COLGATE-PALMOLIVE

Multinational consumer packed goods corporation Personal care and household products Annual sales of $5.7 billion Colgate Toothpaste was no. 1 Palmolive soap was no. 2

CLEOPATRA
Introduced in France in 1984 Premium product No. 1 brand in France 15% market share by the end of 1985 Success of Cleopatra encouraged them to introduce in Canada, specially Quebec

CLEOPATRA IN CANADA
Steve Boyd, Group Production Manager was willing to expand the formula of Cleopatra in Canada Ken Johnson, Manager was doubtful that Cleopatra would become a strong national brand

RESEARCHES CONDUCTED BEFORE 1ST wasLAUNCHING for Super Group Professional IN of CANADA

women They were given introduction of the product, price, advertising Openly discuss the likes & dislikes Results were positive

RESEARCHES CONDUCTED BEFORE LAUNCHING IN CANADA

2nd research were of typical consumers People were shown the advertisement of Cleopatra 50% said they would like to buy

 They were given a bar of soap to try at home After one week , they recorded their response by calling them 64 % of people said they would like to buy Cleopatra both the researches were successful

CANADIAN SOAP MARKET

In 1986 , $105 billion worth Revenue was projected to grow 4-5% Limited shelf space was major constraint Success of products was more depend on Retailers

WHY COMPETITION IN CANADIAN MARKET WAS DIFFICULT

Increased competition was from local products Only survival in market was to steal share from others product Technological Advances were slowing Launches of cosmetic in nature of products were increasing

 LIQUID SOAPS had entered in market Competition was based on price Willingness of consumers to buy acceptable brands Bundles packs were developed(2,3,4,6)

MARKET DIVISION OF SOAPS IN CANADIAN MARKET

Divided in 3 categories Skin Care (Dove , Camay ,Caress, Cleopatra) Refreshment(Zest, Irish Spring) Utility(lux ,Jergens) Ivory competes in all the three segments

LAUNCH OF CLEOPATRA IN CANADIAN MARKET

In Feb. 1986, they invited 1000 retailers for the dinner & presentation for their new brand Hostess was dressed like , Cleopatra (Queen of Ancient Egypt) Looking for different , rather than price war Received order for 2000 cases Evening had a grand success, they were looking forward for overwhelming response

QUEBEC MARKET
Largest in geographical area, which is 2.5 times of the size of France Second largest province in population approx. 6.7 million (26 % of population of Canada) It accounts 28% market Canadian soap volume market Quebecs population came originally from France in around 16th century . 80 % of population list French as their Mother Tongue

EXISTING SOAPS WITH HIGH MARKET SHARES

DOVE having a loyal customer base , low additives & scent Market shares increase from 7.1 to 10.8 i.e. 52% From 1985 to 1987 (Exhibit-3) IVORY- competed in all the 3 markets, 100 year heritage & ever powerful. (I use it because my mother use it) positioning Market shares decreases from 28.2 to 22.9 i.e. 18 %

 IRISH SPRING Made for men soap but used by females too refreshment soap, strong scent & high lathering capability .Market share increased from 6.2 to 6.5 i.e. 4.8% (Exhibit-3) ZEST- market share increased 1.5 to 2.9 i.e. 93.3 %

CANADIAN CLEOPATRA MARKETING STRATEGY

They introduced Cleopatra as a premium quality beauty product Colgate Palmolive has already well positioned products like Irish Spring(6.2%), Cashmere Bouquet (3.3%), Palmolive soap(3.7%)

 Avoid to rely on retailers Did not want to offer trade allowances and discounts Planned that demand should come directly through the consumers Generation of interest in Cleopatra with the help of strong media & promotions

OBJECTIVES SET BY THE COMPANY

Maximum shelf presence same as segment leader DOVE Maintaining Premium Pricing Strategy 100% distribution of the products Consumers should demand the product & forced retailers to keep it in their store They want that both consumers & salesperson should be enthusiastic about product from day one

