Proctor & Gamble Scope Case Analysis

In analyzing the Canadian mouthwash market share the data showed that Scope had the highest market share among all brands, but there was a big difference in the share held by Scope in food stores 42%, versus drug stores 27%.

The mouthwash market had grown on an average increase of 3% per year for 12 years. Then in 1987, with the introduction of new flavors it shot up 26%, and after that it continued at a steady increase of 5% per year. Originally, Listerine was the market leader. It positioned itself as a germ killing mouthwash that eliminated bad breath. Scope was introduced in 1967 as a green, mint-tasting mouthwash that was mouth refreshing and provided bad breath protection. Scope branded itself not only protection to bad breath, but also that it tasted better than the other mouthwashes available. Competitors of Scope

Hearst and the business team have three options, on one hand a line extension or new product positioned against Plax could be introduced into the market and in the other hand doing nothing and just looking at claims other than “breath” instead of adding a new product. Launching a new product “new pre-brushing rinse,” for example would cannibalize a part of Scope sales, also the delivery, marketing and capital costs of P&G will increase if a new rinse was launched and the user of Scope would be confused since he/she saw in the old scope a breath refreshment, taking into consideration that the new rinse is not any better than Plax in reducing plaque, but at the same time it may increase the market share of P&G and increase its profit. Whereas adding a new claim for Scope would not increase the volume of sales, but it could prevent current users of Scope to switch and it would stabilize the

Johnson & Johnson, a 130 years old famous multinational healthcare company through its family of companies is involved in the research and development, manufacture and sale of a wide range of products in the healthcare. Product that related to human health and well-being has always been their main interest over the years and also presently. Johnson & Johnson was incorporated in the State of New Jersey in 1887 by three brothers; Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson.

Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.

Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.

So her specific task was to prepare a marketing plan for P&G mouthwash business for the next 3 years. In preparing the 3 year plan for Scope, a team has been formed within P&G to examine various options, the team included individuals from product development, manufacturing, sales, finance, market research and advertising operations. The team was faced by two options that are: 1- Launching a new line extension positioned against Plax as a recent entry into the market. 2- Looking at claims other than “breath” that might be used by scope such as plaque reduction.

By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,

United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?

The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.

2. Does SK-II have the potential to become a global brand within Proctor & Gamble’s worldwide operations? Why or why not?

Seeing the company records of Canadian Mouthwash Market Shares for past three years, I feel that the performance of scope in market was consistent despite the arrival of new products in market.

Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries

However, this appears somewhat insignificant in comparison because Scope (32%) still holds twice as much market share as Listerine (16%) and over three times as much market share as Plax (10%). Listermint’s share decreased as well as Cepacol, Colgate oral rinse, and other miscellaneous brands.

Scope is mint flavored mouthwash and is one of the main product brands of Procter and Gamble, Inc. Scope became the market pioneer in Canadian mouthwash market in 1976 and till 1990 it has delighted itself as the best piece of the pie in market share of mouthwashes. Plax was presented in Canada in 1998 on an alternate stage from the customary mouthwashes. Plax is the main player in the business sector portion of plaque fight. By and large, Canadian mouthwash business sector is developing at a yearly rate of five percent, and plaque battling portion speak to 10 % of this business sector.