Breath strip/cooling crystals

Potential Product

Fresh breath

Therapeutic Benefit

Augmented Product Expected Product

Tooth paste

Basic Product
Teeth cleaning

Core benefit

Protection from germs

Clinically proven

Fresh breath

Colgate
Family association Prevent cavities, reduces plaque

Red & White logo

Emotional Modifier Maintain performance consistently ,high reliability

Descriptive Modifier

Functional Modifier

Family brand with Oral Care for longer hours multidimensional benefits, innovation

BRAND FAILURE
Colgate Kitchen Entres. Not as per the Brand Mantra Brand Association with dental care extremely strong

Features and Attributes (Functional)

Overall evaluation

Price : Colgate Red and White combination has not changed at all these years.

Reasonable
Reinforced

customers belief in the product. instant recognition of the brand on the retail shelf hence creating a strong brand pull.

Benefits (Expressive) Functional Symbolic: Brightness, tooth decay prevention & freshness.
Suraksha Chakra, IDA

Colgate smiles

Core Value (Central)

Best teeth care, Freshest

Breath

CBBE MODEL
Repeated purchase .Purchase across generations

Resonance
Clinically proven Most fresh. Innovative Trust Family associations Safe

Judgments
Quality Consistency Delivers as promised

Feelings

Performance

Imagery

Logo-Red & White Packaging

Salience
Oral care Teeth whitening

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 each plan? Which of the proposed adaptations were 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 terms of Purchase intent, believability, value for money, uniqueness and importance of main message

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-theenvelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 35% we have an operating profit of 985,000$ in year 3 Given these, this adaptation is a must have as it clearly demarcates a consumer need that can be satisficed profitably

Cavity protection was the major consumer reason for a toothpaste purchase though freshness was an appealing concept The consumer responses were below the norms for new toothpaste products in terms of Purchase intent, believability, and product expectation

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-theenvelope calculations, the contribution margin is expected to go up to nearly 70% and assuming marketing expenses drop to 8% we have an operating profit of 700,000$ in year 3 Given these, this adaptation is a nice to have as it has slightly below par acceptance yet preventing crest to gain market acceptance

From a global CMF 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?

Globally, the short-term affects of the complexity born out of these adaptations is rather expensive.
It was expensive to adapt the Chinese advertisements, but in the long-term it will be very profitable because freshness is something that the Chinese are responsive to and sales are increasing.

In Mexico, the adaptation only cost about a third 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 shortterm for value share, but they need to look at meeting the consumers concerns better the next time they adapt a marketing plan to Mexico.

The added complexity is crucial to Colgate Max Freshs global business because it shows that they really put a lot of effort into meeting the consumers needs and they will respond positively to this.
If they would not have spent the time and money on this, consumers might not take the product as serious and sales would drop.

Burton and Colgate-Palmolive need to make sure that they adapt every aspect of their product to meet the consumers needs in all of the local and global markets because, 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 to optimize 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 limit costs while also customizing advertising to align with regional 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 or

countries Trade-off between icons and opportunistic locations are important

Competitive drivers:
Consideration of global competitors at earlier

phase Advantage from first mover advantage Keep in mind the counter threats from competitors innovation

Government drivers:
Keep an eye on regulation and censorship A different strategy for promotion when there is

inability 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