Marketing

Management 1

By Group 6
 Dilemma

● Product's success in one market will translate into success in another

● Bypass retailers through customer enthusiasm
● Launching a premium product in a price sensitive market
 Crux

● French Success
○ #1 brand in France
○ Great publicity within the organization

● Replicate success in Canada

○ Conduct two market surveys
○ Mixed response from Canadian management
 Crux - Contd.

● Deter from usual market norms

○ Avoid price war
○ No discounts offered

● Marketing Strategy
○ T.V. commercials
○ Promotional campaign (May-Oct,1986)
 Crux - Contd.

● Ambitious Targets
○ 4.5% of market share targeted for 1986
○ 100% distribution among retailers
○ Target current segment leader Dove

● Results
○ Sales started with a bang
○ Eventually started missing targets
○ Market share figure way below target
 Learning Objectives
Reasons of failure:
● Inappropriate target sampling
○ Surveys showed misleading results
○ Surveys planned for Quebec(French Influence), but carried out
in Toronto(British Influence)

● Inappropriate research study methods

○ Study 1- Validated premium quality
○ Study 2- Reception of premium price remained unclear
 Learning Objectives - Contd.

● Blinded by French success

○ Product launched without understanding market need
○ Neglected pre-existing brand loyalty in Canada
○ High priced soap, launched in price sensitive market

● Product launch method

○ Grow customer demand to increase retailer distributions
○ French commercial ineffective in Canada
○ Avoided discounts and promotions to maintain high margins
THANK YOU