Professional Documents
Culture Documents
(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.
●
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
Product Innovation
Increased Advertisement
Stops Shrinkage
Saves Energy
Protects Color
Cheaper
Saves Hot Water
Color Stays Bright
Saves on Electricity
Easier on Clothes
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
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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