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Synopsis
ƥ The brand, Cleopatra, faced a tough time in the
very first year of its launch in Canada, despite its
grand success in France. The GPM, BM & ABM,
with the latest research reports on hands, were
discussing what should be done to save the
drowning brand.

ƥ They had 3 options:


ƛ 1. to admit defeat and discontinue the brand
ƛ 2. Continue the Strategy with minor modifications
ƛ 3. Alter the Strategy or even the Product
Synopsis

ƥ Cleopatra was positioned as ƝPremium


Qualityƞ & ƝPremium Priceƞ soap by Colgate
Palmolive Company, Canada.
ƥ Huge success in France in 1985.
ƥ Acquired a 10% of market share soon after
its launch.
ƥ It was set out to target the ƝQuebecƞ market.
ContdƦ

ƥ CPC wanted to earn 15% share of voice on


television advertising.
ƥ CP used the very same commercial for
Quebec, as they did in France.
ƥ Pre-launch research was conducted among
Super Focus Group
Typical consumers
The Market

The market was divided into three segments

ƥ Skin care
ƥ Refreshment
ƥ Utility
Strategy
ƥ They used differentiation strategy
ƥ High priced soap (1.29$ a bar compared with 1.19$ a bar
of Dove
ƥ Bypassing retailers, to avoid losing money @ Heavy
Retailer Margins in the Industry
ƥ CPC used electronic media for advertisement
ƥ 250,000 free bar coupons were distributed to households
ƥ Cleopatra Gold collection and Sweepstakes Promotion
ƥ 67% of first months objectives were achieved on the first
evening.
{ey Issues
Shelf Placement

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Shelf Placement

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EYE LEVEL
         
   
 
     
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{ey Issues
ƥ Adopted Demand Pull Strategy & neglected all
powerful retailers.

ƥ Promotional Strategy
ƛ An important consideration after bypassing retailers.
ƛ Failed to positively influence customers & create a required
pull to ensure trial.
{ey Issues

Marketing Research

ƛ The pre-launch research was conducted in Toronto,


whereas the results of research were to be implemented in
Quebec.

ƛ We can say that there was the sampling error in research


which causes failure of product in Quebec.

ƛ Moreover the market research was superficial. Instead of


concentrating on What people want in a new luxury soap,
focus was on Would people buy it or not.
{ey Issues

Ê Price

The competition was primarily based on price as there were no


competitive differentials among most of the brands and consumers
had a group of acceptable brands.

Cleopatra as a high quality and high priced soap Colgate Palmolive


might restrict their potential target market to high income group
because.

It would have been better had the CPC management opted to set
the price of Cleopatra at par with Dove or marginally high to
compete in a highly competitive and price sensitive market.
{ey Issues
Ê Price
{ey Issues
Product Usage

It was placed in Skin care segment but its fragrance and creamy
leather were not amongst the most liked attributes.

Cleopatra also failed to establish itself as a top brand in Skin Care


segment since 76% of the respondents said that they used
Cleopatra only on body.

French Canadians were very much sensitive to perceive the level


of perfume directly as measure of cleaning strength and harshness
of the product. ƠAdvertising recallơ shows that fragrance of the
soap was not appropriate for the target market.
{ey Issues
{ey Issues

Product Usage
The Core Problem

ƥ à 
 
 



ƛ Failed to get proper shelf place


ƛ Conflict of interest for retailers
ƛ Non availability due to retailer indifference
The Core Problem

Š  





Alternative Solutions

ƥ Admit defeat and discontinue the brand.

ƥ Alter the strategy or even the product itself.


Selected Solution
ƥ We recommend to continue the strategy by making minor
modifications.

ƥ Considering that Cleopatra did so well in France and that the


Quebec market is such a similar one it seems like good risk to
try and give the product more time and support.

ƥ For one, the company should put in equation the powerful


retailers to carry forward their brand, by offering incentives like
increase in margins and off-invoice allowances to retailers.

ƥ Moreover by offering discounts to retailers would not hurt the


premium positioning of others CPC products in the eyes of
customers.
Conclusion

ƥ We have concluded that management should allow


Cleopatra to continue in Quebec as premium quality
and premium priced soap with some minor
modifications in strategy.

ƥ But if Cleopatra still suffers losses and shows


negative growth then management should wrap up
the Cleopatra brand in Quebec to avoid more
financial losses.
Thank You

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