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Cleopatra Cosmetic Products Company

The owners of this company chose the name Cleopatra, which is the symbol of beauty for the Egyptian pharaohs, in order to be an ancient name for the company's products. When this large-sized company was established in 1979, the market was nothing but some small-sized competing companies. The company started its business after carrying out a marketing study by producing five types, namely (mens perfumes womens perfumes moisturizing cream lipsticks eyeshadows for women). The quarters tended to continuously increase since the establishment of the company until 1998, then the profit line began to gradually decline until 1999, until the company suffered major losses in the years 2001 and 2002, and by studying the framework in which this company was operating, the following became clear:

1. The company's products are directed to satisfy the needs of consumers from the middle and low classes.

2. Due to the early success of the company, it has constantly added new varieties (in addition to new shapes and sizes as well) until the product mix (the number of product lines) reached 450 products, and the main motive for these additions was to exploit the presence of idle production capacity.

3. In order to preserve the company's offering of its products at low prices to the consumer, when costs rise, it compensates by reducing the quality of the packages and packaging operations without compromising the components of the product.

4. The demand for the company's products during the first ten years was so high that the company was seeking to reduce the demands, and not give credit to the distributors. As long as the demand is more than the supply, there is no need to advertise the company's products, and therefore during that period the company did not have any advertising allocations.

5. In the second decade of the life of this company, new competitors continued to enter, in addition to the entry of many imported items. The company's share of the market decreased despite its high standard of living and an increase in market size by 15%.

6. In order to preserve the convenience of its customers, the company was the one who went to them, as it used to sell most of its products through mobile cars moving between the geographically spread distributors' stores, where it was found that this is cheaper than establishing fixed sales outlets.

Based on the above, you must answer the following questions:

Q.1 In your opinion, what are the mistakes that the company made? Explain the most important environmental variables that affected the performance of this company in marketing? justify your answer. (write 5 mistakes)

Q. 2: After you have studied this case, suggest what the marketing department can do to ensure the company's future success steps. Support your answer with examples.(what activities can improve the mistakes , link the solution or suggestion with the mistakes, write 5 solution)