Arctic Power Case Study
CURRENT SITUATION
It is the summer of 1987. Arctic Power laundry detergent has contracted with the consulting firm of Smith and Jones, LTD to assist Arctic Power in determining their strategic direction and their product positioning.
BACKGROUND AND HISTORY
Arctic Power, a laundry detergent specially formulated to clean in cold water, is part of Colgate-Palmolive Canada family of products. Colgate-Palmolive Canada is a wholly owned subsidiary of the multinational corporation Colgate Palmolive.
In 1986 Colgate-Palmolive had worldwide sales of $4.9 billion with profits of $178 million, with Colgate-Palmolive Canada having sales of $250 million.
Colgate-Palmolive Canada (CPC) has a wide variety of household and
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The short-term objective was to sustain unit growth while building cold water washing dominance.
The long-term objective was to become the number three brand of detergent with a 12% market share and deliver an 18% contribution margin.
Arctic Power’s marketing strategy was to target women between ages 18-49, skewed towards the 25-34 age segment. This was to be accomplished through advertising in the media, consumer promotions, and trade promotions.
The media strategy objective was to achieve high levels of message registration through high message continuity and frequency.
The objective of the consumer promotions campaign is to increase the rate of usage in Quebec and the Maritimes by increasing purchase frequency. The objective in British Columbia and Alberta is to increase the rate of trial.
The copy strategy in Quebec/Maritimes was to convince consumers Arctic Power is the superior detergent for cold water washing. The benefit is when consumers are washing in cold water, Arctic Power will clean clothes and remove stains more effectively.
The copy strategy in B.C./Alberta was to convince consumers cold water washing is better than hot. The benefits from cold water washing are it reduces shrinkage, color run, and, energy costs.
The objective of the trade promotions is to maintain regular and feature pricing equal to Tide (the
The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.
The marketing approach taken by Hudson Bay is that of segment marketing. In a culturally diverse country such as Canada, the only way to satisfy consumer needs as well as maximize profit; would be to appeal to a variety of different groups. Whether it be to different sexual orientations, cultural differences or just personal needs and interest. Hudson Bay demonstrates this by carrying an array of products ranging from formal wear, skin care products, cosmetics, celebrity clothing lines, designer labels and accessories just to name a few varieties. Their target market is mainly young adolescences, men, women and women with children. With the different array of product lines that Hudson Bay carry’s, it almost makes them the ultimate one stop
This enables' them to sell their unsold outdated stocks but also help them to keep intact their old customer , and have new customers with this promotion .
Soren Chemical is new to developing a consumer brand (it partners with formulators to use private-label branding for its Kailan MW line). Therefore, they are relatively inexperienced with marketing consumer-oriented brands whereby they have to handle directly with wholesalers and also market to retailers, pool service professionals and consumers. This inexperience might have caused miscommunication between channels as seen when pool service professionals and specialty retailers had made inquires about Coracle but only 30% recalled receiving the Coracle material. Also 70% of them stated that Coracle
The behavior of retailer such as heavily discounting to stimulate market sometimes has a negative aspect to Canada Goose’s brand.
The purpose of trade sales promotions are to increase industry visibility and to provide discounts and deals (Marshall, Solomon, & Stuart, 2012). Frito-Lay should use co-op advertising, promotional products, and point-of-purchase displays to increase their sales.
I have decided to analyze the mission Statement of Dollar General Corporation today. I am one of the suppliers to them and as such, I would say that I have a fair knowledge into their business practices. Mission Statement Serving Others For Customers A Better Life For Shareholders A Superior Return For Employees Respect and Opportunity. About Dollar General Corporation Dollar General Corporation has been delivering value to shoppers for over 75 years. With more than 12,000 stores in 43 states, Dollar General is America’s largest small-box discount retailer by sales. In addition to high quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola,
America needs to take advantage of the melting ice in the Arctic to access the massive energy resources there and utilize those energy resources to buy itself time to develop sustainable large-scale energy options including nuclear fusion. We simply need more time to develop a good plan, one that can be well executed and will give America a chance to avoid dependency on other countries in order to meet its energy needs. The strategy of utilizing Arctic energy will enable America to maintain a standard of living that is equivalent to what the present generation of Americans enjoy and is an obligation we owe to future generations.
According to Zach all detergents have the same stuff in it and whichever one is the cheapest he will get. This could be one of the audiences that Arm & Hammer is trying to reach, college students that don’t have a lot of spending money, They may know or believe that Arm & Hammer may not be the best detergent, however it’s cheaper than most its competitors and it gets the job done.
The success of any organisation depends on efficient and effective communications, it is important for building and maintaining personal and working relationships within the organisation and with service providers and customers.
After review the information on past and estimated in the future, company, products, competitors and branding, I recommend the following strategy:
The unfinished claim: She said that one cap of tide gives more cleaning power than 6 caps of a bargain brand. Which bargain Brand?
Soren Chemical produces industrial strength chemicals, cleaning solutions, and chemical solutions for treating water. Since it’s founding in 1942, Soren has operated as a business-to-business company. They have recently introduced Coracle, a pool clarifier aimed at the consumer market. The goal for first year sales is $1.5 million. At 6 months, sales of Coracle are just $111,000.
Briefly describe the pricing structure that is used with this product and explain the benefits of this method.
Most of the company’s products are closely related in the sense that they are household products such as Always,