Scope – Situational Analysis
I. Internal Analysis
A. Overall objectives
1. Provide superior quality
2. Benefit from the part of the market that was focusing more on health-related benefits.
B. Overall Strategy
1. Differentiation – offer a product that was different than the competitors
C. Target Market
1. Health conscious individuals
2. People who wanted their mouthwash to fight bad breath but also
3. People who shop in convenient places
a. Be a breath refresher and be best tasting product available
b. Provide superior quality than other mouthwash providers
a. Product differentiation
a. Have a different color – scope went with green
b. Actual taste of product was supposed to be the best
c. Packaging of the product
a. Be convenient, available in everyday stores
a. Indirect strategy
b. Make sure customers are aware of your product
c. Have good availability - be in many outlets where customers will be able to purchase Scope
d. Be in other countries
a. Scope uses intermediaries. Scope was provided to retailers and then the retailers would sell Scope to customers at their stores. They were available in places like supermarkets and drugstores.
a. Scope wants to gain market share
a. Penetration Strategy in the market
a. The use of penetration pricing in drugstores specifically
a. Have Scope gain awareness about their benefits compared
to their competitors
b. Increase Sales
a. Scope uses a push strategy by working with middle men and retailers to stock their stores with their product.
a. Slotting fees
b. Have point of purchase displays
c. In-store promotions and advertisements saying why the consumer needs Scope
a. In 1990 Scope spent $1.7 million on advertising
b. P & G is a large company so they do have the money to finance certain products
G. Financial Performance
1. Market Trends
a. Since 1986 the data suggests that mouthwash sales have
2.. Market Share
a. In Canada Scope has usually had somewhere between 32%-
33% of the mouthwash market
b. The 1990 average for scope was that the had 42% of the market share in food stores and 27 % of the market share in drugstores.
II. External Analysis
a. Certain laws that may impact the mouthwash industry. Laws that require labels to say what is in the product or ingredients that they decide cannot be use in mouthwashes may greatly impact companies and how they can compete in the industry.
2. Dental Association seals
a. Whether or not a mouthwash obtains the seal from the Dental Association may impact consumer’s decision to by products that do not have the seal.
1. Poor Economy
a. If the economy was in poor conditions many customers may not think mouthwash is a top priority. It may become a luxury item not an everyday item. This could greatly decrease sales of overall mouthwash products. 2. Strong Economy
a. In a flourishing economy, mouthwash sales may be able to increase. It would again become an item that people could afford more often which would lead to higher sales for mouthwash companies. B. Technological
1. Emergence of Plax into mouthwash industry
a. Plax was the first and only prewash rinse so it stood out from all the other mouthwash options. This hurt other mouthwash competitors. b. Focused on removing plaque, not being a breath freshener, which was different than the other mouthwash products C. Social/Culture
a. With people...
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