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    Cleopatra Case Study

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    m_afzal
    The Cleopatra brand of soap faced challenges in its first year in Canada despite success in France. Three options were discussed to address the struggling brand: 1) discontinue it, 2) continue with minor strategy modifications, or 3) alter the strategy or product. It was recommended to continue the strategy with minor modifications like incentivizing retailers and offering discounts to ensure shelf placement and availability. If losses continued after these changes, discontinuing the brand in Canada would be considered.

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    Attribution Non-Commercial (BY-NC)
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    Cleopatra Case Study

    Uploaded by

    m_afzal
    7K views21 pages
    The Cleopatra brand of soap faced challenges in its first year in Canada despite success in France. Three options were discussed to address the struggling brand: 1) discontinue it, 2) continue with minor strategy modifications, or 3) alter the strategy or product. It was recommended to continue the strategy with minor modifications like incentivizing retailers and offering discounts to ensure shelf placement and availability. If losses continued after these changes, discontinuing the brand in Canada would be considered.

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    Cleopatra Case Study

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    The Cleopatra brand of soap faced challenges in its first year in Canada despite success in France. Three options were discussed to address the struggling brand: 1) discontinue it, 2) continue with minor strategy modifications, or 3) alter the strategy or product. It was recommended to continue the strategy with minor modifications like incentivizing retailers and offering discounts to ensure shelf placement and availability. If losses continued after these changes, discontinuing the brand in Canada would be considered.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    7K views21 pages

    Cleopatra Case Study

    Uploaded by

    m_afzal
    The Cleopatra brand of soap faced challenges in its first year in Canada despite success in France. Three options were discussed to address the struggling brand: 1) discontinue it, 2) continue with minor strategy modifications, or 3) alter the strategy or product. It was recommended to continue the strategy with minor modifications like incentivizing retailers and offering discounts to ensure shelf placement and availability. If losses continued after these changes, discontinuing the brand in Canada would be considered.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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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

    m 
     
     
          
             
       
          
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     " #
     $ #  Ô   
    m  %&   
    {ey Issues
    Shelf Placement

    m 
     
     
          
    EYE LEVEL
             
       
     
         
    !     
     " #
     $ #  Ô   
    m  %&   
    {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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