Proctor and Gamble (Scope Case Analysis)

P&G Canada has five operating divisions, organized by product category. The divisions and some of their major brands are:

Overall, Scope has a strong presence in the market for mouthwash. It has the leading market share in the Canadian market. Consumers that purchase Scope do so because it is better tasting than other mouthwashes that prevent bad breath. Scope excels in food stores, but has room to increase sales in drugstores because that is where most mouthwash purchases occur. With the introduction of Plax, Scope’s market share could potentially be threatened. The market is shifting towards health related benefits of mouthwash and not just fresh breath and good taste.

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.

Today P&G is one of the most skillful marketers of consumer packaged goods in the world and is also one of the most trusted brands. The company employs 138,000 people worldwide with a total sales value of $79 billion a year and serves more than 4 billion people in more than 180 countries. Its sustained market leadership rests on a number of capabilities and philosophies such as:

Procter and Gamble has capitalized on innovation and creativity to lead the consumer and household product industry. This paper will explore some strengths and weaknesses, as well as opportunities and threats that Procter and Gamble had utilized to sustain its success and competitiveness. This case study will also explore some characteristics of innovative organizations and why they have chosen to be innovative.

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.

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,

The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.

P&G need to work hard and do more research and development in order to produce higher quality, more innovative, and more unique in products in order to answer consumer’s need and compete with those major world brand competitors.

A company named Goodbite has made a decision on launching a new product in the oral care market. They are interested in selling a teeth whitening strip with an advance scheme. The teeth whitening strips are small, elastic and can be adjusted to the surface of your teeth, being left in the mouth for several minutes helps on facilitating a whitening effect. The Goodbite’s product focuses on uniqueness by trying to select some attributes that might be considered as important. Its main competitive advantage focuses on product differentiation, which “deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering” (“Product Differentiation”). The company differentiates from the

The industry and the sector can be classified as being in a mature state. Despite this, many companies in the sector are able to achieve higher profit margins due to strong brand name recognition, innovative products and good marketing techniques. A trend observed in this industry was to focus on primary strengths rather than on diversification strategies, which was the case in 1990s. This allowed many companies to sell off their non-profitable businesses and for others acquiring of cash cows. Procter and Gamble followed the suite when it acquired Clairol.

Question 3. Suggest guidelines for optimizing new product introductions for Colgate Palmolive worldwide. Provide appropriate justifications……………..……………………………….11

Thanks to this two factors, P&G find itself with a significant competitive advantage. However, slowdown in global economic condition is making it increasingly difficult for branded product manufacturers like P&G to maintain their sales volume and revenue growth.

The current assignment, is trying to examine the acquisition of Gillete by Procter and Gamble. Both companies were competing in the FMCG sector, but they were not direct competitors.