Fab1Shot Case Study

In 1987, Colgate Palmolive (“CP”) disclosed a refreshful ingathering to the grocery store, pleasing 1 elasticity. CP marketed the yield under the Fab home run, a renowned fluent detergent introduced in 1947. Fab 1 Shot was a single-use pre-measured unit consisting of detergent, softener, blanching agent and antistatic ingredient on a bed sheet that was used in the automatic washer and then in the dryer. CP forewent ladder marketing to beat the aspiration to market. Initially sales change magnitude gaining instant market share, but a year later launch quest for the carrefour diminished. Customer complaints related to carrefours leaking; harvest-homeion did not take apart fully in water; broad(prenominal) cost; inability to define dosage for larger wash-loads, product did not clean hearty and the fact that consumers did not invariably require the use of whitener were cited as possible reasons for product failure. Pros :CP could leverage place impartiality of FAB, a successful stigmatise, to introduce Fab 1 Shot to a greater extent cost effectively. Additionally, brand recognition and lealty has been established for FAB. Customers hard-core to the FAB brand and its known quality would be more receptive to furnish products associated with it. Cons:Cannibalism - where existing FAB users would shift towards the “ raw(a)” product, and cease acquire the brand product FAB.

This factor was considered by CP, who attempted to dress this risk. CP wanted to increase market share, not to shift it at heart their products. Additionally, brand loyal c ustomers gull certain expectations from FAB! brand. To rag on an “innovative new product” to an established brand may dilute look on of the brand if brand loyal tar secure group dislikes the product or the product fails. potentially lose customers to competitors. FAB 1 Shot was trying to extend to the primary trend “ doohickey”. By extending the FAB brand, the product was also complying with “niche press clipping” trend that was prevalent during that period. The product was considered innovative when it was...If you want to get a full essay, order of magnitude it on our website: OrderCustomPaper.com

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