Procter & Gamble— Scope
Procter & Gamble— Scope
44 CASE 26
A
s Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As brand manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble’s (P&G) brand in the mouthwash market. She was responsible for maximizing the market share, volume, and profitability of the brand. Until the entry of Plax, brands in the mouthwash market were positioned around two major benefits: fresh breath and killing germs. Plax was positioned around a new benefit—as a “plaque fighter”—and indications were that other brands, such as Listerine, were going to promote this benefit. The challenge for Hearst was to develop a strategy that would ensure the continued profitability of Scope in the face of these competitive threats. Her specific task was to prepare a marketing plan for P&G’s mouthwash business for the next three years. It was early February 1991 and she would be presenting the plan to senior management in March. COMPANY BACKGROUND Based on the philosophy of providing products of superior quality and value that best fill the needs of consumers, Procter & Gamble is one of the most successful consumer goods companies in the world. The company marketed its brands in more than 140 countries and had net earnings of $1.6 billion in 1990. The Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990. It is recognized as a leader in the Canadian
packaged goods industry, and its consumer brands lead in most of the categories in which the company competes. Between 1987 and 1990, worldwide sales of P&G had increased by $8 billion and net earnings by $1.3 billion. P&G executives attributed
44 CASE 26
A
s Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As brand manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble’s (P&G) brand in the mouthwash market. She was responsible for maximizing the market share, volume, and profitability of the brand. Until the entry of Plax, brands in the mouthwash market were positioned around two major benefits: fresh breath and killing germs. Plax was positioned around a new benefit—as a “plaque fighter”—and indications were that other brands, such as Listerine, were going to promote this benefit. The challenge for Hearst was to develop a strategy that would ensure the continued profitability of Scope in the face of these competitive threats. Her specific task was to prepare a marketing plan for P&G’s mouthwash business for the next three years. It was early February 1991 and she would be presenting the plan to senior management in March. COMPANY BACKGROUND Based on the philosophy of providing products of superior quality and value that best fill the needs of consumers, Procter & Gamble is one of the most successful consumer goods companies in the world. The company marketed its brands in more than 140 countries and had net earnings of $1.6 billion in 1990. The Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990. It is recognized as a leader in the Canadian
packaged goods industry, and its consumer brands lead in most of the categories in which the company competes. Between 1987 and 1990, worldwide sales of P&G had increased by $8 billion and net earnings by $1.3 billion. P&G executives attributed