Scope - Case Study Solution 734nk
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Table of Contents Section/ Title Front Cover…………………………………………………………..... Table of Contents…………………………………………………...... Section I: Organization’s Business, Mission, and Goals……… 1.1) Business Definition……………………………………... 1.2) Business Mission………………………………………... 1.3) Business Goals (Production, Financial and Marketing)… Section II: Organizational Growth Opportunities…………….. 2.1) Environment Opportunities……………………………... 2.2) Distinctive Competencies……………………………….. 2.3) Success Requirement…………………………………… 2.4) SWOT Analysis Framework…………………………….
Marketing Mix Analysis……………………………. a) Product Strategy………………………………………… b) Price Strategy……………………………………………. c) Channel Strategy………………………………………... d) Communication Strategy………………………………... Section III: Product- Market Strategies………………………... 3.1) Market Penetration……………………………………… 3.2) Market Development Strategy………………………….. 3.3) New Offering Development…………………………….. 3.4) Diversification…………………………………………... 3.5) Decision Tree…………………………………………… Section IV: Budgeting…………………………………………… 4.1) Financial Budget (Pro Forma income statement)……….. 4.2) Operating Budget……………………………………….. 4.3) Special Budget………………………………………….. Section V: Marketing Audit…………………………………….. 5.1) Strategic Aspects……………………………………….. 5.2) Operational Aspects…………………………………….. 5.3) Recommendations………………………………………. Section VI : Latest Development……………………………….. Reference………………………………………………………………. Appendices……………………………………………………………..
Page II 1 1 1 1 2~4 2 2 2 3-4 5~6 5 5 5 5-6 7~8 7 7 7-8 8 8 9~10 9 10 10 11~12 11 11 11-12 13 14 15~20
Section I: Organization’s Business, Mission, and Goals 1.1)
Business Definition
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 and marketed by Procter & Gamble, Inc. 1.2)
Business Mission
Provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for next/ future generations. In return, consumer will reward with leadership sales, profit and value creation, allowing people, shareholders and the communities in which live and work to prosper. 1.3)
Business Goals
Production Objectives To achieve a brand that must be seen as different enough/ unique from the competition to build incremental purchases. Financial Objectives To achieve leadership share and profit positions and that, as a result, stakeholder wealth; such as, business, public, employees, shareholders, creditor and the communities will prosper. Marketing Objectives Increase the market share, sales volume, and profits for Scope; consequently, to achieve the brand loyalty and brand preference among the consumers. Besides, Scope marketing objective is to make sure the brands is addressing the consumer in a way that will cause top-of-mind awareness for Scope.
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Section II: Organizational Growth Opportunities 2.1)
Environment Opportunities
Social-Cultural Force Consumers indicate that they buy the product to solve the socially related problem of ‘Bad Breath’ and that mouthwash products are part of their basic oral hygiene. Regulatory Forces In Canada it is possible to apply for a ‘seal of recommendation’ of the Canadian Dental Association. The CDA will decide whether or not they approve the application by investigating the medical effects of the substance. Hence, it is evidence that Scope have the opportunity to gain endorsement from CDA. 2.2)
Distinctive Competencies
Market Share Leadership Scope was long experience in the oral hygiene industry since 1967. It became market leader in 1976 and since then it had been enjoying largest market share in Canadian mouthwash market. 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. Also, Scope great strength in the food stores, which is 42 percent (for example, supermarkets). Great Taste and Makes Breath Fresh Scope was the first brand that offered both effective protection against bad breath and a better taste than other mouthwashes. The taste/ flavor of Scope had positioned better than other mouthwashes. Scope advertising focused, “Scope fights bad breath. Don’t let the good taste fool you.” 2.3)
Success Requirement
Ability to maintain or continued of produce high quality product that P&G customers expect and to gain in the hypercompetitive market. Besides, Scope also needs to maintain hold in market.
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2.4)
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SWOT Analysis Exhibit 2.0 - SWOT Analysis Framework of Scope
Internal Factors Management Marketing
Strengths
Weaknesses
External Factors Economic
Consumer
R&D
Technology
Offerings
Threats
Competition
Manufacturing
Finance
Opportunities
Legal/Regulatory
Industry/Market Structure
Based on the above Exhibit 2.0 outlines the SCOPE’s SWOT analysis framework depicting representative entries for internal strengths and weaknesses and external opportunities and threats. Internal Factors i. Strengths Management – Fill in management depth. Scope is a health care product of P&G. Scope has its own brand management, sales, finance, product development PDD and operations management groups. Besides, Scope gets a great strength in the food stores among competitor. Marketing – P&G known to provide products that fulfill consumer needs at superior quality and value. Nevertheless, Scope has a first rating in mouthwash market share. Finance – Scope strength in financials (costs) and retail prices. ii. Weaknesses Manufacturing – Higher overall production costs relative to key competitor (Plax) R & D – Poor track record in bringing innovations to the marketplace. For examples, Scope’s product development had recently developed a new prebrushing rinse product that performed as well as Plax but did not work any better than Plax against plaque reduction. Offerings – Too narrow a product line. Scope does only offer one benefit that is reduces bad breadth with a good taste.
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External Factors iii. Opportunities Economic – Consumer income is quite high. Technology – Scope can use the advance of technology for enhancing the production; like using computer operated machineries which are fully automated. By this, Scope can reduce the labor costs indeed. But also can using Internet to developing a new market. iv. Threats Competition – Increased competition (Listerine, Listermint, Cepacol, Plax, and other store brands), while competitors are introducing more benefits. For instances, before the entry of Plax, brands in the mouthwash market were positioned around two major benefits that are fresh breath and killing germs; whereas, Plax was positioned around a new benefit as a plaque fighter and claims Plax removes up to three times more plaque than just brushing alone. Consumer – Growing preference for benefit mouthwash, mouthwash market is increasing everyday; Scope is known for taste and fresh breath, due to the market (consumer trend) is moving towards health-related mouthwashes. It means consumer now focused on health benefits. Legal/ Regulatory – The regulation of product-testing and labeling had increased in Canada. There are some organizations like Health Protection Branch (HPB) and The Canadian Dental Association (CDA); they have some requirements to their standard or nomination. For instance, P&G did not have a clinical database to convince the HPB to allow Scope to extend these claims into the prevention of inflamed gums (as Listerine does). Industry/ Market Structure – Low-entry barriers for new competitors, hence, it shows a threat to Scope. But also too many competitors in this industry; this shows a direct treat towards Scope.
