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Scope is positioned as a mouth refreshing brand and was the first brand in the market to offer
effective protection against bad-breath and a good taste at the same time and marketed by Procter &
Gamble, Inc.
Provide branded products and services of superior quality and value that improve the lives of the
world’s consumers, now and for next/ future generations.
In return, consumer will reward with leadership sales, profit and value creation, allowing people,
shareholders and the communities in which live and work to prosper.
Production Objectives
To achieve a brand that must be seen as different enough/ unique from the competition to build
incremental purchases.
Financial Objectives
To achieve leadership share and profit positions and that, as a result, stakeholder wealth; such as,
business, public, employees, shareholders, creditor and the communities will prosper.
Marketing Objectives
Increase the market share, sales volume, and profits for Scope; consequently, to achieve the brand
loyalty and brand preference among the consumers. Besides, Scope marketing objective is to make
sure the brands is addressing the consumer in a way that will cause top-of-mind awareness for
Scope.
Social-Cultural Force
Consumers indicate that they buy the product to solve the socially related problem of ‘Bad Breath’
and that mouthwash products are part of their basic oral hygiene.
Regulatory Forces
In Canada it is possible to apply for a ‘seal of recommendation’ of the Canadian Dental Association.
The CDA will decide whether or not they approve the application by investigating the medical
effects of the substance. Hence, it is evidence that Scope have the opportunity to gain endorsement
from CDA.
Scope was long experience in the oral hygiene industry since 1967. It became market leader in 1976
and since then it had been enjoying largest market share in Canadian mouthwash market. Scope is
positioned as a mouth refreshing brand and was the first brand in the market because it offered
effective protection against bad-breath and a good taste at the same time. Also, Scope great strength
in the food stores, which is 42 percent (for example, supermarkets).
Scope was the first brand that offered both effective protection against bad breath and a better taste
than other mouthwashes. The taste/ flavor of Scope had positioned better than other mouthwashes.
Scope advertising focused, “Scope fights bad breath. Don’t let the good taste fool you.”
Ability to maintain or continued of produce high quality product that P&G customers expect and to
gain in the hypercompetitive market. Besides, Scope also needs to maintain hold in market.
Management Economic
Marketing
Competition
Manufacturing Consumer
R&D Technology
Finance Legal/Regulatory
Based on the above Exhibit 2.0 outlines the SCOPE’s SWOT analysis framework depicting
representative entries for internal strengths and weaknesses and external opportunities and threats.
Internal Factors
i. Strengths
Management – Fill in management depth. Scope is a health care product of P&G. Scope has its own
brand management, sales, finance, product development PDD and operations management groups.
Besides, Scope gets a great strength in the food stores among competitor.
Marketing – P&G known to provide products that fulfill consumer needs at superior quality and
value. Nevertheless, Scope has a first rating in mouthwash market share.
ii. Weaknesses
R & D – Poor track record in bringing innovations to the marketplace. For examples, Scope’s
product development had recently developed a new prebrushing rinse product that performed as
well as Plax but did not work any better than Plax against plaque reduction.
Offerings – Too narrow a product line. Scope does only offer one benefit that is reduces bad breadth
with a good taste.
External Factors
iii. Opportunities
Technology – Scope can use the advance of technology for enhancing the production; like using
computer operated machineries which are fully automated. By this, Scope can reduce the labor costs
indeed. But also can using Internet to developing a new market.
iv. Threats
Competition – Increased competition (Listerine, Listermint, Cepacol, Plax, and other store brands),
while competitors are introducing more benefits. For instances, before the entry of Plax, brands in
the mouthwash market were positioned around two major benefits that are fresh breath and killing
germs; whereas, Plax was positioned around a new benefit as a plaque fighter and claims Plax
removes up to three times more plaque than just brushing alone.
Consumer – Growing preference for benefit mouthwash, mouthwash market is increasing everyday;
Scope is known for taste and fresh breath, due to the market (consumer trend) is moving towards
health-related mouthwashes. It means consumer now focused on health benefits.
Legal/ Regulatory – The regulation of product-testing and labeling had increased in Canada. There
are some organizations like Health Protection Branch (HPB) and The Canadian Dental Association
(CDA); they have some requirements to pass their standard or nomination. For instance, P&G did
not have a clinical database to convince the HPB to allow Scope to extend these claims into the
prevention of inflamed gums (as Listerine does).
