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Transcript of colgate
Assignment 2 – Case Study DISCUSSION QUESTION 1 What are the similarities between the French and the Quebec markets that suggest acceptance for Cleopatra after the French success?
Critically evaluate the market research prior to the launch.
Are there any significant findings that would alert you to potential problems ahead of the launch? DISCUSSION QUESTION 2 How would you evaluate the positioning of Cleopatra in Canada?
Are there any alternative options? DISCUSSION QUESTION 3 DISCUSSION QUESTION 4 On the basis of the consumer research data collected after launch, what is your diagnosis of what went wrong? Evaluate the promotional launch and the advertising campaign.
Were mistakes made that could have been anticipated? INTRODUCTION Case Title:
Colgate-Palmolive: Cleopatra in Quebec?
Johny K. Johansson
2009. Global Marketing: Foreign Entry, Local Marketing and Global Management. 5th ed. Singapore: The McGraw-Hill Companies. Case summary
Similarities between the French and the Quebec markets
Evaluation of the market research prior to the launch
Evaluation of the positioning of Cleopatra
Evaluation of the promotional launch and the advertising campaign
Diagnosis of what went wrong on the basis of consumer research data collected
Three options of Steve Boyd
Conclusion OVERVIEW Market Research Findings Evaluation
Essence of Marketing: What People Want
Willingness to Buy & Pay are DIFFERENT
Inappropriate Sampling: Toronto
Incomplete Market Research before Launching QUESTION 1 – Evaluate the market research prior to the launch French success -> Cleopatra success in Quebec
French and Quebec similarities:
Quebec uses “French” as mother tongue
Population originally comes from France
French accepts it Quebec will do so QUESTION 1 – Similarities between the French and the Quebec markets “the premium quality, premium priced soap and differentiate it from all others”
Company strategy did not quite success because:
the soap pricing is highly competitive in Canada
group of “acceptable brands”
Cleopatra soap was priced above Dove QUESTION 2 – Evaluate the positioning of Cleopatra in Canada focus on niche market consumers QUESTION 2 – Are there any alternative options? Cleopatra Commercial Video in 1987 VIDEO Objectives from Colgate-Palmolive:
Market share: 4.5%
Maximum shelf space at retailers
Maintain Cleopatra’s premium quality soap
Launching their brand through strong media and consumer promotions
Demand: directly from consumers (main objectives)
Television campaign was chosen: create impact QUESTION 3 – Evaluate the promotional launch and the advertising campaign Promotion using coupons as their another strategy
64% people buy Cleopatra after trying it
Coupons promotions were:
“Free bar coupons” 250,000 households
“Cleopatra Gold Collection and Sweepstakes” affordable Jewelry QUESTION 3 – Evaluate the promotional launch and the advertising campaign (cont’) Colgate-Palmolive did not research consumers’ response to television advertising.
They assumed that the successful in France commercial would be also be a success in Quebec The mistakes could have been anticipated,
however, QUESTION 3 – Were mistakes made that could have been anticipated? QUESTION 4 – What is your diagnosis of what went wrong? Source: Johansson, Johny K. 2009. Global Marketing: Foreign Entry, Local Marketing and Global Management. 5th ed. Singapore: The McGraw-Hill Companies. Colgate-Palmolive did make the right choice in entering the Quebec market, but the execution was wrong. Source: Johansson, Johny K. 2009. Global Marketing: Foreign Entry, Local Marketing and Global Management. 5th ed. Singapore: The McGraw-Hill Companies. It priced the soap higher than the other brands and ignored the customers’ preferences about buying soap in a bundle.
Generally, Colgate-Palmolive was asking customers to buy less soap at a higher price. QUESTION 4- What is your diagnosis of what went wrong? (cont’) Source: Johansson, Johny K. 2009. Global Marketing: Foreign Entry, Local Marketing and Global Management. 5th ed. Singapore: The McGraw-Hill Companies. The availability of product QUESTION 4- What is your diagnosis of what went wrong? (cont’) There needs to be further research into the:
TV commercials, and
Comparisons of Cleopatra versus the leading premium brand, Dove.
The research must be conducted in the actual market, Quebec, to get a more accurate read of consumers. QUESTION 4- What is your diagnosis of what went wrong? (cont’) DISCUSSION QUESTION 5 If you were Steve Boyd, which of the three options would you pursue?
Justify your choice. QUESTION 5 – Steve Boyd’s three options 1. Admit defeat and discontinue the brand
Advantage of not losing any more money if Cleopatra continues to be a failure,
However, its seems like an unwise decision after so short a time period and seeing how much of a success the product was in another very similar market. QUESTION 5 – Steve Boyd’s three options 3. Alter the strategy or even the product itself
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.
Global Marketing Group in New York was convinced that there was nothing wrong with the brand but the implementation had been poor. QUESTION 5 – Steve Boyd’s three options (cont’) 2. Continue the strategy with minor modifications
Put more effort into getting the proper shelf space
Cleopatra was used demand pull strategy and neglected all powerful retailers in their marketing Demand push strategy
Offering discounts to retailers offering incentives like increase in margins and off-invoice allowances to retailers QUESTION 5 – Steve Boyd’s three options (cont’) Demand push strategy:
marketing activities (primarily the sales force and trade promotion) directed at the marketing channel intermediaries;
induce these intermediaries to order and make product available to end users or customers.
Appropriate where low brand loyalty Demand pull strategy:
marketing activities (primarily advertising and customer promotion) directed at the end users;
induce customer to ask the marketing channel participants;
appropriate when there is high brand loyalty QUESTION 5 – Steve Boyd’s three options Colgate-Palmolive case demonstrates the dangers:
In assuming that a product successful in one market will do well in another
Poor global marketing implementation
Poor marketing strategy and implementation
The need for an integrated marketing strategy to launch a new brand and overreliance on an advertising push to diffuse a new brand. Johansson, Johny K. 2009. Global Marketing: Foreign Entry, Local Marketing and Global Management. 5th ed. Singapore: The McGraw-Hill Companies.
Stegelin, Forrest. 2010. “Marketing - Demand Push or Demand Pull or Both? The Need for Creating New Plant Awareness.” Center for Applied Nursery Research 9 (1): 23-27. http://www.canr.org/01019.pdf. References
Alternative option for positioning According to Forrest Stegelin (2010): Tjemerlang, Jensen – 16092815
Rahardjo, Tan Fransisca Amelia – 15640718
Effendy, Zenia – 15906407
Theresia, Adeline Margaretha – 16004506