Colgate Max Fresh Report 
1. Executive Summary
Despite enjoying a strong year with sales dollar and volume growth, CP’s Operating and Net Income saw a decrease at the end of 2004 by the combined effect of increased marketing spending and increases in raw material and packing costs. Looking ahead in 2005, Colgate will need to address the cost-effectiveness of adapting its marketing strategies implemented in the developed United States (US) market for the emerging Chinese and Mexican markets, each consisting of distinctly different consumer wants, needs and cultures that Colgate will first need to research on and understand. Consequently, it has to evaluate how it can tailor its marketing strategies and re-align its organizational structure to assess whether and how it can profitably participate in developed markets like the US and emerging markets like China and Mexico.
2. US Market Situational Analysis
Colgate Max Fresh (CMF) was first launched in the US market in August 2004, offering a competitively unique offering of dissolvable breath strips in toothpaste designed for maximum freshness. CMF contributed to Colgate’s record value share of 34.8% that year in the US Market, successfully upselling many existing Colgate consumers in addition with having strong repeat purchase and consumer trial. While toothpaste may be a low-involvement product, Colgate is priced at a premium, and is therefore priced higher than the majority of its shelf-space competition. This means Colgate needs to drive new customers to try its product without price scaring them away, as well as retain existing customers, because loyal customers attached to the brand will be more accepting of price increases. Having high advertising spend, offline consumer plans, attractive packaging and a flavour variety (pg. 5) are necessary as a Point of Differentiation in a developed market like US. This is perhaps more so for CMF’s target consumers in the US, who have evolved towards a focus on cosmetic benefits and
Despite enjoying a strong year with sales dollar and volume growth, CP’s Operating and Net Income saw a decrease at the end of 2004 by the combined effect of increased marketing spending and increases in raw material and packing costs. Looking ahead in 2005, Colgate will need to address the cost-effectiveness of adapting its marketing strategies implemented in the developed United States (US) market for the emerging Chinese and Mexican markets, each consisting of distinctly different consumer wants, needs and cultures that Colgate will first need to research on and understand. Consequently, it has to evaluate how it can tailor its marketing strategies and re-align its organizational structure to assess whether and how it can profitably participate in developed markets like the US and emerging markets like China and Mexico.
2. US Market Situational Analysis
Colgate Max Fresh (CMF) was first launched in the US market in August 2004, offering a competitively unique offering of dissolvable breath strips in toothpaste designed for maximum freshness. CMF contributed to Colgate’s record value share of 34.8% that year in the US Market, successfully upselling many existing Colgate consumers in addition with having strong repeat purchase and consumer trial. While toothpaste may be a low-involvement product, Colgate is priced at a premium, and is therefore priced higher than the majority of its shelf-space competition. This means Colgate needs to drive new customers to try its product without price scaring them away, as well as retain existing customers, because loyal customers attached to the brand will be more accepting of price increases. Having high advertising spend, offline consumer plans, attractive packaging and a flavour variety (pg. 5) are necessary as a Point of Differentiation in a developed market like US. This is perhaps more so for CMF’s target consumers in the US, who have evolved towards a focus on cosmetic benefits and