Table of content

1. Discussion of scopes segmentation method..2-3 2. Justifying their target market.3-4 3. Analyze and discussion of Scope positioning.4-6 4. Analyze and discussion of marketing mix (4ps) ..6-10

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1. Discussion of scopes segmentation method

Market segmentation: Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product. The Demographical Segmentation: Buyer and the user of a product may be different. Their perception and reason behind using a same product may be different. Depending upon age and the social stage of consumers, on the basis of general observations, institutions and investigations, following can be a segmentation of the users of mouthwash products. (A) Child Stage (4yr-10yrs, living in parental home):For this category of users, their parent, generally mother buys the product though father's opinion also matters. Mother's main concern behind buying a mouthwash would be hygiene. They naturally prefer a product which could help fighting germs and preventing inflamed guess by plaque over any mouthwash which prevents only bad breath. Although it is worth considering that children will always want a product which could offer great taste.

(B) Youth Stage (young, single/married not living in parental home):In this category user him/herself is the buyer. These consumers is fairly brand cuties and an advertisement simulating the notion of need of good breath for social acceptance and appreciation' can trigger the need and convert it in to want of that particular mouthwash brand.

(C) Mature Stage ( Age over 40): Case study says that most of the Canadian population is suffering with gum related problems by this age. Dentist's recommendation plays a significant role in buyer's decision. Normally this segment buys from the local drug dealer.

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The Behavioral segmentation: Canadian households used one or more mouthwash brands and on average, usage was three times per week for each adult household member. On the basis of frequency of use, another every important segmentation of mouthwash buyers is done.

Heavy Users: once a day or more Medium Users: two-six times a weeks Light Users: less than once a week

2. Justifying their target market:

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. Procter & Gamble is one of the most successful consumer goods companies in the world. To select target market, P&G has evaluated different market segment first. After evaluating different market segments, P&G decided to use differentiated marketing strategy. P&G Canada has five operating divisions organized by product category. Combination of challenges present in emerging developing markets requires P&G to modify its long established strategy of providing top brand, multiple selection, and superior quality products in developing markets to shifting towards providing affordable, quality products for everyday use to more consumers in more markets. The essence strategy of companies is usually based on the choices the company selects to pursue to maximize the companys profits and market share, while selectively identifying paths they choose not to pursue. After careful analysis of market studies of consumer preferences, P&G has made some of the select choices that would fit and would not fit within its course of new strategy.

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Scope is a health care product of P&G. It has its own brand management, sales, finance, product development and operations management groups and is evaluated as a profit center. Scope, a green mint tasting mouthwash is one of the leading brands of health and care division of P&G. It became market leader in 1976 and since then it had been enjoying largest market share in Canadian mouthwash market. At first, scope targeted those Canadian people who wanted to remove their bad breath. Scope was the first brand that offered both effective protection against bad breath and a better taste than other mouthwashes. After that, Plax another product arrived in market .At that time, Plax had achieved a strong image on the removing plaque/ healthier teeth and gums attributes. Then scope decided to target those people who wanted to remove bad breath as well as plaque.

3. Analyze and discussion of Scope positioning:

To analysis and discuss their positioning, first we have to understand about positioning. Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing product in the minds of target consumers. Now according to the definition of positioning, we analyze and discuss Scope positioning. The mouthwash market was initially developed by Warner-Lambert with its pioneer brand Listerine. Until 1967 Listerine was in strong position in the minds of consumers. After entering Scope, Listerine position became going down gradually. Scope is positioned as a mouth refreshing brand and was the first brand in the market because it offered effective protection against bad-breath and a good taste at the same time.

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In 1976 Scope became market leader in Canada, and in 1990 Scope had a 32 percent market share in the Canadian mouthwash market. The market can be divided in Food Stores and Drug Stores. Food stores represent 35 percent of sales and the Drug Stores 65 percent of the total market. The share held by Scope in Food Stores was 42 percent and in Drug Stores of 27 percent. Brand users only perceive Scope as above average in reducing bad breath, and yet they are loyal to the brand. However other mouthwash brands in the mouthwash market contain significantly more attributes than Scope, customers stay loyal to the brand. It can be said that customers of Scope just dont need all the other attributes other brands offer. This means that customers of Scope are satisfied with the benefits Scope already provides. In the meanwhile the market is maturing and so customer loyalty allowed Scope to have a competitive share at around 33% of the market, positioning them as market leaders.

