SOUTHERN NEW HAMPSHIRE UNIVERSITY

Graduate School of Busi ess Pro!ra"# $ourse Title # I structor# ,ue ,ate# Su2"issio ,ate# SNHU School of Busi ess Graduate Pro!ra" Mar%eti ! Strate!ies & M'T ()) *ea e"arie Thor+e Mo da-. *a uar- /0. 0))1 Mo da-. *a uar- /0. 0))1

T-+e of Assi! "e t# $ase A al-sis Title of Assi! "e t# Procter a d Ga"2le. I c3 & 0 d $ase StudStude t Na"e# $e4det 'I5I6 Stude t Pho e 7s# 89):; 909 <:)0 Stude t E="ail# ce4det%i>il?-ahoo3co" $ERTI@I$ATION O@ AUTHORSHIP: I certify that I am the author of this assignment. Any assistance I received in its preparation is fully acknowledged and disclosed within this document. For Mid-Term and/or Final !ams" I certify that I have not received any help from others. I have cited any and all sources" #oth print and electronic" from which I have used data" ideas" or words" either $uoted or paraphrased. My cited sources are indicated within this document. I also certify that this assignment was prepared #y me specifically for the course as listed a#ove.

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Procter a d Ga"2le. I c3 Scope

The pro#lem for *rocter + ,am#le-s .*+,/ 01cope2 #rand is that their share at mouthwash market is slightly going down while a new #rand called 0*la!2 launched #y *fi3er Inc. has gained a 4&( market share in a very short time period which created a situation that left 0*+,2s management team in dilemma for how to respond. *+, has some constraints to solve the pro#lem .in fact" the situation is so comple! that for some" no pro#lem and threat e!ist/. First of all" if they introduce a new product in the mouthwash market as a competitor against *la!5 they are not sure if it will #e really innovative or it will focus on unmet consumer needs. Another limitation is that introducing a new product to the market will cost a lot .even the test production costs 6'("(((. 7apital costs" marketing costs" delivery costs" inventory costs" ingredients costs" packaging costs are other important costs which create concerns/ and also will re$uire an effective strategic management. After that" the new product is very similar to *la! and has no significant advantage e!cept a #etter taste5 on the other hand" sales department thinks that for success" the product must #e seen as uni$ue. 1o" *+, can not #e sure a#out the future success of this product. 8e!t" for the new product to gain reassurance" patience is needed. This can only #e achieved in the long period. Following this" the new product will also reduce the sales of 1cope. Additionally" *+, is not sure a#out the name of the product too" will it #e sold under 1cope-s name or not9 If sold under 1cope-s name" *+, thinks the new product can also cause the loyal customers to stop using 1cope #ecause of the #rand-s new image. *lus" another disadvantage for *+, will #e that they will always have to support the new product like 1cope. :n the opposite side" if *+, doesn-t produce a new product" #ut tries to emphasi3e that 1cope now fights pla$ue while also still providing good #reath via advertising" it will #e very hard to create the two images at the same time. ;ecause *+, thinks consumers only receive one main message at a time. Also" 1cope-s new image can confuse the already e!isting customers. In fact" I think there are some other hidden constraints. As an e!ample" it-s #eneficial that *+, team has many ideas to solve the pro#lem" #ut at the end" they can-t find the #est answer .idea/ to solve the pro#lem. In my point of view" the reputation of *la!" especially on health issues of teeth is another important limitation for 1cope. Finally" according to me" *+, may have some potential alternatives to solve the pro#lem. As the initial step" they can think more for the <.1. market than the 7anadian market. ;ecause they are already the leader in 7anadian market while the <.1. market is still led #y =isterine. Then" *+, can implement a much more detailed marketing research to have a #etter understanding on why their market share is going down while *la!-s is increasing. 8e!t" *la! does not have a good image at reducing #ad #reath. 1o" in advertisings .T.>. " newspaper?etc./" they can focus on *la!-s this weak point. For instance" on a T.>. commercial" they can show a guy losing his girlfriend #ecause of #ad #reath. Then" #y reading the case carefully" we can see that *la! has other weak points at financials .costs/ and retail prices while 1cope has advantage on #oth. 1o" *+, should use this advantage wisely against *la!. For e!ample" they can try to dominate the lowaverage income groups .markets/ deeper which find the price of *la! high. Focusing more on these groups .markets/ can #e really smart.