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COLGATE-PALMOLIVE

Multinational consumer packed goodscorporation

Personal care and household products

Annual sales of $5.7 billion

Colgate Toothpaste was no. 1

Palmolive soap was no. 2


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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 tointroduce in Canada, specially Quebec


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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


4/39

RESEARCHES CONDUCTED BEFORE

LAUNCHING IN CANADA

1ST

was for Super Group of Professionalwomen

They were given introduction of the product,

price, advertising Openly discuss the likes & dislikes

Results were positive


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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


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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


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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 onRetailers


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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


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LIQUID SOAPS had entered in market

Competition was based on price

Willingness of consumers to buy acceptablebrands

Bundles packs were developed(2,3,4,6)


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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


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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


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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 16thcentury .

80 % of population list French as their Mother

Ton ue


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EXISTING SOAPS WITH HIGH

MARKET SHARES

DOVEhaving 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 %


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IRISH SPRINGMade 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 %


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CANADIAN CLEOPATRA

MARKETING STRATEGY They introduced Cleopatra as a premium

quality beauty product

ColgatePalmolive has already well

positioned products like

Irish Spring(6.2%),

Cashmere Bouquet (3.3%),

Palmolive soap(3.7%)


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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


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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


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Major emphasis on Advertisement

Out of 100 minutes of soap advertisement , atleast 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

Cleopatrathe secret of beauty


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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

Promotionwhich offered consumer a variety

of popular & fashionable costume jewelry at

reasonable prices


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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


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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


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RESULTS OF LAUNCH

67% first month objectives are achieved

The result continued to discouraging well into

the first year


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ADVERTISING COMMERCIAL

After 13 weeks, advertisement commercial an

awareness of 63%

Highest in skin care segment

Cleopatra had achieved its share of voice

target


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After promotion period , only 21 % of the

coupons had been redeemed

Only 1500 people entered by the December

Deadline

Wrong distribution of coupons


25/39


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NEW RESEARCHES

Was done in Quebec

A random sample of 204 consumers

An oversample of 99 Cleopatra triers


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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


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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


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-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 .


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CONSUMER RESEARCH


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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.


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PEOPLE RECALL CLEOPATRA AS

(EXHIBHIT -13)

Beauty Soup

Contains Perfume

Mild/a mild soap/ mild as milk

0

5

10

15

20

25

Series1


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Respondents are not influenced after seeing

the advertisement

Respondents have no reaction after seeing the

advertisement


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WHY RESPONDENTS NOT TRIED

CELOPATRA(EXHIBIT-14)

Not Available in Majority of stores

Already happy with present brand

0

5

10

15

20

25

Series1


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DILEMMA

Short sightedness & Impatience

Not properly Advertised

Repetitive French Advertisement not

influenced Canadian people

People considered as Beauty Soap for Women


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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 & Cleopatraintroduced in Quebec


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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


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