Proctor and Gamble Scope Case Analysis
1) What significant changes have occurred in the Canadian mouthwash market in the past three years? The mouthwash market had grown on an average increase of 3% per year for 12 years. Then in 1987, with the introduction of new flavors it shot up 26%, and after that it continued at a steady increase of 5% per year. Originally, Listerine was the market leader. It positioned itself as a germ killing mouthwash that eliminated bad breath. Scope was introduced in 1967 as a green, mint-tasting mouthwash that was mouth refreshing and provided bad breath protection. Scope branded itself not only protection to bad breath, but also that it tasted better than the other mouthwashes available. Competitors of Scope were launched such as Listermint, which held 12% of the market, and Cepacol, which held 14% of the market share. Other major changes in the market included Listerine started to shift its strategy to include that it not only helps bad breath but also fights plaque and prevents inflamed gums. Fluoride was also added and Listermint obtained the seal of the Canadian Dental Association. Many different flavors of mouthwash were introduced into the market. This expanded the market but did not increase of particular brands market share. Colgate Fluoride Rinse was also launched into the market in 1988, however it did not gain any significant market share. In 1988, Plax was created and had immediate success. It was unique because it positioned itself as a “prebrushing” rinse claiming that it would loosen the plaque and make brushing much more effective.
2) How would you evaluate the performance of Scope over the past three years?
Scope held a 32% market share in the Canadian market in 1990. In the survey conducted based on consumer perceptions of brand images, Scope scored either average or below average compared to other leading brands of mouthwashes. Scope was below average in consumers perceptions of killing bad breath, removing...
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