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P & G Case

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Gwen Hearst is the brand manager for scope which is Proctor & Gamble’s brand of mouthwash. She is faced with intense competition following the entrance of Plax. Plax plans to position itself as a “plaque fighter” rather than the traditional position of “fresh breath” & “killing germs” and Gwen is confident that her competitors will follow suit and needs to figure out a way to position the product so that scope does not fall short of the competition. The major issue that concerned Hearst was how P&G should capitalize on the market segment within the rinse category that focused on “health related benefits” rather than Scopes traditional strategy.
The constraints that scope has is that they would like to re-position themselves, but they are looked at as a “breath” brand and deterring from that could possibly make them lose out on market share. She is faced with three options to increase sales. They can either do nothing and hope that people with continue to prefer “breath” over “rinse”, they can add a product line extension, or they can add an entirely new product line to the mix.
Since 1986, breath only products saw an enormous increase in market shares from 3% in 1986 to 26% in 1987 primarily due to the introduction of flavors in the mouthwash, however, since 1987, there have only been a 3-5% increase of market share. If Gwen does nothing, she may be faced with the market trend of consistently flat sales. Proctor & Gamble pride themselves as being viewed as innovators and market leaders in the packaged goods industry in Canada. If they continue to focus on a segment which is stagnant or a declination of market growth, their sales may decline. In opposition of that is creating a brand extension. This option has been pondered on the most because if the competitors find a way to gain market share in the rinse segment, then P&G shares may decline

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