Industry/ Market Structure – Low-entry barriers for new competitors, hence, it shows a threat to
Scope. But also too many competitors in this industry; this shows a direct treat towards Scope.
a. Product Strategy
Scope basically is considered as product-oriented in the mouthwash marketplaces which are under
personal care - health care industry. In other words, Scope was the mainly primary product where to
serve on customers who helped to remove bad-breath protection. The product called; “Scope fights
bad breath. Don’t let the good taste fool you.” Scope became the market leader in Canada.
Furthermore, Scope is provided enhancement in term of taste; Scope are just not available in
original mint flavor (green), but also new flavors such as peppermint (blue), cinnamon (red), citrus
(orange), and new Scope White. See Picture A. Apart from that, entry of scope in product strategy
also positioned its products into long lasting of mint-tasting mouthwash product and refreshing
brand to attract customers purchase intention in first mover compared to others mouthwash products,
significantly, it shows that Scope has capable to compete with others similar mouthwash products in
health care line.
b. Price Strategy
Scope is implementing price penetration strategy to launch its superior products to specific
countries. The pricing indicates the location of stores derived from food and drug stores
significantly. The prices of Scope are slightly lower in food store as compared to drug store due to
the numbers of users and the effectiveness of advertising significantly. In other words, the prices set
by Scope are based on the countries itself whereby the numbers of buyers and customers
preferences have bring the great impact on products pricing.
c. Channel Strategy
Scope significantly holding their market share through several distribution channels whereby their
Scope products will be displayed on food stores, supermarkets, drugstores. Primarily, wholesaler
Clubs (Price Club) also tend to be carried Scope products in order to strengthen the market share
through different distinctive places. Needless to say, food store has highlighted the attraction of
using Scope to mouthwash functions after having dishes. Whereas, Drug stores also another
effective distribution channels where, it get rid of those drug seekers bad breath after drug.
d. Communication Strategy
Scope communication strategy can be divided into two, which is, advertising and sales promotion.
Scope is perceived customers attention by advertising focused. Scope has a strong invest on
Television advertising and advertisement. TV advertisement target mass of audience and it focused
on the main product benefits of Scope. For instances, “Scope fights bad breath. Don’t let the good
taste fool you.”
Scope’s sales promotion is Free Samples of Scope mouthwash, Scope used free sample is to make
consumers try the new product and increase sales among the users as well as attract new consumers
to buy Scope new product. Furthermore, Scope also used Mailed couponing to attract more
consumers and gain market share. It means, when you sign up a member of P&G- Scope; you will
receive exclusive offers. Nevertheless, In-store Promotion is also one of the important promotion
tools for Scope. The point of using in-store promotion is that the product needs to be seen by
consumers, but also directly attract customer’s attention. Nonetheless, by using in-store promotion
Scope can easily attracting new consumers. This is for sure.
Scope had applied the market penetration strategy, by applying this strategy Scope no effort to be
wasted in researching possible opportunities. Scope target market will be fresh breath, while major
competitor – Plax is focused on health benefit. Therefore, Scope spend more aggressive on
advertising and add new flavor; such as, citrus, peppermint, cinnamon and new Scope White with a
high-quality product.
We would not recommend Scope continuously engages market penetration strategy; due to the
market share for Scope has declined. Growth opportunities will either come from new products and
benefits or taking market share from competitor. Therefore, suppose Scope will do nothing there is
a possibility to lose market share in the next few years indeed.
Scope has engaged new-offering development strategy – launching a line extension. Which is new
flavored mouthwashes and “pre brush” rinse product, due to Scope believed it will maximize
profitability of the Scope’s brand. Scope also lowering its prices on Scope for attract consumer to
buy Scope’s product.
Yes, in most ways than not, I would strongly recommend Scope to implement new-offering
development strategy to satisfy customers wants. The major reasons are the market share for Scope
has declined in last year and the industry seems to be maturing. The new product could be launched
by using the Scope brand name. Scope is a well-known brand on the mouthwash market. Scope can
Scope does not have adopted this strategy. We not recommended Scope to adopt this strategy; due
to diversification is often a high-risk strategy because both offerings and market served are new to
the Scope. And diversification should not be introduced because it could not only incur a high of
capital and marketing costs but also cause confusion to the consumer.
The decision tree shows that the highest profits (expected of profit $2 million) will result if Scope
new offering-development strategy is enacted and competitors react passively. Introducing a
product line extension and product innovation under the current Scope brand name is the best
strategic option. This will enable P&G achieve profit positions and reap the benefits of their
establish brand name from different consumer needs, without losing traditional Scope brand and
market share. For the most important, the new product Scope launch should offer more benefits/
unique then the competing mouthwashes to build incremental purchases! For instances, offer
multiple benefit such as; prevents cavities, prevents gingivitis, reduces bad breath, germ killing
ingredients, plaque removal as well as good taste fool you; that is 6in1=Scope.
