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Assignment on

Proctor & Gamble Scope

Course code: MKT 202


Course Title: Principles of Marketing
Semester: Fall 2011

Prepared for

Bashir Hussain
Senior Lecturer
BBA Faculty

Prepared by
Ishan Debnath

(ID:1120608030)

Md. Iftakhayrul Islam

(ID:1120739030)

Muhammad Mosharraf Hussain

(ID:1121048030)

Abdullah Al Masud

(ID:1120303030)

Nazia Tarannum Ananna

(ID:1120836030)

School of Business
North South University
November 20, 2011

Table of Contents

Background.................................................................................................................1
Segmentation Method..............................................................................................2
Analysis of Target Market for Scope Mouthwash...................................................4
Positioning of Scope................................................................................................5
Marketing Mix.........................................................................................................6
Product.................................................................................................................6
Price.....................................................................................................................8
Place.....................................................................................................................8
Promotion............................................................................................................9
Conclusion...............................................................................................................9
References:............................................................................................................10

Proctor & Gamble - Scope

Background

Proctor & Gamble Co. is one of the leading consumer goods manufacturers in the world. By
maintaining superior quality for the products since its inception in
1837, it has built very good market share and reputation in more than
140 countries in the world. Renowned and popular brands like
Gillette, Head & Shoulders, Pantene, Scope, Pringles, Crest, Tide etc. are the products of this
company. As of July 1, 2011, the company's operations are categorized into two "Global
Business Units" with each Global Business Unit divided into "Business Segments" according to
the company's 2011 Annual Report. The segments are Beauty segment, Grooming segment,
Health Care segment, Snacks & Pet Care segment, Fabric Care & Home Care segment.

P&G has a dominant presence in Canada since its starting business in the country. One of the top
Brand of P&G in Canada is SCOPE mouthwash, which was introduced in 1967. It is a green
mint tasting mouthwash that provides bad breath protection. In 1970
Scope became the market leader in Canada and it held 32% share of
the Canadian market for 1990. There are some mighty competitors in
the market, such as Listerine, Cepacol, Listermint, Plax etc.

But

Original Logo

the major competitor for Scope was Plax, a brand by Pfizer Inc,
which was launched in Canada in 1988 on a platform quite different
from the traditional mouthwashes. The marketing plan of Scope

New Logo

mouthwash will be discussed in the following sections:

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Proctor & Gamble - Scope

Segmentation Method
Market Segmentation is a cornerstone of building successful and known marketing plans. It has
been done by using different segmentation policy and variables like Geographic, Demographic,
Psychographic and Behavioral. From the case, it can be seen that the Canadian mouthwash
market can be segmented mainly by behavioral trends. The segmentation model of the Canadian
mouthwash market is outlined below:
Geographical

Demographical

Behavioral

Country

Age

Usage Pattern
Benefits Offered
Frequency of
Use
Loyalty Status

Figure 1: Market Segmentation Variables

Geographic
The case is about mouthwash market in Canada. Though sales and usage of mouthwash depend a
little on country region, city or metro size, density or climate, these variables have not been used
during segmentation process.
Demographic
75% of the Canadian households use minimum one brand of mouthwash per week as mentioned
in the case. Though, it has not been mentioned about the usage of mouthwash by age, it can be
assumed that usage will vary among adults and non-adults. So, Adults and non-adults are the two
markets segments for Canadian mouthwash market
Behavioral
Usage pattern has been used as a segmentation variable in case of the subject market as some
people use mouthwash regularly on daily basis, some uses it weekly. So, the preferences and
choice set of the two groups vary. Those who use it regularly, grow a stronger brand preference
than the weekly users.
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Proctor & Gamble - Scope

In the Canadian mouthwash market, there are 4-5 dominant brands which offer different types of
benefits to the customer. Customers choose their brand after matching with his/her needs and
wants. Some wants combination of the benefits, for example, Scope offers great taste with
protection against bad breath whereas Listerine offers protection against bad breath and prevents
gingivitis and Plax offers removing of Plaque. The following table gives a view to the customer
Consumer Sought Benefits

Product Benefit Offerings

Market Segments

Part of Basic Oral Hygiene (40%)*

Reduces Bad Breath

Fights Bad Breath

Getting Rid of Bad Breath (40%)*

Kills Germs

Good Taste

Kills Germs (30%)*

Removes Plaque

Kills Germs

Good for Preventing Colds

Recommended by Dentists

Recommended by Doctors/Dentists

Removes Plaque

* According to the market research given in the case.

demands and subsequent product offerings satisfying those demands. These product offerings
leads to the market segments listed above. It can be seen from the table that the mouthwash
providing maintenance of basic oral hygiene satisfies the demand of 40% consumers who are
using mouthwash of any brands. So, different benefits sought by the consumer force the
manufacturers to develop products with different attributes which will in turn satisfy different
segments.

