P&G Scope

10 Pages 2467 Words

Analysis of Current Situation
To begin with, an analysis about the current situation is conducted.
Market Situation
The Canadian mouthwash market was initially developed by the pioneering brand of Listerine. It dominated the market until the entry of Scope in 1967. Scope is a first brand that offered both effective protection against bad breath and a better taste than other mouthwashes. Starting from year 1976, Scope became the market leader in Canada. After that, several other brands came into the market and share the whole Canadian mouthwash market. Until 1988, Plax, a product of Pfizer Company, was launched and got an immediate success. This has caught many in the industry by surprise.
From 1986 to 1990, the whole mouthwash market is growing gradually. In 1987, it experienced a 26% increase and after that, the growth rate was kept in a level of 5 percent to 1990. ( See appendix I).
Among all the households in Canada, 30% are heavy users of mouthwash products, whose usage were once per day; 34% are medium users with 2 to 5 times a week; 11% are light users who use mouthwash less than once a week. Apart from these users, 25% of all the households are non-users. (See appendix II). There are mainly 3 reasons for not using mouthwash: don’t believe they have bad breath; believe that brush the teeth is enough; find alternatives like gums and mints.
Competitive Situation
From 1988 to 1990, Scope is leading the mouthwash market with an average share of 33% (See appendix III). Followed to Scope, there are other brands such as Listerine, Listermint, Cepacol, etc, who are share the market with an average of 10%. Plax, the new entry brand, has gained it market share from 1% in 1988 to 10% in 1989 and 1990. Besides, is has an on-going trend of fast growing in the market.
From the data of the survey among mouthwash users’ images of major brands, Plax had achieved a strong image on the “Removes plaque / healthier te...