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Daniel Bou Mitry
P&G (Scope)
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Problem definition
The major problem is how P&G should capitalize on the emerging market segment within the rise category that focused more on ¡§health ¡Vrelated benefits ¡§ than the traditional breath strategy of scope .Specifically with the launch of Plax the mouthwash market had segmented itself along the ¡§breath-only¡¨ brands (like scope) and those promising other benefits . Plax ,in positioning itself as a pre-brushing rinse ,is not seen as ,nor did it taste like a ¡§breath refreshment ¡§ mouthwash like scope .
Objectives
Develop a strategy that would ensure the continued profitability of Scope in the face of ¡§ plaque fighter¡¨ competitive threats. Their specific task is to prepare a marketing plan for P&G¡¦s mouthwash business for the next three years .
Barriers
„Ï High competition (Plax, Listerine and numerous brands).
„Ï Industry research indicates that mouthwash dollar sales are growing at 5% per year but there this growth is not evident due to inflationary.
„Ï Teeth creams improved formula (extra whitening, tartar reductions)
„Ï Threats from substitutes
„Ï Increasing the marketing budget year after year (exibit7)
Alternatives
- Line extension, introducing a new mouthwash that has the benefits as Plax in the market.- Do nothing, keep on the same strategy and trying to promote other benefit that scope has - Launching a new improved formula for scope that have same benefit even more
Advantages and disadvantages for the alternatives
Line extension
advantages
-The new pre-brushing rinse perform as well as Plax for plaque reduction
-have similar aesthetic qualities to Plax that makes its in mouth experience quite different from Scope
-It has similar launching situation of Scope
-It will provide benefits what ever it will positions in the market
-It will taste better
-it could ask for a higher price that means more profits
disadvantages
-It did not work any better than Plax against plaque
-This will contradict the strategic believes and goals of P&G ¡§it launched product that focused on unmet consumer needs¡¨.
-They don¡¦t have a clinical data base to present them as proof for the HBP
-P&G image and credibility with dental professional will be impacted if it willo not meet their expectation
-will not be listed on stores shelves if it not different enough or unique from competition to boost incremental sales sharply because of the of the increased inventory cost wiil decreases retailers revenue
-Market research it will take some of the Plax , and others market share but it will not attract new user
-increasing in capital ,marketing ,production and transportation ,ect¡Kcosts.
Do nothing
Advantages
-there will be not an increase in costs(capital, advertising , est. ¡K.)
-the market chare will probably not change for loyal customer when the new the extra usage and benefit they could acquire from the same old Scope without losing more money or time searching for new attribute
-increase sales without paying for stock keeping
-prevent current user from switching
disadvantages
-lose the market share or new comer for other products which they have more attribute
-confused customer for the new information
-confused positioning as plaque killer and fresh breath
-will not increase competitive user ¡¥ desire to purchase Scope
-difficult to launch an advertising for the same product that has to deferent strategies .
launching a new improved formula
advantages /disadvantages
the advantage or disadvantage are the same as do nothing and give the information that it kills plaque but as we know the could attract new user because they are addressing to their psychic logical means.
Conclusion
After reviewing the advantages and disadvantages for all issues it seems that the third one is the best
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