Cleopatra Case Study

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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.

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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.

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   ƛ Failed to get proper shelf place ƛ Conflict of interest for retailers ƛ Non availability due to retailer indifference

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Alternative Solutions

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Admit defeat and discontinue the brand.

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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