Proctor & Gamble Case Study
Introduction:
Procter & Gamble, known to many as simply P&G, is one of the most influential and world leaders in the consumer goods industries. It delivers superior products at an exceptional value that exceeds customer demands.
Marketing its brand in over 140 countries, P&G reported net earnings of $1.6 billion in 1990; a notable $100 million of those reported earnings stemmed from its Canadian subsidiary where P&G is “recognized as a leader in the Canadian packaged-goods industry” (Kerin & Peterson, 2012). P&G’s Canadian market is separated into five operating divisions: paper products; food & beverage; beauty care; health care and laundry & cleaning. For the purpose of this analysis the following paper will focus on P&G’s health care division; more specifically Scope mouthwash.
Following Warner-Lambert’s introduction of Listerine as the pioneer mouthwash brand, Scope launched into the market in 1967; positioning itself as “a great-tasting, mouth-refreshing brand” (Kerin & Peterson). Unlike its predecessor Listerine, Scope became the original mouthwash in the market to offer both a great taste and protection against bad breath. According to the data given, Scope led the Canadian mouthwash market in 1976, and as of 1990, had remained the leader with a market share of 32 percent.
In 1988 however, a new product called “Plax” launched into the market taking a different positioning approach (in comparison to others) in the mouthwash market. Their strategy focused on fighting plaque using a “pre-brushing” rinse instead of the traditional fresh breath, germ killing mouthwash, thus creating its own niche in the market. Aside from Scope and Plax, other direct competitors in the market included: Listerine, Listermint, Cepacol, and Colgate oral rinse.
Strategic Issue and Problem:
Gwen Hearst, brand manager for Proctor & Gamble’s health care division, was given the responsibility for (1) developing a strategy to ensure continued profitability in anticipation
Procter & Gamble, known to many as simply P&G, is one of the most influential and world leaders in the consumer goods industries. It delivers superior products at an exceptional value that exceeds customer demands.
Marketing its brand in over 140 countries, P&G reported net earnings of $1.6 billion in 1990; a notable $100 million of those reported earnings stemmed from its Canadian subsidiary where P&G is “recognized as a leader in the Canadian packaged-goods industry” (Kerin & Peterson, 2012). P&G’s Canadian market is separated into five operating divisions: paper products; food & beverage; beauty care; health care and laundry & cleaning. For the purpose of this analysis the following paper will focus on P&G’s health care division; more specifically Scope mouthwash.
Following Warner-Lambert’s introduction of Listerine as the pioneer mouthwash brand, Scope launched into the market in 1967; positioning itself as “a great-tasting, mouth-refreshing brand” (Kerin & Peterson). Unlike its predecessor Listerine, Scope became the original mouthwash in the market to offer both a great taste and protection against bad breath. According to the data given, Scope led the Canadian mouthwash market in 1976, and as of 1990, had remained the leader with a market share of 32 percent.
In 1988 however, a new product called “Plax” launched into the market taking a different positioning approach (in comparison to others) in the mouthwash market. Their strategy focused on fighting plaque using a “pre-brushing” rinse instead of the traditional fresh breath, germ killing mouthwash, thus creating its own niche in the market. Aside from Scope and Plax, other direct competitors in the market included: Listerine, Listermint, Cepacol, and Colgate oral rinse.
Strategic Issue and Problem:
Gwen Hearst, brand manager for Proctor & Gamble’s health care division, was given the responsibility for (1) developing a strategy to ensure continued profitability in anticipation