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Marketing Mix Analysis a. Product Strategy Scope basically is considered as product-oriented in the mouthwash marketplaces which are under personal care - health care industry. In other words, Scope was the mainly primary product where to serve on customers who helped to remove bad-breath protection. The product called; “Scope fights bad breath. Don’t let the good taste fool you.” Scope became the market leader in Canada. Furthermore, Scope is provided enhancement in term of taste; Scope are just not available in original mint flavor (green), but also new flavors such as peppermint (blue), cinnamon (red), citrus (orange), and new Scope White. See Picture A. Apart from that, entry of scope in product strategy also positioned its products into long lasting of mint-tasting mouthwash product and refreshing brand to attract customers purchase intention in first mover compared to others mouthwash products, significantly, it shows that Scope has capable to compete with others similar mouthwash products in health care line. b. Price Strategy Scope is implementing price penetration strategy to launch its superior products to specific countries. The pricing indicates the location of stores derived from food and drug stores significantly. The prices of Scope are slightly lower in food store as compared to drug store due to the numbers of s and the effectiveness of advertising significantly. In other words, the prices set by Scope are based on the countries itself whereby the numbers of buyers and customers preferences have bring the great impact on products pricing. c. Channel Strategy Scope significantly holding their market share through several distribution channels whereby their Scope products will be displayed on food stores, supermarkets, drugstores. Primarily, wholesaler Clubs (Price Club) also tend to be carried Scope products in order to strengthen the market share through different distinctive places. Needless to say, food store has highlighted the attraction of using Scope to mouthwash functions after having dishes. Whereas, Drug stores also another effective distribution channels where, it get rid of those drug seekers bad breath after drug. d. Communication Strategy Scope communication strategy can be divided into two, which is, advertising and sales promotion. Scope is perceived customers attention by advertising focused. Scope has a strong invest on BMR3134 – STRATEGIC MARKETING
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Television advertising and ment. TV ment target mass of audience and it focused on the main product benefits of Scope. For instances, “Scope fights bad breath. Don’t let the good taste fool you.” Scope’s sales promotion is Free Samples of Scope mouthwash, Scope used free sample is to make consumers try the new product and increase sales among the s as well as attract new consumers to buy Scope new product. Furthermore, Scope also used Mailed couponing to attract more consumers and gain market share. It means, when you sign up a member of P&G- Scope; you will receive exclusive offers. Nevertheless, In-store Promotion is also one of the important promotion tools for Scope. The point of using in-store promotion is that the product needs to be seen by consumers, but also directly attract customer’s attention. Nonetheless, by using in-store promotion Scope can easily attracting new consumers. This is for sure.
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Section III: Product- Market Strategies 3.1)
Market Penetration Strategy (Existing Offerings → Existing Markets)
Scope had applied the market penetration strategy, by applying this strategy Scope no effort to be wasted in researching possible opportunities. Scope target market will be fresh breath, while major competitor – Plax is focused on health benefit. Therefore, Scope spend more aggressive on advertising and add new flavor; such as, citrus, peppermint, cinnamon and new Scope White with a high-quality product. We would not recommend Scope continuously engages market penetration strategy; due to the market share for Scope has declined. Growth opportunities will either come from new products and benefits or taking market share from competitor. Therefore, suppose Scope will do nothing there is a possibility to lose market share in the next few years indeed. 3.2)
Market Development Strategy (Existing Offering → New Markets)
Market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. In the case, Scope engaged in a market development strategy when it entered Canada and United States. We recommend Scope could implement market-development strategy due to generate additional volume in a new market segment while allowing Scope to maintain its current position in the fresh breath and great taste segment. Scope can think more for the U.S. market than the Canadian market. Due to Scope already the leader in Canadian market while the U.S. market is led by Listerine. Nonetheless, Scope can investment more ment at U.S. market in order to achieve as a market leader at U.S. 3.3)
New Offering Development Strategy (New Offerings → Existing Markets)
Scope has engaged new-offering development strategy – launching a line extension. Which is new flavored mouthwashes and “pre brush” rinse product, due to Scope believed it will maximize profitability of the Scope’s brand. Scope also lowering its prices on Scope for attract consumer to buy Scope’s product. Yes, in most ways than not, I would strongly recommend Scope to implement new-offering development strategy to satisfy customers wants. The major reasons are the market share for Scope has declined in last year and the industry seems to be maturing. The new product could be launched by using the Scope brand name. Scope is a well-known brand on the mouthwash market. Scope can BMR3134 – STRATEGIC MARKETING
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be used an innovation - could be implemented by trying to create a new dimension of performance which includes the process of making an improvement of the product available. P&G should also attempt to gain the seal of approval from the CDA. This would help increase sales because the market is shifting more towards health-related issues. Moreover, Scope should be sales at food stores, and wholesale clubs but most important should be an increased effort to have strong sales in the drug store segment of the market. Due to the drug stores are responsible for 65 percent of the market sales and by increasing its presence in this area, consequently, it is evidence, Scope has great potential to increase sales. 3.4)
Diversification Strategy (New Offerings → New Markets)
Scope does not have adopted this strategy. We not recommended Scope to adopt this strategy; due to diversification is often a high-risk strategy because both offerings and market served are new to the Scope. And diversification should not be introduced because it could not only incur a high of capital and marketing costs but also cause confusion to the consumer. 3.5)
Decision Tree
Action Market Development Strategy
New Offering Development Strategy
Response
Outcome
: Aggressive Competition
: Estimated profit of $ 0.8million
: ive Competition
: Estimated profit of $1million
: Aggressive Competition
: Estimated profit of $1.5 million
: ive Competition
: Estimated profit of $2 million
The decision tree shows that the highest profits (expected of profit $2 million) will result if Scope new offering-development strategy is enacted and competitors react ively. Introducing a product line extension and product innovation under the current Scope brand name is the best strategic option. This will enable P&G achieve profit positions and reap the benefits of their establish brand name from different consumer needs, without losing traditional Scope brand and market share. For the most important, the new product Scope launch should offer more benefits/ unique then the competing mouthwashes to build incremental purchases! For instances, offer multiple benefit such as; prevents cavities, prevents gingivitis, reduces bad breath, germ killing ingredients, plaque removal as well as good taste fool you; that is 6in1=Scope.
