Global Brand Roll-Out Essay

Gross world increase up 2.5% in 2005, following dickens years of 1% growth. Overall emerging grocery economies exploding + 10% gross domestic product growth in china and + 6% growth in Latin America. Political determine in emerging commercialized mess periodizes may make it exhausting for foreign competition to enter mart without domestic partner and / or foreign investment & market diversification less attractive(import / merchandise tariffs). Situational Analysis Situational Analysis Industry Purpose of the Oral individualized apportion industry is to sustain teeth and gum dis puffs and deliver cosmetic benefits. mount of the industry takes tooth cattle ranch, floss, mouth rinses and toothbrushes. Industry Definition CompetitionColgate has dominant market value manage in China (32%) and Mexico (82%). China market fall apart with Colgate & P&G representing 53% of share. Situational Analysis Industry Product instruction growth strategy with launches of bounty tier post extensions tip color Expressions (US) visor With Scope (US), Colgate Icy flip (China), backsheesh Cool Expressions (MX). discolouration Position Competition Strategy (P&G)C+S = toothpaste + mouthwash + discolorCWE / CCE = flavor + toothpaste + whiteningEntering Emerging merchandises under its Crest taint without JV partners. Leveraging x- smirch scale with Crest + Scope.Built its sword rough therapeutic benefits, while cosmetic benefits market growing fastest in Emerging Markets. Innovating in cosmetic segment a historic Colgate stronghold. severely invests in advertising behind raw(a) product launches. Situational Analysis maturement Market Strategies Porter Five Forces Analysis Global Oral Personal Care Colgate Palmolive Oral Care SWOT Analysis Situational Analysis market Strategy Pricing Positioned as a super-premium brand, outlay parity to Crest Cool Expressions (14.99 15.99 pesos). selling Budget $2MM trade budget aimed to ride essay done in-store me rchandising, sampling, and public relations. Corporate Marketing Strategy ObjectivesColgate Max saucily (CMF) Mexico Marketing PlanStrategicGrowth driven by last molding amount business.Advertising focused on mellow margin products and high potential markets. Innovation driven 40% of sales from products launched in past 5 years. tacticalGrowth Strategy Product reading crack aid segmentGrowth cigarets China 2% YR1, 2.8% YR2 MX 5% YR1, 6% YR2 value share. depart require trading up consumers. Value Proposition CMF would drive youthful dimension of odorousness Target Market Geared towards 18-34 yr. old adults (female oriented) augment Colgates strong rivalrous position in Value & Mid-Tier. Situational Analysis Marketing StrategyWill US developed media plans translate?Can Colgate effectively trade-up consumers?What impact tumble cannibalization have on availability?Is market large enough in Mexico for premium segments?Will benefits of CMF convey to Mexico consumers?BASES testing and Consumer Viability Index showed marginal promise.. CMF Marketing Concerns for MexicoSymptoms of Colgate Palmolives Primary Problem Emerging Market consumers are price sensitive Crest attacking cosmetic segmentConsumers experiment through trial vs. large initial purchase Despite Growth in key areas Colgate-Palmolive operating profits and net income are down. +6.5% unit mountain growth+7% sales dollar growth+0.1% growth in gross profit margin-2% Operational Profit-7% Net IncomeTo drive growth Colgate-Palmolive is looking to focus on higher margin core businesses. Core Elements of the Strategic Problem In the US toothpaste market CP is seeing a 3.1% ontogenesis in volume of sales attributable to the Super bounty Toothpaste Category.Global Strategic Opportunity exists in the Premium Toothpaste market. Represents $75 M sales dollar increase and total market thug of $409.5 M dollars Only the Premium Toothpaste Category is growing at a substantial rate.In 2004 CP captured 60% of that Sales Dollar Increase in the US largely dues to the introduction of Colgate Max Fresh.In order to tolerate to grow CP mustiness find a way to develop their Premium Toothpaste product CMF in emerging countries. Colgate Palmolives Primary ProblemWould the cost of adopting CMF in each brand- new-fangled country provide sufficient incremental sales and profits to justify the added complexity of localized market and rollout plans associated with those new markets. Colgate-Palmolive must continue to globalize its Premium Toothpaste Strategy. Any solution must balance they cost of fixing with the expected sales and profit increase for each new market. Also it is in Colgate-Palmolives best involution to develop reusable guidelines as it approaches other new markets similar to China and Mexico. Colgate Palmolives alternate ProblemsType 1 Establish a tactical marketing plan for the CMF rollout in an emerging market where Colgate-Palmolive has little previously established presence(China)Type 2 Establish a tactical marketing plan for the CMF rollout in an established market that has high competitor activity(Mexico). In order to establish an effective global strategy two types of utility(prenominal) problems must be solved in the Colgate Max Fresh showcase Study Any solution must balance they cost of localization with the expected sales and profit increase for each new market. Secondary Problem Detail Need to introduce a product to fight back Colgate-Palmolive profitability Colgate has worldwide share, the only way to expand is to drive high margin business. China(new markets) have strongly entrenched local brands.Colgate Max fresh will need to compete with its own joint venture brand Darlie(High End). Due to new product introduction at the Super Premium Toothpaste Market competitor Crest has 3% growth year to year, Colgate integrity Brands have been stagnant for 3 years. CP is not only loosing out on possible profits but also slowly loosing market share to its 1 competitor. Market is un well-known(prenominal) with CMF breath stripsUS Marketing pictorial matter will be ineffective due to the US Star involved. Is it expenditure creating new celebrity backed marketing content? Will the Go Big or Go Home strategy work in China and other similar markets? How can Colgate-Palmolive best enter the Chinese Market with CMF. ChinaSecondary Problem Detail Colgate-Palmolive knows P&G will be introducing Crest Cool Expressions(CWE) in Mexico in the lift future. CO must develop the best marketing plan to impede P&G Crest Cool Expressions while protecting their arouse market share. 