Cleopatra Case

Pune
16.03.19
 Cleopatra Soap Launch, Canada, 02.1986
• Expectation of Retailers - Something different and
exciting
• Audience 1000; orders 2000
 Introduced in France, 11.1984
• Claimed a market share of 10% in 6 months
• Charged price premium of 23%
• By end 1985, market share 15%
• Challenge – fulfilling the rising demand
• Global Marketing recommended to launch in
Canada
 Reaction of Canadian Staff
• Some were optimistic, some skeptical
• “National” brand was needed (Canadian by
origin)
• Marketing wanted to position Cleopatra as a
premium price soap to avoid the price war
• 2 research studies were conducted for different
segment women in Toronto:
– Professional women consumers – positive response
– Typical consumer – positive response
• An early launch was planned based on
responses in Toronto.
 Canadian Soap Market
• Worth $105 Mn; 4-5% growth expected in 1987
• Fierce competition brands survived by
introducing new variants (new color, fragrance
etc.)
• 15 main brands; 20-25 minor
• Market trend  large bundle packs  reduced
num. of purchases/ consumer/year
– Skincare segment – twin packs (2 bars together)
– Refreshment segment – 3-4 bars together
– Utility segment – 4,5,6 bars together
 Canadian Soap Market
• “Acceptable brands” were price based
• Main challenge  becoming and staying a
competitive brand
• Liquid soap market – 8%
• 3 distinct market groups and resp. share:
 Canadian Soap Market – Brands
• 4 big brands:
– Dove
– Ivory
– Irish Spring
– Zest
 Quebec Market
• 26% of Canada’s total population
• 28% of Canada’s soap market
• 80% population followed French culture
• Major soap brands and their position in Quebec
is similar to those throughout rest of Canada
• Zest – poor market – Quebec is soft water
market
• Lux – does extremely well – strong European
image
• Quebec’s soap market was most competitive
and it took time to establish a brand
Canadian Cleopatra Marketing Strategy
• Cleopatra – premium quality, premium priced
beauty soap
• Competitor – Dove
• Marketing team wanted to avoid reliance on
Retailers (avoid large trade allowances)
• Wanted demand to come directly form
Consumers; thru’ strong media and consumer
promotions
• Emphasis was on TV advertising;
target group – women aged 18-49
Canadian Cleopatra Marketing Strategy
• Cleopatra’s Quebec TV ad was same as used in
France
• Quebec  250,000 free bar coupons
• Cleopatra Gold Collections and Sweepstakes
Promotion  would stimulate interest in the
brand
• Premium quality brand – no discounts
• Pricing strategy higher than Dove
• Soap ingredients(like in France), size and
packaging was special as compared to other
brands and also to fulfill the premium image
 Performance in Quebec
Parameters Target Achieved
Market Share 4.5% 1.8%
Sales 3,775,000 755,000
 Reasons for Failure
• Cultural values/ local environment was totally
omitted/ avoided
• Only reference was French culture which wouldn’t
be alike in France originally
• Brand name Egyptian, commercial featuring
Cleopatra (Egyptian), Promotions-Cleopatra
Collection, Ads – French, geographical location -
Canada
• Emphasis on TV ads
• TV ads same like used in France (no local touch)
• Avoiding retailers
• Emphasis on direct orders from consumers