Proctor Gamble Case Analysis

Topics: Marketing, Procter & Gamble, Market research Pages: 5 (993 words) Published: November 27, 2014


Marketing Management
Case Analysis

Procter & Gamble, Inc.
Scope

Group AE1:
Abhinav Singh (14S601)
Anima Tapadiya (14S607)
Dushan Garg (14S616)
Niharika G (14S628)
Raviteja Palanki (14S636)
Prem Sharath (14804)

Procter & Gamble, Inc.
Scope

Proctor and Gamble is a leading consumer company in the world, operating in more than 140 countries. Their primary focus is on valuing customers by providing them with quality and branded products which adds values to customer needs. There are five operating divisions which are organized by the product category. These categories are named as Paper Products

Food and Beverages
Beauty Care
Health Care
Laundry and cleaning
This case primarily focuses on the products under health care segment. P&G’s Scope is the product under consideration in this case analysis. Initially, Listerine was a dominant mouthwash before the entry of Scope. Listerine was positioned as a therapeutic germ killing mouthwash that eliminated bad breath. When Scope came into the market, it came up with refreshment benefits as well. Gradually, its market share peaked and it became the market leader in Canada in 1976. After that many pharmaceutical firms came up with refreshment and therapeutic mouthwashes. Subsequently, it lead to decrease in market share of Scope. Later, Plax was introduced in 1988 which differentiated itself from contemporary products in a way that it focused on plaque elimination and brought in a pre-brushing concept. Key issue:

Since Scope is not operating in plaque-fighting segment, the key issue here is to develop a strategy for Procter and Gamble to enter this market segment and compete with Plax. SWOT Analysis
Strengths
Scope was a well-established brand in the oral hygiene industry Was known for its better taste and flavour as compared to other products. Quality processes and procedures were well implemented.
Weakness
Packaging and canning processes were not well developed.
Distribution channels were not effective.
It is not well known for fighting plaque or other gum related problems. Opportunities
Tapping a new market for better profits.
Improvisation on distribution channels.
Threats
Significant number of competitors in the industry.
Intense competition related to price with other competitors.

Current Situation Analysis:
For resolving the current problem, the company has to choose the best alternative from the following in order to draw advantages from the emerging market segment of plaque fighting: Do Nothing
Line extension under the same brand name as a better tasting pre-brushing rinse Launch a new product with a new name to compete against Plax in fighting plaque in pre-brushing rinse market Doing nothing would eliminate the risk of backfiring of the strategies and help in retaining company’s loyal customers. But there would be a risk of decline in shares because of market segmentation and also a possibility of decrease in sales. Line extension i.e. adding new components in Scope to fight plaque will help in saving current market share, but it will not boost up the sales. Line extension would definitely avoid customer switching to other products and also the extra costs that would be incurred in launching a new product. On the other hand, it might confuse the current customers and it would be very difficult to advertise both the benefits together effectively. Because of the line extension, the existing product would revert to ‘drug status’ and all the advertising would be scrutinized. An additional cost of $20000 would be required for product testing. Also in the case retailers do not differentiate the product from the existing one, its shelf-facing might be dropped and it would also create huge expenses for the stock keeping units (SKUs). Launching a new product would help the company in penetrating a new market segment emphasizing on plaque fighting. Since P&G has been launching the products that focus on unmet consumer...
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