CASE: Procter and Gamble, Inc ( Canada).: Scope

The introduction of P&G Co.

Procter & Gamble Co. have large company markets around the world. There are

many brands name under P&G Co. and their products can be found in more than 140

countries in the world. Scope brand of mouthwash product are one of them.

Their purpose are to provide branded products and services of superior quality and

value that improve the lives of the world's consumers for now and next generation. From

that, they can get reward from customer for leadership sales and leading brand name in

market.

It has 5 main operating division that organized by product category. They are Paper

product, Food& beverage, Beauty care, Health care and Laundry &cleaning.

The introduction of Scope

This mouthwash product has been around for well over hundred years. It has good

reputation as notable brand that kills the germs that cause the bad breath. It also can be

successful although it not as old as Listerine product in mouthwash market.

Scope products have serves same function like another mouthwash product but it has

been proven to kill more germs. Otherwise it also well knows as bad breath remedy.

Scope product are just not available in original mint flavor (green), but also in a citrus

(orange), peppermint (blue), cinnamon (red) flavors & new Scope White. Its major

competitor in mouthwash market is a Listerine brand.

Define Problems

From the case, there are two main problem that has be faced by Scope brand from Procter

and Gamble Company.

The first is a how is the way for P&G to develop a strategy that would ensure the

continued profitability of scope in the face of these competitive threats? This mean that their

old strategies are not suitable with the customer needs. The innovations from other brand

competitors make their brand are decrease in customers satisfaction.

The second is a how to maintain their profit and make sure the Scope brand is always

be the 1st in mouthwash product ranking? This means that the Scope ranking is decrease

from the first choice to second choice of customer. Listerine be the popular and the first

choice of customers.

ENUMERATE THE DECISION FACTORS

Two sets of decision factors must be enumerated in the decision-making process is

alternative courses of action and uncertainties. Alternative courses of action are controllable

decision factors because the decision maker has complete command of them.

Uncertainties are uncontrollable factors that the Protect & Gamble, Inc. cannot influence.

For the alternative courses of action, Procter and Gamble, Inc. will provide product of

superior quality and value that best fill the needs of consumer which is one of their procedure

and strategy. So, Protect & Gamble, Inc. is one of the most successful consumer goods

companies in the world. The company market its brand in more than 140 countries and had

net earnings of $1.6 billion in 1990. In product test on Scope, Scope reduced plaque better

than brushing alone because of antibacterial ingredients contained in Scope.

Scope a green, mint-testing mouthwash, was positioned as a great-testing and mouth-

refreshing brand that provided bad-breath protection. It was the first brand that offered both

effective protection against bad breath and a better taste than other mouthwashes. Protect &

Gamble, Inc also launching a line extension because they believed it’s will maximizing

profitability of the Scope’s brand. They also lowering it’s prices on Scope for attract the

consumer to buy Scope’s product.

The uncertainties are consumer perception of the brand images. Nonusers currently

don’t buy mouthwash because they don’t believe they get bad breath and they believe that

brushing their teeth is adequate. The product innovation from other competitors is one of the

challenges for Protect & Gamble, Inc like Listerine and Plax. Beside that the influence of the

environmental factor such as now consumer more like use gums and mint for refreshing their

breath.

SWOT analysisSTRENGTHS

• Scope was long experience in the oral hygiene industry since 1967.• The taste or flavor of Scope better than other mouthwashes.• High-quality product, quality processes and procedures. • Have a first rating in mouthwash market share.

WEAKNESSES• Not enough make a distribution channel.• Lack of canning or packaging.• Undifferentiated products or services with other competitor.

OPPORTUNITIES• Brand which it concentrate for a healthy oral.• Move into new market segment that offer improves profit.• A developing market such as in the Internet. • Place more distribution channel such as more drugstore and food store

THREAT• Too many competitor in this industry.• Price wars with other competitor.• Not patentable , competitor can attempt to duplicate a product

Canadian Mouthwash Market Shares

UnitsBrand / Year 1988 1989 1990Scope 33.0% 33.0% 32.3%Listerine 15.2 16.2 16.6Listermint 15.2 9.8 10.6Cepacol 13.6 10.6 10.3Colgate oral rinse 1.4 1.2 0.5Plax 1.0 10.0 10.0Store brand 16.0 15.4 16.0Miscellaneous other 4.6 3.9 3.7Total 100% 100% 100%Retail sales (000,000) $60.2 $65.4 $68.6

According to Canadian mouthwash market shares, scope was have a first rating in

mouthwash market share in 3 years. There is 33.0% in 1988 and 1989, 32.3% in 1990. While

under the Scope is Listerine, followed by Listermint, Cepacol, Colgate oral rinse, Plax, and

others.

