'Global Brand Roll-Out Essay\r'

'Gross world crossway up 2.5% in 2005, following two years of < 1% harvest-festival. Overall emerging food grocery economies exploding; + 10% gross domestic product growth in china and + 6% growth in Latin America. Political set in emerging markets may run into it difficult for immaterial competition to enter market without domestic first mate and / or; foreign investment funds & axerophthol; market diversification less attractive\r\n(import / export tariffs). Situational abridgment Situational outline Industry Purpose of the Oral individualised Care industry is to prevent teeth and gum tree diseases and deliver augmentative benefits. stage setting of the industry admits tooth recente, floss, tattle rinses and toothbrushes. Industry Definition Competition\r\nColgate has dominant market value per centum in China (32%) and Mexico (82%). China market fragmented with Colgate & P&G re defering 53% of destiny. Situational Analysis Industry crossing Developm ent growth dodge with launches of gift grade tag extensions flower Whitening Expressions (US) acme With Scope (US), Colgate Icy Fresh (China), Crest still Expressions (MX).\r\n send Position: Competition Strategy (P&G)\r\nC+S = toothpaste + mouthwash + whiten\r\nCWE / CCE = tincture + toothpaste + whitening\r\nEntering emergent commercializes under its Crest shop without JV partners. Leveraging x- grime scale with Crest + Scope.\r\n var. its brand around therapeutic benefits, while cosmetic benefits market increment fastest in Emerging Markets. Innovating in cosmetic designe section; a historical Colgate strongh senior. Heavily invests in advertising behind modernistic product launches. Situational Analysis evolution Market Strategies gatekeeper Five Forces Analysis Global Oral ain Care Colgate Palmolive Oral Care SWOT Analysis Situational Analysis market Strategy Pricing: Positioned as a super-premium brand, monetary value parity to Crest Cool Expressions (14.99 †15.99 pesos). merchandising Budget: $2MM marketing budget aimed to tantalise trial through in-store merchandising, sampling, and public relations. Corporate market Strategy Objectives\r\nColgate Max Fresh (CMF) Mexico Marketing aim\r\nstrategic\r\nGrowth carryn by soaring margin core business.\r\nAdvertising foc partd on mellow margin products and superior potential markets. presentation driven: 40% of gross revenue from products launched in past 5 years. Tactical\r\nGrowth Strategy: harvest Development; Super Premium part\r\nGrowth Targets: China 2% YR1, 2.8% YR2; MX 5% YR1, 6% YR2 value package. Will require trading up consumers. Value Pro note: CMF would drive smart mark of freshness Target Market: Geared towards 18-34 yr. old adults (female oriented); augment Colgate’s strong competitive position in Value & Mid-Tier. Situational Analysis Marketing Strategy\r\nWill US developed media plans furnish?\r\nCan Colgate effectively trade-up consumers ?\r\nWhat impact testament cannibalization come on profitsability?\r\nIs market large comme il faut in Mexico for premium segments?\r\nWill benefits of CMF convey to Mexico consumers?\r\nBASES interrogation and Consumer Viability Index showed marginal promise.. CMF Marketing C at a timerns for Mexico\r\nSymptoms of Colgate Palmolive’s primary winding chore Emerging Market consumers are price sensitive Crest attacking cosmetic segment\r\nConsumers experiment through trial vs. large sign purchase Despite Growth in call areas Colgate-Palmolive operating profits and net income are down. +6.5% social unit volume growth\r\n+7% sales sawbuck growth\r\n+0.1% growth in gross profit margin\r\n-2% Operational Profit\r\n-7% Net Income\r\nTo drive growth Colgate-Palmolive is looking to focus on higher(prenominal) margin core businesses. Core Elements of the Strategic Problem In the US toothpaste market CP is seeing a 3.1% outgrowth in volume of sales ascribable to the Super P remium Toothpaste Category.\r\nGlobal Strategic hazard exists in the Premium Toothpaste market. Represents $75 M sales dollar attach and totality market crownwork of $409.5 M dollars Only the Premium Toothpaste Category is growing at a substantial rate.\r\nIn 2004 CP captured ~60% of that Sales Dollar Increase in the US largely collects to the launching of Colgate Max Fresh.\r\nIn devote to continue to grow CP moldiness find a way to develop their Premium Toothpaste product CMF in emerging countries. Colgate Palmolive’s Primary Problem\r\nWould the hail of adopting CMF in each innovative country proffer sufficient incremental sales and profits to justify the added complexity of topical anestheticized marketing and rollout plans associated with those new-fashioned markets. Colgate-Palmolive mustiness continue to globalize its Premium Toothpaste Strategy. Any firmness of purpose must balance they cost of localization with the evaluate sales and profit increase f or each new market. Also it is in Colgate-Palmolive’s best stakes to develop reusable guidelines as it approaches other new markets akin(predicate) to China and Mexico. Colgate Palmolive’s Secondary Problems\r\n slip 1: stimulate a tactical marketing plan for the CMF rollout in an emerging market where Colgate-Palmolive has lilliputian previously established presence(China)\r\nType 2: Establish a tactical marketing plan for the CMF rollout in an established market that has high antagonist activity(Mexico). In order to establish an effective global schema two types of secondary problems must be figure out in the Colgate Max Fresh Case instruct: Any solution must balance they cost of localization with the expected sales and profit increase for each new market. Secondary Problem dilate Need to exhibit a product to tote Colgate-Palmolive profitability Colgate has worldwide share, the completely way to blow ones stack is to drive high margin business. China(new markets) have powerfully entrenched local brands.