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S c h o o l o f B u s i n e s s

N o r t h S o u t h U n i v e r s i t y

Proctor & Gamble - Scope


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Assignment on

Proctor & Gamble Scope

Course code: MKT 202

Course Title: Principles of Marketing

Semester: Fall 2011

Prepared for

Bashir Hussain

Senior Lecturer

BBA Faculty

Prepared byIshan Debnath (ID:1120608030)

Md. Iftakhayrul Islam (ID:1120739030)

Muhammad Mosharraf Hussain (ID:1121048030)

Abdullah Al Masud (ID:1120303030)

Nazia Tarannum Ananna (ID:1120836030)

School of Business

North South University

November 20, 2011


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Table of Contents

Background .............................................................................................................. 1

Segmentation Method ............................................................................................. 2

Analysis of Target Market for Scope Mouthwash .................................................. 4

Positioning of Scope ............................................................................................... 5

Marketing Mix ........................................................................................................ 6

Product ................................................................................................................ 6

Price ..................................................................................................................... 8

Place .................................................................................................................... 8Promotion ............................................................................................................ 9

Conclusion .............................................................................................................. 9

References: ............................................................................................................ 10


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Background

Proctor & Gamble Co. is one of the leading consumer goods manufacturers in the world. By

maintaining superior quality for the products since its inception in

1837, it has built very good market share and reputation in more than

140 countries in the world. Renowned and popular brands like

Gillette, Head & Shoulders, Pantene, Scope, Pringles, Crest, Tide etc. are the products of this

company. As of July 1, 2011, the company's operations are categorized into two "Global

Business Units" with each Global Business Unit divided into "Business Segments" according to

the company's 2011 Annual Report. The segments are Beauty segment, Grooming segment,

Health Care segment, Snacks & Pet Care segment, Fabric Care & Home Care segment.

P&G has a dominant presence in Canada since its starting business in the country. One of the

top Brand of P&G in Canada is SCOPE mouthwash, which was introduced in 1967. It is a green

mint tasting mouthwash that provides bad breath protection. In 1970

Scope became the market leader in Canada and it held 32% share ofthe Canadian market for 1990. There are some mighty competitors in

the market, such as Listerine, Cepacol, Listermint, Plax etc. But the

major competitor for Scope was Plax, a brand by Pfizer Inc, which

was launched in Canada in 1988 on a platform quite different from

the traditional mouthwashes. The marketing plan of Scope

mouthwash will be discussed in the following sections:

Original Logo

New Logo


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Segmentation Method

Market Segmentation is a cornerstone of building successful and known marketing plans. It has

been done by using different segmentation policy and variables like Geographic, Demographic,

Psychographic and Behavioral. From the case, it can be seen that the Canadian mouthwash

market can be segmented mainly by behavioral trends. The segmentation model of the Canadian

mouthwash market is outlined below:

Figure 1: Market Segmentation Variables

Geographic

The case is about mouthwash market in Canada. Though sales and usage of mouthwash depend a

little on country region, city or metro size, density or climate, these variables have not been used

during segmentation process.

Demographic

75% of the Canadian households use minimum one brand of mouthwash per week as mentioned

in the case. Though, it has not been mentioned about the usage of mouthwash by age, it can be

assumed that usage will vary among adults and non-adults. So, Adults and non-adults are the two

markets segments for Canadian mouthwash market

Behavioral

Usage pattern has been used as a segmentation variable in case of the subject market as some

people use mouthwash regularly on daily basis, some uses it weekly. So, the preferences and

choice set of the two groups vary. Those who use it regularly, grow a stronger brand preference

than the weekly users.

Geographical

Country

Demographical

Age

Behavioral

Usage Pattern

Benefits Offered

Frequency of Use Loyalty Status


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In the Canadian mouthwash market, there are 4-5 dominant brands which offer different types of

benefits to the customer. Customers choose their brand after matching with his/her needs and

wants. Some wants combination of the benefits, for example, Scope offers great taste with

protection against bad breath whereas Listerine offers protection against bad breath and prevents

gingivitis and Plax offers removing of Plaque. The following table gives a view to the customer

Consumer Sought Benefits Product Benefit Offerings Market Segments

Part of Basic Oral Hygiene (40%)*

Getting Rid of Bad Breath (40%)*

Kills Germs (30%)*

Reduces Bad Breath

Kills Germs

Removes Plaque

Good for Preventing Colds

Recommended by Doctors/Dentists

Fights Bad Breath

Good Taste

Kills Germs

Recommended by Dentists

Removes Plaque

* According to the market research given in the case.

demands and subsequent product offerings satisfying those demands. These product offerings

leads to the market segments listed above. It can be seen from the table that the mouthwash

providing maintenance of basic oral hygiene satisfies the demand of 40% consumers who are

using mouthwash of any brands. So, different benefits sought by the consumer force the

manufacturers to develop products with different attributes which will in turn satisfy different

segments.

