Fab1Shot Case Study

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In 1987, Colgate Palmolive (“CP”) introduced a new product to the market, Fab 1 Shot. CP marketed the product under the Fab brand, a renowned liquid detergent introduced in 1947. Fab 1 Shot was a single-use pre-measured unit consisting of detergent, softener, whitener and antistatic ingredient on a sheet that was used in the washer and then in the dryer. CP forewent test marketing to beat the competition to market. Initially sales increased gaining instant market share, but a year after launch demand for the product diminished. Customer complaints related to products leaking; product did not dissolve fully in water; high cost; inability to adjust dosage for larger wash-loads, product did not clean well and the fact that consumers did not always require the use of whitener were cited as possible reasons for product failure. Pros :CP could leverage brand equity of FAB, a successful brand, to introduce Fab 1 Shot more cost effectively. Additionally, brand recognition and loyalty has been established for FAB. Customers loyal to the FAB brand and its known quality would be more receptive to try products associated with it. Cons:Cannibalism - where existing FAB users would shift towards the “new” product, and cease buying the brand product FAB. This factor was considered by CP, who attempted to reduce this risk. CP wanted to increase market share, not to shift it within their products. Additionally, brand loyal customers have certain expectations from FAB brand. To tag on an “innovative new product” to an established brand may dilute value of the brand if brand loyal target group dislikes the product or the product fails. Potentially lose customers to competitors. FAB 1 Shot was trying to meet the primary trend “Convenience”. By extending the FAB brand, the product was also complying with “niche carving”
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