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Section IV: Budgeting 4.1)
Financial Budget
PROCTER & GAMBLE, INC - SCOPE Pro Forma Income Statement For the Years Ended November 30 2015 2014 2013 Scope volume (Units)(000) 465 464 463 $(000) $(000) $(000) 33,480 32,944 32,410 Sales 17,828 17,446 17,066 COGS Gross margin 15,652 15,498 15,344 Marketing expenses Advertising Sales Promotion Total Marketing Expenses
3,559 3,057 6,616
3,455 2,968 6,423
3,355 2,881 6,236
Total Contribution
400 500 900 8,136
400 1,000 1,400 7,675
400 1,500 1,900 7,508
Less: Fixed Costs Net Profit before (income)tax
6,146 1,990
6,027 1,648
5,908 1,600
General and istrative expenses Depreciation on building and equipment Labor
*We estimated that Scope total units sold will increase 1,000units starting from 1990. Refer (Appendices) *We estimated that Scold price per will increase 2percent for every year starting from 1990. Refer (Appendices) *Labor costs will reduce due to the advance of technology.
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4.2)
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Operating Budget
Scope Cost of Goods Sold (2012NOV- 2015NOV)
Cost of Goods Sold Ingredients Packaging Manufacturing Delivery Miscellaneous Total
2015 $/Unit
2014 $/Unit
2013 $/Unit
17.57 8.86 5.74 5.12 1.05 38.34
17.23 8.69 5.63 5.02 1.03 37.60
16.89 8.52 5.52 4.92 1.01 36.86
*We estimated that for every year Scope’s COGS will increase 2percent starting from 1990. Refer (Appendices)
Scope Fixed Costs (2012NOV – 2015NOV) Fixed Costs General Office Manufacturing Miscellaneous Total
2015
2014
2013
$(000) 2,241 2,526 1,379 6,146
$(000) 2,197 2,478 1,352 6,027
$(000) 2,154 2,428 1,326 5,908
*We estimate that for every year Scope’s Fixed Cost will increase 2percent; starting from 1990. Refer (Appendices)
4.3)
Special Budget
Scope Marketing Plan Inputs Scope “Going” Marketing Spending (2012NOV – 2015NOV) Year
Advertising TV ads Radio Print ads Sales Promotion Contest Samples Coupons Demonstrations Total Marketing Expenses
2015
2014
2013
$(000) 1,779 890 890 3,559
$(000) 1,727 864 864 3,455
$(000) 1677 839 839 3,355
509 1,019 510 1,019 3,057 6,616
495 989 495 989 2,968 6,423
480 960 481 960 2,881 6,236
*We estimate that for every year Scope’s Special Budget of Marketing expenditure will increase 3percent starting from 1990. Refer (Appendices) BMR3134 – STRATEGIC MARKETING
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Section V: Marketing Audit 5.1)
Strategic Aspects
Yes in most ways than not, but we say YES that Scope not doing the right thing. Based on the case we know that consumer trend is moving towards health-related mouthwash but Scope only offers great-taste and mouth refreshment. Besides, Plax-competitor entered the market positioned around a new benefit - plaque fighter and focused on health-benefit. And this leads the market share for Scope has declined. Also, Scope does not enough make a distribution channel. Hence, growth opportunity will either come from new products and benefits. So, Scope management need a change and they need to take a decision from their available alternative in order to achieve the market share. 5.2)
Operation Aspects
Based on the case it shows that Scope are not doing things right. Because Scope’s product development/ R&D not able to develop or offer a new product which is work better than what the competitor do- Plax. Hence, before Scope launch a new product, Scope’s R&D needs to understand the market very well what the current market trends, what the competitor do and just decides or choices the best ways which can help Scope to gain more profit and remain as a market leader share among competitor. 5.3)
Recommendations
We recommend that Scope should take the same familiar taste in combination with ingredients to obtain health benefits in their new offering by used the new offering-development strategy in order to meet the needs of the other customers. And we strongly recommend Scope used the new offering-development strategy. That is introducing of a new product that offers more benefits under same brand name. First and foremost, P&G should attempt to gain the seal of approval from Canadian Dental Association. This would help increase sales due to; the market is shifting more towards healthrelated issues. For instance, Scope could add germ killing additives that reduces plaque and apply for a CDA approval seal. Nevertheless, Scope should also distribute this new offering product to food stores, drug stores and wholesale clubs. But, Scope should be an increased effort to have strong sales in the drug store. Due to, around 65percent of mouthwash sales through drug store, consequently, by increasing in the drug store, Scope has a great potential to increase the sales indeed. BMR3134 – STRATEGIC MARKETING
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Moreover, Scope should need to explain, inform, persuade the market to buy Scope’s new offering product through communication channel such as the new offering through TV, radio and Print Ads. But also, demonstrate the product in major drug store chain, sample, contest, and coupon. The main purpose is to make consumers try the new offering and increase the sales of the current s as well as attract new customers to buy this new offering. Moreover, through technology advance Scope could improving production by upgrading technology, for instance, using computer operated machineries which are fully automated. So, it is evidence that through using the technology Scope can reduce the labor cost. This is for sure and unquestionable. Nevertheless, we also recommend Scope upgrading the technology.
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Section VI : Latest Development Scope Mouthwash as an important Oral Hygiene Tool Scope Dual-Blast mouthwash Breathe easy with new products that help eliminate garlic and onion-breath. Scope introduced its latest collection of products featuring new Dual-Blast technology, which helps eliminate strong food odors, especially onions and garlic, while killing bad breath germs. Scope Dual-Blast mouthwash helps give consumer the confidence to enjoy favorite foods without having to worry about bad breath (Picture B). Besides, that has two flavors under Scope Dual-Blast mouthwash which are Fresh Mint Blast and Icy Mint Blast. Scope Outlast Minibrush One of the Scope’s latest development products is their Scope Outlast Minibrush (Picture C). The unique brush requires no water consequently; you can have fresh breath whenever you need it. The small brush contains Scope Outlast gel. The brush features are high quality bristles, it can also be used as a tongue brush and includes an interdental pick. Therefore, the minibrush is perfect for after lunch, dates and before meeting or other social events. Scope Outlast Breath Mist Scope Outlast breath mist, long lasting peppermint and mint is the flavor. It is fresh breath any time; it is fat free and sugar free. Scope Outlast Breath Mint uses the same Outlast technology as Scope Outlast Mouthwash to deliver a refreshing blast of Scope flavor. The convenient bottle easily attaches to a keychain and stashes away in your purse, luggage, or pocket for kissable, fresh breath on the go (Picture D).