15
Heavy45

Medium

40
Light

The market can also be


segmented with usage rate variable, in the case it has been

Figure 2: Segmentation using


Usage Rate

said that in a market research it has been found that there are three types of users; Heavy Users
(once a day or more), Medium users (two to six times a week), Light Users (less than once a
week). The proportion of these three kinds of user is given in the figure 2.
By identifying loyalty status of the customers, segmentation can be done. Customers who have
low loyalty to any brand needs special attention whereas customers with high loyalty to any
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Proctor & Gamble - Scope

brand needs good retention strategy. Hence, marketing approach to the customers will be
different.

Analysis of Target Market for Scope Mouthwash


The mouthwash market of Canada was initially developed by Warner-Lambert with its pioneer
brand Listerine. It was targeted to the consumers who want to get rid from bad breath with
effective germ killing. It dominated the market until entry of Scope, the mouthwash from P&G.
Though Listerine provided the above-mentioned features it tasted like medicine. Management of
P&G sensed a chance to get into the market with creating a new segment by adding taste to the
mouthwash. They adopted the undifferentiated marketing approach as the market was still new
and there were not too many variants available for the users. In 1967, Scope entered the market
by targeting the bad breath segment with adding mint taste to it. This first mover advantage gave
edge to Scope which eventually leaded it to get the market leader position in 1976.
To retain market share and to snatch some from Scope mouthwash, Warner-Lambert launched
Listermint in 1977. Like Scope, it was a green, mint tasting mouthwash. This move from the
company justifies the selection of market segment by P&G. As this market was getting a steady
growth, the market segment had attracted other companies for putting a foothold. Targeting this
segment was an ingenious idea as it wide opened a new segment for mouthwash market.
If looked at figure-2, it can be identified that according to the mouthwash users, top 3 reasons
for using mouthwash is to maintain basic oral hygiene (40%), to get rid of bad breath(40%), to
kill the germs(30%). Though Scope claims to do the three, consumer perception to this was not
favorable. In view of the consumers, Scope mouthwash performed below par than the
competitors albeit according to perceptions removal of bad breath was the strength for this
brand. As Scope served the basic protection against germs with giving a good taste for the users,
consumers were satisfied with it. For this reason, it can be said that the target market selection
was precise and accurate from the management.
Scope mouthwash had a good run in the Canadian market for a long time, to be precise until the
late 80s. But, the entrance of Plax caused the management of Scope to think again of their target
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Proctor & Gamble - Scope

market. By providing superior protection and removal of plaque, Plax created a new market
segment for the mouthwash market with the idea of pre-brushing rinsing. This move from Pfizer,
the owner of Plax gave Scope a tough fight for retaining market share. At that time, Scope had to
think of product variants with differentiated marketing approach which will satisfy the demand
of the evolving mouthwash market.

Positioning of Scope
After targeting the desired and viable market segments, a company must decide on value
proposition which will differentiate the product and attracts the customer of the targeted market
segment. A products position is the way the product is defined by the consumers on the
attributes of the product. Effective positioning of any product can simplify the buying process
for the consumers. In the case, Listerine, the Warner-Lambert product was the first in the market
and it was positioned as a therapeutic germ-killing mouthwash that eliminated bad breath. To
have competitive advantage, Scope was positioned as a great tasting mouthwash that eliminates
bad breath. P&G developed the positioning statement as Scope fights bad breath. Dont let the
good taste fool you.

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Proctor & Gamble - Scope

The following figure demonstrate the positioning map for the mouthwash market of Canada and
it also demonstrate different brands operating in the market with different positioning strategy.

Good Taste

Fights Bad Breath and Kills Germs


Scope
Listerine
Cepacol
Plax
Listermint
Colgate Oral Rinse
Removes Plaque

Figure 3: Positioning Map

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Proctor & Gamble - Scope

In the positioning map, every circle with different colour represents a brand and the size of the
circles demonstrates the relative market share of the brands. From the figure-3 it can be seen that
there are six major brands in this market. It can also be noticed that, Scope and Listermint both
operate in the same market with common attributes; both offer effective bad breath protection
with good taste. Market share of Scope is almost three times of Listermint. On the other hand,
Listerine and Plax both offer plaque removal. Additionally Listerine offers effective germ killing
and bad breath protection and Plax offers 3 times more plaque removal ability with pre brushing.
In short the positioning of Scope was in the right areas at the beginning which brought the brand
the highest market share but with the advent of Plax with an extra attribute of removal of Plaque,
management of Scope had to consider repositioning of the brand or start a new brand.

Marketing Mix
Marketing mix is the set of controllable, tactical marketing tool that consist everything a
company can do to influence the demand for its product. The possible tools can be divided into
four groups of variables known as the 4 Ps: Product, Price, Place and Promotion. In the
following section, these variables will be discussed for P&Gs Scope Mouthwash.
Product

Product is the key element in the overall market offering. Marketing mix planning begins with
building and offering that brings value to target customers. Product can be
tangible or intangible; in this case it is a tangible product, Scope
mouthwash. It can be classified as a convenience products as it is bought
frequently with little planning and little shopping effort. The price of Scope
mouthwash was not very high and it was available in most of the retail stores
and drug stores. It was promoted mass level to reach widespread consumers.

