Essay on Arctic Power Case Study

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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…show more content…
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
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