Cleo-Soap

Colgate-palmolive: Cleopatra

to:	bill graham
from:	steve boyd
subject:	how to increase the sales
date:	May 24, 2014

Recommendation:

Cleopatra needs strategy that makes people try our products more.

As the consumer research (Appendix A) result showing, most of the responses know our new products, but much less people bought it. People ever tried our products are only in proportion 14.2% among the people who took the survey. However, the conversion is relatively higher than the other products. It is about 50% people who tried our product choose to use it in-home. We are creating advantages in product itself. The problem is marketing.

We could attach some sample with our other products which are popular to the same segment. Also the new products can be freely supply to relative hotels which has our target segment. Additional, if promotional discount on shelf is reasonable to consumers, it will appeal more users. My recommendation is to combine these together to set a mixed marketing strategy.

Risk mitigation:

One risk of these strategies can create additional cost for the financial performance. Discount and free supply would be extra expense of our budget. These expenses are positive for long-term sales of our new products. As the initial promotional introduction drives sales, I confidentially predict the financial performance will recover and grow healthily.

Another risk is that if we put promotional power on the new products, the brand image may hurts. Market position may go lower to for consumers. Through the marketing research result, it indicates that the people who use the product love it. It will help to build long-term loyalty and increase the life time value.

Summary:

To effectively introduce our new product, we should attract more people to try it. I recommend a combination of strategies including promotional discount, samples, free supply to hotels together. And these three implementations will be applied simultaneously. Appendix B shows how we process it.

Appendix A:

Appendix B: