CASE:Colgate Max Fresh: Global Brand Roll-Out (HBS 9-508-009) Colgate Max Fresh (CMF), a new toothpaste formula with patented breath-freshening technology, had been introduced in the U. S. and was in the global pipeline for 2005. Nigel Burton, president of global oral care at Colgate-Palmolive Company (CP), had on his desk the proposed marketing launch plans for CMF in China and Mexico. Each plan sought to maximize business potential in the local market.
Burton needed to assess these plans from a global perspective, and he wondered if the benefits of adapting the marketing programs in each country outweighed the costs. TAKEAWAY: •Global marketing strategy involves understanding and addressing differences across markets, the dilemma arises when trying to balance the global brand and appeal to distinct regions. Successful global marketing campaigns leverage similarities to preserve a consistent message and limit costs while also customizing advertising to align with regional cultural preferences. Four types of forces drive the globalization of marketing and brands 1. Market drivers (global customers, common customer needs, sometimes subjective in nature “cooling crystals” vs. “icy fresh”) 2. Cost drivers (economies of scale potential of campaigns, Colgate could not use celebrity of Emily Procter across all channels, tradeoff for pop star Jay Chow for opportunistic locations) 3. Competitive drivers (global competitors, first mover advantage or counter threats from competitor innovation, ex: Mexico cannibalization of existing products to secure position) 4.
Government drivers (regulation, censorship, inability to mention competitors by name) •When deciding which countries to enter first, a company 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 and across markets • Two major pitfalls of global marketing . )Tendency to over-standardize, without diversity of practice, local innovativeness tends to atrophy. 2. ) Rigid implementation, forced compliance destroys autonomy, undermines commitment to success of global program. •Organizations must balance mandates, risk, lack of authority by the brand champion, and information. –Provide guidelines and a sense of ownership to country organizations •Consider global event sponsorship (e. g. , Olympics) Increase brand awareness, identify with lifestyle, reinforce key brand associations, enhance corporate image, entertain clients / reward employees ChinaMexicoCMFCP HQ 3% market share5% marketCMF Toothbrush 2007 launched Big Hits Success via Web, not advertisingSnowboarder AD standardizedMax Fresh Burst w/50% stripsDesigned for globally strategy Goal to expand cosmetic Perception over healthStand-Up PackagingMax-White/MexicoAssigned R&D and Marketing Resources Different FlavorsShelf Space $250 Million sub-brand 50 countries