Colgate Max Fresh: Global Brand Roll-Out Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

This case analysis is based on the “Colgate Max Fresh: Global Brand Roll-Out” by John A. Quelch and Jacquie Labatt-Randle, published in HBR issue of October, 2007.

Background of company and current situation

Colgate Palmolive Company (CP) is operating in 200 countries and hassales of over $10.6 billion in 2004. CP had most of its sales, accumulating to 70%, from outside of the U.S. It has two core product segments in Personal, Home and Oral Care; and Pet Nutrition. It is also world’s leading toothpaste and tooth brush brand, while third largest brand of soaps.

In 2004, the company experienced a growth of 6.5% in number of units sold and 7% sales growth with a gross profit of 55.1% with a minimal increase. The operating costs had increased during the period and had resulted in a decline in operating profit and net income by 2% and 7%. It was noticed that newer products launched within 1999-2004 contributed to 40% of the total sales.

Problem

The main problem for senior management at CP was to develop a global marketing perspective for Colgate Max Fresh (CMF) and keep costs of adaption at justifiable level.

Situation Analysis

Selection of Entry Markets

Nigel Burton had been reviewing the launch plans for CMF in China and Mexico. It was crucial for Colgate to launch the product in the markets where it can gain high sales. The strategy was to introduce product development strategy in China and Mexico. Therefore, it has to adapt marketing strategy based on global perspective........................

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