Procter and Gamble
Procter & Gamble, Inc.
Scope
Company Background
Scope is a major brand in the health care division of Procter & Gamble, Inc. that has historically competed on the basis of delivering fresh breath and killing germs. Scope was the first brand to compete with both protection against bad breath and better taste, and entered the mouthwash market in 1967 to compete with Listerine. After company market research in 1990, Scope managers could see that in Canadian households mouthwash was used on average three times per week. Results concerning market share information showed Scope’s shares were higher in food stores rather than drugstores.
In the Canadian market mouthwash companies must pass through 2 regulatory systems. The Health Protection Branch (HPB) is the government body that declares a product to be “drug status” or “cosmetic status”. A product that is considered drug status affects a bodily function like preventing cavities, and cosmetic status products just enhance. If the product is considered a drug product the HPB will inspect packaging, formulas and advertising at a much more stringent level than cosmetic products. Scope is currently listed as a cosmetic product. The Canadian Dental Association will put its seal on products that manufacturers volunteer to have them inspect. For a mouthwash product to obtain this CDA seal, the product must protect against plaque or gingivitis. Currently Scope does not have the seal from CDA.
Problem
The problem to delineate in this case is to prepare a 3 year business plan for the Procter & Gamble mouthwash business (Scope brand) that will address the new competitive threats while simultaneously managing its brand that customers have come to recognize and prefer. The three-year plan should be prepared to create a strategy that will enforce a continued profitability for Scope. Emerging threats, in addition to similar mouthwash products, include the new pre-rinse, Plax, that claims to reduce plaque by rinsing before
Scope
Company Background
Scope is a major brand in the health care division of Procter & Gamble, Inc. that has historically competed on the basis of delivering fresh breath and killing germs. Scope was the first brand to compete with both protection against bad breath and better taste, and entered the mouthwash market in 1967 to compete with Listerine. After company market research in 1990, Scope managers could see that in Canadian households mouthwash was used on average three times per week. Results concerning market share information showed Scope’s shares were higher in food stores rather than drugstores.
In the Canadian market mouthwash companies must pass through 2 regulatory systems. The Health Protection Branch (HPB) is the government body that declares a product to be “drug status” or “cosmetic status”. A product that is considered drug status affects a bodily function like preventing cavities, and cosmetic status products just enhance. If the product is considered a drug product the HPB will inspect packaging, formulas and advertising at a much more stringent level than cosmetic products. Scope is currently listed as a cosmetic product. The Canadian Dental Association will put its seal on products that manufacturers volunteer to have them inspect. For a mouthwash product to obtain this CDA seal, the product must protect against plaque or gingivitis. Currently Scope does not have the seal from CDA.
Problem
The problem to delineate in this case is to prepare a 3 year business plan for the Procter & Gamble mouthwash business (Scope brand) that will address the new competitive threats while simultaneously managing its brand that customers have come to recognize and prefer. The three-year plan should be prepared to create a strategy that will enforce a continued profitability for Scope. Emerging threats, in addition to similar mouthwash products, include the new pre-rinse, Plax, that claims to reduce plaque by rinsing before