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COLGATE –PALMOLIVE
    CLEOPATRA



          ANAND BATRA
         NAMAN BHUTANI
          SAI PRAVEEN
         RAGHAV KABRA
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
         LAUNCHING IN CANADA



 1ST was for “Super Group” of Professional 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
   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 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 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 high
 42 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 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

        0                               Series1
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 packs
Colgate –palmolive

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Colgate –palmolive

  • 1. COLGATE –PALMOLIVE CLEOPATRA ANAND BATRA NAMAN BHUTANI SAI PRAVEEN RAGHAV KABRA
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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 & dislikes  Results were positive
  • 6. 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
  • 7.  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
  • 8. 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
  • 9. 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
  • 10.  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)
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15.  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 %
  • 16. 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%)
  • 17.  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
  • 18. 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
  • 19.  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
  • 20. 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
  • 21.  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
  • 22.  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
  • 23. RESULTS OF LAUNCH  67% first month objectives are achieved  The result continued to discouraging well into the first year
  • 24. ADVERTISING COMMERCIAL  After 13 weeks, advertisement commercial an awareness of 63%  Highest in skin care segment  Cleopatra had achieved its share of voice target
  • 25.  After promotion period , only 21 % of the coupons had been redeemed  Only 1500 people entered by the December Deadline  Wrong distribution of coupons
  • 26.  Shelf Positioning gradually deteriorated
  • 27. NEW RESEARCHES  Was done in Quebec  A random sample of 204 consumers  An oversample of 99 Cleopatra „triers‟
  • 28. 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 %)
  • 29. 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
  • 30. 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 .
  • 31.  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
  • 32. 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.
  • 33. PEOPLE RECALL CLEOPATRA AS (EXHIBHIT -13)  Beauty Soup  Contains Perfume  Mild/a mild soap/ mild as milk 25 20 15 10 5 0 Series1
  • 34.  Respondents are not influenced after seeing the advertisement  Respondents have no reaction after seeing the advertisement
  • 35. WHY RESPONDENTS NOT TRIED CELOPATRA(EXHIBIT-14)  Not Available in Majority of stores  Already happy with present brand 25 20 15 10 5 0 Series1
  • 36. DILEMMA  Short sightedness & Impatience  Not properly Advertised  Repetitive French Advertisement not influenced Canadian people  People considered as Beauty Soap for Women
  • 37.  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
  • 38. 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
  • 39.  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