Monday, April 23, 2012

The Cleopatra Colgate-Palmolive Case

  1. What are the major issues in the Cleo Case from the perspective of the product, and pricing?   ----The major issues in the Cleo Case were that the product was priced at a wrong price, at a price that did not match the perceived benefit and value of the product (as compared to other brands and the saturated soap market).
  2. Are there issues with the market research? ----The marketing group at Palmolive likely underestimated the public's familiarity and preference for other soap brands. When conducting marketing research, the company focused on the success they had with the smaller, more elite group rather than the group that would have made the product a success.
  3. What organizational issues come in to play in the case?  Who are the players and how do their positions in the company impact the market entry?  ----The marketing group made the assumption that since the French launch did so well, that it would be the same in the French Canadian market. There was likely pressure to enter the U.S. market, depending on proven success in the North American market. This would have been a significant success for those who wanted to move up the corporate ladder.
  4. Did they make the right choice?  Why or Why not?---From a marketing perspective, their linear thinking made sense (differentiating themselves from the market, comparing two similar-and yet different--countries). In a vacuum, it would stand to reason that a product priced at a luxury price successfully would do well in another market, but there are other internal and external considerations that the company didn't focus on.
  5. Are companies today any better than Colgate 20 years ago or do they still make some of the same mistakes? ---Companies, under even more intense pressure to perform in markets that are ultra-competitive, sometimes do make the same mistakes. Perhaps it lies in the factor of limited time(and therefore limited market research), or in a limited understanding of all of the factors that could make or break a product launch.

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