Scope (Original
flavor)

Generally, the marketers design every product in three levels to add more
customer value to each level. The levels are called as Core Customer Value,
Actual Product and Augmented Product. These levels are discussed briefly
below:

Scope Outlast

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Proctor & Gamble - Scope

Core Customer Value


Kills bad breath bacteria and give fresh breath and the confidence to get close
Actual Product
Brand Name: Scope
Product quality is one of the marketers major positioning tools. P&G worldwide created a brand
which ascertain and assure the customers about quality of its products. Scope is no exception to
that. Since its inception, it never received any major complains regarding quality. At P&G, they
dont compromise with quality as this is the major points for the brand awareness building and
sales and after sales service.
Products can be offered with various features to
attract target customers. Features are the competitive
tools for the marketers. Scope mouthwash had many
features that made it a very attractive proposition for
the customers seeking mouthwash solutions. Main
feature of the product was bad breath removal and
germ annihilation. In addition to that, Scope offered
the mouthwash in various taste.

Figure 4: Different taste of Scope

Style and design is another important ingredient of actual product. From the figures of the
product, it can be seen that for every different taste the bottle has a different color. From which,
consumer can get a feeling of the taste. Packaging is very important tool for marketers as it gives
them the last chance to attract; grabbing attention, describing the product and making the sales.
Packaging of the bottle was also very attractive as seen from the figures.
Augmented Product:
Scope offeres many tips related mouth health in its website. People who have query regarding
improving their mouth health and reducing bad breath, the answer is there. It fulfills the demand
of giving something extra with the product.

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Proctor & Gamble - Scope


Price

Price is the only element in the marketing mix that produces revenue, all other incur cost. Price is
one of the most flexible marketing elements. There are many ways to set the price of a product
like value based pricing, cost based pricing, good value pricing, value-added pricing. Of these,
management of Scope mouthwash used the cost based pricing approach as it is the most
appropriate way to analyze the cost and then add a margin to ensure viable business operations.
In case of Scope, cost based pricing was used to determine the optimum price for the market
which can ensure good return. In this type of pricing, the cost for production of one unit is
determined and after that adding some markup or profit to the cost, the price is set. The pricing
strategy in this case was taken as market penetration strategy. As per the market research findings
given in the case, Scope was sold at $41 per unit on an average at that time. Though retail price
vary in different places of sales, both Listerine and Plax had the highest prices among other
brands in food stores, whereas Scope, Listerine and Listermint had the highest prices in drug
stores. From the retail price indices, it can be seen that price of scope is lower than all other
brand except Cepacol in both retail stores and drug stores.

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Proctor & Gamble - Scope


Place

The supply chain management of scope had used two places to sell it, one is food stores and
other is drug stores. As it is a convenience product, people would like to buy it from the food
stores. On the other hand, it can act as a therapeutic product which can be found at any drug
stores. From the market research findings, it can be seen that 65% of the sales went through the
drug stores, whereas remaining 35% sales went through food stores.

Figure 5: Sales Place

Sales
Drug Store

35
65

Food Store

In analyzing the Canadian mouthwash market


share the data showed that Scope had the highest market share among all brands, but there was a
big difference in the share held by Scope in food stores 42%, versus drug stores 27%.

Promotion

Promotion is the last tool that helps a product to reach to the people. The main objective of
promotion is to build communication with the customers who want to know about the products.
Advertising, Sales Promotion, Personal Selling, Public Relations and Direct Marketing are the
main tools for promotion. For promotion purpose, management of Scope used advertising in all
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Proctor & Gamble - Scope

kinds of media and Sales promotion through coupons and discounts on the products. In the year
1990, Scope spent $1.7 million which is the highest among the mouthwash brands. Sales
promotion includes coupons for getting rebate in the price, sample mailing, bundled offer with
other products etc.

Conclusion
In the above sections, the marketing strategy of scope mouthwash has been portrayed and
analyzed. Segmentation of the market has been done by using the behavioral variable. Selection
of target market was appropriate as it made them the market leader for a long period of time.
Positioning of the brand has been done mainly on the basis of the weakness of the pioneer brand
Listerine. In the marketing mix, product has been well designed in three levels which had been
proved by consumer acceptance of the brand. Cost based pricing was used for setting the price
and market penetration was the pricing strategy. Drug store and food store were the main places
for selling of the mouthwash and for promotional purpose, advertisement and sales promotion
was used. In brief, the marketing strategy used for Scope was a winner and it made them the
leader of the market. But, as nothing is evanescent in the world, management of Scope had a
very tricky situation at that time deciding whether to introduce new brand or adding features to
this brand.

References:

Kotler, P., Armstrong, G., Agnihotri, P.Y. & Haque, E.U. (2011), Principals of Marketing: A
South Asian Perspective, 13th Edition, Pearson Prentice Hall of India, New Delhi.
Proctor & Gamble from http://en.wikipedia.org/wiki/Proctor_%26_Gamble

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Proctor & Gamble - Scope

http://www.pg.com
http://www.pg.com/en_US/brands/all_brands.shtml
http://www.pg.com/en_CA/index.shtml

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