Cannibalization Delist lower-performing stock keeping unit (SKU)
Marketing expenses o o
Media Advertising Promotions and Sampling
Benefits of Adaptation of CMF
Increase market share: o
Contributed to Colgates record share of 34.8% in
2004 in U.S.
Incremental sales and profits
Traded existing colgate consumers up to higher-priced variants
CMF launch results better in Mexico
Huge Advertising Costs in China - Negative Operating Profit o o
42% of sales in China vs 10% in Mexico
Not major psychographic differences - less celebrity cost
Change in Packaging standards
o o
Stand up tube development
Color testing
CMF launch results better in Mexico
82% Market share in Mexico vs 24% in China in 2004 o
High impact of price sensitivity and sales promotion
+25% increase with decrease of 1 Pe In store merchandising, sampling, public relations
CMF Launch Mexico - Issues
CMF Launch didnt capitalize on Therapeutic benefits o Possibility of increased sales 82% Market Share - difficult for products with new features Consumers emphasize basic oral care
Global Rollout Strategy - Emerging Markets
Markets with less value share: Customizable market strategy to adapt to other neighbouring countries Product trials with smaller product sizes - consumers can experiment Tailor premium products to Emerging Market price points - consumers are price sensitive Use International/Sports celebrities to avoid huge advertising costs Unique regional plans o E.g. regional flavors - e.g. Crest tea flavor in China o Packaging - clear bottles showing cooling crystals; build brand awareness
Global Rollout Strategy - Developed Markets
Markets with greater value share and new to freshness concept: Can include breath strip samples for consumer attraction Concept testing for finding price volume sensitivity Advertisements showcasing on therapeutic and freshness benefits Focus on preserving market share o Price volume sensitivity o Competitive pricing Adapt commercials to cultural values o Mexico - snowboarding distant idea