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Reference Cravens, D.W; Lamb, C.W.Jr. and Crittenden, V.L., (2002). Strategic Marketing Management, Cases, 7th Edition, Mc-Graw Hill & Irwin. Scope, Courage encouraged, Portal & Gamble (2012). Online Available: http://www.scopemouthwash.com/ Scope,
Product
Health
and
Wellness,
Portal
&
Gamble,
(2010).
Online
Available:
http://www.pg.com/en_CA/product_card/hw_scope.shtml Scope Mouthwash. Facebook (2010). Online Available: https://www.facebook.com/scopemouthwash
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Appendices Picture A: Scope product
Picture B: Scope Dual-Blast mouthwash
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Picture C: Scope Outlast Minibrush
Picture D: Scope Outlast Breath Mist
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Appendices - Budgeting Scope units sold in 1990 were 440,000 and Sales per unit were $44.10 Scope unit Sold YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Unit Sold 440000 441000 442000 443000 444000 445000 446000 447000 448000 449000 450000 451000 452000 453000 454000 455000 456000 457000 458000 459000 460000 461000 462000 463000 464000 465000
Sold Sales/ units YEAR Price/unit 1990 44.1 1991 44.982 1992 45.88164 1993 46.79927 1994 47.73526 1995 48.68996 1996 49.66376 1997 50.65704 1998 51.67018 1999 52.70358 2000 53.75765 2001 54.83281 2002 55.92946 2003 57.04805 2004 58.18901 2005 59.35279 2006 60.53985 2007 61.75065 2008 62.98566 2009 64.24537 2010 65.53028 2011 66.84089 2012 68.1777 2013 69.54126 2014 70.93208 2015 72.35072
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Cost of Goods Sold Scope Cost of Goods Sold 1990 year Product Line Extension Adjustments $(000)
Net Sales (440,000units) Ingredients Packaging Manufacturing Delivery Miscellaneous Cost of Goods Sold Gross Margin
$(000) $/ Unit
18,150 3,590 2,244 1,540 1,373 280.5
$/ Unit
$/Unit
$/Unit
41.25
44.10
8.16 5.10 3.50 3.12 0.64 (9,027.5) 9,122.5
*10.71 *5.40 3.5 3.12 0.64 (20.52) 20.73
(16.11) 27.99
*Product Line Extension Adjustments Ingredients = +2.55(+/-50%) Packaging = +0.30
Scope Cost of Goods Sold YEAR
YEAR
Delivery
1990
Ingredient 10.71
YEAR 1990
Packaging 5.4
1990
3.5
1990
3.12
1990
0.64
1991
10.9242
1991
5.508
1991
3.57
1991
3.1824
1991
0.6528
1992
11.1427
1992
5.61816
1992
3.641
1992
3.246
1992
0.665856
1993
11.3655
1993
5.73052
1993
3.714
1993
3.311
1993
0.67917312
1994
11.5928
1994
5.84513
1994
3.789
1994
3.3772
1994
0.692756582
1995
11.8247
1995
5.96204
1995
3.864
1995
3.4447
1995
0.706611714
1996
12.0612
1996
6.08128
1996
3.942
1996
3.5136
1996
0.720743948
1997
12.3024
1997
6.2029
1997
4.02
1997
3.5839
1997
0.735158827
1998
12.5485
1998
6.32696
1998
4.101
1998
3.6556
1998
0.749862004
1999
12.7994
1999
6.4535
1999
4.183
1999
3.7287
1999
0.764859244
2000
13.0554
2000
6.58257
2000
4.266
2000
3.8033
2000
0.780156429
2001
13.3165
2001
6.71422
2001
4.352
2001
3.8793
2001
0.795759557
2002
13.5829
2002
6.84851
2002
4.439
2002
3.9569
2002
0.811674749
2003
13.8545
2003
6.98548
2003
4.528
2003
4.0361
2003
0.827908243
2004
14.1316
2004
7.12519
2004
4.618
2004
4.1168
2004
0.844466408
2005
14.4142
2005
7.26769
2005
4.711
2005
4.1991
2005
0.861355737
2006
14.7025
2006
7.41304
2006
4.805
2006
4.2831
2006
0.878582851
2007
14.9966
2007
7.5613
2007
4.901
2007
4.3688
2007
0.896154508
2008
15.2965
2008
7.71253
2008
4.999
2008
4.4561
2008
0.914077598
2009
15.6024
2009
7.86678
2009
5.099
2009
4.5453
2009
0.93235915
2010
15.9145
2010
8.02412
2010
5.201
2010
4.6362
2010
0.951006333
2011
16.2328
2011
8.1846
2011
5.305
2011
4.7289
2011
0.97002646
2012
16.5574
2012
8.34829
2012
5.411
2012
4.8235
2012
0.989426989
2013
16.8886
2013
8.51526
2013
5.519
2013
4.9199
2013
1.009215529
2014
17.2264
2014
8.68556
2014
5.63
2014
5.0183
2014
1.02939984
2015
17.5709
2015
8.85927
2015
5.742
2015
5.1187
2015
1.049987836
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YEAR
Manufacturing
YEAR
Miscellaneous
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Fixed Costs Scope Fixed Cost 1990 Fixed Costs General Office Manufacturing Miscellaneous Total Fixed Cost
1,366 1,540 841 3,747
Fixed Costs YEAR
General Office
YEAR
Manufacturing
YEAR
Miscellaneous
1990
1366
1990
1540
1990
841
1991
1393.32
1991
1570.8
1991
857.82
1992
1421.1864
1992
1602.216
1992
874.9764
1993
1449.610128
1993
1634.26032
1993
892.475928
1994
1478.602331
1994
1666.945526
1994
910.3254466
1995
1508.174377
1995
1700.284437
1995
928.5319555
1996
1538.337865
1996
1734.290126
1996
947.1025946
1997
1569.104622
1997
1768.975928
1997
966.0446465
1998
1600.486714
1998
1804.355447
1998
985.3655394
1999
1632.496449
1999
1840.442556
1999
1005.07285
2000
1665.146378
2000
1877.251407
2000
1025.174307
2001
1698.449305
2001
1914.796435
2001
1045.677793
2002
1732.418291
2002
1953.092364
2002
1066.591349
2003
1767.066657
2003
1992.154211
2003
1087.923176
2004
1802.40799
2004
2031.997295
2004
1109.68164
2005
1838.45615
2005
2072.637241
2005
1131.875273
2006
1875.225273
2006
2114.089986
2006
1154.512778
2007
1912.729779
2007
2156.371786
2007
1177.603034
2008
1950.984374
2008
2199.499221
2008
1201.155094
2009
1990.004062
2009
2243.489206
2009
1225.178196
2010
2029.804143
2010
2288.35899
2010
1249.68176
2011
2070.400226
2011
2334.12617
2011
1274.675395
2012
2111.80823
2012
2380.808693
2012
1300.168903
2013
2154.044395
2013
2428.424867
2013
1326.172281
2014
2197.125283
2014
2476.993364
2014
1352.695727
2015
2241.067788
2015
2526.533231
2015
1379.749641
BMR3134 – STRATEGIC MARKETING
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PROCTER & GAMBLE, INC. - SCOPE
Tri 2, 2012
Marketing Spending Scope Marketing Spending Year 1990 were $3,160 Which is advertising $1,700 and Promotion $1,460 YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advertising
BMR3134 – STRATEGIC MARKETING
