Case Study: P & G Scope vs Plax Essay examples

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Define the problem
Plax entering the market in 1998 has seen a significant attainment in market share in which the competition lead by P&G, Scope, has 32%. With Plax's attainment in two years time, P&G sees the potential of losing market shares in the product category. She is concerned that with all the competitions such as Listerine following suit of Plax's new position for the product category of "Plaque fighter" in addition to fresh breath and killing germs. She must come up with a plan of action to counter the competition. She has to answer three questions:
1- Does Scope plan and execute a new Line Extension;
2-add new claims to the present product; and
3- Take no action.
These alternatives will affect all aspects of the …show more content…

Distribution is 8% in supermarkets and 11% in drugstores. It appears that Plax claim of fighting Plague is driving her market shares and as such she has priced the product at a higher cost per liter. Giving her not only a potential large market share but also yielding a strong financial gain.
Cost of Claims-Financial Up to 1990 the total market size of the industry was 1,358,000 units and out of that Scope had 440,000 units. She had gross sales of $18 million and gross margin of $6,741,000 after subtraction the cost of goods sold, $11,409,000. All of these figures represent a total gross margin $15.32 per unit.

Comparatively Plax had a 135,800 units per in the market share. The cost of goods sold 25.36 with a gross margin of 39.73.

From all indications the competition, Cepacol, Listerine, Listermint, and Plax are on the verge of eating away Scope's market share. This is based on Plax's two years run with the new claim of fighting plaque. The competitors see Plax's financial gains, market position as not only a threat but a viable marketing strategy.

• Experienced and strong management team
• Worldwide recognized products
• Personnel o Excellent and skilled workers
• Finance o Strong sales growth and revenue o Vast financial resources
• Manufacturing o Innovation and efficient production facilities
• Long line of management hierarchy;
• Time is of the essence. Many departments with different time frames to perform

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