Scope Case
Advanced Marketing Case Analysis P&G Scope Group members: Li Ning Shi Yu Shi Peirui Chen Bin Fu Bei Jiang Yuhong 1. ... Mouthwash market experienced a 26% increase with the introduction of new flavors such as peppermint by a number of brands including Scope, Listermint and various store brands. ... 2 million in 1990 1990 Plax held a 10 percent share of the total market, threatening other brands, like Scope etc; As indicated by survey in 1990, 75 Canadian households used one or more mouthwash brands, and on average, usage was three times per week for each adult household member. Plax had achieved a strong image on the ¡°remove plaque/healthier teeth and gums¡± attributes; As indicated by survey, total media spending of all brands was $5 million, with Scope , Listerine, and Plax accounting for 90% of all advertising; As indicated by survey, both Listerine and Plax were priced at a higher level in food stores, and Plax was priced at a premium in drugstores. 2, how would you evaluate the performance of Scope over the past three years? Scope has been a major brand in health care division of P&G. In the past three years, Scope was doing pretty well in the mouthwash market. In 1990, Scope held 32% share of the Canadian market and 22% in the US market. In general, Scope is a market leader in Canada. Distribution: Scope did well in food stores, but not enough in drug stores, which account for 65% of total mouthwash sales. ... Financials: profitability of Scope was high and stable with slightly increase in gross margin/unit. ... Alternatives Alternative 1 Adding Plague reassurance to current Scope without launching new product line Strategy: Keep Scope brand name instead of introducing line extension, advertisement emphasis still on ¡°better tasting¡±, but take efforts to apply for approval from various regulatory agencies to make customers realize that Scope fights plague as well. Pros: 1) A plaque reassurance on Scope prevent current users from switching 2) The above strategy offered similar efficacy with a better taste, so the Scope can sustain its competitive advantage in the long run. ... 4) Adding plague reassurance to existing products and emphasis on better tastes contributes to Scope¡¯s superior quality and value, so Scope can charge premium. 5) Reinforce the old Scope without introducing new line extension, so the company can concentrate on it and customers will not get confused, the conflicts between the old brand and new one can be avoided naturally. Cons: 1) Reassurance didn¡¯t seem to increase competitor user¡¯s desire to purchase Scope; this meant that it was unlikely to generate additional volume. ... 2) Retailers argue that a brand must be seen as different enough or unique from the competition to build incremental purchases, and Scope features better tastes which can distinguish it from other products.