In August 2004, Colgate Palmolive had launched Colgate Max Fresh (CMF) in the U.S. market. As of February 2005, CMF had helped drive Colgate to 34.8% market share in the U.S. and was in the global launch pipeline for 2005. The company is planning to launch CMF in Mexico and China and had to assess its plan to enter these markets.
John A. Quelch and Jacquie Labatt-Randle
Harvard Business Review (508009-PDF-ENG)
October 23, 2007
Case questions answered:
- 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”?
- From a global Colgate Max Fresh 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?
- What guidelines could Burton propose going forward to optimize new product introductions for CP worldwide, for the regions, and for the country subsidiaries?
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Colgate Max Fresh: Global Brand Roll-Out Case Answers
This case solution includes an Excel file with calculations.
Company Background – Colgate Palmolive
Colgate Palmolive was a $10.6 Billion Global Company operating in 200 countries by January 2005 and is organized along geographic lines. It has Consumer Innovation Centres (CICs) developing short-term innovations for each region by meshing local market knowledge, and global know-how.
Its global Business Development groups were responsible for global category strategy, resource allocation, and best idea transfer across regions. In order to enhance its Global Leadership position in core businesses, Colgate Palmolive has planned restructuring activities by:
- Centralizing purchasing and other business support functions
- Concentrating marketing resources against key category opportunities and high potential emerging markets
In August 2004, Colgate Palmolive had launched Colgate Max Fresh (CMF) in the U.S. market. As of February 2005, CMF had helped drive Colgate to 34.8% market share in the U.S. and was in the global launch pipeline for 2005.
Desired Future State
The company seeks to identify the marketing launch plans that can help maximize Colgate Max Fresh’s business potential in Chinese and Mexican markets. CMF generates incremental sales and brings in profits to justify the costs of adapting CMF marketing programs for each country.
Key Themes / Questions to be answered
- Understanding the U. S., China, and Mexican toothpaste markets and the strategies and pricing adopted
- Understand if the launch strategies adopted in the Chinese and Mexican markets were successful to meet the local consumer needs
- Identifying which of the proposed adaptations were “must-haves” versus “nice to have.”
- The impact of local adaptations on the global Colgate Max Fresh perspective
- Recommendations to optimize the future new product launches of Colgate Palmolive.
U.S. Tooth Paste Market
Value Shares of U.S. Toothpaste Segments
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