colgate Max Fresh used its signature mini breath strips in the toothpaste to freshen peoples’ breath.
In the international market, Colgate-Palmolive had a commanding lead with a global toothpaste market value share of 39.7% in 2004, compared to Proctor & Gamble with only 14.7%. Colgate looked to continue its dominance in the toothpaste market by taking advantage of the increase in the demand of cosmetic attributes to toothpaste. As the competition in US market is fierce, Colgate-Palmolive had decided to introduce their flagship product CMF in Chinese and Mexican markets. Now they are at a critical juncture to take critical strategic decisions for the introduction of CMF in Chinese and Mexican markets pertaining to their marketing programs, including communication, flavour, pricing, and message.
Strategy for China
Chinese toothpaste market was largely dominated by Colgate-Palmolive with 32.1% market value share including its joint venture with Darlie and San Xiao brands. Though the Chinese preferred the therapeutic aspect of toothpaste, freshness segment is growing and showing future promise The Chinese also tended to prefer the lower-priced brands over the premium brands. With a large share of the market and high interest in freshness, the introduction of Max Fresh was looking promising,