Cleopatra Case Study

Cleopatra

Case Study
Presented by Group 8:

Pranav Bharara (G008)

Pratibha Balaji (G018)
Saurabh Mishra (G028)
Saumya Goyal (G038)
Akash Bamankar (G048)
Background
Introduced in France in 1984 by Colgate Palmolive, an FMCD MNC
Instant hit, despite the premium price – 23% higher
Market share rose to 15%
Became the Number 1 brand in France in 1985
Wanted to expand to other markets – Chose Quebec, Canada as

market is similar to France
Cleopatra in Canada
● Canadian subsidiary of Colgate Palmolive was started in 1912, had grown
into a 250$ million a year operation
● Along with P&G and Lever, Colgate Palmolive dominated the Canadian
Personal care and household market (FMCD)
● The launch was extravagant, and deemed to be a success to receive a
positive impact and build the brand image in Canada.
● There were opposing views among the management before the launch of
Cleopatra in Canada
● Two researches were conducted- one on “super-group” of articulate
professional women and other on “typical consumers” of Toronto. The
research results were positive
● Cleopatra was launched as a premium quality product, with a higher price to
avoid price wars.
SEGMENTS OF SOAPS
Skin Care Refreshment Utility

Dove, Camay, Caress, Zest, Coast, Irish Jergens, Woodbury, Cashmere
Cleopatra, Aloe & Spring Dial Bouquet, Lux, Ivory
Lanolin, Palmolive
Brands with distinctive niche...
Dove Ivory Irish Spring Zest

Advertised as facial soap It did well in male market as Seen as family brand,
Brand had 100-year
in skincare segment. refreshment soap due to low in additives and
heritage. It competed in
strong scent & high lathering perfume, detergent
all segments.
Loyal customer base, capability. formulation
It created confidence in
unique formulation and customers’ minds and
moisturizing capabilities, positioned itself well.
low additives & scent
REASONS FOR INTENSE
COMPETITION
Volume growth slowed down Several new brands or variants Slowing technological innovation
and coincided with Canadian of existing brands led to price competition in similar
population growth products
15 mainstream and ~25 minor Larger bundle packs reduced Liquid soaps entered the market
brands fought to be in top 3-4 number of purchases
“acceptable brands”
STATE OF CANADIAN SOAP
MARKET
Competition Key Challenges
High competition Limited shelf space,
mainly based on price all-powerful retailers who
were spoilt for choices
Revenue
Size of market Projection
At the time of launch of
Cleopatra, Canadian soap Predicted to grow 4-5%
market was worth $ 105
million to manufacturers.
Marketing strategy..
• Cleopatra was introduced as a “premium quality premium priced beauty soap” in
Product skincare segment to compete with Dove
• Its unique formulation contained the best ingredients, 15% beauty cream and strong
fragrance. It complimented existing product lines in other segments
• Colgate wanted to avoid price war. Cleopatra was positioned as a premium brand,
so no discounts were offered. It was priced $2 per case above Dove
Price
• The company avoided offering trade discounts and allowances to retailers
• Cleopatra’s marketing campaign was run very extensively, through TV ads. Target
group was women between ages 18-49. It targeted a 15% voice of share and created
Promotion awareness of 63% in 13 weeks.
• “Free Bar Coupons” and “Cleopatra Gold Collection and Sweepstakes Promotion”
Campaigns
• After successful launch in France , Cleopatra was launched in retail stores in Quebec.
Place Research was conducted in Toronto.
• The product targeted maximum shelf presence and positioned on the shelf next to
Dove.
A soap is a soap is a soap
Cultural Social Personal

• • In the first study, the super group is • Buying decision within the
Assumed similarity between French
and Quebecan consumer behavior concerned with the benefits of the “acceptable groups” based on
based solely on language. soap irrespective of price. price alone.
• • In the second study, people show • Larger bundle pack purchases had
Research done in Toronto (British
majority) and product targeted at the “willingness to buy” but not the increased and therefore reducing
Quebec (French majority) “willingness to pay” the premium number of purchases per
price customer.
What are the options available?
Discontinue the brand to avoid
increasing further losses
Options Continue you with a similar

Availabl marketing strategy and face
additional losses
e
Alter the marketing strategy,
personalize it to the markets of
Quebec, bring in competitive
pricing to help improve brand
status
What should be done now?
● We recommend Colgate Palmolive to continue
Cleopatra as a premium product, making minor
modifications in the distribution and marketing
strategy.
● The soap had a good run in France, Quebec, a
similar French speaking community, should be
allowed time to continue
● Tie up with powerful retailers to ensure a profitable
planogram
● Discounts should be offered to the retailers. This
will not hamper the premium brand positioning
What really happened?
Failure in Market Lack of proper retailing

Launched as a premium
Research strategy
product
Personalize product for Reinstill confidence in

the Canadian population the Canada
Management team

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Cleopatra

Pranav Bharara (G008)

Wanted to expand to other markets – Chose Quebec, Canada as

Skin Care Refreshment Utility

Dove Ivory Irish Spring Zest

Cultural Social Personal

Options Continue you with a similar

Failure in Market Lack of proper retailing

Personalize product for Reinstill confidence in

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