Procter and Gamble Case Study
Procter & Gamble
Procter and gamble is one of the most successful companies in the world. the company markets its brands in more than 140 countries, and had net earnings of $1.6 billions in 1990.the Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990.it was recognized as a leader in the Canadian packaged-goods industry, and its customers brands led in most of the categories in which the company competed. Marketing problem:
Gwen Hearst is responsible to develop a strategy that would ensure the continued profitability of scope in face of all of their competitive threats. The problem here is that Hearst knew that the business team had thought long and hard about the issue. She knew that the management was depending on the scope business team to come up with the right long-term plan for Procter and Gamble even if that means not introducing the new product. Objectives:
The objective of Hearst is to prepare a marketing plan for proctor and gamble mouthwash business for the next three years. She is responsible for maximizing the market share, volume and profitability of the brand. Barriers:
· Very high competition in the Canadian mouthwash market, like Listerine, listermint, plax, Colgate………… · Marketing research proved that the customers perceptions and brand image of Plax is much better than Scope. · Regulatory environment forces.
· The change in formula between Canada and the United States of America. · Threat of cannibalization, where the new product might eat a large part of the market of the current products. · Threat of confusing their current customers who saw Scope as a breath refreshment. Alternatives:
1. The first alternative by The FDD people who advised to add plague reduction claims to Scope suggested. Instead of Launching, a new product in order to extend their product line and be able to compete with Plax in plague reduction. 2. The second alternative was...
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