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Colgate Case Study

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Case study 1: Colgate’s Distasteful Toothpaste
1. Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel.
Answer: Colgate bought a fifty percent partnership in the Hawley and Hazel group to extend its international presence in the Asian market without having to build its own production plant. Strategic issues included sales activity, increased growth, and profits. Ethical issue was that Colgate promoted the brand label “Darkie” toothpaste in the foreign markets. Despite the fact that the “Darkie” logo had been well received in the Asian market, the campaign was widely criticized in the United States. For that reason, Colgate was forced to develop a strategy to repair the damage it suffered for that logo. After many fights with Hawley and Hazel, Colgate proposed to change the brand name to Darlie, Darbie, Hawley, and Dakkie, and that the new logo included a dark, non-descript silhouette and a well-dresses black man.
2. What do you think Colgate should have done to handle the situation?
Answer: Taking into consideration the fact that Colgate has done business overseas before, they should have been more aware of these issues and its marketing campaign from the beginning. And, I also think Colgate should have taken actions quicker to make changes to the logo and the marketing campaign.
3. Is it possible for Colgate and Hawley and Hazel to change the toothpaste’s advertising without sacrificing consumer brand loyalty? Is that a possible reason for Colgate’s not responding quickly to domestic complaints?
Answer: I don’t think it’s possible for Colgate and Hawley and Hazel to change the toothpaste’s advertising without sacrificing consumer brand loyalty, however; a more proactive approach should have been pursued by management. Advertising, sales promotion, personal selling, and public relations could have been

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