supporting all Colgate-Palmolive brands.Key Success FactorsIn order to compete in the Canadian laundry detergent market, a company must have:Sufficient manufacturing capacity to take advantage of economies of scale.Sufficient financial resources to promote and sell your product on a regional or national basis.A loyal customer base.A distinctive quality to set it apart from its competitors. Arctic Power clearly has the capability to compete and survive in the Canadian laundry detergent market, what must it do to thrive in the Canadian market?OUR STRATEGY FOR ARCTIC POWERIt is the view of Spiel and Dimick, LTD, 1) Arctic Power must focus its strategy on becoming THE cold water laundry detergent; 2) align the products price and production costs to match the perceptions of the Canadian market; and 3) if possible, avoid competing head to head with Tide. To arrive at our specific suggestions, we identified our strategic issues using the following criteria:Does the option take into account current overall market trends?Does the option consider trends in cold water washing?Are we utilizing the use of ingredients in such a way that we can maximize market share and profitability?As a result, we established the following strategic issues to be addressed:How is our brand perceived in relation to other brands of laundry detergents?How to increase awareness of the benefits of cold water washing?How to overcome our weak market position in the critical Ontario market?How to adjust our costs and prices to remain competitive and profitable, even when our competitors respond vigorously with promotion efforts of their own?OptionsWe considered the following plans of action:Continue with our current strategy of expanding in western Canada while maintaining our base in eastern Canada.Duplicating our campaign in western Canada on a national basis as a premium detergent.Target the cold water and second detergent market, while reducing the number of ingredients ...
