Marketing

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Colgate-Palmolive Canada Arctic Power Detergent Introduction The Canadian laundry detergent market is mature, very competitive and dominated by three major consumer packaged goods companies, one of which is Colgate-Palmolive Canada (CPC). Arctic Power is CPC's top-of-the-line offering in its laundry detergent line. Arctic Power is specially formulated for washing in cold water. The detergent has risen in market share from 4% in 1981 to 6.5% in 1986, and the Senior Product Manager has established a goal of reaching 12% market share by 1996. Problem Definition Linda Barton and Gary Parsons face two problems. First, they must determine whether to continue developing the brand in their already strong regional markets of Quebec, the Maritimes and British Colombia, or go national with marketing efforts. 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. Analysis When it comes to laundry detergents, Canadians primarily think of one name, Tide. Procter and Gamble's Tide detergent has captured over one-third of the market and is twenty percentage points ahead of its closest competitor in market share. While Tide and Arctic Power are equivalent brands in terms of cleaning power, Tide outsold Arctic Power by a 5 to 1 ratio in 1986. The market share for Tide has remained level (at approximately 34%) during the same time that Arctic Power has enjoyed a market share increase from 4% to 6.5%. Due to Tide's do ...
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