Marketing expenses
Advertising 3,559 3,455 3,355
Sales Promotion 3,057 2,968 2,881
Total Marketing Expenses 6,616 6,423 6,236
*We estimated that Scope total units sold will increase 1,000units starting from 1990. Refer (Appendices)
*We estimated that Scold price per will increase 2percent for every year starting from 1990. Refer (Appendices)
*Labor costs will reduce due to the advance of technology.
*We estimate that for every year Scope’s Fixed Cost will increase 2percent; starting from 1990. Refer (Appendices)
*We estimate that for every year Scope’s Special Budget of Marketing expenditure will increase 3percent starting from
1990. Refer (Appendices)
Yes in most ways than not, but we say YES that Scope not doing the right thing. Based on the case
we know that consumer trend is moving towards health-related mouthwash but Scope only offers
great-taste and mouth refreshment. Besides, Plax-competitor entered the market positioned around a
new benefit - plaque fighter and focused on health-benefit. And this leads the market share for
Scope has declined. Also, Scope does not enough make a distribution channel. Hence, growth
opportunity will either come from new products and benefits. So, Scope management need a change
and they need to take a decision from their available alternative in order to achieve the market share.
Based on the case it shows that Scope are not doing things right. Because Scope’s product
development/ R&D not able to develop or offer a new product which is work better than what the
competitor do- Plax. Hence, before Scope launch a new product, Scope’s R&D needs to understand
the market very well what the current market trends, what the competitor do and just decides or
choices the best ways which can help Scope to gain more profit and remain as a market leader share
among competitor.
5.3) Recommendations
We recommend that Scope should take the same familiar taste in combination with ingredients to
obtain health benefits in their new offering by used the new offering-development strategy in order
to meet the needs of the other customers. And we strongly recommend Scope used the new
offering-development strategy. That is introducing of a new product that offers more benefits under
same brand name.
First and foremost, P&G should attempt to gain the seal of approval from Canadian Dental
Association. This would help increase sales due to; the market is shifting more towards health-
related issues. For instance, Scope could add germ killing additives that reduces plaque and apply
for a CDA approval seal.
Nevertheless, Scope should also distribute this new offering product to food stores, drug stores and
wholesale clubs. But, Scope should be an increased effort to have strong sales in the drug store. Due
to, around 65percent of mouthwash sales through drug store, consequently, by increasing in the
drug store, Scope has a great potential to increase the sales indeed.
Moreover, Scope should need to explain, inform, persuade the market to buy Scope’s new offering
product through communication channel such as advertise the new offering through TV, radio and
Print Ads. But also, demonstrate the product in major drug store chain, sample, contest, and coupon.
The main purpose is to make consumers try the new offering and increase the sales of the current
users as well as attract new customers to buy this new offering.
Breathe easy with new products that help eliminate garlic and onion-breath. Scope introduced its
latest collection of products featuring new Dual-Blast technology, which helps eliminate strong
food odors, especially onions and garlic, while killing bad breath germs. Scope Dual-Blast
mouthwash helps give consumer the confidence to enjoy favorite foods without having to worry
about bad breath (Picture B). Besides, that has two flavors under Scope Dual-Blast mouthwash
which are Fresh Mint Blast and Icy Mint Blast.
One of the Scope’s latest development products is their Scope Outlast Minibrush (Picture C). The
unique brush requires no water consequently; you can have fresh breath whenever you need it. The
small brush contains Scope Outlast gel. The brush features are high quality bristles, it can also be
used as a tongue brush and includes an interdental pick. Therefore, the minibrush is perfect for after
lunch, dates and before meeting or other social events.
Scope Outlast breath mist, long lasting peppermint and mint is the flavor. It is fresh breath any time;
it is fat free and sugar free. Scope Outlast Breath Mint uses the same Outlast technology as Scope
Outlast Mouthwash to deliver a refreshing blast of Scope flavor. The convenient bottle easily
attaches to a keychain and stashes away in your purse, luggage, or pocket for kissable, fresh breath
on the go (Picture D).
Reference
Cravens, D.W; Lamb, C.W.Jr. and Crittenden, V.L., (2002). Strategic Marketing Management, Cases, 7th
Edition, Mc-Graw Hill & Irwin.
