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By: Stefan Petre, Jerzy Blaszkiewicz, Matthew Colletti, and Zachary Ross

Zack Ross - Scope- Zack Ross ©2010

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Page 1: Zack Ross - Scope- Zack Ross ©2010

By: Stefan Petre, Jerzy Blaszkiewicz, Matthew Colletti, and Zachary Ross

Page 2: Zack Ross - Scope- Zack Ross ©2010

Introduction

• Gwen Hearst- Brand Manager

• Needs new strategy to compete with Plax

• 3 things they should consider– should develop a new product– improve the existing one– do nothing

Page 3: Zack Ross - Scope- Zack Ross ©2010

Situation AnalysisStrengths

• People who use Scope believe it gets rid of bad breath. This is one of the most important reasons people use mouth wash.

• In 1990, Scope had acquired 32.3% of the Canadian mouthwash market.

• Since the introduction of Plax in 1988, Scope’s market share has only gone down 0.7%; Colgate Oral Rinse has gone down 64%, Listermint down 30%, and Cepacol down 22% which means that Plax has mostly taken away market share from other competitors but not really from Scope. Weaknesses

• Scope is perceived to be average or less than average in consumer perception by anyone who uses mouthwash.

• People who use Scope believe it is only above average at reducing bad breath.

Page 4: Zack Ross - Scope- Zack Ross ©2010

Situation AnalysisOpportunities

• Line extension• New product line under different name• Add plaque-reduction claims to Scope

Threats• Plax is positioned around fighting plaque which is a new benefit in

the market• There are indications that other brands, such as Listerine, are also

going to promote the benefit of fighting plaque• Plax has a strong perception of promoting healthy teeth and gums

from brand users and all mouthwash users. Basic oral hygiene and getting rid of bad breath are the most important reasons consumers use mouthwash.

Page 5: Zack Ross - Scope- Zack Ross ©2010

Proctor and Gamble Goal

• Provide branded products and services of superior quality and value that improve the lives of the world’s consumers for now

and the next generation

Page 6: Zack Ross - Scope- Zack Ross ©2010

Alternatives

• Produce a line extension• Add new product under a different

label• Stay put with existing product

Page 7: Zack Ross - Scope- Zack Ross ©2010

Our Choice - Product Extension Line

• Advantages– Open up to a new

market of consumers– Extend our market share– Satisfy customer wants

• Disadvantages– High initial costs– Extensive research– Competition

Page 8: Zack Ross - Scope- Zack Ross ©2010

PriceScope 1990 Financials $(000) $/Unit Product Line Extension Adjustments $/Unit Product Line ExtensionNet Sales 18,150 41.25 41.25 45.10Ingredients 3,590 8.16 + 2.55 (+/- 50%) 10.71 10.71Packaging 2,244 5.10 + 0.30 5.40 5.40Manufacturing 3,080 7.00 7.00 7.00Delivery 1,373 3.12 +1 4.12 4.12Miscellaneous 1,122 2.55 2.55 2.55Cost of Goods Sold 11,409 25.93 29.78 29.78Gross Margin 6,741 15.32 11.47 15.32

10 Liters 1 LiterScope Original 41.25 4.125Scope Line Extension 45.10 4.51

Plax 65.09 6.509

Page 9: Zack Ross - Scope- Zack Ross ©2010

Product

• The new Scope• Same benefits as original scope just with

plaque fighting technology• Breath stays fresher longer• Give you the confidence to get even closer

Page 10: Zack Ross - Scope- Zack Ross ©2010

Place

• Food stores, drug stores, and wholesale clubs• Focus more on the drug stores• Be able to take away from some of the market

segment from Plax

Page 11: Zack Ross - Scope- Zack Ross ©2010

Promotion

• Focus on a pull marketing strategy

• Advertise– trial-size displays setup

in major drug stores chains

– coupon mailings– samples for dental

associations and offices– initial price reductions – television commercials

Page 12: Zack Ross - Scope- Zack Ross ©2010

?? Questions ??