Professor Pollack
Marketing Strategies Scope Case This case has to do with the mouth rinse, Scope, at a time when there was fierce competition in the Canadian and American mouthwash industry. The introduction of Plax, a pre-brush rinse, was one of the most significant products that Proctor & Gamble faced. According to the case, in the past three years, the Canadian mouthwash industry faced quite a few changes. Market share data had revealed that there was a substantial difference in the share held by Scope in food stores. Wholesale clubs were accounting for a greater share of mouthwash sales in the industry. Also, total media spending of all brands in 1990 was $5 million, with Scope, Listerine, and Plax accounting for 90% of all advertising. It is evident that the amount of competition had increased by this time which drove each brand to increase its advertising efforts. Until 1987, the mouthwash market had grown an average of 3 percent per year for the past 12 years. Also, Listerine had not received the consumer product seal given by the Canadian Dental Association because the association was not convinces that a mouth rinse could be of therapeutic value. There has been a significant change in numbers over the past three years. A few other changes include the taste and credibility of the rinses themselves. In early 1987, favors were introduced by a number of brands including Scope. This greatly expanded the market although it did not significantly make an impact. In 1988, Colgate Fluoride Rinse advertised that it fights cavities and its mild taste encourages children to rinse longer and more often. Also in 1988, Plax was launched on a new and different platform, which brought about immediate success and caught many in the industry off guard. Over the past three years, Scope has fought hard to keep its name in the forefront of the mouthwash industry. Even when faced with the threat of Plax, a mouthwash product that could potentially eliminate all the post brushing mouth washes out there, they still increased numbers. When looking at Scope Historical Financials (Ex. 7), there is an increase in numbers. Their sales rose as well as their COGS numbers, and even their total market size grew. The constant competition they faced appeared to be a motivator to ensure that Scope’s sales don’t drop. In the Canadian Mouthwash market, they faced a very slight drop in units along with most other brands; however, the numbers appear to be the result of usual competitive sales. The option of a line extension for Scope, in creating a pre-brushing rinse, I thought was a good idea. The benefit of this may be able to bring Scope up in competition against the other mouth washes. If Scope were not to try and match the level of Plax, they could be left behind as other brands could try to further develop their brands by extending their product to match what Plax can provide to purchasers. If you don’t move ahead quick enough, someone else could overshadow you. Unfortunately, the tests to have a rinse to use before brushing would have cost P&G $20,000 which could be more hurtful than helpful. PDD concluded that it would prove more beneficial to add plaque reduction claims to the Scope rinse rather than come up with an additional product.