Scope, Courage encouraged, Portal & Gamble (2012). Online Available: http://www.scopemouthwash.com/
Scope, Product Health and Wellness, Portal & Gamble, (2010). Online Available:
http://www.pg.com/en_CA/product_card/hw_scope.shtml
Appendices
Appendices - Budgeting
Scope units sold in 1990 were 440,000 and Sales per unit were $44.10
YEAR Ingredient YEAR Packaging YEAR Manufacturing YEAR Delivery YEAR Miscellaneous
1990 10.71 1990 5.4 1990 3.5 1990 3.12 1990 0.64
1991 10.9242 1991 5.508 1991 3.57 1991 3.1824 1991 0.6528
1992 11.1427 1992 5.61816 1992 3.641 1992 3.246 1992 0.665856
1993 11.3655 1993 5.73052 1993 3.714 1993 3.311 1993 0.67917312
1994 11.5928 1994 5.84513 1994 3.789 1994 3.3772 1994 0.692756582
1995 11.8247 1995 5.96204 1995 3.864 1995 3.4447 1995 0.706611714
1996 12.0612 1996 6.08128 1996 3.942 1996 3.5136 1996 0.720743948
1997 12.3024 1997 6.2029 1997 4.02 1997 3.5839 1997 0.735158827
1998 12.5485 1998 6.32696 1998 4.101 1998 3.6556 1998 0.749862004
1999 12.7994 1999 6.4535 1999 4.183 1999 3.7287 1999 0.764859244
2000 13.0554 2000 6.58257 2000 4.266 2000 3.8033 2000 0.780156429
2001 13.3165 2001 6.71422 2001 4.352 2001 3.8793 2001 0.795759557
2002 13.5829 2002 6.84851 2002 4.439 2002 3.9569 2002 0.811674749
2003 13.8545 2003 6.98548 2003 4.528 2003 4.0361 2003 0.827908243
2004 14.1316 2004 7.12519 2004 4.618 2004 4.1168 2004 0.844466408
2005 14.4142 2005 7.26769 2005 4.711 2005 4.1991 2005 0.861355737
2006 14.7025 2006 7.41304 2006 4.805 2006 4.2831 2006 0.878582851
2007 14.9966 2007 7.5613 2007 4.901 2007 4.3688 2007 0.896154508
2008 15.2965 2008 7.71253 2008 4.999 2008 4.4561 2008 0.914077598
2009 15.6024 2009 7.86678 2009 5.099 2009 4.5453 2009 0.93235915
2010 15.9145 2010 8.02412 2010 5.201 2010 4.6362 2010 0.951006333
2011 16.2328 2011 8.1846 2011 5.305 2011 4.7289 2011 0.97002646
2012 16.5574 2012 8.34829 2012 5.411 2012 4.8235 2012 0.989426989
2013 16.8886 2013 8.51526 2013 5.519 2013 4.9199 2013 1.009215529
2014 17.2264 2014 8.68556 2014 5.63 2014 5.0183 2014 1.02939984
2015 17.5709 2015 8.85927 2015 5.742 2015 5.1187 2015 1.049987836
Fixed Costs
Fixed Costs
YEAR General Office YEAR Manufacturing YEAR Miscellaneous
1990 1366 1990 1540 1990 841
1991 1393.32 1991 1570.8 1991 857.82
1992 1421.1864 1992 1602.216 1992 874.9764
1993 1449.610128 1993 1634.26032 1993 892.475928
1994 1478.602331 1994 1666.945526 1994 910.3254466
1995 1508.174377 1995 1700.284437 1995 928.5319555
1996 1538.337865 1996 1734.290126 1996 947.1025946
1997 1569.104622 1997 1768.975928 1997 966.0446465
1998 1600.486714 1998 1804.355447 1998 985.3655394
1999 1632.496449 1999 1840.442556 1999 1005.07285
2000 1665.146378 2000 1877.251407 2000 1025.174307
2001 1698.449305 2001 1914.796435 2001 1045.677793
2002 1732.418291 2002 1953.092364 2002 1066.591349
2003 1767.066657 2003 1992.154211 2003 1087.923176
2004 1802.40799 2004 2031.997295 2004 1109.68164
2005 1838.45615 2005 2072.637241 2005 1131.875273
2006 1875.225273 2006 2114.089986 2006 1154.512778
2007 1912.729779 2007 2156.371786 2007 1177.603034
2008 1950.984374 2008 2199.499221 2008 1201.155094
2009 1990.004062 2009 2243.489206 2009 1225.178196
2010 2029.804143 2010 2288.35899 2010 1249.68176
2011 2070.400226 2011 2334.12617 2011 1274.675395
2012 2111.80823 2012 2380.808693 2012 1300.168903
2013 2154.044395 2013 2428.424867 2013 1326.172281
2014 2197.125283 2014 2476.993364 2014 1352.695727
2015 2241.067788 2015 2526.533231 2015 1379.749641
Marketing Spending