MKT 750 FINAL TERM EXAMINATION ANSWERS
PROCTER & GAMBLE INC. SCOPE: CASE STUDY ON PAGES 251 – 262
STUDENT ID: xxxxxxxxxx
ASSOC. PROF. DR FAIZAH ABD RAHIM
This case is about P&G Inc., which is one of the most successful consumer goods companies in the world. 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: 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.
Using the “DECIDE” Formula, analyze the above case (50 marks)
Decision making is a rational and systematic process and that its organization is a definite sequence of steps, each of them in turn rational and systematic (Peter Drucker)
STEP 1: DEFINE THE 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, claims to reduce plaque by rinsing before brushing. In the past Scope’s marketing plan was based on the fact that mouthwash products on the market competed on the basis of fresh breath and killing germs. With the addition of a plaque fighter, Scope and other mouthwash products must be cognizant that the plaque fighter market share is growing, which means a demand exists for this type of product in the current market. Gwen Hearst, Brand Manager for Scope, has been tasked with making this decision and striking and accord with all parties involved. P&G has a precedent that they will not launch a product unless they were fulfilling some unmet consumer need. Since Plax is already meeting the plaque fighting need, a dilemma exists as to whether decision for Scope to maintain status quo or seek new opportunities, should they reposition or develop a new product for P&G would be the best option for competing with the new plaque fighter products, or should launch a flanker brand or introduce a line extension. Scope managers put together a team of experts from around the company to come up with the best options.
STEP 2: ENUMERATE THE DECISION FACTORS
Two sets of decision factors must be enumerated in the decision-making process is alternative courses of action and uncertainties. Alternative courses of action are controllable decision factors because the decision maker has complete command of them. Uncertainties are uncontrollable factors that the Protect & Gamble, Inc. cannot influence. For the alternative courses of action, Procter and Gamble, Inc. will provide product of superior quality and value that best fill the needs of consumer which is one of their procedure and strategy. So, Protect & Gamble, Inc. is one of the most successful consumer goods companies in the world. The company markets its brand in more than 140 countries and had net earnings of $1.6 billion in 1990. In product...
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