1700 1751 1803.53 1857.6359 1913.365 1970.7659 2029.8889 2090.7856 2153.5091 2218.1144 2284.6578 2353.1976 2423.7935 2496.5073 2571.4025 2648.5446 2728.0009 2809.841 2894.1362 2980.9603 3070.3891 3162.5008 3257.3758 3355.0971 3455.75 3559.4225
YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Promotion 1460 1503.8 1548.914 1595.3814 1643.2429 1692.5401 1743.3164 1795.6158 1849.4843 1904.9688 1962.1179 2020.9815 2081.6109 2144.0592 2208.381 2274.6324 2342.8714 2413.1575 2485.5523 2560.1188 2636.9224 2716.0301 2797.511 2881.4363 2967.8794 3056.9158
Page 20
Marketing Mix Analysis……………………………. a) Product Strategy………………………………………… b) Price Strategy……………………………………………. c) Channel Strategy………………………………………... d) Communication Strategy………………………………... Section III: Product- Market Strategies………………………... 3.1) Market Penetration……………………………………… 3.2) Market Development Strategy………………………….. 3.3) New Offering Development…………………………….. 3.4) Diversification…………………………………………... 3.5) Decision Tree…………………………………………… Section IV: Budgeting…………………………………………… 4.1) Financial Budget (Pro Forma income statement)……….. 4.2) Operating Budget……………………………………….. 4.3) Special Budget………………………………………….. Section V: Marketing Audit…………………………………….. 5.1) Strategic Aspects……………………………………….. 5.2) Operational Aspects…………………………………….. 5.3) Recommendations………………………………………. Section VI : Latest Development……………………………….. Reference………………………………………………………………. Appendices……………………………………………………………..
Page II 1 1 1 1 2~4 2 2 2 3-4 5~6 5 5 5 5-6 7~8 7 7 7-8 8 8 9~10 9 10 10 11~12 11 11 11-12 13 14 15~20
Section I: Organization’s Business, Mission, and Goals 1.1)
Business Definition
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 and marketed by Procter & Gamble, Inc. 1.2)
Business Mission
Provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for next/ future generations. In return, consumer will reward with leadership sales, profit and value creation, allowing people, shareholders and the communities in which live and work to prosper. 1.3)
Business Goals
Production Objectives To achieve a brand that must be seen as different enough/ unique from the competition to build incremental purchases. Financial Objectives To achieve leadership share and profit positions and that, as a result, stakeholder wealth; such as, business, public, employees, shareholders, creditor and the communities will prosper. Marketing Objectives Increase the market share, sales volume, and profits for Scope; consequently, to achieve the brand loyalty and brand preference among the consumers. Besides, Scope marketing objective is to make sure the brands is addressing the consumer in a way that will cause top-of-mind awareness for Scope.
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PROCTER & GAMBLE, INC. - SCOPE
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Section II: Organizational Growth Opportunities 2.1)
Environment Opportunities
Social-Cultural Force Consumers indicate that they buy the product to solve the socially related problem of ‘Bad Breath’ and that mouthwash products are part of their basic oral hygiene. Regulatory Forces In Canada it is possible to apply for a ‘seal of recommendation’ of the Canadian Dental Association. The CDA will decide whether or not they approve the application by investigating the medical effects of the substance. Hence, it is evidence that Scope have the opportunity to gain endorsement from CDA. 2.2)
Distinctive Competencies
Market Share Leadership Scope was long experience in the oral hygiene industry since 1967. It became market leader in 1976 and since then it had been enjoying largest market share in Canadian mouthwash market. 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. Also, Scope great strength in the food stores, which is 42 percent (for example, supermarkets). Great Taste and Makes Breath Fresh Scope was the first brand that offered both effective protection against bad breath and a better taste than other mouthwashes. The taste/ flavor of Scope had positioned better than other mouthwashes. Scope advertising focused, “Scope fights bad breath. Don’t let the good taste fool you.” 2.3)
Success Requirement
Ability to maintain or continued of produce high quality product that P&G customers expect and to gain in the hypercompetitive market. Besides, Scope also needs to maintain hold in market.
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PROCTER & GAMBLE, INC. - SCOPE
2.4)
Tri 2, 2012
SWOT Analysis Exhibit 2.0 - SWOT Analysis Framework of Scope
Internal Factors Management Marketing
Strengths
Weaknesses
External Factors Economic
Consumer
R&D
Technology
Offerings
Threats
Competition
Manufacturing
Finance
Opportunities
Legal/Regulatory
Industry/Market Structure
Based on the above Exhibit 2.0 outlines the SCOPE’s SWOT analysis framework depicting representative entries for internal strengths and weaknesses and external opportunities and threats. Internal Factors i. Strengths Management – Fill in management depth. Scope is a health care product of P&G. Scope has its own brand management, sales, finance, product development PDD and operations management groups. Besides, Scope gets a great strength in the food stores among competitor. Marketing – P&G known to provide products that fulfill consumer needs at superior quality and value. Nevertheless, Scope has a first rating in mouthwash market share. Finance – Scope strength in financials (costs) and retail prices. ii. Weaknesses Manufacturing – Higher overall production costs relative to key competitor (Plax) R & D – Poor track record in bringing innovations to the marketplace. For examples, Scope’s product development had recently developed a new prebrushing rinse product that performed as well as Plax but did not work any better than Plax against plaque reduction. Offerings – Too narrow a product line. Scope does only offer one benefit that is reduces bad breadth with a good taste.
