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8/2/2019 Section a Group 11 Colgate
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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
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Colgate
Protectionfrom germs
Freshbreath
Preventcavities,reduces
plaque
Red &White logo
Familyassociation
Clinicallyproven
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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
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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
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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
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Colgate mouthwash Plax
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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”?
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8/2/2019 Section a Group 11 Colgate
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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
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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
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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
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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
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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?
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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.
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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.
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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.
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What guidelines could Burton propose going forward tooptimize new product introductions for CP worldwide, for
the regions, and for the country subsidiaries?
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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.
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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
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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
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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
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