Proctor & Gamble Case Analysis

I. Situational Analysis a. Industry: Canadian Mouthwash Market i. Size 1. Retail Sales: a. 1988 = $60.2 million b. 1989 = $65. 4 million c. 1990 = $68.6 million 2. Unit sales: d. 1988 = 1,197,000 e. 1989 = 1,294,000 f. 1990 = 1,358,000 ii. Nature of competition 3. Addition of new ingredients in mouthwash products 4. Mouthwash Flavors g. Increased industry growth sales h. Prompted competition based on producing new and refreshing flavors 5. Entry of new players 6. Plax coming out hard with advertising spending i. Only been in market for 2 years, similar spending and air time as Listerine and Scope j. Competitive advertising budgets 7. Scope is currently dominating in terms of market share at 32.4% iii. Number of competitors: (6) 8. Listerine : -(Market Share = 16.6%) k. Succeeded with “Bad breath” strategy l. ADA seal, not CDA m. “Flights plaque and helps prevent inflamed gums caused by plaque. “ i. New strategy positioning ‘88 ii. Motivated by the introduction of Plax 9. Listermint (’77): -10.6% n. Added fluoride o. CDA seal for preventing cavities (’83) p. No longer promoting Fluoride ingredient and removed seal 10. Cepacol (’88):- 10.3% q. Entered Canadian market through licensing agreement between Merrell Dow & Strategic Brand r. Strategy included gaining greater distribution and basing on price 11. Colgate Fluoride Rinse (’88): -.05% s. CDA seal (cavities) t. “Colgate’s new fluoride rinse fights cavities. And it has a mild