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 analysis
STRENGTHS

• 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

Units
Brand / Year 1988 1989 1990
Scope 33.0% 33.0% 32.3%
Listerine 15.2 16.2 16.6
Listermint 15.2 9.8 10.6
Cepacol 13.6 10.6 10.3
Colgate oral rinse 1.4 1.2 0.5
Plax 1.0 10.0 10.0
Store brand 16.0 15.4 16.0
Miscellaneous other 4.6 3.9 3.7
Total 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

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

• 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