Section a Group 11 Colgate

8/2/2019 Section a Group 11 Colgate

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Breath strip/cooling crystals

Fresh breath

Therapeutic Benefit

Tooth paste

Teeth cleaning

Core benefit

Basic Product

Expected Product

AugmentedProduct

Potential Product



Colgate

Protectionfrom germs

Freshbreath

Preventcavities,reduces

plaque

Red &White logo

Familyassociation

Clinicallyproven



Emotional Modifier Descriptive Modifier Functional Modifier

Maintain performanceconsistently ,highreliability

Family brand withmultidimensional benefits,innovation

Oral Care for longer hours

BRAND FAILURE

Colgate Kitchen Entrées.Not as per the Brand MantraBrand Association with dental care extremely strong



Features and Attributes (Functional) Overall evaluation

Price : Reasonable

Colgate Red and White combination has not

changed at all these years.

Reinforced customer’s belief

in the product.

instant recognition of the brand on the retailshelf hence creating a strong brand pull.

Benefits (Expressive)

Functional Brightness, tooth decay prevention & freshness. Symbolic: Suraksha Chakra, “Colgate smiles”

IDA

Core Value (Central) Best teeth care, Freshest Breath



Judgments Feelings

Performance Imagery

Salience

Resonance

•Repeated purchase

.Purchase acrossgenerations

•Trust

•

Family associations•Safe

•Logo-Red & White

•Packaging

•Clinically proven

•Most fresh.

•

Innovative

• Quality

• Consistency

•Delivers as promised

• Oral care

•Teeth whitening

CBBE MODEL



Colgate mouthwash Plax



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 eachplan? Which of the proposed adaptationswere “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 termsof Purchase intent, believability, value formoney, uniqueness and importance of mainmessage



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 isexpected to go up to nearly 70% and assumingmarketing expenses drop to 35% we have anoperating profit of 985,000$ in year 3

Given these, this adaptation is “a must have” asit clearly demarcates a consumer need that canbe satisficed profitably



Cavity protection was the major consumerreason for a toothpaste purchase though

freshness was an appealing concept The consumer responses were below the

norms for new toothpaste products in termsof Purchase intent, believability, and productexpectation



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 isexpected to go up to nearly 70% and assuming

marketing expenses drop to 8% we have anoperating profit of 700,000$ in year 3 Given these, this adaptation is “a nice to have”

as it has slightly below par acceptance yetpreventing crest to gain market acceptance



From a global CMF perspective, what is theshort- and long-term impact of the

complexity born out of these localadaptations? Is this added complexity goodor bad for the global CMF business?



Globally, the short-term affects of thecomplexity born out of these adaptations is

rather expensive.

It was expensive to adapt the Chineseadvertisements, but in the long-term it will bevery profitable because freshness issomething that the Chinese are responsive toand sales are increasing.



In Mexico, the adaptation only cost about athird 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 atmeeting the consumers’ concerns better thenext time they adapt a marketing plan toMexico.



The added complexity is crucial to Colgate Max Fresh’sglobal business because it shows that they really put alot of effort into meeting the consumers’ needs andthey will respond positively to this.

If they would not have spent the time and money onthis, consumers might not take the product as seriousand sales would drop.

Burton and Colgate-Palmolive need to make sure thatthey adapt every aspect of their product to meet theconsumers’ needs in all of the local and global marketsbecause, 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, for

the 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 limitcosts while also customizing advertising to align withregional 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 orcountries

Trade-off between icons and opportunisticlocations are important



Competitive drivers: Consideration of global competitors at earlier

phase

Advantage from first mover advantage

Keep in mind the counter threats fromcompetitors innovation

Government drivers: Keep an eye on regulation and censorship

A different strategy for promotion when there isinability 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

Section a Group 11 Colgate

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