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PROCTER & GAMBLE, INC. - SCOPE
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External Factors iii. Opportunities Economic – Consumer income is quite high. Technology – Scope can use the advance of technology for enhancing the production; like using computer operated machineries which are fully automated. By this, Scope can reduce the labor costs indeed. But also can using Internet to developing a new market. iv. Threats Competition – Increased competition (Listerine, Listermint, Cepacol, Plax, and other store brands), while competitors are introducing more benefits. For instances, before the entry of Plax, brands in the mouthwash market were positioned around two major benefits that are fresh breath and killing germs; whereas, Plax was positioned around a new benefit as a plaque fighter and claims Plax removes up to three times more plaque than just brushing alone. Consumer – Growing preference for benefit mouthwash, mouthwash market is increasing everyday; Scope is known for taste and fresh breath, due to the market (consumer trend) is moving towards health-related mouthwashes. It means consumer now focused on health benefits. Legal/ Regulatory – The regulation of product-testing and labeling had increased in Canada. There are some organizations like Health Protection Branch (HPB) and The Canadian Dental Association (CDA); they have some requirements to their standard or nomination. For instance, P&G did not have a clinical database to convince the HPB to allow Scope to extend these claims into the prevention of inflamed gums (as Listerine does). Industry/ Market Structure – Low-entry barriers for new competitors, hence, it shows a threat to Scope. But also too many competitors in this industry; this shows a direct treat towards Scope.
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PROCTER & GAMBLE, INC. - SCOPE
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Marketing Mix Analysis a. Product Strategy Scope basically is considered as product-oriented in the mouthwash marketplaces which are under personal care - health care industry. In other words, Scope was the mainly primary product where to serve on customers who helped to remove bad-breath protection. The product called; “Scope fights bad breath. Don’t let the good taste fool you.” Scope became the market leader in Canada. Furthermore, Scope is provided enhancement in term of taste; Scope are just not available in original mint flavor (green), but also new flavors such as peppermint (blue), cinnamon (red), citrus (orange), and new Scope White. See Picture A. Apart from that, entry of scope in product strategy also positioned its products into long lasting of mint-tasting mouthwash product and refreshing brand to attract customers purchase intention in first mover compared to others mouthwash products, significantly, it shows that Scope has capable to compete with others similar mouthwash products in health care line. b. Price Strategy Scope is implementing price penetration strategy to launch its superior products to specific countries. The pricing indicates the location of stores derived from food and drug stores significantly. The prices of Scope are slightly lower in food store as compared to drug store due to the numbers of s and the effectiveness of advertising significantly. In other words, the prices set by Scope are based on the countries itself whereby the numbers of buyers and customers preferences have bring the great impact on products pricing. c. Channel Strategy Scope significantly holding their market share through several distribution channels whereby their Scope products will be displayed on food stores, supermarkets, drugstores. Primarily, wholesaler Clubs (Price Club) also tend to be carried Scope products in order to strengthen the market share through different distinctive places. Needless to say, food store has highlighted the attraction of using Scope to mouthwash functions after having dishes. Whereas, Drug stores also another effective distribution channels where, it get rid of those drug seekers bad breath after drug. d. Communication Strategy Scope communication strategy can be divided into two, which is, advertising and sales promotion. Scope is perceived customers attention by advertising focused. Scope has a strong invest on BMR3134 – STRATEGIC MARKETING
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Television advertising and ment. TV ment target mass of audience and it focused on the main product benefits of Scope. For instances, “Scope fights bad breath. Don’t let the good taste fool you.” Scope’s sales promotion is Free Samples of Scope mouthwash, Scope used free sample is to make consumers try the new product and increase sales among the s as well as attract new consumers to buy Scope new product. Furthermore, Scope also used Mailed couponing to attract more consumers and gain market share. It means, when you sign up a member of P&G- Scope; you will receive exclusive offers. Nevertheless, In-store Promotion is also one of the important promotion tools for Scope. The point of using in-store promotion is that the product needs to be seen by consumers, but also directly attract customer’s attention. Nonetheless, by using in-store promotion Scope can easily attracting new consumers. This is for sure.
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Section III: Product- Market Strategies 3.1)
Market Penetration Strategy (Existing Offerings → Existing Markets)
Scope had applied the market penetration strategy, by applying this strategy Scope no effort to be wasted in researching possible opportunities. Scope target market will be fresh breath, while major competitor – Plax is focused on health benefit. Therefore, Scope spend more aggressive on advertising and add new flavor; such as, citrus, peppermint, cinnamon and new Scope White with a high-quality product. We would not recommend Scope continuously engages market penetration strategy; due to the market share for Scope has declined. Growth opportunities will either come from new products and benefits or taking market share from competitor. Therefore, suppose Scope will do nothing there is a possibility to lose market share in the next few years indeed. 3.2)
Market Development Strategy (Existing Offering → New Markets)
Market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. In the case, Scope engaged in a market development strategy when it entered Canada and United States. We recommend Scope could implement market-development strategy due to generate additional volume in a new market segment while allowing Scope to maintain its current position in the fresh breath and great taste segment. Scope can think more for the U.S. market than the Canadian market. Due to Scope already the leader in Canadian market while the U.S. market is led by Listerine. Nonetheless, Scope can investment more ment at U.S. market in order to achieve as a market leader at U.S. 3.3)
New Offering Development Strategy (New Offerings → Existing Markets)
Scope has engaged new-offering development strategy – launching a line extension. Which is new flavored mouthwashes and “pre brush” rinse product, due to Scope believed it will maximize profitability of the Scope’s brand. Scope also lowering its prices on Scope for attract consumer to buy Scope’s product. Yes, in most ways than not, I would strongly recommend Scope to implement new-offering development strategy to satisfy customers wants. The major reasons are the market share for Scope has declined in last year and the industry seems to be maturing. The new product could be launched by using the Scope brand name. Scope is a well-known brand on the mouthwash market. Scope can BMR3134 – STRATEGIC MARKETING
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be used an innovation - could be implemented by trying to create a new dimension of performance which includes the process of making an improvement of the product available. P&G should also attempt to gain the seal of approval from the CDA. This would help increase sales because the market is shifting more towards health-related issues. Moreover, Scope should be sales at food stores, and wholesale clubs but most important should be an increased effort to have strong sales in the drug store segment of the market. Due to the drug stores are responsible for 65 percent of the market sales and by increasing its presence in this area, consequently, it is evidence, Scope has great potential to increase sales. 3.4)
Diversification Strategy (New Offerings → New Markets)
Scope does not have adopted this strategy. We not recommended Scope to adopt this strategy; due to diversification is often a high-risk strategy because both offerings and market served are new to the Scope. And diversification should not be introduced because it could not only incur a high of capital and marketing costs but also cause confusion to the consumer. 3.5)
Decision Tree
Action Market Development Strategy
New Offering Development Strategy
Response
Outcome
: Aggressive Competition
: Estimated profit of $ 0.8million
: ive Competition
: Estimated profit of $1million
: Aggressive Competition
: Estimated profit of $1.5 million
: ive Competition
: Estimated profit of $2 million
The decision tree shows that the highest profits (expected of profit $2 million) will result if Scope new offering-development strategy is enacted and competitors react ively. Introducing a product line extension and product innovation under the current Scope brand name is the best strategic option. This will enable P&G achieve profit positions and reap the benefits of their establish brand name from different consumer needs, without losing traditional Scope brand and market share. For the most important, the new product Scope launch should offer more benefits/ unique then the competing mouthwashes to build incremental purchases! For instances, offer multiple benefit such as; prevents cavities, prevents gingivitis, reduces bad breath, germ killing ingredients, plaque removal as well as good taste fool you; that is 6in1=Scope.
