Proctor and Gamble Scope Case Analysis 1) What significant changes have occurred in the Canadian mouthwash market in the past three years? The mouthwash market had grown on an average increase of 3% per year for 12 years. Then in 1987, with the introduction of new flavors it shot up 26%, and after that it continued at a steady increase of 5% per year. Originally, Listerine was the market leader. It positioned itself as a germ killing mouthwash that eliminated bad breath. Scope was introduced in 1967 as a green, mint-tasting mouthwash that was mouth refreshing and provided bad breath protection. Scope branded itself not only protection to bad breath, but also that it tasted better than the other mouthwashes available. Competitors of Scope …show more content…
In food stores, Scope held a 42% market share, whereas in drugstores, it only held a 27$ market share. This is significant because drugstores are where 65% of mouthwash sales come from, and only 25% of sales come from food stores. Scope is priced slightly below average at food stores and 16% below average at drugstores. Listerine and Listermint are priced above average at food stores and slightly below average at drugstores. Overall, Scope has a strong presence in the market for mouthwash. It has the leading market share in the Canadian market. Consumers that purchase Scope do so because it is better tasting than other mouthwashes that prevent bad breath. Scope excels in food stores, but has room to increase sales in drugstores because that is where most mouthwash purchases occur. With the introduction of Plax, Scope’s market share could potentially be threatened. The market is shifting towards health related benefits of mouthwash and not just fresh breath and good taste. 3) What are the pros and cons of the options available for Scope? A) Do nothing: One option available for Scope is to remain status quo. Scope is already the leading market shareholder in mouthwash in the Canadian market. The cost of Scope is below market averages and is already perceived as a quality product. Two of the most important reasons for consumers to buy a mouthwash include to get rid of bad breath and that it
So her specific task was to prepare a marketing plan for P&G mouthwash business for the next 3 years. In preparing the 3 year plan for Scope, a team has been formed within P&G to examine various options, the team included individuals from product development, manufacturing, sales, finance, market research and advertising operations. The team was faced by two options that are: 1- Launching a new line extension positioned against Plax as a recent entry into the market. 2- Looking at claims other than “breath” that might be used by scope such as plaque reduction.
From a value versus performance perspective, ErgoClean’s dental instrument balances the two categories making it an economical choice while not compromising performance. Competitor, LM, leads ErgoClean on performance, but as the more expensive choice, it becomes less desirable. Hu-Friedy is at a very similar price point as ErgoClean, but trails behind in performance. American Eagle’s position is not a threat to ErgoClean since it is at a much higher price point but the performance does not match the price. Comparing function versus convenience of the products, most competitors fall into a similar location the perception map. ErgoClean falls slightly behind LM, but overall factoring in the value versus performance map, ErgoClean remains the superior choice. The performance versus value and function versus convenience perception maps can be seen in Figures 2.7.1 and
Information and surveys showed that 75% of Canadian household use 1 or more mouthwash brands. The company’s market research revealed that users could be segmented to 'heavy' users that comprised 40 % of all users and to 'medium' users that comprised 45% of all users and to light users that comprise 15%.
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
It featured the artwork of Norman Rockwell and carried the theme, “Look, mom — no cavities.” (Kramer, 2007) What really reinforced their brand equity was in 1960, when the American Dental Association gave them a third party validation. This gave way to Crest becoming the leader in toothpaste in the United States. For over 50 years Crest states that they were the leader in dental health, providing healthy and beautiful smiles across the country. (Crest Corporate, n.d.)
From all indications the competition, Cepacol, Listerine, Listermint, and Plax are on the verge of eating away Scope's market share. This is based on Plax's two years run with the new claim of fighting plaque. The competitors see Plax's financial gains, market position as not only a threat but a viable marketing strategy.
The current market for retainer cleaning solutions primarily revolves around denture cleaners and select mouthwash solutions. These options are used for cleaning purposes and do not capitalize on the idea of flavoring the retainers, with the exception of Fresh Guard. Fresh Guard’s current offering provides a mint flavor for retainers. That would most likely appeal to an adult audience as research on kids’ palate preferences indicates that milder flavors are more popular with kids (5 Popular Kid’s Toothpastes, 2014). By adding flavors that kids prefer to retainers, Teeth Treat hopes to incentivize younger retainer users to actively maintain their oral health. The flavor would be added to the retainer in the daily cleaning process. Instead of soaking the retainer in denture cleaner, the retainer would be soaked in Teeth Treat. In addition to cleaning and flavoring, this process would help extend the life of the retainer by keeping it moisturized (Downshen, 2013). It would also simplify the cleaning process by removing the need to brush the retainer after soaking. A quick rinse after soaking would be all that is needed for
I believe in maintaining proper oral hygiene care for not only myself but also for my children. When it comes to the products we use however, I prefer to use more environmentally friendly products. That is why it is with great pleasure that we announce our ambassadorship with hello products. If you have not tried hello before, then I have to ask, what are you waiting for? I was first introduced to hello products about 2 years ago when my daughter Krxssy featured their breath sprays and mouthwash. I was intrigued by their message and also their packaging and since then we've been a fan, because not only are they naturally friendly, they're delicious as well!
