Proctor and Gamble, Inc. Scope
Gwen Hearst, Scope Mouthwash Brand Manager for Procter & Gamble, Inc is preparing a three year strategic plan for Scope in the Canadian market. Her responsibilities focus on three central areas: maximize the market share, volume and profitability of the brand. She needs to develop a strategy to compete with a new market entry, Plax. Plax has targeted fighting plaque as a new benefit for mouthwash. In two years, Plax has gained 10% of the market and during a time when the market growth rate has been declining. The Scope brand has maintained a constant market share level with slight decline and still retains largest percentage of the market.
The strategic options include maintaining the status quo, introducing a new product already developed as either a line extension or flanker product, or develop new marketing plan for existing product. She has formed a team across company functions to address these issues and formulate a strategic plan.
Decisions to be Made
1) Should Scope maintain the status quo or seek new opportunities?
2) Should Scope reposition its current product or develop a new product?
3) Should Scope launch a flanker brand or introduce a line extension?
These decisions must be made in this order. Scope must first decide if it actually needs or wants to move forward with seeking new opportunities. If Scope wants to maintain the status quo, then no effort needs to be wasted in researching possible opportunities. If Scope decides to move forward it first must decide whether to reposition its current product or develop a new product, and if it develops a new product the question becomes whether to introduce a line extension or launch a flanker product.
Strengths, Weaknesses, and Key Competencies
• Proctor and Gamble is one of the most successful consumer goods companies in the world...