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Scope Situational Analysis

Essay Topic: ,

Have a different color – scope went with green b. Actual taste of product was supposed to be the best c. Packaging Of the product E.

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Channel a. Be convenient, available in everyday stores a. Indirect strategy b. Make sure customers are aware of your product c. Have good availability – be in many outlets where customers able to purchase Scope scope d. Be in other countries will be a. Scope uses intermediaries. Scope was provided to retailers and then the retailers would sell Scope to customers at their stores. They were available in places like supermarkets and drugstores. D. Price a. Scope wants to gain market share a.

Penetration Strategy in the market a. The use of penetration pricing in drugstores specifically E. Promotion a. Have Scope gain awareness about their benefits compared their competitors b. Increase Sales a. Scope uses a push strategy by working with middle men and to retailers to stock their stores with their product. A. Slotting fees b. Have point of purchase displays c. In-store promotions and advertisements saying why the needs Scope F. Budget 1. Advertising a. In 1 990 Scope spent $1. 7 million on advertising b. P & G is a large company so they do have the money to certain products G. Financial Performance 1.

Market Trends a. Since 1986 the data suggests that mouthwash sales have Increasing 2.. Market Share consumer finance been a. In Canada Scope has usually had somewhere between 32%- 33% of the mouthwash market b. The 1990 average for scope was that the had 42% of the market share in food stores and 27 % of the market share in drugstores. II. External Analysis A. Regulatory 1. Laws a. Certain laws that may impact the mouthwash industry. Laws that require labels to say what is in the product or ingredients that they decide cannot be use in mouthwashes may greatly impact companies and how they can n the industry. Compete 2.

Dental Association seals a. Whether or not a mouthwash obtains the seal from the Dental Association may impact consumers decision to by products that do not have the seal. B. Economic 1. Poor Economy a. If the economy was in poor conditions many customers may not think mouthwash is a top priority. It may become a luxury item not an everyday item. This could greatly decrease sales of overall mouthwash products. 2. Strong Economy a. In a flourishing economy, mouthwash sales may be able to increase. It would again become an item that people could afford more often which loud lead to higher sales for mouthwash companies. B.

Technological 1. Emergence of Plan into mouthwash industry a. Plan was the first and only presses rinse so it stood out from all the other mouthwash Options. This hurt other mouthwash competitors. B. Focused on removing plaque, not being a breath freshener, which was different than the other mouthwash products C. Social/Couture 1. Environment a. With people wanting to become more environmentally friendly, they may look for more products that have earth friendly ingredients, or products that claim to be organic or all natural, and they may also want product whose snacking is recycled or has been made out of reused materials.

D. Competitive 1. Macro level a. Listening is Scopes top competitor with Listening behind them. Another huge competitor to all privately owned brands is the store brands. They are usually cheaper but offer the same amenities as the top competitors so this makes them more attractive to people who are trying to save money but still want a mouthwash product. B. Line extensions to companies are possibilities but if they are not successful can end up costing the company a lot of money. C. Buyers of the products have a lot of power in the process because manufacturers depend on them to get their product on their shelf and sell it. . New products into the market are always a threat as we saw with Plan. If they offer enough of a differentiation and can compete at the top competitors level they may be able to take away from others market share. 2. Micro level a. Plan is a competitor because they offer such a different product than the rest. Their product has qualities that the others do no and that mat attract many consumers. They are also the only in that area of mouthwash which give them an advantage because everyone knows of them first so if another reduce were to come in they would have to try and take away from Flax’s success of being first. . Listening is a top competitor because they make up most of the market share behind Scope and they were the first into the mouthwash franchise, which may have helped gain them brand-loyal customers. Ill. Market Analysis A. Market Segmentation 1 . The Mouthwash market is primarily segmented into mouthwashes that offer fresh breath and mouthwashes that can fight plaque. Those are the main components of what a mouthwash is designed to do. Well some claim to offer both, there is usually a brand that sticks out the most.

One way the market could be more segmented is by more pre-brush washes and after- brush washes. Right now there is really only one pre-brush wash so having more pre-brush washes would segment the market even more. B. Market- product grid 1 . Current Segmentation Product Pre-Rinses Taste Health Non-users Light users Plan Scope, Listening, Store Brands Listening,Store Brands, Copal Medium users Post Rinses Heavy users 2. Potential Segmentation Non-users 18 or younger Product Development potential Potential for Market Development Non-users 18 or older Light users 18 or younger

Plan, and potential for product development by others Listening, Store Brands, Copal, Colgate Light users 18 or older Medium users 18 or younger Medium 18 or Older Heavy users 18 or younger Heavy users 18 or older C Market Size 1. Size in Dollars a. In 1 990 the total retail sales for the Canadian mouthwash market was $68. 6 Million and the total factory’ sales was $54. 4 million. 2. Size of segments – Based on Exhibit 4 on page 259 a. Scope was able to maintain an average of 33% of the market b. Listening carried around 16% of the market c. Listening had between 10% and 15% of the market d.

Copal held 10-13% of the market e. Plan eventually gained around of the market f. Store brand made up between 15% and 16% of the market g. Other miscellaneous brands held around 3. 7%-4. 6% of the market 3. Future growth or decline a. Based on the available information given about market share sizes and sales I would forecast that sales will increase. The economy is doing well and people like to take care of themselves and their hygiene. Based on the year 1986 and 1990 there was an increase in retail sales of 58% so you could use this information and hypothesize that the market will continue growing at that rate.

I arrive at this number by taking the retail sales of 1 990, subtracting that from the retail sales of 1 986, and the dividing that by the sales of 1986. D. Buyer Behavior 1 . People of lower income would probably be light or non-user mouth washers. They would probably buy the cheapest option or not buy at all. Store brands would potentially be very attractive due to the fact that the say they offer the same as the top competitors just at a cheaper price. If the store does not have what they are looking for they will not go out of their way to find it. 2. Light to medium users would probably by the middle option.

Middle price and has some features that are attractive to them. Medium users would probably buy more mouthwash than light users and would be more Willing to pay a higher price for the product. Wiling to travel for product if necessary but not a top priority. 3. Heavy users would pay the most for the product and would buy the most. They would probably want the best product out there and would pay that asking price.

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