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
Renaming “breath strips” to “Cooling Crystals (珠子)”, meaning “pearl”, facilitates consumer understanding of the new product feature, a must-have. Increasing sophistication and popularity of new flavors mean that Colgate needs to create new flavors, in particular flavors like tea that fit into consumers’ tastes (Zhou, 2014) and competes directly with Crest Tea Fresh, in order to appeal to consumers and hence improve product acceptance and shelf-life. The cost of flavor-testing had only marginal impact on profits (0.985% of sales, Table 2), but 32 weeks taken for flavor development may mean a later launch date; we argue that it pays to be differentiated in urban markets (Niraj, Dawar and Chattopadhyay, 2002), which holds CMF’s target market of middle class consumers. Hence, the investment to create new flavors are a must-have. However, while spending $7,000 to test “10 different shades of yellow” is minute for Colgate, 4 weeks will delay product launch; with quality only marginally enhanced, it is only a nice-to-have. Producing 3 sizes (50g, 100g, 165g), including a small 50g size, is a typical emerging market strategy catering to consumers with lower ss who tend to experiment with smaller sizes, hence it is a must-have. However, the clear “stand-up tube” to convey CMF’s aesthetics, while attractive to consumers, may not be feasible due to the high cost (11.35% of sales, Table
Context: In 2009, India was the world’s largest democracy; with a population of 1.16billion growing at 1.4% per annum, the country suffered from a huge disparity in income with the majority of Indian population (78%) living in rural areas, and as many as 80% living under $2 per day. The 78% who lived in rural areas accounted for c. 64% of total expenditures in India. Around 50% of the Indian population did not have sufficient awareness of dental healthcare, and did not associate dental problems with improper care but rather to eating habits or genetics; most of these Indians were using natural remedies as chewing twigs from the Neem tree. Among the remaining population who used modern dental healthcare or a toothbrush, 77% brushed their teeth less than twice a day (recommended usage), and out of the 747.1million brushes sold every year, only 8.6% replaced their brush every 3 months. Cottle-Taylor (CT) enjoyed a large market share in India and focused on toothbrushes. Given the peculiarities of the market, CT decided to focus on toothbrushes where it enjoys larger gross margins by virtue of its existing manufacturing infrastructure that has been built over the years.
When asked about the awareness level of different brands of oral care products the Colgate and Close-up are the ones that have highest recall value and come instantaneously and it is followed by Pepsodent, Oral B and Vicco
Thus the market share of the three market leaders is primarily being eaten by Sensodyne. Even P& G is coming up with Crest which has been a huge success in U.S. Companies like Johnson and Johnson, Gleker Pharma,Wrigley India are introducing niche products like chewing gums, mouth
brand Close-Up has a market share of 17% and Pepsodent 11%, according to AC Nielsendata. Dabur is enjoying 10% market share.From past few years the toothpaste market is restructuring & market share of differentplayers are changing. Since 2007-08, analysts said HUL has lost 8-10% market share in oralcare.Market is likely to see a few key launches in the toothpaste segment this year.Procter & Gamble (P&G) is set to throw another gauntlet at Colgate-Palmolive andHindustan Unilever (HUL). The company plans to launch its global toothpaste brand Crest atan aggressive price point this year.As and when P&G introduces Crest in India, it will entail price competition as well as heavybrand investment in the category from all the players, in our view. It will put the market shareand margins of Colgate under pressure. Colgate will need to sustain its higher-than-industryad spends to protect its turf.The consumer products arm of Johnson & Johnson (J&J) may launch toothpaste under theListerine umbrella, while GlaxoSmithKline (GSK) Consumer Healthcare may relaunch itsAquafresh brand, phased out a few years earlier. GSK had launched Sensodyne toothpastelast year. A mass-market toothpaste product is what is missing at the moment, which GSKwill plug with the relaunch of Aquafresh. Kishore Biyani 's Future Group is also entering
When scope was introduced initially, it aimed and focused at providing people improvement for fresh breath. Scope therefore had highest market shares. But with the passage of time, competition was given to Scope by some existing brands and newly introduced brand products. Plax followed by Listermint and Colgate were giving tough competition to Scope in past three years by gaining their value more in mouth-wash market shares. Especially after the introduction of Plax pr-brush mouth-wash.