Colgate Max Fresh Case Study
Colgate Max Fresh:
Global Brand Roll-Out
Executive Summary
The United States, Mexican and Chinese markets all took very different approaches to the release of Colgate-Palmolive’s (CP) newest oral care product in 2004-2005. The new toothpaste is called Colgate Max Fresh (CMF). It is a cavity preventing gel with breath-freshening strips suspended in it that dissolve while consumers brush their teeth. The technology behind the breath strips is patented, and Colgate was hoping the product would be a big success by providing unique freshness.
In the United States, research was done and new bottling was designed to optimize the appearance of the new toothpaste. The advertising was also focused on the freshness that result from the breath strips and the product was very successful. CP then decided to release the product worldwide. In Mexico the ad campaign was changed as well as a few other minor changes, but not much was spent on altering the marketing mix for CMF. Colgate Max Fresh proved popular in Mexico and profits were seen in the first two years.
In China, millions were spent on reconfiguring the marketing mix, and sales were not high enough to make up for the expenses in either of the first two years. In the first year alone, CMF saw a net loss of over $10 million. I have evaluated three options for reducing costs and increasing sales and have determined that the Chinese marketers decided to change the marketing mix too quickly. Instead of looking into what aspects of the U.S. marketing mix would and would not work in China, they made assumptions. The advertising campaign that they came up with was expensive and ineffective. Chinese consumer preferences should have been highlighted in the promotional campaign, and more elements from the original U.S. marketing mix that were costly to “improve” might not have needed to be changed at all.
Current Situation
Colgate-Palmolive (CP) is a worldwide company that specializes in oral, personal, and
Global Brand Roll-Out
Executive Summary
The United States, Mexican and Chinese markets all took very different approaches to the release of Colgate-Palmolive’s (CP) newest oral care product in 2004-2005. The new toothpaste is called Colgate Max Fresh (CMF). It is a cavity preventing gel with breath-freshening strips suspended in it that dissolve while consumers brush their teeth. The technology behind the breath strips is patented, and Colgate was hoping the product would be a big success by providing unique freshness.
In the United States, research was done and new bottling was designed to optimize the appearance of the new toothpaste. The advertising was also focused on the freshness that result from the breath strips and the product was very successful. CP then decided to release the product worldwide. In Mexico the ad campaign was changed as well as a few other minor changes, but not much was spent on altering the marketing mix for CMF. Colgate Max Fresh proved popular in Mexico and profits were seen in the first two years.
In China, millions were spent on reconfiguring the marketing mix, and sales were not high enough to make up for the expenses in either of the first two years. In the first year alone, CMF saw a net loss of over $10 million. I have evaluated three options for reducing costs and increasing sales and have determined that the Chinese marketers decided to change the marketing mix too quickly. Instead of looking into what aspects of the U.S. marketing mix would and would not work in China, they made assumptions. The advertising campaign that they came up with was expensive and ineffective. Chinese consumer preferences should have been highlighted in the promotional campaign, and more elements from the original U.S. marketing mix that were costly to “improve” might not have needed to be changed at all.
Current Situation
Colgate-Palmolive (CP) is a worldwide company that specializes in oral, personal, and