ANAND BATRANAMAN BHUTANI

SAI PRAVEENRAGHAV KABRA

COLGATE –PALMOLIVE CLEOPATRA

COLGATE-PALMOLIVE

Multinational consumer packed goods corporation

Personal care and household productsAnnual sales of $5.7 billionColgate Toothpaste was no. 1Palmolive soap was no. 2

CLEOPATRA

Introduced in France in 1984Premium productNo. 1 brand in France15% market share by the end of 1985Success 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 LAUNCHING IN CANADA

1ST was for “Super Group” of Professional women

They were given introduction of the product, price, advertising

Openly discuss the likes & dislikesResults were positive

RESEARCHES CONDUCTED BEFORE LAUNCHING IN CANADA

2nd research were of typical consumersPeople were shown the advertisement of

Cleopatra50% said they would like to buy

They were given a bar of soap to try at homeAfter one week , they recorded their response

by calling them64 % of people said they would like to buy

Cleopatra both the researches were successful

CANADIAN SOAP MARKET

In 1986 , $105 billion worthRevenue was projected to grow 4-5%Limited shelf space was major constraintSuccess 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 slowingLaunches of “cosmetic in nature” of

products were increasing

LIQUID SOAPS had entered in marketCompetition was based on priceWillingness of consumers to buy acceptable

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

MARKET DIVISION OF SOAPSIN CANADIAN MARKET

Divided in 3 categoriesSkin 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 warReceived 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

Quebec’s 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 %From 1985 to 1987

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

discountsPlanned that demand should come directly

through the consumersGeneration 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 Strategy100% distribution of the productsConsumers should demand the product &

forced retailers to keep it in their storeThey want that both consumers &

salesperson should be enthusiastic about product from day one

Major emphasis on AdvertisementOut of 100 minutes of soap advertisement , at

least 15 % should of CleopatraTarget group: women age b/w 18 to 49Advertisement was same as in FranceAdvertisement was shot in RomeAdvertisement showed Cleopatra, eternal

woman , holder of all secretsTag 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 DoveThe most expensive brandCleopatra 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 & prestigeThe soap came out in its own gold colored

laminated cartonFor reflecting unique in shelfPrevent the perfume from escaping

RESULTS OF LAUNCH

67% first month objectives are achievedThe result continued to discouraging well

into the first year

ADVERTISING COMMERCIAL

After 13 weeks, advertisement commercial an awareness of 63%

Highest in skin care segmentCleopatra 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 QuebecA random sample of 204 consumersAn 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 don’t prefer to use this product Occasionally( 8.8%)

People who tried Cleopatra has very less chances of leaving that brand (Stopped using =1 %)

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 high42 OUT OF 99 RESPONDENDS HAD NO

DISLIKES

CONSUMER RESEARCH USAGE (EXHIBIT 12)

People want to buy CLEOPATRA occasionally i.e. 66%

People don’t want to use CLEOPATRA everyday.

Respondents have chosen product for Body only.

PEOPLE RECALL CLEOPATRA AS(EXHIBHIT -13)

Beauty SoupContains PerfumeMild/a mild soap/ mild as milk

IT’S

A B

EAUTY SOAP F

OR WOM

EN

IT'S

PERFUM

ED/CONTAIN

S PERFUM

E

IT'S

MIL

D/MIL

D SOAP/ M

ILD A

S MIL

K

CONTAIN

S CREAM

/MIL

K/OIL

CLEOPATRA /B

EAUTY L

INKED T

OGETHER

CLEOPATRA /

EGYPTAINS L

INKED T

OGETHER

IT S

UDS WELL/L

OTS OF L

ATHER

FRESH S

MELL/IT

'S R

EFRESHING

SMELLS G

OOD/N

ICE

MAKES S

KIN S

OFT/S

MOOTH

ER SKIN

0

5

10

15

20

25

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 storesAlready happy with present brand

IT’S

A B

EAUTY SOAP F

OR WOM

EN

IT'S

PERFUM

ED/CONTAIN

S PERFU

ME

IT'S

MIL

D/MIL

D SOAP/ M

ILD A

S MIL

K

CONTAIN

S CREAM

/MIL

K/OIL

CLEOPATRA /BEAU

TY LIN

KED TOGETHER

CLEOPATRA / EGYPTAIN

S LIN

KED TOGETHER

IT S

UDS WELL/L

OTS OF L

ATHER

FRESH SM

ELL/IT'S

REFRESHIN

G

SMELLS G

OOD/N

ICE

MAKES S

KIN S

OFT/S

MOOTH

ER SKIN

0

5

10

15

20

25

Series1

DILEMMA

Short sightedness & ImpatienceNot properly AdvertisedRepetitive French Advertisement not

influenced Canadian peoplePeople 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 yearCoupons were not distributed properlyNo innovationsResearch was done in Toronto & Cleopatra

introduced in Quebec

WHAT STEPS SHOULD BE TAKEN

Advertisement should be changedAchievable targets should be thereToo much fragmented should not be thereThe 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 packs

THANK YOU