Essay on Proctor & Gamble Scope Case

5121 Words Apr 18th, 2013 21 Pages
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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Listerine, Colgate Fluoride Rinse, & Cepacol are all part of the mouthwash segment. This segment has branded itself based on one of two characteristics: ability to kill the germs that cause bad breath or ability to freshen breath. Listerine and Cepacol both positioned themselves as the oral care product that would kill the germs that cause bad breath. Colgate Fluoride Rinse has positioned itself in a manner similar to Plax, but Colgate was able to earn the CDA’s seal of approval.
Performance. (Revenue and Profitability) Again the results between the two markets in which Scope competes were split. In Canada Scope was able to obtain a commanding 33.0% market share, but in the US they fell into second behind Listerine, carrying only a 16.1% share of the market. After its 1988 launch and an extremely large marketing campaign, the newcomer to the market held 10% of the market share. In an attempt to fight off the entry of Scope to the market, Listerine did extend its brand with different flavors of Listerine. While the extension was successful, it came at the price of cannibalizing its original product. Colgate’s Fluoride Rinse did have the CDA’s seal of approval based on its cavity prevention claims, but it only achieved a 2% market share. While this initial success helped get the line off the ground, sales have since tapered off. There is speculation that Colgate may drop this product.

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