Case Study Guide for Vicks Health Care Division Project Scorpio (a)

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Vicks has earned one of the most recognized names in the colds care product market through a strong market position attained through its liquid-form product offering, but in the year of February 1979, Richardson-Merrell Corporation, its Vicks Health Care Division describes a new product marketing campaign in its division. Project Scorpio begins describing in detail the markets for colds care products and products for related conditions – sinusitis, allergy, coughs, and headaches. The greatest issues within the Vick’s case (A) are whether or not there is an opportunity for Scorpio’s Vick Vapor Rub to enter the market and, if so then how it should be positioned against the already numerous established brands. The greatest issue Vicks Health Care Division of Richardson-Merrell, Inc. has is that it consists primarily of determining whether a market opportunity exists for Vicks. In addition, the company is also confronted by having to determine how to position Project Scorpio the right way, assuming that a market opportunity actually exists. Recognizing that Vicks needed to diversify its product line to remain competitive, top managers decided to develop a tablet that could treat multiple symptoms simultaneously which put it at a cross roads of product categories. Vicks already has a competitive advantage and core competency in providing liquid-based colds care products. The new entrance into the industry has much concern since there are already so many key competitors like cold, flu, sinusitis and allergy care products whose respected companies all have well-diversified portfolios and established brands. In addition to a highly competitive market, consumer and ethical product lines are heavily regulated by the Food and Drug Administration. Any changes made to the ingredient content of consumer products results in an outlay of time and money, therefore, the industry does not change its ingredient content often. To a feel for where the product might be sold within...
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