Proctor and Gamble (Scope Case Analysis)

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Procter & Gamble
Scope
Case Analysis:
Scope, a green mint tasting mouthwash, was positions as a great tasting mouth refreshing brand that provided bad breath protection. It is the first brand that offers both effective protection against bad breath and a better taste than other mouthwashes. 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 good 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 …

2- Food and beverage: Crisco, Pringles ….
3- Beauty care: Head & Shoulders, Pantene ….
4- Laundry and cleaning: Tide, Cheer …
5- Health care: Crest, Scope ….
Each division has its own brand management, sales, finance, product development and operations line management and was evaluated as a profit center. Scope’s brand manager Gwen Hearst planned, developed, and directed the total marketing effort for Scope; she was responsible for maximizing the market share, volume, and profitability of the brand. However, in 1970 Scope became the market leader in Canada, but it was not the only brand in the mouthwash market, it had many competitors, such as Listermint mouthwash that was launched by Warner Lambert in 1977 and it was a direct competitor to Scope, it had nearly the same characteristics as Scope with a 12% of the market share. But the major competitor for Scope was Plax, a brand by Pfizer Inc, which was launched in Canada in 1988 on a platform quite different from the traditional mouthwashes. Plax detergents were supposed to help loosen plaque to make brushing effective. Before the entry of Plax, brands in the mouth wash market were positioned around two major benefits that are fresh breath and killing germs, whereas Plax was positioned around a new benefit as a plaque fighter.

In studying the current situation and preparing for a strategic plan, Gwen Hearst reviewed the available information for the mouthwash market and Scope. Information and surveys showed that 75% of Canadian household use 1 or more mouthwash brands. The company’s market research revealed that users could be segmented to “heavy” users that comprised 40 % of all users and to “medium” users that comprised 45% of all users and to light users that comprise 15%. The company also made a research on why consumers use mouthwash, and the results were that people use mouthwash because it is part of their basic hygiene, it gets rid of bad breath, it kills germs and many other reasons. Also surveys were conducted of mouthwash user’s image of the major brands based on several attributes such as, reducing bad breath, killing germs, removing plaque and others. The results showed that Plax achieved a strong image on removing plaques and healthier teeth and gums, whereas scope scored a weaker image on those attributes. In analyzing the Canadian mouthwash market share the data showed that Scope had the highest market share among all brands, but there was a big difference in the share held by Scope in food stores 42%, versus drug stores 27%. Competitive data were also collected for advertising expenditures, and the results were that most of the advertising expenditures were of Scope, Listerine and Plax accounting for 90% of all advertising. As for the retail prices, both Listerine and Plax had the highest prices among other brands in food stores, whereas Scope, Listerine and Listermint had the highest prices in drug stores. And in comparing Scope market share between Canada and USA, the results showed that Scope in Canada takes 33% of the market share, while USA Scope’s market share was 21.6% that came after Listerine, where Listerine held 28% of the mouth wash market share in America.

After the introduction of Plax by Pfizer Inc., and after...
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