Executive Summary:
Colgate-Palmolive Canada was subsidiary of Colgate-Palmolive, a large multinational with divisions in 58 countries. The Canadian subsidiary sales exceeded $250 million every year. It manufactures a range of household, health and personal care products. Among CPC various brands Arctic power and fab are laundry detergents. Product managers are assigned responsibility for specific brands, like Arctic power. Their overall goal was to increase profitability and sales. CPC now moved to regional brand strategy. For example Arctic power have strong market share in Quebec and the Maritimes. Where proportion of consumer using cold water to wash clothes where higher than national average. By the end of 1985, Arctic power market share had increased in both Quebec and Maritimes. With the increase in profitability and sales it was decided to go for British Colombia and Alberta.
Market Overview:
Trends Overview:
o The detergent market was mature, with unit sales increase by app 1 percent annually and dollar sales by 5 percent.
o Three large consumer packaged goods companies where there in market Procter and Gamble, Lever detergents and CPC.
o Procter and Gamble Canada have sales exceeding $1 billion and have major brands like Crest, Ivory and zest, Secret e.t.c. It has 44 percent market share and major product Tide.
o Lever detergents with annual sales of $400 million having major brand like Close-up, dove and Lux. It has market share of 24 percent.
o CPC was only one of these to make market share in detergent market and have total share of 23 percent.
o By looking at exhibit 1 it can be easily examined that there is continuous increasing trend of market share of CPC while it is decreased for other two competitors.
o By loo ...