Case Study: P & G Scope vs Plax Essay
Plax entering the market in 1998 has seen a significant attainment in market share in which the competition lead by P&G, Scope, has 32%. With Plax's attainment in two years time, P&G sees the potential of losing market shares in the product category. She is concerned that with all the competitions such as Listerine following suit of Plax's new position for the product category of "Plaque fighter" in addition to fresh breath and killing germs. She must come up with a plan of action to counter the competition. She has to answer three questions:
1- Does Scope plan and execute a new Line Extension;
2-add new claims to the present product; and
3- Take no action.
These alternatives will affect all aspects of the …show more content…
With the sale of $18 million units to 32% Market Share, the assumption is that with the chosen alternative, we will gain an additional 5% market share. With this, we will project our sales on the basis of increased price considering the added claim. The rational behind this price increase is that Plax which offers just one benefit is selling at a higher price per litter whereas, Scope which originally offers two benefits is priced lower. It only makes it a strategic decision to increase the price of the product by $.30 per units.
Developing a Plan for Implementing the Chosen Alternative
The plan involves a simultaneous approach to implementing the chose alternative because time is of the essence. Since there will be no significant change to the manufacturing process cycle we will focus more on the external activities such as advertising, promotion and packaging. All of these activities ware going to happen simultaneously. Net Sales* $5,717,250.00 Ingredients 376,950 Packaging 235,620 Manufacturing 323,400 Delivery 137,300 Clinical Test** 80,000 Misc.