How Procter and Gamble Should Capitalize in the Intense Competition Market

Pages: 5 (1912 words) Published: March 14, 2011
1.0 Define the Problem
According to John Dewey, “a problem well defined is half solved.” From the case, the main problem is how P&G should capitalize in the intense competition market (objective), especially with the launch of Plax to ensure the continued profitability of Scope and sustain to be the 1st place in the mouth wash industry (success measure), given the differing points of view from the various business team members (constrain). To achieve the goal, the company must be innovative to invent a new positioning strategy for Scope and focus more on "health-related benefits" products. Furthermore, from the case, we notice that Listerine, one of the major competitors of Scope had become popular and took over the leading brand name in the market. So currently Listerine has become the first choice of the consumers instead of Scope. Therefore P&G should identify the best alternative and develop a new plan in order to achieve their mission: provide branded products and services of superior quality and value that improve the lives of the world's consumers for now and next generation.

2.0 Enumerate the Decision Factors
Two sets of decision factors must be enumerated in the decision-making process: alternative courses of action and uncertainties in the competitive environment. Alternative courses of action are controllable decision factors because the decision maker has complete command of them. There are a few alternative courses of action that can be employed by P&G. The first alternative is choosing to continue to maintain the product, Scope. Since the target segment for the company is just “breath-only” users and it is very different from other company which provide “prebrushing” rinse or germ killing mouthwash. The company can focus more on the advertising part by emphasizing the advantage of the product which is great-tasting, mouth-refreshing and protection against bad breath. The second alternative is P&G may add plaque-reduction substance inside the current Scope product in order to make the product more competitive in the market. Scope brand has existed in the market since year 1967. It has a long history and the name of Scope has become very familiar to the Canadian market. By taking this step, the company can save a lot of costs and protects the market that the company already had for long time ago. The third alternative is to launch a new line extension. P&G may come out with a new product which is equal in efficacy to Plax, plaque reduction. Nowadays, the mouthwash market has become more and more competitive. We afraid that the large share of a segment that focused only “on breath” will be decline and switch to more health-related mouthwash rather than just traditionally breathe mouthwash. This alternative will be beneficial for the company in long term. On the other hand, uncertainties are uncontrollable factors that P&G cannot influence. Consumer perception of the brand images are the uncertainties for the company. People who perceive that the mouthwash does not help in cleaning their mouth would not purchase the product even though there is a heavy marketing being done. They prefer to brush their teeth and think that it is more adequate and pragmatic. The actions of the competitors are also uncertainties for the company. We are unable to determine what will be the new strategies of the competitors in terms of their creativeness, new product development and pricing strategy such as lowering their price to attract more customers to purchase their products. Besides that, the influence of the social factors such as now people prefer to use gums or mints to refresh their breath which is more convenient is also one of the uncertainties which are prevalent today.

3.0 Consider Relevant Information
3.1 SWOT Analysis
3.1.1 Strength
Strong Brand Name: P&G is one of the most successful consumer brands; one of the brands, Scope has a market share of 32% in Canadian mouthwash market in year 1990. It was...
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