Proctor & Gamble, Inc. (Scope Case)

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Marketing Management

Procter & Gamble, Inc.

(Scope Case)


Situation 

        The mouthwash market was developed by Warner-Lambert, who established Listerine. It dominated the industry and was positioned as a germ-killing mouthwash that eliminated bad breath. In 1967, however, Proctor & Gamble introduced Scope, which took over as leader in the industry in Canada with its bad breath fighting and better tasting position in the industry. In 1977, Listerine tried directly competing with Scope with their Listermint mouthwash, with the same characteristics as Scope, and achieved 12% of the market share. But, the major competitor for Scope was introduced in 1988 by Plax made by Pfizer, Inc. Before Plax, most mouthwash brands were positioned as freshening breath and/or killing germs. Plax innovatively positioned themselves as reducing plaque and have been increasing their market share since their introduction. Listerine is also a major player and both Listerine and Plax have achieved a higher rate of market share growth than Scope between ’88 and ’90. (APPENDIX A)

APPENDIX A. Growth Rate % of units sold

(Scope from 8.1%, 2.7%)

(Listerine 12.7%, 8.2%)

(Plax 981%, 4.9%)

Problem Identification

        The problem in the Procter and Gamble, Inc. Scope case can be defined in a question: How can Scope retain its brand image to loyal consumers of having great tasting, bad breath reducing qualities, but at the same time increase its market share in this increasingly competitive and maturing market. Specifically, with the new threat of Plax and Listerine increasing their market share and positioning their products as having plaque/germ reducing qualities, Scope has to take action to keep their current customers, acquire new ones, and seize others from the competition.

Decision Alternatives and Objectives

        1.         Do nothing.

This will cause an increased risk in the long term position of Scope. Competition may take away sales from Scope, and newer differentiated and uniquely positioned products will eventually take away sales.        

However, this may avoid strategies that may potentially backfire or are too risky. For example, if current consumers get confused or if there is a big flop, money is wasted. There are many uncertainties and a lot of risk.

        2.        Creating a new line or product for Scope. These products can use the Scope name or newly named mouthwashes that are positioned in direct competition with Plax or Listerine. Other options can be strips, dental gum, and mint. 

        This option will be very costly for advertising and costs of R&D and all associated costs, as well as difficulty in accepting a new perception of the brand. This may also confuse or cause current customers to leave Scope if it is unsuccessful. It is also extremely risky, because there is no way to tell if it can be successful or compete with Listerine or Plax or take any of their customers away.

        If successful, this opportunity can create a new perception of Scope as a competitive, innovative company who is ahead of the competition and retain its position as market leader. That’s also cause for more uncertainty, since there has to be a lot of innovation and there is no way to tell where the future of mouthwashes will lead us. Furthermore, it is $20,000 alone from product testing.

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        3.         Add another claim that Scope reduces plaque and/or fights germs to compete with the new competition, and add ADA and CDA approval seals.

Market Research showed that this may not help users switch from the competition, although, this may retain current users of Scope. Adding the Canadian Dental Association seal also requires products to demonstrate effectiveness against cavities or plaque/gingivitis. This means there are submission requirements of the packaging and advertising for approval and close examination. Specifically, the CDA would need clinical studies demonstrating health improvements were done before granting the seal for plaque reduction and gum reduction. ...

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