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Procter & Gamble Inc: Scope
Scope was introduced in 1967 by Procter & Gamble, is a green mint tasting mouthwash,and was positions as a great tasting mouth refreshing brand that provided bad breathprotection. Scope held 32% share of the Canadian market for 1990. In 1970 Scope becamethe market leader in Canada, with many competitors, such as Listerine mouthwash that waslaunched by Warner Lambert in 1977 and it was a direct competitor to Scope, it had nearlythe same characteristics as Scope with a 12% of the market share during that time. But themajor competitor for Scope was Plax, a brand by Pfizer Inc, which was launched in Canadain 1988 on a platform quite different from the traditional mouthwashes, and gained a 10%share since launched. Plax detergents were supposed to help loosen plaque to makebrushing effective. Before the entry of Plax, brands in the mouth wash market werepositioned around two major benefits that are fresh breath and killing germs, whereas Plaxwas positioned around a new benefit as a plaque fighter and claims Plax removes up tothree times more plaque than just brushing alone.In studying the current situation and preparing for a strategic plan, Gwen Hearst reviewedthe available information and surveys for the mouthwash market and Scope showed that75% of Canadian household use 1 or more mouthwash brands. The company’s marketresearch 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 thatcomprise 15%. The company also made a research on why consumers use mouthwash,and the results were: consumer’s basic hygiene, it gets rid of bad breath, it kills germs andmany 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, removingplaque and others. Plax achieved a strong image on removing plaques and healthier teethand gums, whereas scope scored a weaker image on those attributes. In analyzing theCanadian mouthwash market share the data showed that Scope had the highest marketshare among all brands, but there was a big difference in the share held by Scope in foodstores 42%, versus drug stores 27%. Competitive data were also collected for advertisingexpenditures, 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, bothListerine and Plax had the highest prices among other brands in food stores, whereasScope, Listerine and Listermint had the highest prices in drug stores. And in comparingScope market share between Canada and USA, the results showed that Scope in Canadatakes 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 whereby P&G were loosing market share, andafter studying the current situation and making several surveys and market researches,Hearst challenge was to the 1 st
problem which is to develop strategy that ensures the
continued profitability of Scope in face of competitive threats and especially by Plax thatgained 10% share of the product category. So her specific task was to prepare a marketingplan for P&G mouthwash business for the next 3 years. The 2 nd
problem is how will P&Gmaintain their profit and make sure that the Scope brand is always the first mouthwashproduct ranking among consumers? The mouthwash market is changing everyday with theemergence of new products and product features. As a result, P&G wants their Scopebrand to be the first choice among consumers.In the case of product development, PDD has demonstrated that Scope reduced plaquebetter than brushing alone because of the...