Proctor & Gamble Scope Case Essay

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Case Analysis:
Procter & Gamble, Inc.: Scope

Problem Statement
Procter and Gamble’s mouthwash product, Scope, had a 32% share of the Canadian mouthwash market in 1990. However, Plax, a new category pre-brushing mouthwash launched in 1998, poses a continuing threat to Scope market share. In early 1991, Procter and Gamble’s brand manager for Scope, Gwen Hearst, must decide on a course of action for maintaining the profitability of Scope. She is tasked with developing a three-year marketing plan for Procter and Gamble’s mouthwash business. Decisions include how to respond to the emergence of mouthwashes, such as Plax, that focus more on “health-related benefits” and whether a line extension or brand extension would be most
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The reasons that consumers use mouthwash include preventive maintenance in their daily oral hygiene, reduction of bad breath, and to kill germs. Some even use mouthwash to feel more confident, and some rinse as a way to not offend others.
Companies can possibly take advantage of the 25% of Canadian households that do not use mouthwash by combating the reasons they do not rinse. These reasons include the following: they do not believe they have bad breath, brushing is adequate, or they find gums or mints more convenient. A carefully executed marketing plan may open up this market to new mouthwash users.

Competitor Analysis Competitor Identification. Pfizer, Merrell Dow, Colgate, & Warner-Lambert all have a hand in the mouthwash market. Warner-Lambert was the first in the mouthwash market with its product Listerine. Procter & Gamble then launched Scope as a direct competitor to Listerine with success. Merrell Dow then followed suit in the early ‘80’s with Cepacol, which also saw immediate and sustained success. Pfizer launched Plax in 1988 and split the market into two strategic segments while at the same time catching everyone else off guard with its immediate success. Colgate also launched a rinse of its own in 1988 as well. Strategic Groups. The mouthwash industry was segmented into two markets in 1988 when Plax was launched as part of a pre-brushing routine.

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