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P&G Scope
Problem. Scope faces intense competition and loss of market share from Listerine and other players. The brand has adopted a hybrid strategy which gives it a competitive edge but it is not clear whether it is a sustainable positioning, given the onslaught of Total, Plax and Private Labels (Mark, 1998).
Analysis. The case mentions that the Canada market for mouthwash is already saturated and shows slow growth. Unless a leading brand or a follower brand, takes actions to expand the market by increasing the user base or usage, the market will not remain attractive. Though, the fact that Colgate thought of launching a brand extension in this segment, proves their motives in terms of rapidly gaining share from Listerine – since both are playing in the Therapeutic segment. Listerine’s experiment with new advertising targeting a younger group obviously did not work, since they changed their ad creative mid 1997. Their subsequent ads, with “Toothbrush” and “Taste” were probably launched to counter Colgate Total, since its brand lineage is around toothpastes. Scope faces a price onslaught and coupon war from Listerine and needs to take quick measures to protect market share and grow.
Alternatives. Scope needs to be clear on its positioning strategy. Though a hybrid position has worked in the past, it needs to clearly delineate itself from competing brands – Listerine, Total and Plax. Scope must strongly entrench itself in the “refreshment” segment and grow share.
Recommendation and Plan. - Scope must clearly position itself as the best mouthwash to feel refreshed in social situations. - Build market share by increasing usage of the brand - Showing many slice of life situations where Scope should be used – going for an interview, dating, when you invite guests home, after a meal, going to work, back from work, smokers, heavy drinkers and so on. Scope should also spend its marketing dollars in-store and experiment with new brand extensions – new flavors and portable hard candy.
References
Mark, K. (1998). Procter and Gamble Canada. Developing Scope Advertising Copy. Ivey
Management Services.9A98A030.
