Proctor & Gamble Case Study
The new company that Is taking a roll I the existing market is Plan, they are gaining market share and proctor needs to mom up with a different marketing campaign. How can we as Proctor & Gamble gain more back more of the market In the mouthwash Industry and increase sales In Canada with a the state of the new market? 2. Situational Analysis There are several aspects of the situational analysis we have to look at for Proctor & Gamble. Internally we should highlight the strengths that scope brand brings to Proctor & Gamble but also recognize our weaknesses so we can correct those.
Moreover there are aspects of the external environment that need to be addressed. The opportunities are clearly out there for P&G and to exploit those would be necessary to gain a greater market share. We need to also make sure that while we are taking calculated risks on the opportunities we have to be aware of the threats that could harm the company and brand. The first thing to look at is the history and experience behind the Scope brand with oral hygiene. We set ourselves apart because we offer a much better tasting mouthwash than other companies.
We also offer a higher-quality product compared to other companies. P&G’s Scope also shares he highest market share in the industry. So our strengths consist of: Experience in the oral hygiene industry Taste and flavor are superior High-quality product Highest market share in the industry When looking at the weaknesses of the company we have to consider what could potentially harm our company brand or image. The first we should look at is our lack of canning and packaging plants, we just can’t keep up with our demand. Our undifferentiated products are losing their brand image and becoming less credible.
Also to add to this is our poor distribution channels, we Just can’t seem to make it efficient enough.
Our weaknesses consist of: Lack of proper production facilities Our products image Is outdated Inefficient distribution channels Now to focus on our external environment, we should look into ways to improve our 1 OFF company tongue ten new opportunities we can take I knees consist AT possibly changing the formula or doing a brand extension and going into the plaque fighting mouthwashes. With the new market it will offer a lot more profit and possible market growth.
Use social media and other forms of internet to help develop our market. We eve to focus on improving our distribution channels, with more efficient channels we can lower our production and shipping costs. Opening a new plant could help with this.
Opportunities: Go into plaque fighting market Improve profits and market share Develop a better marketing strategy Create more distribution channels and possibly open a new plant Our threats could easily hurt our company and we need to do everything we can do to help make sure we prevent as many of these as possible.
Some threats we need to keep an eye on include the competitors in our industry. If one competitor were to create a marketing campaign that were to take off it would greatly harm our company. While we have a high quality product we have to be price conscious of our price and keep it within reasonable price of competitors. We need to watch out for other companies copying our products and imitating our image.
Threats: Competitors in the industry Price wars Imitating our image 3.
Alternative Analysis The first alternative we should be considerate of is improving our marketing department. While our company is struggling with sales we don’t necessarily need to hanger the product but change the image of Scope. Creating a better marketing campaign will not only give the company a better image but also increase the number of young users that aren’t currently using mouthwash or using a different mouthwash. Social media is the way we will target this audience.
We would focus on the fresh breath and taste but also create a clever way to portray this, kind of like the Go Daddy commercial where the model makes out with less than attractive individual.
All because he would have fresh breath that will make girls attracted to you. The second alternative we could take is the option to go with a new product offering. This would be a lot like the current product Plan that fights plaque but our product would also have the fresh mint flavor we are used to in our current mouth wash.
Some of the pros that would help the product are that after 2 years we could potentially capture 6. 5% of the total mouthwash market Just with this new product. Although there are plenty of downsides, first there are the R that are associated with this product.
Creating a new products costs a lot of money and once it is plopped it needs to be tested, product testing would cost somewhere around $20,000. This product could potentially take away from Scope with product centralization. It would pay off but is the risk greater than the reward.
The third option that could help our company grow is to create much better distribution channels and change where the product is made at. With such poor distribution channels putting in different supply plants would vastly improve the product shipping points. We should look at getting new and even more truck to shop our products.
With more drivers we have a higher variable cost with more employees but we would also create more sales Ana create more pronto I nee Tour Upton could to potentially improve our existing Scope mouthwash.
Instead of doing a product extension or new product we could Just improve the formula that is currently in place. We would Just add plaque fighting ingredients to our existing product. This would enhance what the product could offer to the customer and give them more benefits for relatively the same price. While this seems like a feasible and profitable dead they are forgetting about the backlash that has been seen in other companies like Coke with their “New Coke” campaign. It has often been said, if it into broke don’t fix it! 4.
Recommendation and Implementation The best recommendation that Proctor and Gamble can choose is to offer a new product. Creating a new product that directly competes with Plan will take market share directly from them and gain recognition among the market place. We would also implement in the new marketing tactic directly with this new product to focus directly on the younger customer as well as the customer currently using Plan. This marketing campaign will focus on health along with good breath and being able to attract the opposite gender.
To avoid confusion and some product centralization Scope will not directly put its name on the product. In case this product turns out to have a very negative impact with the target audience and the public completely rejects this product not coupling its name will not harm Scope’s image directly! Since Plan is priced at around $65 per unit we will focus on making sure we can compete with this price and possibly undercut Plan and gain market share that way.
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