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4. Analyze and discussion of marketing mix (4ps):

The implementation of the marketing strategy formulated using the 4P method (Product, Place, Price and Promotion). Each component will be discussed below.

Product
The product was a green mint testing mouthwash is one of the leading brands of health care division of P&G a world leader in consumer goods. The product called; Scope fights bad breath. Dont let the good taste fool you. Was introduced in 1967and was poisoned as a great testing mouth refreshing product that provides bad breath protection. Scope became the market leader in 1976 and since then it had been enjoying largest market share in Canadian mouth wash market . The Scope confirms that it is a product with multiple benefits. - Plaque removal - Germ killing ingredients - Reduces bad breath - Prevents gingivitis - Prevents cavities
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Between 1987 and 1990 Procter & Gamble (P&G) increased its sales to $8 billion and net earnings to $1.3 billion, and was positioned in more than 140 countries and with net earnings in 1990 of $1.6 billion, with the Canadian subsidiary contributed with $1.4 billion of sales and $100 million net earnings. One of P&Gs successful and profitable brands is Scope. Scope is positioned as a mouth refreshing brand and was the first brand in the market to offer effective protection against bad-breath and a good taste at the same time. In 1976 Scope became market leader in Canada, and in 1990 Scope had a 32 percent market share in the Canadian mouthwash market.

The Scope brand name ensures the quality of the new product. The users and potential users presumably bought the product based on the quality and experience of the other health care product of Procter & Gamble, as it was a successful company. When the product is developed and tested thoroughly Scope had attach a warranty to the new product that every health benefit obtained when the product is being used every day.

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Price
Scope was more expensive because of the costs related to the research & development and the realization of the line extension which had to be done when introducing a new Product.

Cost price: The price per unit* for the original Scope in 1990 was $41,25. The prices for the new product would be higher because of the following factors: - Increase in ingredient costs: $2.55 per unit. - Increase in packaging costs: $0.30 per unit. (When producing in a plant in America then the price per unit will increase with $1) This means that the price per unit would be: $44.1, when the product is produced in Canada. And $45.1 when it is produced in America. Retail price: The retail price of the original Scope is in both food stores as drugstores in percentage terms lower than most of the competitors. If Scope wants to make a good chance against the competitors they have to try to preserve this advantage also with their new product. In food stores they could easily increase their retail price with 25%, with this retail price theyre still cheaper than their biggest competitors. In drugstores they could increase the retail price with 20%. The reason they could increase the price this much is the fact that the product would have all the benefits you can ask of a mouthwash product. * One unit equals 10 liters or 352 fluid ounces of mouthwash.

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Place
The external analysis has shown that drug stores were an attractive sales channel, as most mouthwash products are sold via this channel. The fact that Scope is a product that offered several medical benefits should enable P&G to acquire a substantial market share in this channel, which became a priority. Store sales was also an important channel as well. Market share data revealed there was a substantial difference in the share held by Scope in food stores (e.g., supermarkets), 42 percent, versus drugstores, 27 percent. Approximately 65 percent of all mouthwash sales went through drugstores while 35 percent went through food stores. Recently, wholesale clubs, such as Price Club and Costco, had accounted for a greater share of mouthwash sales. The promotional campaign aims to generate pull by consumers who are interested in the product and will ask for it in drug stores as it is recommended by a dentist in the commercial. This helped to increase market share in both channels.

Promotion
Scopes promotional plan can be divided in both above the line and below the line promotion. Above the line: Above the line communications have a strong focus on Television advertising and outdoor advertisement. Television advertising consists of a TV Commercial with. It focused on the main product benefits of Scope, such as Plaque removal, germ killing ingredients, reducing bad breath, preventing gingivitis and cavities. To convince the consumer, the commercial have the presence of a specialist (dentist) recommending Scope, emphasizing its unique qualities and the fact that it is a completely new and revolutionary product in the mouthwash market.

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The outdoor campaigns also follow this perspective and it placed in strategic points in the city, so that it had been seen by more people. Below the line: Our below the line campaign done through store promotion: - Free samples of the product the Scope mouthwash had been attached that cost $20,000. Their objective was to make consumers try the new product and increase sales among the users as well as attract new consumers to buy this new product. - Another important promotion tool for Scope was in-store Stoppers. The point of using stoppers is that the product needs to be seen by consumers. This achieved by using instore stoppers that directly attract consumers attention. Again attracting new consumers is one of the main objectives with this communication.

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