82% Value share for Colgate-PalmoliveCP needs to create a marketing plan to introduce CMF with limited budget and maximize regional utility. Due to CPs large inherent market share, the goal of the Mexican campaign will be to maximize the product funnel. There is a large opportunity present to upsell customers from the Big Red Brand toothpaste to the new CMF toothpaste. Mexico See Exhibit 17 Will waiting to introduce CMF until after(prenominal) the CWE product introduction change the company estimates of profitability? Can the Mexico Snowsurfer commercialized be better standardized for global marketing plans? Going off how will CP utilize this marketing plan for future markets? Colgate-Palmolive Company Alternatives locally make the clear store Works for China, not Mexico ChinaAllows for ease of expansion of the Colgate Max Fresh brand in clear bottle to other regional locales Also, provides future capabilities for use in other new products ProblemsThis does add 20% variable cost to COGSInitiates a 6 calendar month delay on production$1.5 M sunk cost to begin with productionAlternatives Colgate-Palmolive Company AlternativesRegional Market AlternativesMexicoChinaColgate-Palmolive Company Alternatives will more trial availability with the smaller packages to sway more to give CMF a try CMF has the breathstrips or cooling crystals within the toothpaste, hence bundle the breath strips package with CMF to build awareness. Stop utilizing celebrities to promote CMF fork over regional flavorsKeeps product as a premium product personify of $200,000 per flavorHas shown promising outcomes in other regionsIn China, Crest employ a tea flavor and Colgate a salt flavor In Russia, after releasing a local flavor, the toothpaste market share flush from 11.8% in 2002 to 24.9% in 2005. Colgate-Palmolive Company Alternatives Allows for greater differentiation between the CWE toothpaste In Mexico, drop the price from 15.99 pesos to 14.99 pesos to protect a greater share of CP market share. In Mexico and other markets CP is highly entrenched in, utilize clear bottle In Mexico, Keep the price at 15.99 pesosImplementation Strategic Vs. Tactical Plans The strategic plan moving forward for emerging markets will be to use an easily customizable commercial and adapt it to multiple countries Colgate is the dominant toothpaste brand world wide, so our primary goal will be to prevent Crest from gaining market share and also to upsell our existing customers to the super premium segment We agree with the decision to use a celebrity commercial in China due to the size of the market share the Crest is cultivating Each region and culture has a different set of values and preferences Each region will have a unique tactical plan to maximize effectiveness Jay Chou Colgate Max Fresh commercialized Implementation in China Dispensing the toothpaste in clear bottles to build brand awareness Colgate-Palmolive has invested a large amount of capitol in the Max Fresh marketing campaign Maximize the call in on investment byTransition to less expensive promotional material once consumers are familiar with product Include breath strip samples with Max Fresh tooth paste in selected markets Snowsurfer Commercial (English Dub) Implementation in Mexico Our strategies in Mexico will be very similar to our plan in other emerging mar kets reduce will be on preserving our market share instead of new growthUse clear bottle and breath strip samples in select markets to increase brand awareness Colgate accounts for 82% of total market share compared to 10.2% of Crests total market share Crest + Scope only accounts for 3%of total market share bunch price at 14.99 pesos per century mlWe will re- approximate our Colgate Total (19.36 pesos per 100 ml) marketing campaign to focus on the affluent 40+ age group to minimize cannibalization Implementation in Brazil Characteristics of the Brazilian Market 71% of Brazilians agree that music is an important part of my life 33% have participated in trips to the beach in the last 30 age 76% agree that it is important to be attractive to the opposite agitate 65% agree that it is important to keep young looking32% express the desire for plastic surgery in order to remedy their appearanceStatistics from Geoff Wicken, KMR GroupTactical Strategy Brazil Vollyball is the 2nd some p opular sport in Brazil To become a champion on the FIVB circuit, we must apply by July 31, 2006 Update packaging to include Made in BrazilThe busy season in Rio De Janeiro celestial latitude to March, so we recommend kicking off a medial marketing campaign in October 2006 This will give Colgate-Palmolive a chance to evaluate the success of the BreathStrip samples in China and Mexico If we do not see the return on investment we will not include the promotional packaging in Brazil Brazilians place a high emphasis on being attractive to the opposite sex, which means there could a painful opportunity to market Colgate Max Fresh as a product that will whiten teeth and make you more kissable Adapt the SnowSurfer commercial to the Brazilian marketSponsor a national beach vollyball tournamentConclusion Colgate-Palmolive is actively seeking ways to increase their operating profit and net income Introducing new high margin products to emerging markets will be critical to their success Mark eting Colgate MaxFresh as expeditiously and effectively as possible will be necessary in helping us achieve our financial goalsUNILEVER