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Section IV: Budgeting 4.1)
Financial Budget
PROCTER & GAMBLE, INC - SCOPE Pro Forma Income Statement For the Years Ended November 30 2015 2014 2013 Scope volume (Units)(000) 465 464 463 $(000) $(000) $(000) 33,480 32,944 32,410 Sales 17,828 17,446 17,066 COGS Gross margin 15,652 15,498 15,344 Marketing expenses Advertising Sales Promotion Total Marketing Expenses
3,559 3,057 6,616
3,455 2,968 6,423
3,355 2,881 6,236
Total Contribution
400 500 900 8,136
400 1,000 1,400 7,675
400 1,500 1,900 7,508
Less: Fixed Costs Net Profit before (income)tax
6,146 1,990
6,027 1,648
5,908 1,600
General and istrative expenses Depreciation on building and equipment Labor
*We estimated that Scope total units sold will increase 1,000units starting from 1990. Refer (Appendices) *We estimated that Scold price per will increase 2percent for every year starting from 1990. Refer (Appendices) *Labor costs will reduce due to the advance of technology.
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PROCTER & GAMBLE, INC. - SCOPE
4.2)
Tri 2, 2012
Operating Budget
Scope Cost of Goods Sold (2012NOV- 2015NOV)
Cost of Goods Sold Ingredients Packaging Manufacturing Delivery Miscellaneous Total
2015 $/Unit
2014 $/Unit
2013 $/Unit
17.57 8.86 5.74 5.12 1.05 38.34
17.23 8.69 5.63 5.02 1.03 37.60
16.89 8.52 5.52 4.92 1.01 36.86
*We estimated that for every year Scope’s COGS will increase 2percent starting from 1990. Refer (Appendices)
Scope Fixed Costs (2012NOV – 2015NOV) Fixed Costs General Office Manufacturing Miscellaneous Total
2015
2014
2013
$(000) 2,241 2,526 1,379 6,146
$(000) 2,197 2,478 1,352 6,027
$(000) 2,154 2,428 1,326 5,908
*We estimate that for every year Scope’s Fixed Cost will increase 2percent; starting from 1990. Refer (Appendices)
4.3)
Special Budget
Scope Marketing Plan Inputs Scope “Going” Marketing Spending (2012NOV – 2015NOV) Year
Advertising TV ads Radio Print ads Sales Promotion Contest Samples Coupons Demonstrations Total Marketing Expenses
2015
2014
2013
$(000) 1,779 890 890 3,559
$(000) 1,727 864 864 3,455
$(000) 1677 839 839 3,355
509 1,019 510 1,019 3,057 6,616
495 989 495 989 2,968 6,423
480 960 481 960 2,881 6,236
*We estimate that for every year Scope’s Special Budget of Marketing expenditure will increase 3percent starting from 1990. Refer (Appendices) BMR3134 – STRATEGIC MARKETING
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Section V: Marketing Audit 5.1)
Strategic Aspects
Yes in most ways than not, but we say YES that Scope not doing the right thing. Based on the case we know that consumer trend is moving towards health-related mouthwash but Scope only offers great-taste and mouth refreshment. Besides, Plax-competitor entered the market positioned around a new benefit - plaque fighter and focused on health-benefit. And this leads the market share for Scope has declined. Also, Scope does not enough make a distribution channel. Hence, growth opportunity will either come from new products and benefits. So, Scope management need a change and they need to take a decision from their available alternative in order to achieve the market share. 5.2)
Operation Aspects
Based on the case it shows that Scope are not doing things right. Because Scope’s product development/ R&D not able to develop or offer a new product which is work better than what the competitor do- Plax. Hence, before Scope launch a new product, Scope’s R&D needs to understand the market very well what the current market trends, what the competitor do and just decides or choices the best ways which can help Scope to gain more profit and remain as a market leader share among competitor. 5.3)
Recommendations
We recommend that Scope should take the same familiar taste in combination with ingredients to obtain health benefits in their new offering by used the new offering-development strategy in order to meet the needs of the other customers. And we strongly recommend Scope used the new offering-development strategy. That is introducing of a new product that offers more benefits under same brand name. First and foremost, P&G should attempt to gain the seal of approval from Canadian Dental Association. This would help increase sales due to; the market is shifting more towards healthrelated issues. For instance, Scope could add germ killing additives that reduces plaque and apply for a CDA approval seal. Nevertheless, Scope should also distribute this new offering product to food stores, drug stores and wholesale clubs. But, Scope should be an increased effort to have strong sales in the drug store. Due to, around 65percent of mouthwash sales through drug store, consequently, by increasing in the drug store, Scope has a great potential to increase the sales indeed. BMR3134 – STRATEGIC MARKETING
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Moreover, Scope should need to explain, inform, persuade the market to buy Scope’s new offering product through communication channel such as the new offering through TV, radio and Print Ads. But also, demonstrate the product in major drug store chain, sample, contest, and coupon. The main purpose is to make consumers try the new offering and increase the sales of the current s as well as attract new customers to buy this new offering. Moreover, through technology advance Scope could improving production by upgrading technology, for instance, using computer operated machineries which are fully automated. So, it is evidence that through using the technology Scope can reduce the labor cost. This is for sure and unquestionable. Nevertheless, we also recommend Scope upgrading the technology.
