Case Study

2945 Words Mar 24th, 2014 12 Pages
Proctor and Gamble, Inc. Scope

Case Synopsis

Gwen Hearst, Scope Mouthwash Brand Manager for Procter & Gamble, Inc is preparing a three year strategic plan for Scope in the Canadian market. Her responsibilities focus on three central areas: maximize the market share, volume and profitability of the brand. She needs to develop a strategy to compete with a new market entry, Plax. Plax has targeted fighting plaque as a new benefit for mouthwash. In two years, Plax has gained 10% of the market and during a time when the market growth rate has been declining. The Scope brand has maintained a constant market share level with slight decline and still retains largest percentage of the market.

The strategic options include
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Alternatives Analysis and Recommendations

a) maintain status quo:

Pros:

• Already market leader at 32.3% and total market growing

• Product offers superior quality and value as low cost to competitors

• Meets needs of consumers as indicated by market share and research (40% buy to get rid of bad breath, 20% for more confidence and 25% avoid offensive breath)

• Target market of fresh breath; cosmetic sector and Plax competition is focused on health benefits

• Avoids heavy regulatory requirements of health targeted product or even advertising

• Avoids cannibalization of Scope brand. Analysis indicates at lowest cannibalization rate would not be able to recover upfront costs to introduce new product line, even though total contribution dollars would be higher

• Previous market examples of Listermint and Colgate Fluoride Rinse indicate new product would cannibalize current product, not grow market share after initial gains and ultimately may not survive

• Taste favored by market

Cons:

• Does not address new competitors and benefits introduced to the market

• Defensive measure only and does not “stay ahead of competition or defend despite short-term profit consequences”

• Concern demand for the “fresh breath”/cosmetic sector may decline

• Scope does not have endorsement of any dental

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