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 mouthrefreshing 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 1988 33.0% 15.2 15.2 13.6 1.4 1.0 16.0 4.6 100% $60.2

Brand / Year Scope Listerine Listermint Cepacol Colgate oral rinse Plax Store brand Miscellaneous other Total Retail sales (000,000)

1989 33.0% 16.2 9.8 10.6 1.2 10.0 15.4 3.9 100% $65.4

1990 32.3% 16.6 10.6 10.3 0.5 10.0 16.0 3.7 100% $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, ProHealth 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 12hour 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 Reduces bad breath Kills germs Removes plaque Healthier teeth and gums Good for preventing colds. Recommended by dentists Consumer Perceptions of Brand Images table Cepacol + + … + + Colgate … + + + Listerine + + + + + + Listermint + Plax + + Scope + … -

+ = 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