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Arctic Power

(Case Study)
Presented By : Presented to:
Rao Muhammad Fahad Nooman Mehmud
Asia Sherazi
Imran Bukhari
Muhammad Afzal
Sobia Hassan
Synopsis
The case sets the scene where Colgate-Palmolive-Canada was confronted with a situation
of whether to continue developing their strong markets, in the Quebec, Maritimes, and
British Columbia region, for its cold water detergent brand i.e. Arctic Power or to try to
build its market share in the rest of Canada. In other words it had to decide on the
“Strategic Direction” and their “Product Positioning” for Arctic Power for the year 1988
based on its experiences in the previous years.

Second, they must decide whether to use a single positioning strategy (as was successfully
implemented in Quebec) or continue to use a dual positioning strategy. The dual strategy
consisted of highlighting Arctic Power as a superior detergent in areas with strong sales,
and focusing on encouraging Canadians to use cold water washing in areas with relatively
weak sales.

In early 1980’s “Regional Brand Strategy” was adopted under which the main objective
was to assign the resources to those areas where the brand had a strong and profitable
share. Resultantly, Arctic Power’s national share significantly increased.
KEY ISSUES

Intense ●
The brands were well established. Thus the competition
was among clean to cleanest and sales could grow only
Competition by taking over share of others.

Constant The main brands positioned themselves on:



Cost (ABC)

Quality (Sunlight with fragrance) &
Repositioning ●
Ingredients &temperature (Tide, Arctic Power)


Canada has two major cultural groups, the English and the
French. Hence brand image and awareness needed to be
Segmented Target Market build in rest of provinces for detergents differentiated to be
suitable for cold water washing.
Internal Analysis

Weaknesses
Strengths 1. Poor product
1. Support of Colgate
positioning &
Palmolive International
marketing.
2. Plenty of stability
2. Expensive
and credibility with
their customers, detergent.
suppliers, and retailers. 3. Feel of lacking in
quality.

Opportunities Threats
1. Giant Competitive
1. Sufficient
firms.
financial resources.
2. Slow growth in the
2. Distinctive Quality
detergent market.
to set it apart from 3. A loyal customer
its competitors. base for Tide.
Core Problem


Arctic power’s positioning strategy had not been
successful in creating brand awareness and brand
image as better cold water cleaning detergent
since it was not based on regional requirements.
Problem


Despite spending huge amounts on advertising,
Arctic power could not gain its aimed market
Core

share in some provinces. It has weak brand image


when compared with Tide. Tide is the name that
comes to the minds of the consumers when it
comes to washing clothes.

1) Arctic Power must focus its strategy on
becoming THE cold water laundry detergent.

2) Align the products price and production costs
to match the perceptions of the Canadian market.
Alternative Solutions
Product Reformulation

Product Innovation

New Distribution Channels

Increased Advertisement

Brand Positioning On Regional Basis

New Product Strategy


Region Based Strategy
National Maritimes Quebec Ontario Man/Sask Alberta B.C.

Stops Shrinkage      
Saves Energy  
Protects Color  
Cheaper 
Saves Hot Water 
Color Stays Bright 
Saves on Electricity 
Easier on Clothes 

Competitive Advantage, Adaptive, Head-on-head , Feature


Positioning Strategies
Driven, Defensive, Rivalry based.

Marketing Strategies Aggressive Advertising, Exit, Promotional Focus.


Our Positioning Strategy

Collecting
Identifying information Determine
Defining the the from a sample the target
market in attributes & of customers
which the Determine market's
about their
preferred Position
product or each perceptions of
brand will product's each product combination
on the of attributes
compete share of
mind relevant (ideal vector)
attributes
Porter 5 Forces
Competitive intensity and therefore attractiveness of a Detergent market
Conclusion

We rejected continuing on Arctic Power’s course to expand


1 because the costs associated with expanding into Canada


were far greater than the increase in revenues.

The competitors, particularly Tide, responded strongly to


2 efforts with promotions of their own, causing Arctic Power


to further reduce prices and profitability

3
We decided the best course of action for Arctic Power was to target

the growing cold water market at the regions specified with specific
strategy and to become Canada’s leading detergent.
THANK YOU
)

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