Scope Case Study

STRATEGIC MARKETING Mid-Semester test Spring, 2009 Name Erika Woodhouse 1. Evaluate the changes that have occurred in the Canadian mouthwash grocery in the past three years and their force of place setting. Be specific. (20) In 1987 the growth rate for the mouthwash market experienced a 26 per centum increase due to the introduction of new flavors. Brands were adding unique customization to clear consumers to their brand, and as a result the market as a unanimous grew. Since then the growth rate has dec delimitated to a level of 5 percent. 2. direction believes that the stead quo is the best strategy.The team has been asked to make the case for and against this position, including in their sermon an evaluation of the positions of all or almost all members of the team. (20) a. _ Status quo_ b. _ Against status quo_ Scope should take action anddo something to compete with Plax and Listerines new claims. proctor & Gamble states in their statement of purpose and strategy, We wil l continuously dwell ahead of competition while aggressively defending our established moneymaking business against major competitive challenges despite short term receipts consequences. Therefore doing nothing is simple not an option. The market had an increase of 5 percent last year, while Scope suffered from a . 7 percent loss. Plax as a new competitor to the marked was able to carry through a 10 percent market consider in over only three years, and will continue to grow and could take from our share if nothing is buste. If we created a bring out tasking pre-brush rinse we can also correspond this to Scope when entered the market.Scope had all the same attributes of Listerine but offered a better taste, and was able to penetrate the market and be successful with a 12 percent market share in one year. 3. Management has wondered what impact the line extension strategy (using the Scope name) would have on boilersuit profits of the Division if the price were held constant an d if the price were increased 10 percent, assuming veritable volume. Accounting has provided the following information to assist in your analysis Current variable cost 20. 2/unit varying cost likely increase with the line extension 13% follow fixed cost $2. 5 million + advertising, promotion, and general office costs. Scope should not introduce a line extension to compete. A line extension with the scope name would be likely to confuse its current customers. Also if the growth fails it could reflect poorly on Scope. They also dont have the ability to make a superior product therefore they could hurt the brand image of providing quality and value.