Introduction
Scope represents green, mint-tasting mouthwash and it is leading brand of the health-care division of P&G. It was first introduced in 1967 and was positioned as great tasting, mouth refreshing product that provides bad breath protection. This brand became market leader in 1976 and since then it has enjoyed the position of market leader.
Procter and Gamble is one of the most successful costumer companies in the world, It markets its brand in more than 140 countries. Their purpose is to provide branded products of superior quality ad value that improve the lives of the world’s customer for now and next generations. By providing such offerings thy can get reward from customer in terms of sales and leading brand name in the market.
Procter and Gamble operates in five operating divisions: Paper products, Food and beverages, Beauty care, Health care and Laundry and cleaning.
Scope became market leader in Canadian mouthwash market in 1976 and until 1990 it has enjoyed the greatest market share. Plax was introduced in Canada in 1998 on a different platform from the traditional mouthwashes. Plax is the only player in the market segment of plaque fight. Generally, Canadian mouthwash market is growing at an annual rate of five percent, and plaque-fighting segment represent 10 % of this market.
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? situational Analysis
Nature of Demand
In 1990, 75 percent of Canadian households used one or more mouthwash brands, and, on average, usage was three times per week for each adult household member. Company market research revealed that users could be segmented on frequency of use; “heavy” users (once per day or more) comprised 40 percent of all users, "medium" users (two to six times a week) comprised 45 percent, and "light" users (less than once a week) comprised