hs:Deep pocketsSolid market shareTalented and experienced marketersWeaknesses:Low-growth marketIndustry AnalysisThe laundry detergent market in Canada can be described as mature, with unit sales increasing by approximately 1% annually and dollar sales increasing by about 5% annually. Environmental AnalysisRegular cold water washing has increased nationally from 20% in 1981 to 29% in 1986. Another 25% of consumers could be described as occasional users of cold water for washing. Hence, 54% of Canadians wash in cold water.INTERNAL ANALYSISStrengthsArctic Power has the skill and resources of an international conglomerate (Colgate-Palmolive) to assist it in achieving its goals. This gives them plenty of stability and credibility with their customers, suppliers, and retailers. This also allows for them to have the advantages of economies of scale where they can negotiate favorable prices from suppliers and have display prominence from retailers. Colgate Palmolive has solid financial stability allowing it to obtain credit on favorable terms.Weaknesses Arctic Power is a quality product victimized by poor product positioning and marketing. While Arctic Power has the same amount of active ingredients as Tide, making it expensive to produce, it is viewed as a mid-level laundry detergent, or a cold water specialty product by Canadian consumers. Consumers are reluctant to purchase an expensive detergent they feel is lacking in quality.While Colgate-Palmolive is a large corporation, Arctic Power does not have a large enough market share to enable it to have the resources to compete nationally with the detergents having the largest market shares as its own brand. While Arctic Power expanded its market share during the campaign in western Canada, the costs of customer and trade promotions left it in an even more precarious financial situation. Arctic Power would be best served as being part of a concerted trade promotion strategy by Colgate-Palmolive ...
