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Strategy evaluation
Crafting brand positioning
Strategy evaluation
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Procter & Gamble
Scope
Case Analysis:
Scope, a green mint tasting mouthwash, was positions as a great tasting mouth refreshing brand that provided bad breath protection. It is the first brand that offers both effective protection against bad breath and a better taste than other mouthwashes.
Scope was introduced in 1967 by Procter & gamble, which is one of the most successful companies in the world. P&G philosophy is to provide superior quality and value that best fills the needs of the consumers; it was recognized as a leader in the Canadian packaged good industry.
P&G Canada has five operating divisions, organized by product category. The divisions and some of their major brands are:
1- Paper products: Royale, Pampers
2- Food and beverage: Crisco, Pringles .
3- Beauty care: Head & Shoulders, Pantene .
4- Laundry and cleaning: Tide, Cheer
5- Health care: Crest, Scope .
Each division has its own brand management, sales, finance, product development and operations line management and was evaluated as a profit center.
Scope’s brand manager Gwen Hearst planned, developed, and directed the total marketing effort for Scope; she was responsible for maximizing the market share, volume, and profitability of the brand.
However, in 1970 Scope became the market leader in Canada, but it was not the only brand in the mouthwash market, it had many competitors, such as Listermint mouthwash that was launched by Warner Lambert in 1977 and it was a direct competitor to Scope, it had nearly the same characteristics as Scope with a 12% of the market share.
But the major competitor for Scope was Plax, a brand by Pfizer Inc, which was launched in Canada in 1988 on a platform quite different from the traditional mouthwashes. Plax deterge...
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...additional benefit that the scope consumer can benefit from and it may attract the potential users that scope aim at. Also P&G has to collect more information to see what the consumer needs and improve it within the same product; especially that it is based on a philosophy of satisfying the customer needs. Scope was positioned around two benefits that are refreshing breath and good tasting, and it should stick to this position with other additional claims or benefits if it can, so it should not launch a new product that confuses the customers but stick to this position that it has in the market place and that is considered to be its competitive advantage.
It’s better to protect the business that P&G is already in and just add a plaque claim, than launching a completely new entry that is not secured. As the quote says: "A bird in the hand rather than 10 on the tree."
Under an agreement, Sanofi granted Eli Lilly and partner Boehringer Ingelheim a licence allowing them to manufacture and market Basaglar in the Kwikpen device in the US on December 15, 2016. As part of the deal, Eli Lilly will pay royalties to Sanofi, while the remaining settlement terms were not disclosed.
Such level of importance creates a highly competitive environment, and currently 71.5% market share is dominated by the top three major players: Loblaw Canada Ltd., Sobeys and Metro, all canadian companies. The attractiveness of the retail segment brought international competition, and in 2005 the giant Wal-Mart entered the market, being then the second big american company in the Canadian reatil industry,
Wide market - They covers a large market in whole Canada domestically and as well as they cover international market as well.
The company operates in three divisions: lodging, contract services and restaurants which represents 41%, 46% and 13% of sales in 1987 respectively.
The Procter and Gamble Company. (2013, November 17). Company Strategy. Retrieved March 22, 2014, from http://www.pginvestor.com: http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821
P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as well as strong brand name. P&G has a long standing reputation as having life long employees. This dedication and loyalty by P&G's employees created the notion that outside sources were unwelcome and all products and ideas must come from within, however, this is not the way of the future.
The product I chose to research was Listerine mouthwash. Listerine was first invented as a surgical antiseptic in 1879 and later repositioned as an oral care product to dentists in 1895. Listerine was the first over the counter mouthwash sold in the United States in the year 1915. Since then the brand continued to expand its product line consisting of different types of mouthwashes targeting specific areas of oral concern. Listerine’s product mix is not limited to mouthwash, but also includes gel toothpaste, breath freshening strips and mouth freshening sprays.
Proctor and Gamble was founded in Cincinnati, OH, by William Proctor and James Gamble in 1837. Initially the company was started to compete with the 14 other soap and candle makers already established in Cincinnati, but around the end of the century, Proctor and Gamble dropped candle manufacturing altogether to focus on soap production. By 1890, Proctor and Gamble had increased their production to over 30 different types of soap.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
Procter and Gamble (P&G) and Colgate-Palmolive (C-P) are two of the largest consumer goods company in the world and have been in the industry since the 80s. The companies manufacture and market fast moving consumer goods (FMCG) such as household products, personal care and hygiene, targeting at various segments of consumers. Among the brands carried by P&G are Downy, Olay, Tide, Clairol and Bounty. Popular brands under C-P are Palmolive, Kleenex, and Colgate.
...ategic direction of the company of holding the leadership position n the grooming market. Also, this strategy will fit with Gillette's major, sustainable, competitive advantage of being an industry innovator (3). Manufacturing the "Sensor 3 Gel" will add value to the organization, as it will reposition the Gillette Company as the undisputable industry leader.
Relationships have been in place with two main groups in Singapore long before Proctor and Gamble ever decided to build a plant. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering are the two main groups they have been involved with. Since Proctor and Gamble built these relationships before building a plant in Singapore they have thus established a strategic alliance with Singapore. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering have come together with Proctor and Gamble to share resources and complete a project. Proctor and Gamble benefit from setting up a strategic alliance with A*Star by getting the privilege of looking at IMRE’s innovative research (Moneycontrol.com, 2008). In return for this preferential treatment, P&G shares its new innovations with A*Star’s IMRE (Moneycontrol.com, 2008).
Once America’s most innovative consumer products company, Procter and Gamble (P&G) started by selling soaps and candles in a small Cincinnati storefront in 1837 (Procter and Gamble, 2008). After a hundred and seventy-one years P&G has grown to over one hundred household brands in over eighty countries (Markels 2006). Their products range from air fresheners to prescription drugs. However, as P&G headed into the twenty-first century they announced that they would not be meeting their 1st quarter earnings forecast [Lafley, 2003]. Revenue margins were dropping and P&G was quickly losing market share to Kimberly Clark and Johnson & Johnson. After missed earnings P&G’s stock price fell from $59.18 to $26.50 between January 2000 and March 2000 (PG). Upset, the board of directors pressured then CEO Durk Jager to resign after a lack luster attempt at turning P&G around and replaced him A.G Lafley, an unproven CEO, whom analysts felt lacked the experience to give P&G a much needed clean up (Lafley, 2003).
This allowed Pfizer to make decisions based on patterns and trends before other companies. The ability to use real-time data to drive the decision process based on market trends could be considered a competitive advantage for Pfizer.
An economy of scope happens when it’s cheaper to produce two products together than to produce them separately. Nike benefits from economies of scope because of its manufacturing, distributing sales in the economy. Nike is one of the world’s larger footwear companies that have many factories and etc. to help with a successful production and