\r\nColgate Max fresh exit need to compete with its own joint pass brand Darlie(High End). Due to new product introduction at the Super Premium Toothpaste Market competitor Crest has 3% growth year to year, Colgate paleness Brands have been stagnant for 3 years. CP is not only loosing out on possible profits alone also slowly loosing market share to its #1 competitor. Market is unfamiliar with CMF â€Å" touch strips”\r\nUS Marketing Video leave behind be ineffective due to the US Star involved. Is it worth creating new renown 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. China\r\nSecondary Problem Detail Colgate-Palmolive knows P&G depart be introducing Crest Cool Expressions(CWE) in Mexico in the near futurity. CO must develop the best marketing plan to stunt P&G Crest Cool Expressions w hile protecting their overwhelming market share. 82% Value share for Colgate-Palmolive\r\nCP needs to reach a marketing plan to introduce CMF with exceptional budget and maximize pieceal utility. Due to CP’s large inherent market share, the goal of the Mexican military cause 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 look at Exhibit 17 â€\r\nWill waiting to introduce CMF until after the CWE product introduction change the caller estimates of profitability? Can the Mexico Snowsurfer commercial be advance standardized for global marketing plans? Going fore how will CP utilize this marketing plan for future markets? Colgate-Palmolive Company Alternatives Locally make the readable nursing bottle Works for China, not Mexico China\r\nAllows for ease of refinement of the Colgate Max Fresh brand in clear bottle to other regional locales Also, provi des future capabilities for use in other new products Problems:\r\nThis does add 20% variable cost to COGS\r\nInitiates a 6 calendar month delay on production\r\n$1.5 M change posture cost before production\r\nAlternatives Colgate-Palmolive Company Alternatives\r\nregional Market Alternatives\r\nMexico\r\nChina\r\nColgate-Palmolive Company Alternatives bequeath to a great extent(prenominal) trial availability with the smaller packages to sway more to give CMF a try CMF has the wind\r\nstrips or â€Å"cooling crystals” within the toothpaste, therefore bundle the inkling strips package with CMF to build awareness. Stop utilizing celebrities to promote CMF\r\nProvide regional flavors\r\nKeeps product as a premium product\r\nCost of $200,000 per flavor\r\nHas shown promising outcomes in other regions\r\nIn China, Crest utilized a tea flavor and Colgate a salt flavor In Russia, after releasing a local flavor, the toothpaste market share rose from 11.8% in 2002 to 24.9% in 20 05. 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 pesos\r\n execution Strategic Vs. Tactical Plans The strategic plan moving frontward for emerging markets will be to use an slowly 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 turn back with the decision to use a eminence commercial in China due to the size of it 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 Cho u Colgate Max Fresh Commercial carrying out in China Dispensing the toothpaste in clear bottles to build brand awareness Colgate-Palmolive has invested a large number of capitol in the Max Fresh marketing campaign Maximize the return on investment by:\r\nTransition to less expensive package 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 markets Focus will be on preserving our market share instead of new growth\r\nUse 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 Crest’s total market share Crest + Scope only accounts for 3%of total market share\r\nSet price at 14.99 pesos per c ml\r\nWe will re-evaluate our Colgate Total (19.36 pesos per 100 ml) marketing campaign t o focus on the plastered 40+ age group to minimize cannibalization Implementation in brazil nut Characteristics of the Brazilian Market 71% of Brazilians agree that â€Å"music is an important part of my lifetime” 33% have participated in trips to the beach in the last 30 days 76% agree that â€Å"it is important to be attractive to the blow sexual urge” 65% agree that â€Å"it is important to keep unexampled looking”\r\n32% express the desire for bendable surgery in order to improve their show\r\nStatistics from Geoff Wicken, KMR Group\r\nTactical Strategy Brazil Vollyball is the second most popular sport in Brazil To become a sponsor on the FIVB circuit, we must apply by July 31, 2006 Update packaging to include â€Å"Made in Brazil”\r\nThe busy era in Rio De Janeiro December to March, so we recommend recoil off a medial marketing campaign in October 2006 This will give Colgate-Palmolive a chance to evaluate the success of the BreathStrip sampl es 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 tremendous opportunity to market Colgate Max Fresh as a product that will whiten teeth and make you more â€Å"kissable” Adapt the SnowSurfer commercial to the Brazilian market\r\nSponsor a national beach vollyball tournament\r\nConclusion Colgate-Palmolive is actively seeking ways to increase their operating profit and net income Introducing new high margin products to emerging markets will be censorious to their success Marketing Colgate Max\r\nFresh as efficiently and effectively as possible will be necessary in helping us achieve our financial goals\r\nUNILEVER\r\n'