Procter and Gamble Inc
P & G Case study Nithesh Agarwal
Background and Problem Definition: Scope is mint-tasting mouthwash is one of the leading brands of Procter and Gamble Inc with 32% market share in 1990s & thus was the market leader in Canada. Plax was introduced in Canada in 1988 on a different platform from the traditional mouthwashes and had gained 10% market share by 1990. Plax is the only player in the market segment of plaque fight. Generally, Canadian mouthwash market was growing at an annual rate of five percent & Hearst (Brand Manager for Scope) was worried about this challenge and from other like products
Since Scope is not operating in plaque-fighting segment, key issue is to maintain profitability of Scope and develop a strategy for Procter and Gamble to enter this market segment and to fight Plax.
Industry and Market Analysis:
Scope took leading position in the market in a small time frame mainly because it offered great taste beside bad breath protection and thus was the reason behind its success in food store rather than drug stores and following points can summarize the current market
It is a mature market where sales were increasing but at a decreasing rate
Market still large enough to warrant interest
Market responds to innovation (ex. flavored mouthwashes, pre-brush rinses)
Overall 65% of sales were in drugstores & 35% in food stores but Scope sells better in food stores vs. drugstores which points to how consumer views the brand (good tasting but not health-related)
Retailers are the key distribution channel and competition for shelf space is increasing
P&Gs reputation and existing retail networks would support new initiatives