Proctor & Gamble Scope Case Analysis
MARKETING 675
Proctor and Gamble – Scope Case Analysis
10/18/2012
Industry
This mouthwash market was initially developed by Warner-Lambert being pioneered by brand Listerine. In 1977 Warmer-Lambert launched Listermint mouthwash as a direct competitor to Scope. Before 1987 the mouthwash market was continuously growing on average of 3 percent per year, in 1987 the market experienced a 26 percent increase after the introduction of new flavor. In 1976 Scope was the leader in the Canadian market.
Problems
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to capitalize on the emerging market segment within the rinse category that focused more on “health-related benefits” than the traditional breath strategy of Scope. If the company does pursue this there are several concerns that they have.
How should P&G respond to the newest competitor in the mouthwash market?
What strategy should be pursued for scope in the future to ensure continued profitability?
Decision Questions:
1. What action, if any, should Proctor and Gamble (P&G) take as a mitigating strategy against Plax in the mouthwash market in Canada?
2. How can Scope maintain its current position in the Canadian mouthwash market?
Decision Tree
• Whether to add new ingredients so that they can position Scope as a plaque fighting mouth wash
• Whether to launch a new product line and risk cannibalization, to compete with their competitors, such as Plax
• Whether to do nothing and continue with their breath strategy
Current Market Position of Scope in the Canadian Market
Scope is the current market leader among mouthwash products used in Canada. Scope’s benefits are advertised as prevention of bad breath and as a good/pleasant tasting product. The product is green in color with a pleasant mint taste. Between 1989 and
Proctor and Gamble – Scope Case Analysis
10/18/2012
Industry
This mouthwash market was initially developed by Warner-Lambert being pioneered by brand Listerine. In 1977 Warmer-Lambert launched Listermint mouthwash as a direct competitor to Scope. Before 1987 the mouthwash market was continuously growing on average of 3 percent per year, in 1987 the market experienced a 26 percent increase after the introduction of new flavor. In 1976 Scope was the leader in the Canadian market.
Problems
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to capitalize on the emerging market segment within the rinse category that focused more on “health-related benefits” than the traditional breath strategy of Scope. If the company does pursue this there are several concerns that they have.
How should P&G respond to the newest competitor in the mouthwash market?
What strategy should be pursued for scope in the future to ensure continued profitability?
Decision Questions:
1. What action, if any, should Proctor and Gamble (P&G) take as a mitigating strategy against Plax in the mouthwash market in Canada?
2. How can Scope maintain its current position in the Canadian mouthwash market?
Decision Tree
• Whether to add new ingredients so that they can position Scope as a plaque fighting mouth wash
• Whether to launch a new product line and risk cannibalization, to compete with their competitors, such as Plax
• Whether to do nothing and continue with their breath strategy
Current Market Position of Scope in the Canadian Market
Scope is the current market leader among mouthwash products used in Canada. Scope’s benefits are advertised as prevention of bad breath and as a good/pleasant tasting product. The product is green in color with a pleasant mint taste. Between 1989 and