 Major emphasis on Advertisement Out of 100 minutes of soap advertisement , at least 15 % should of Cleopatra Target group: women age b/w 18 to 49 Advertisement was same as in France Advertisement was shot in Rome Advertisement showed Cleopatra, eternal woman , holder of all secrets Tag Line A new soap that might well change the face of the world Cleopatra the secret of beauty

SALES PROMOTION
Projection from research was that 64% people would buy after trying Free Bar coupons were given to 250,000 households One can exchange coupon to get free bar of soap Cleopatra Gold Collection and Sweepstakes Promotion which offered consumer a variety of popular & fashionable costume jewelry at reasonable prices

 Because it is a premium quality product, no discounts were offered Cleopatra pricing was higher than Dove The most expensive brand Cleopatra has a competitive advantage over dove for $ .476 per case i.e. $3.00+$0.77+$0.99

 Soap was also given attractive shape The logo was stand on ivory cover bar which conveyed quality, luxury & prestige The soap came out in its own gold colored laminated carton For reflecting unique in shelf Prevent the perfume from escaping

RESULTS OF LAUNCH
67% first month objectives are achieved The result continued to discouraging well into the first year

ADVERTISING COMMERCIAL
After 13 weeks, advertisement commercial an awareness of 63% Highest in skin care segment Cleopatra had achieved its share of voice target

 After promotion period , only 21 % of the coupons had been redeemed Only 1500 people entered by the December Deadline Wrong distribution of coupons

 Shelf Positioning gradually deteriorated

NEW RESEARCHES
Was done in Quebec A random sample of 204 consumers An oversample of 99 Cleopatra triers

RESEARCH OUTCOMES
Brand Awareness of Cleopatra was 73.5% whereas Dove has 99.5% and Camay has 98.5% People were not buying the new products coming in market ( Ever tried Cleopatra = 14.2%) People dont prefer to use this product Occasionally( 8.8%) People who tried Cleopatra has very less chances of leaving that brand (Stopped using

BRANDS BEST FOR(EXHIBIT- 10 )

People who have tried CLEOPATRA has given scoring higher in every

People who have not tried Cleopatra has given more score to Dove and Palmolive

LIKES/DISLIKES OF CLEOPTRA(EXHIBIT 11)

29% of people said that fragrance is good and pleasant but 17%of people said it has strong fragrance /harsh fragrance 26% of people like that it makes lot of suds /foam but12%of people said it is too harsh .

 20% of people said it softens skin and 6%of people said it irritates the skin. 20% of people said that the price is too high 42 OUT OF 99 RESPONDENDS HAD NO DISLIKES

CONSUMER RESEARCH USAGE (EXHIBIT 12)

People want to buy CLEOPATRA occasionally i.e. 66% People dont want to use CLEOPATRA everyday.

Respondents have chosen product for Body only.

PEOPLE RECALL CLEOPATRA AS (EXHIBHIT -13)

Beauty Soup Contains Perfume Mild/a mild soap/ mild as milk
25 20 15 10 5 0 Series1

 Respondents are not influenced after seeing the advertisement Respondents have no reaction after seeing the advertisement

WHY RESPONDENTS NOT TRIED CELOPATRA(EXHIBIT-14)

Not Available in Majority of stores Already happy with present brand
25 20 15 10 5 Series1 0

DILEMMA
Short sightedness & Impatience Not properly Advertised Repetitive French Advertisement not influenced Canadian people People considered as Beauty Soap for Women

 Not Available at majority of stores Dove use to sell Bundled packs , which reduced no. of purchases in a year Coupons were not distributed properly No innovations Research was done in Toronto & Cleopatra introduced in Quebec

WHAT STEPS SHOULD BE TAKEN

Advertisement should be changed Achievable targets should be there Too much fragmented should not be there The company should compromise with the powerful retailers to carry forward their brand by offering incentives To improve shelf positioning It would have been better that the price of Cleopatra at par with Dove

 Company should wait for some more time because customers who tried the product are actually liking the product Company is wholly dependent on Advertisement, Canadian customers are not liking that French advertisement Company should take steps to improve Promotional activities because all the coupons were not redeemed Company can also sell Cleopatra in bundled