The market can also be segmented with usage rate variable,

in the case it has been said that in a market research it has

been found that there are three types of users; Heavy Users

(once a day or more), Medium users (two to six times a

week), Light Users (less than once a week). The proportion

of these three kinds of user is given in the figure 2.

By identifying loyalty status of the customers, segmentation can be done. Customers who have

low loyalty to any brand needs special attention whereas customers with high loyalty to any

brand needs good retention strategy. Hence, marketing approach to the customers will be

different.

40%

45%

15%

Heavy Medium Light

Figure 2: Segmentation using Usage Rate


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Analysis of Target Market for Scope Mouthwash

The mouthwash market of Canada was initially developed by Warner-Lambert with its pioneer

brand Listerine. It was targeted to the consumers who want to get rid from bad breath with

effective germ killing. It dominated the market until entry of Scope, the mouthwash from P&G.

Though Listerine provided the above-mentioned features it tasted like medicine. Management of

P&G sensed a chance to get into the market with creating a new segment by adding taste to the

mouthwash. They adopted the undifferentiated marketing approach as the market was still new

and there were not too many variants available for the users. In 1967, Scope entered the market

by targeting the bad breath segment with adding mint taste to it. This first mover advantage gave

edge to Scope which eventually leaded it to get the market leader position in 1976.

To retain market share and to snatch some from Scope mouthwash, Warner-Lambert launched

Listermint in 1977. Like Scope, it was a green, mint tasting mouthwash. This move from the

company justifies the selection of market segment by P&G. As this market was getting a steady

growth, the market segment had attracted other companies for putting a foothold. Targeting this

segment was an ingenious idea as it wide opened a new segment for mouthwash market.

If looked at figure-2, it can be identified that according to the mouthwash users, top 3 reasons

for using mouthwash is to maintain basic oral hygiene (40%), to get rid of bad breath(40%), to

kill the germs(30%). Though Scope claims to do the three, consumer perception to this was not

favorable. In view of the consumers, Scope mouthwash performed below par than the

competitors albeit according to perceptions removal of bad breath was the strength for this

brand. As Scope served the basic protection against germs with giving a good taste for the users,

consumers were satisfied with it. For this reason, it can be said that the target market selection

was precise and accurate from the management.

Scope mouthwash had a good run in the Canadian market for a long time, to be precise until the

late 80s. But, the entrance of Plax caused the management of Scope to think again of their

target market. By providing superior protection and removal of plaque, Plax created a new

market segment for the mouthwash market with the idea of pre-brushing rinsing. This move

from Pfizer, the owner of Plax gave Scope a tough fight for retaining market share. At that time,


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Scope had to think of product variants with differentiated marketing approach which will satisfy

the demand of the evolving mouthwash market.

Positioning of Scope

After targeting the desired and viable market segments, a company must decide on value

proposition which will differentiate the product and attracts the customer of the targeted market

segment. A products position is the way the product is defined by the consumers on the

attributes of the product. Effective positioning of any product can simplify the buying process

for the consumers. In the case, Listerine, the Warner-Lambert product was the first in the market

and it was positioned as a therapeutic germ-killing mouthwash that eliminated bad breath. To

have competitive advantage, Scope was positioned as a great tasting mouthwash that eliminates

bad breath. P&G developed the positioning statement as Scope fights bad breath. Dont let the

good taste fool you.

The following figure demonstrate the positioning map for the mouthwash market of Canada and

it also demonstrate different brands operating in the market with different positioning strategy.

Figure 3: Positioning Map

Scope

Listerine

Cepacol

Plax

Listermint

Colgate Oral Rinse


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In the positioning map, every circle with different colour represents a brand and the size of the

circles demonstrates the relative market share of the brands. From the figure-3 it can be seen that

there are six major brands in this market. It can also be noticed that, Scope and Listermint both

operate in the same market with common attributes; both offer effective bad breath protection

with good taste. Market share of Scope is almost three times of Listermint. On the other hand,

Listerine and Plax both offer plaque removal. Additionally Listerine offers effective germ killing

and bad breath protection and Plax offers 3 times more plaque removal ability with pre brushing.

In short the positioning of Scope was in the right areas at the beginning which brought the brand

the highest market share but with the advent of Plax with an extra attribute of removal of Plaque,

management of Scope had to consider repositioning of the brand or start a new brand.

Marketing Mix

Marketing mix is the set of controllable, tactical marketing tool that consist everything a

company can do to influence the demand for its product. The possible tools can be divided into

four groups of variables known as the 4 Ps: Product, Price, Place and Promotion. In the

following section, these variables will be discussed for P&Gs Scope Mouthwash.

Product

Product is the key element in the overall market offering. Marketing mix planning begins with

building and offering that brings value to target customers. Product can be

tangible or intangible; in this case it is a tangible product, Scope

mouthwash. It can be classified as a convenience products as it is bought

frequently with little planning and little shopping effort. The price of Scope

mouthwash was not very high and it was available in most of the retail stores

and drug stores. It was promoted mass level to reach widespread consumers.

