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Shvoong Home>Arts & Humanities>Colgate-Palmolive 2 Summary

Colgate-Palmolive 2

Book Summary   by:likelyculprit     Original Author: Matt Collander
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Colgate-Palmolive had very ambitious objectives for its launch of the Cleopatra Soap line. They wanted a 4.5% market share for year of 1986 as well as getting 100% distribution of Cleopatra with retail accounts. They also wanted to have the maximum shelf space they could get at these retailers, which would be the same number of products facing as the current segment leader. At the time Dove was the segment leader and was Cleopatra’s major competitor. Another objective of the campaign was obtaining the proper shelf positioning, in this case being a position directly next to Dove Soap. And the final objective was to maintain Cleopatra’s premium pricing strategy. They did not want to compete on price, as they wanted to position Cleopatra soap as premium quality soap and to generate interest in their brand through strong media and consumer promotions. In this way they would build demand directly through the consumers. These were the main objectives of the Colgate-Palmolive Cleopatra launching campaign. The research and exhibits shown in the case reveal that the Cleopatra launch was basically a failure and did not reach any of their expected objectives. According to exhibit 3, Cleopatra’s market share for the year 1986 was only 0.9% although it did peak at 1.8%. This is fairly indicative of the failure since one of the main objectives of the launch was to earn a 4.5% market share by the end of 1986. Also according to exhibit 6, Cleopatra was only able to obtain a distribution of 69% at the most which was well short of the 100% that Colgate-Palmolive wanted to achieve. Exhibit 6 also clearly shows that Cleopatra Soap never came close to shipping the forecast number of cases except during the first month of the launch. Another objective that was not met was in the shelf positioning. Exhibit 8 shows that not only did Cleopatra not meet its goal of being next to its main competitor Dove, but it also received far less space than any of the other brands and was placed on the bottom shelf between Woodbury and a generic brand of soap. However, the company did reach their share of voice goals by reaching a 63% level of awareness among consumers though commercials and other promotions. This slight victory was not nearly enough to make up for the overwhelming failures in completing the Colgate-Palmolive’s major objectives. After evaluating the three decision options at the end of the case, I would recommend that Colgate-Palmolive pursue the second course of action. Although the first option of discontinuing the brand has the advantage of not losing any more money if Cleopatra continues to be a failure, its seems like a unwise decision after so short a time period and seeing how much of a success the product was in another very similar market.
Option three would have the benefit of changing the product itself to try and get consumers to purchase the product but again this seems unnecessary after all of the preliminary research showing the approval of the product by consumers and the fact that 64% of the public would buy the product after they tried it. The second option has the drawback of losing even more money if the product does continue to be a failure but the history and data show that this option has many benefits. 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. The marketing strategy could use some minor modifications to speed this process up and eventually reached the goal of a 4.5% market share. For one, the company could put more effort into getting the proper shelf space and positioning possibly by offering an allowance to the retailers in order to get Cleopatra next to Dove and have equal space. Also I think it would be a good idea to alter the marketing strategy by starting to offer certaain discounts or sales on the soap. Even though the company did not want to do this, any small amount of discount could really encourage consumers to at least try the product. Getting consumers to try Cleopatra soap was the one of the main interests of Colgate-Palmolive. This is because of the fact that the research they did showed that 64% of the consumers would buy the product again after they had tried it. Thus anything you can do to entice the consumers to purchase Cleopatra once would be a good idea. Once the consumers begin buying the soap and Colgate-Palmolive reach their objectives of market share they can discontinue any discounts used and still have Cleopatra as the premium quality, premium priced product that the marketing strategy set out to make Cleopatra Soap.
Published: August 31, 2005   
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  1. Answer   Question  :    Do you know if the soap still available to purchase. I have one bar left which I bought when I lived in Australia .. many years ago.. but have not been able to find it anywhere. thanks View All
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