Case Analysis

GROUP 1
1.MAS ARINAH HAMZAH GM05143 2.SITI SARAH BT MOHD ZAIHAN GM05124

3.ELANSELVI ARUMUGAM
4.WONG YUNN LAI

GM04909
GM05097

Case Summary
Scope came to be one of the well-known brands in mouthwash industries, it represent P&G's Company. P&G Canada has 5 operating divisions which are :Paper Product, F&B, Beauty Care, Health Care and Laundry. Ms. Gwen Hearst is the Brand Manager in Healthcare division who is also responsible in maximizing the market share, volume and profitability of the brand.

Until the entry of Plax, it has give major impact to the Canadian Mouthwash Market Shares where they claimed to be the "plaque fighter" whereas Scope only claimed to "fights bad breath".
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Competitors Products

Problem Statement
New Competitors coming in (Plax) - Classified as primary problem. By the entry of Plax, they have gained 10% of market share in just short period of time, this has gave a bad impact to Scope. Low Market Shares in United States - Classified as secondary problem. Based from the table given in the case, Scope has made a record of second highest for U.S and not highest as in Canada. In order to maximize the market share, Scope may have to come out with new strategy to increase the market share.
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Case Analysis
Scope held a 32 percent share of the Canadian mouthwash market for 1990. Scope needs to compete with its competitor which is Plax. Since its introduction in 1998, Plax had gained a 10 percent share of the product category (health care). Before the entry of Plax, brands in mouthwash market were positioned around two major benefits which are fresh breath and fighting gums. On the other hand, Plax were positioned around a new, different benefit which is as a plaque fighter.
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Case Analysis-Canadian Mouthwash Market

Until 1987, on a unit basis the mouthwash market had grown an average of 3 percent per year for the previous 12 years. However, in 1987 its experienced a 26 percent (New Flavors) It shows that customers respond to innovation. Customers respond to unique and different product. During the 1980s there are major competitive changes in the Canadian mouthwash market (fights plaque, new flavors etc)
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Case Analysis-Current Situation

In 1990, 75 percent of Canadian household used one or more mouthwash brands. Average usage was three times per week for each adult household member. Users could be segmented on frequency of use ( heavy, medium, light) Consumer Perceptions on brand image (Reduces bad breath) Scope is priced slightly below the index in food stores (98) and about 16 percent below in drug stores(84)
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Case Analysis-Current Situation

Canadian mouthwash market share for Scope (Average 1990):
Food

42%

58%

Scope Competitors

Case Analysis-Current Situation

Canadian mouthwash market share for Scope (Average 1990):
Drug

27% Scope 73% Competitors

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Case Analysis
In United States (1989) Scopes market share is only 21.6 percent. It is lower compared to its competitor which is Listerine. Plax Cepacol Listermine United States Canada

Listerine
Scope 0% 10% 20%
1130%

40%

Case Analysis-Current Situation

Different regulations in Canada and Unites States. Marketing plan by Gwen Hearst:
Line extension using Scope name Line extension without using Scope name Add plaque fighting benefit to Scope Doing nothing

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Case Analysis-Current Situation

In order to develop a good marketing plan, Gwen Hearst should consider all of these characteristics:
Executive Summary Table of Contents Situation Analysis Marketing Strategy Financial Projections Implementation Controls

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Strategic Alternatives
1.Line extension-same brand name
Scope could introduce a new product that offers medical benefits, as well as a fresh breath and a good taste. The new product could be launched by using the Scope brand name.

Scope is a well-known brand on the mouthwash market.

This should help attract consumers - bought mouthwash from an other brand which did not provide the benefits that they would have liked to have.

Introducing a new product under the current Scope brand name is the best strategic option.
This will enable P& G to reap the benefits of their established brand and profit from the new consumer needs, without losing their traditional Scope brand and market share.
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Strategic Alternatives
2.Promotion and Advertising for current products
Advertising and promotion like use of the media can expand the brand names
Act as a medium to attract the customers buying the products. Free samples - attached with the current Scope mouthwash. objective is to make consumers try the new product and increase sales of the current users as well as attract new consumers to buy this new product.
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Strategic Alternatives
3.Product development
new product under a different name - creates the possibility of a very different brand positioning would not be related to the current Scope, which enables the possibility for a completely different marketing strategy and approach. The downside of this option is that the new introduced brand will have to build everything up from zero again This will mean more advertising costs and it will take time before consumers accept the product in the market.
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Recommendations

Launch a new line extension (new product) under Scope name, to compete with Plax.

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Plans of Action
Short term: To create consumers awareness on new product in the market by having advertisement and promotion. Medium term: To expand the mouthwash market shares with the new product, especially focus more on sales in drugstores.

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Plans of Action
Long term: Plaque fighting reassurance, through clinical results with stringent test methodology.

Strive to gain seal from both Canadian and American Dental Association.

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Contingency Plan
Advertising, promotion to attract the customer Example : T.V Commercial (Reduces bad breath)

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