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Procter and Gamble - Scope - Case Study

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Procter and Gamble - Scope - Case Study
INTRODUCTION
The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated Soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.
Scope was introduced in 1967 by Procter & gamble, which is one of the most successful companies in the world. P&G philosophy is to provide superior quality and value that best fills the needs of the consumers; it was recognized as a leader in the Canadian packaged goods industry.
P&G Canada has five operating divisions, organized by product category. The divisions and some of their major brands are:
1- Paper products: Royale, Pampers, Always
2- Food and beverage: Crisco, Pringles, and Sunny Delight.
3- Beauty care: Head & Shoulders, Pantene, Cover Girl, Max Factor.
4- Laundry and cleaning: Tide, Cheer, Mr. Clean, Cascade.
5- Health care: Crest, Scope, Vicks.
Each division has its own brand management, sales, finance, product development and operations line management and was evaluated as a profit center.
Gwen Hearst, Scope Mouthwash Brand Manager for Procter & Gamble, Inc is preparing a three year strategic plan for Scope in the Canadian market. Her responsibilities focus on three central areas: maximize the market share, volume, and profitability of the brand. She needs to develop a strategy to compete with a new market entry, Plax. Plax has targeted fighting plaque as a new benefit for mouthwash. In two years, Plax has gained 10% of the market during a time when the market growth rate has been declining. The Scope brand has maintained a constant market share level with slight decline and still retains largest percentage of the market.

FACTUAL SUMMARY
In studying the current situation and preparing for a strategic plan, Gwen Hearst reviewed the available information and surveys for the mouthwash market and Scope. Her research showed that 75% of Canadian household use 1 or

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