Consumer Perceptions of Brand Images

For the consumer perception of brand images, attributes of Scope has many scores lower than

average. That’s means Scope has reduced bad breath only than other product which more

better perception from consumer such as Listerine, which this brand can reduces bad breath,

kill germs, removes plaque, healthier teeth and gums , good for preventing colds and most of

the dentist recommend this brand.

IDENTIFY THE BEST ALTERNATIVE:

Create a product extension and innovation

As we know, P&G had created a mouthwash product called Scope. The function of

the Scope emphasizing more to reduces bad breath rather than kills germs, removes plaque

and to have healthier teeth like others mouthwash products. In order to sustain their

credibility as a good healthcare product, P&G should come out with new product which is

more functioning and innovative.

An innovation could be implemented by trying to create a new dimension of

performance which includes the process of making an improvement of the product available.

For examples; produce a product that closely functioning like a mouthwash products such as

dental gums. Dental gums are promoted to reduced plaque, whiten teeth, and reduce the risk

of tooth decay.

Unlike a mouthwash product, chewing gum is associated with increased salivary flow

which apparently produces a beneficial buffering effect against acids in the oral cavity.

Actually these products are not present to be a substitute to the others oral hygiene products.

It is another healthcare product which is easier for those who are unable to brush their teeth.

Instead of that, P&G had implementing a product extension which is versions of the

same parent product that serve a segment of the target market and increase the variety of an

offering. For examples in November 2004, P&G come out with their new mouthwash

product called Crest Pro-Health which present as their product extension. This product is in

the same product category of the mouthwash products. The effort is intended to draw

Listerine users who've resisted P&G's Scope.

Crest Pro-Health Rinse will be positioned as a germ-killer. Unlike Listerine, Pro-

Health does not use alcohol. More function has been added to meet the customers demand

with the improved mouthwash formula. Crest Pro-Health Rinse is effective against a broad

range of bacteria commonly associated with plaque and gingivitis which it is provides 12-

hour protection. Thus, it gives customer greater choice besides it can helps to protect the

company against the competitors.

Develop a plan for implementing the chosen alternative

Establish a R& D (research and development) group which able to make a new innovation of

Scope products

To form a research group (means to have a research group which will do market research and

analysis on their product as well as comparison with other products) who can improve the

existing product and can develop a market research or analysis.

Improving production by upgrading Technology

Usage of latest technology for enhancing the production, like using computer operated

machineries which are fully automated.

Brand building and better marketing strategies;

Based on the reports given by research team, better methods like advertisement to thru

media, increasing the production and presenting it to the market broadly, taking stock of the

products movement in the market, taking feedbacks from the customers or vendors and

improvement.

Advertising and promotion like use of the media can expand the brand names;

Use magazines, radio, television, newspaper or internet.

Act as a medium to attract the customers buying the products.

Involve providing the information.

Helps to reach a wide audience effectively.

Creates awareness.

Build customer trust.

Act as a non-personal promotional efforts

Evaluate the decision

• Was a decision made?

Yes, the decision was made as u can see the comparison between Listerine and

Scope at Consumer Perceptions of Brand Images table, scope have a lower average

so we must make sure the percentage is increase by do some change and develop a

plan for implementing the chosen alternative.

Attributes Cepacol Colgate Listerine Listermint Plax Scope

Reduces bad breath + - + + - +

Kills germs + … + - - …

Removes plaque - + + - + -

Healthier teeth and

gums

… + + - + -

Good for preventing

colds.

+ - + - - -

Recommended by

dentists

+ + + - - -

Consumer Perceptions of Brand Images table

• Was the decision appropriate, given the situation identified in the case setting?

Yes, the decision was appropriate. As u know that the Listerine has done this and

grown up by doing this in the last few years. Examples can be cited from cross

functional industries where investment in marketing the product has proven

successful like Pepsi, Sony, Nokia, etc

(…) = scored about average(- ) = scores lower than average+ = scores higher than average