Proctor & Gamble Scope Case
Case Analysis:
Procter & Gamble, Inc.: Scope
Problem Statement
Procter and Gamble’s mouthwash product, Scope, had a 32% share of the Canadian mouthwash market in 1990. However, Plax, a new category pre-brushing mouthwash launched in 1998, poses a continuing threat to Scope market share. In early 1991, Procter and Gamble’s brand manager for Scope, Gwen Hearst, must decide on a course of action for maintaining the profitability of Scope. She is tasked with developing a three-year marketing plan for Procter and Gamble’s mouthwash business. Decisions include how to respond to the emergence of mouthwashes, such as Plax, that focus more on “health-related benefits” and whether a line extension or brand extension would be most advantageous to the company in profiting from this emerging market segment. Hearst can also recommend that Procter and Gamble (P&G) not pursue a line or brand extension.
Situational Analysis
Market Analysis
The Canadian mouthwash market is a competitive market that hit its peak growth in 1987 with a 26% shift upwards in sales. The market is still in the mature growth stage with a 5% yearly increase in 1990. The market had total retail sales of $68.6 million in 1990 with approximately 65% of those sales coming from drugstores and the other 35% coming from food stores. The market is comprised of after-brushing rinses, pre-brushing rinses, fluoride rinses, and flavored rinses. The growth potential for market profitability in the Canadian mouthwash market is possible due to the innovative development of pre-brushing rinses such as Plax as well as flavored rinses that reduced the “sting” of regular mouthwashes. The introduction of Plax was a major turning point in the Canadian mouthwash market with competing brands suffering considerable market share loss after Plax’s introduction. In a 1990 study, 75% of Canadian households used one or more mouthwash brands at least three times a week for each household member. Procter &
Procter & Gamble, Inc.: Scope
Problem Statement
Procter and Gamble’s mouthwash product, Scope, had a 32% share of the Canadian mouthwash market in 1990. However, Plax, a new category pre-brushing mouthwash launched in 1998, poses a continuing threat to Scope market share. In early 1991, Procter and Gamble’s brand manager for Scope, Gwen Hearst, must decide on a course of action for maintaining the profitability of Scope. She is tasked with developing a three-year marketing plan for Procter and Gamble’s mouthwash business. Decisions include how to respond to the emergence of mouthwashes, such as Plax, that focus more on “health-related benefits” and whether a line extension or brand extension would be most advantageous to the company in profiting from this emerging market segment. Hearst can also recommend that Procter and Gamble (P&G) not pursue a line or brand extension.
Situational Analysis
Market Analysis
The Canadian mouthwash market is a competitive market that hit its peak growth in 1987 with a 26% shift upwards in sales. The market is still in the mature growth stage with a 5% yearly increase in 1990. The market had total retail sales of $68.6 million in 1990 with approximately 65% of those sales coming from drugstores and the other 35% coming from food stores. The market is comprised of after-brushing rinses, pre-brushing rinses, fluoride rinses, and flavored rinses. The growth potential for market profitability in the Canadian mouthwash market is possible due to the innovative development of pre-brushing rinses such as Plax as well as flavored rinses that reduced the “sting” of regular mouthwashes. The introduction of Plax was a major turning point in the Canadian mouthwash market with competing brands suffering considerable market share loss after Plax’s introduction. In a 1990 study, 75% of Canadian households used one or more mouthwash brands at least three times a week for each household member. Procter &
References: Kerin, R.A., & Peterson, R.A. (2013). Strategic marketing problems: Cases and comments (13th ed.). Boston, MA: Pearson. McDougall, G. H., & Ramsoomair, F. (2012). Procter & Gamble, Inc. : Scope. In R. A. Kerin, & R. A. Peterson, Strategic Marketing Problems (13th Edition ed., pp. 240-252). Upper Saddle River, NJ, USA: Pearson. Appendix