P&G Case Study

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Case Study: Proctor & Gamble Inc. Marketing Problem Proctor & Gamble introduced Scope into the market in 1967 and was positioned as the green, mint-tasting mouthwash that was great tasting, 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 the other mouth washes on the market. Scope quickly took over the mouth wash market and held a large portion of the market share and became the market leader in Canada in 1976. Although in 1988 Plax was introduced into the Canadian market and were approaching the mouth wash industry in a completely new element. Plax became the first company to enter the market that offered a plaque fighting wash. Within the first two years Plax represented 10% of the mouthwash market, which at the time was growing at a five percent rate. The key issue at hand is whether or not Scope should enter into this segment in order to stay competitive in the market or do nothing and continue to focus their effort in the bad breath segment. Company Overview Proctor & Gamble markets its brands in more than 140 countries and had net earnings of $1.6 billion. The Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990. P&G has the largest market share, which is 32%. Between 1987 and 1990 worldwide sales of P&G had increased by $8 billion and net earnings by 1.3 billion. P&G executive attributed the company’s success to a variety of factors, including the ability to develop truly innovative products to meet consumers’ needs. However, Gwen Hearst, Scope Mouthwash Brand Manager for Procter & Gamble, Inc is preparing a three years strategic plan for Scope in the Canadian market. Her responsibilities focus on three central areas: maximize the market share, volume and

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