P&G-Group 1.pptx

7/28/2019 P&G-Group 1.pptx

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Case Analysis

GROUP 1

1.MAS ARINAH HAMZAH GM051432.SITI SARAH BT MOHD ZAIHAN GM05124

3.ELANSELVI ARUMUGAM GM04909

4.WONG YUNN LAI GM05097


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Case Summary

Scope came to be one of the well-known brands inmouthwash industries, it represent P&G's Company.

P&G Canada has 5 operating divisions which are :-Paper Product, F&B, Beauty Care, Health Care andLaundry.

Ms. Gwen Hearst is the Brand Manager in Healthcaredivision who is also responsible in maximizing themarket share, volume and profitability of the brand.

Until the entry of Plax, it has give major impact to theCanadian Mouthwash Market Shares where theyclaimed to be the "plaque fighter" whereas Scope onlyclaimed to "fights bad breath".

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Competitors

Products


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Problem Statement

New Competitors coming in (Plax) - Classified asprimary problem. By the entry of Plax, they havegained 10% of market share in just short period of

time, this has gave a bad impact to Scope.

Low Market Shares in United States - Classified assecondary problem. Based from the table given inthe case, Scope has made a record of second highest

for U.S and not highest as in Canada. In order tomaximize the market share, Scope may have tocome out with new strategy to increase the marketshare.

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Case Analysis

Scope held a 32 percent share of the Canadianmouthwash market for 1990.

Scope needs to compete with its competitor which isPlax. Since its introduction in 1998, Plax had gained a 10percent share of the product category (health care).

Before the entry of Plax, brands in mouthwash marketwere positioned around two major benefits which are

fresh breath and fighting gums.

On the other hand, Plax were positioned around a new,different benefit which is as a plaque fighter.

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Case Analysis-CanadianMouthwash Market

Until 1987, on a unit basis the mouthwash markethad grown an average of 3 percent per year for theprevious 12 years. However, in 1987 its experienceda 26 percent (New Flavors)

It shows that customers respond to innovation.Customers respond to unique and different product.

During the 1980s there are major competitivechanges in the Canadian mouthwash market (fightsplaque, new flavors etc)

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Case Analysis-CurrentSituation

In 1990, 75 percent of Canadian household used one ormore mouthwash brands.

Average usage was three times per week for each adulthousehold member.

Users could be segmented on frequency of use ( heavy,medium, light)

Consumer Perceptions on brand image (Reduces badbreath)

Scope is priced slightly below the index in food stores(98) and about 16 percent below in drug stores(84)

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Canadian mouthwash market share for Scope(Average 1990):

42%

58%

Food

Scope

Competitors

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Canadian mouthwash market share for Scope(Average 1990):

27%

73%

Drug

Scope

Competitors

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Case Analysis

0% 10% 20% 30% 40%

Scope

Listerine

Listermine

Cepacol

Plax

United States

Canada

In United States (1989) Scopes market share isonly 21.6 percent. It is lower compared to itscompetitor which is Listerine.

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Different regulations in Canada and Unites States.

Marketing plan by Gwen Hearst:

Line extension using Scope name

Line extension without using Scope name

Add plaque fighting benefit to Scope

Doing nothing

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In order to develop a good marketing plan, GwenHearst should consider all of these characteristics:

Executive Summary Table of Contents

Situation Analysis

Marketing Strategy

Financial Projections Implementation Controls

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Strategic Alternatives

1.Line extension-same brand name

Scope could introduce a new product that offers medical benefits, as wellas a fresh breath and a good taste.

The new product could be launched by using the Scope brand name.

Scope is a well-known brand on the mouthwash market.

This should help attract consumers - bought mouthwash from an otherbrand which did not provide the benefits that they would have liked tohave.

Introducing a new product under the current Scope brand name is the beststrategic option.

This will enable P& G to reap the benefits of their established brand andprofit from the new consumer needs, without losing their traditionalScope brand and market share.

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2.Promotion and Advertising for current products

Advertising and promotion like use of the media can expandthe brand names

Act as a medium to attract the customers buying theproducts.

Free samples - attached with the current Scope mouthwash.

objective is to make consumers try the new product andincrease sales of the current users as well as attract newconsumers to buy this new product.

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3.Product development

new product under a different name - creates thepossibility of a very different brand positioning

would not be related to the current Scope, which enablesthe possibility for a completely different marketingstrategy and approach.

The downside of this option is that the new introducedbrand will have to build everything up from zero again

This will mean more advertising costs and it will taketime before consumers accept the product in the market.

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Recommendations

Launch a new line extension (new product)

under Scope name, to compete with Plax.

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Plans of Action

Short term:

To create consumers awareness on new product in

the market by having advertisement and promotion.

Medium term:

To expand the mouthwash market shares with the

new product, especially focus more on sales indrugstores.

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Plans of Action

Long term:

Plaque fighting reassurance, through clinical results

with stringent test methodology.

Strive to gain seal from both Canadian and

American Dental Association.

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Contingency Plan

Advertising, promotion to attract the customer

Example : T.V Commercial (Reduces bad breath)

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Documents

P&G-Group 1.pptx