Generally, the marketers design every product in three levels to add more

customer value to each level. The levels are called as Core Customer Value,

Actual Product and Augmented Product. These levels are discussed briefly

below:

Scope (Original flavor)

Scope Outlast


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Core Customer Value

Kills bad breath bacteria and give fresh breath and the confidence to get close

Actual Product

Brand Name: Scope

Product quality is one of the marketers major positioning tools. P&G worldwide created a brand

which ascertain and assure the customers about quality of its products. Scope is no exception to

that. Since its inception, it never received any major complains regarding quality. At P&G, they

dont compromise with quality as this is the major points for the brand awareness building and

sales and after sales service.

Products can be offered with various features to

attract target customers. Features are the competitive

tools for the marketers. Scope mouthwash had many

features that made it a very attractive proposition for

the customers seeking mouthwash solutions. Main

feature of the product was bad breath removal and

germ annihilation. In addition to that, Scope offered

the mouthwash in various taste.

Style and design is another important ingredient of actual product. From the figures of the

product, it can be seen that for every different taste the bottle has a different color. From which,

consumer can get a feeling of the taste. Packaging is very important tool for marketers as it gives

them the last chance to attract; grabbing attention, describing the product and making the sales.

Packaging of the bottle was also very attractive as seen from the figures.

Augmented Product:

Scope offeres many tips related mouth health in its website. People who have query regarding

improving their mouth health and reducing bad breath, the answer is there. It fulfills the demand

of giving something extra with the product.

Figure 4: Different taste of Scope


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Price

Price is the only element in the marketing mix that produces revenue, all other incur cost. Price is

one of the most flexible marketing elements. There are many ways to set the price of a product

like value based pricing, cost based pricing, good value pricing, value-added pricing. Of these,management of Scope mouthwash used the cost based pricing approach as it is the most

appropriate way to analyze the cost and then add a margin to ensure viable business operations.

In case of Scope, cost based pricing was used to determine the optimum price for the market

which can ensure good return. In this type of pricing, the cost for production of one unit is

determined and after that adding some markup or profit to the cost, the price is set. The pricing

strategy in this case was taken as market penetration strategy. As per the market research

findings given in the case, Scope was sold at $41 per unit on an average at that time. Though

retail price vary in different places of sales, both Listerine and Plax had the highest prices among

other brands in food stores, whereas Scope, Listerine and Listermint had the highest prices in

drug stores. From the retail price indices, it can be seen that price of scope is lower than all other

brand except Cepacol in both retail stores and drug stores.

Place

The supply chain management of scope had used two places to sell it, one is food stores and

other is drug stores. As it is a convenience product, people would like to buy it from the food

stores. On the other hand, it can act as a therapeutic product which can be found at any drug

stores. From the market research findings, it can be seen that 65% of the sales went through the

drug stores, whereas remaining 35% sales went through food stores.

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%.

65%

35%

Sales

Food Store

Drug Store

Figure 5: Sales Place


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Promotion

Promotion is the last tool that helps a product to reach to the people. The main objective of

promotion is to build communication with the customers who want to know about the products.

Advertising, Sales Promotion, Personal Selling, Public Relations and Direct Marketing are the

main tools for promotion. For promotion purpose, management of Scope used advertising in all

kinds of media and Sales promotion through coupons and discounts on the products. In the year

1990, Scope spent $1.7 million which is the highest among the mouthwash brands. Sales

promotion includes coupons for getting rebate in the price, sample mailing, bundled offer with

other products etc.

Conclusion

In the above sections, the marketing strategy of scope mouthwash has been portrayed and

analyzed. Segmentation of the market has been done by using the behavioral variable. Selection

of target market was appropriate as it made them the market leader for a long period of time.

Positioning of the brand has been done mainly on the basis of the weakness of the pioneer brand

Listerine. In the marketing mix, product has been well designed in three levels which had been

proved by consumer acceptance of the brand. Cost based pricing was used for setting the price

and market penetration was the pricing strategy. Drug store and food store were the main places

for selling of the mouthwash and for promotional purpose, advertisement and sales promotion

was used. In brief, the marketing strategy used for Scope was a winner and it made them the

leader of the market. But, as nothing is evanescent in the world, management of Scope had a

very tricky situation at that time deciding whether to introduce new brand or adding features to

this brand.


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References:

Kotler, P., Armstrong, G., Agnihotri, P.Y. & Haque, E.U. (2011), Principals of Marketing: A

South Asian Perspective, 13

th

Edition, Pearson Prentice Hall of India, New Delhi.

Proctor & Gamble fromhttp://en.wikipedia.org/wiki/Proctor_%26_Gamble

http://www.pg.com

http://www.pg.com/en_US/brands/all_brands.shtml

http://www.pg.com/en_CA/index.shtml
http://en.wikipedia.org/wiki/Proctor_%26_Gamblehttp://www.pg.com/http://www.pg.com/en_CA/index.shtmlhttp://www.pg.com/en_CA/index.shtmlhttp://www.pg.com/http://en.wikipedia.org/wiki/Proctor_%26_Gamble

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