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PROCTER & GAMBLE, INC. - SCOPE
Tri 2, 2012
Section VI : Latest Development Scope Mouthwash as an important Oral Hygiene Tool Scope Dual-Blast mouthwash Breathe easy with new products that help eliminate garlic and onion-breath. Scope introduced its latest collection of products featuring new Dual-Blast technology, which helps eliminate strong food odors, especially onions and garlic, while killing bad breath germs. Scope Dual-Blast mouthwash helps give consumer the confidence to enjoy favorite foods without having to worry about bad breath (Picture B). Besides, that has two flavors under Scope Dual-Blast mouthwash which are Fresh Mint Blast and Icy Mint Blast. Scope Outlast Minibrush One of the Scope’s latest development products is their Scope Outlast Minibrush (Picture C). The unique brush requires no water consequently; you can have fresh breath whenever you need it. The small brush contains Scope Outlast gel. The brush features are high quality bristles, it can also be used as a tongue brush and includes an interdental pick. Therefore, the minibrush is perfect for after lunch, dates and before meeting or other social events. Scope Outlast Breath Mist Scope Outlast breath mist, long lasting peppermint and mint is the flavor. It is fresh breath any time; it is fat free and sugar free. Scope Outlast Breath Mint uses the same Outlast technology as Scope Outlast Mouthwash to deliver a refreshing blast of Scope flavor. The convenient bottle easily attaches to a keychain and stashes away in your purse, luggage, or pocket for kissable, fresh breath on the go (Picture D).
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Reference Cravens, D.W; Lamb, C.W.Jr. and Crittenden, V.L., (2002). Strategic Marketing Management, Cases, 7th Edition, Mc-Graw Hill & Irwin. Scope, Courage encouraged, Portal & Gamble (2012). Online Available: http://www.scopemouthwash.com/ Scope,
Product
Health
and
Wellness,
Portal
&
Gamble,
(2010).
Online
Available:
http://www.pg.com/en_CA/product_card/hw_scope.shtml Scope Mouthwash. Facebook (2010). Online Available: https://www.facebook.com/scopemouthwash
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Appendices Picture A: Scope product
Picture B: Scope Dual-Blast mouthwash
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Tri 2, 2012
Picture C: Scope Outlast Minibrush
Picture D: Scope Outlast Breath Mist
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Appendices - Budgeting Scope units sold in 1990 were 440,000 and Sales per unit were $44.10 Scope unit Sold YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
BMR3134 – STRATEGIC MARKETING
Unit Sold 440000 441000 442000 443000 444000 445000 446000 447000 448000 449000 450000 451000 452000 453000 454000 455000 456000 457000 458000 459000 460000 461000 462000 463000 464000 465000
Sold Sales/ units YEAR Price/unit 1990 44.1 1991 44.982 1992 45.88164 1993 46.79927 1994 47.73526 1995 48.68996 1996 49.66376 1997 50.65704 1998 51.67018 1999 52.70358 2000 53.75765 2001 54.83281 2002 55.92946 2003 57.04805 2004 58.18901 2005 59.35279 2006 60.53985 2007 61.75065 2008 62.98566 2009 64.24537 2010 65.53028 2011 66.84089 2012 68.1777 2013 69.54126 2014 70.93208 2015 72.35072
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Cost of Goods Sold Scope Cost of Goods Sold 1990 year Product Line Extension Adjustments $(000)
Net Sales (440,000units) Ingredients Packaging Manufacturing Delivery Miscellaneous Cost of Goods Sold Gross Margin
$(000) $/ Unit
18,150 3,590 2,244 1,540 1,373 280.5
$/ Unit
$/Unit
$/Unit
41.25
44.10
8.16 5.10 3.50 3.12 0.64 (9,027.5) 9,122.5
*10.71 *5.40 3.5 3.12 0.64 (20.52) 20.73
(16.11) 27.99
*Product Line Extension Adjustments Ingredients = +2.55(+/-50%) Packaging = +0.30
Scope Cost of Goods Sold YEAR
YEAR
Delivery
1990
Ingredient 10.71
YEAR 1990
Packaging 5.4
1990
3.5
1990
3.12
1990
0.64
1991
10.9242
1991
5.508
1991
3.57
1991
3.1824
1991
0.6528
1992
11.1427
1992
5.61816
1992
3.641
1992
3.246
1992
0.665856
1993
11.3655
1993
5.73052
1993
3.714
1993
3.311
1993
0.67917312
1994
11.5928
1994
5.84513
1994
3.789
1994
3.3772
1994
0.692756582
1995
11.8247
1995
5.96204
1995
3.864
1995
3.4447
1995
0.706611714
1996
12.0612
1996
6.08128
1996
3.942
1996
3.5136
1996
0.720743948
1997
12.3024
1997
6.2029
1997
4.02
1997
3.5839
1997
0.735158827
1998
12.5485
1998
6.32696
1998
4.101
1998
3.6556
1998
0.749862004
1999
12.7994
1999
6.4535
1999
4.183
1999
3.7287
1999
0.764859244
2000
13.0554
2000
6.58257
2000
4.266
2000
3.8033
2000
0.780156429
2001
13.3165
2001
6.71422
2001
4.352
2001
3.8793
2001
0.795759557
2002
13.5829
2002
6.84851
2002
4.439
2002
3.9569
2002
0.811674749
2003
13.8545
2003
6.98548
2003
4.528
2003
4.0361
2003
0.827908243
2004
14.1316
2004
7.12519
2004
4.618
2004
4.1168
2004
0.844466408
2005
14.4142
2005
7.26769
2005
4.711
2005
4.1991
2005
0.861355737
2006
14.7025
2006
7.41304
2006
4.805
2006
4.2831
2006
0.878582851
2007
14.9966
2007
7.5613
2007
4.901
2007
4.3688
2007
0.896154508
2008
15.2965
2008
7.71253
2008
4.999
2008
4.4561
2008
0.914077598
2009
15.6024
2009
7.86678
2009
5.099
2009
4.5453
2009
0.93235915
2010
15.9145
2010
8.02412
2010
5.201
2010
4.6362
2010
0.951006333
2011
16.2328
2011
8.1846
2011
5.305
2011
4.7289
2011
0.97002646
2012
16.5574
2012
8.34829
2012
5.411
2012
4.8235
2012
0.989426989
2013
16.8886
2013
8.51526
2013
5.519
2013
4.9199
2013
1.009215529
2014
17.2264
2014
8.68556
2014
5.63
2014
5.0183
2014
1.02939984
2015
17.5709
2015
8.85927
2015
5.742
2015
5.1187
2015
1.049987836
BMR3134 – STRATEGIC MARKETING
YEAR
Manufacturing
YEAR
Miscellaneous
Page 18
PROCTER & GAMBLE, INC. - SCOPE
Tri 2, 2012
Fixed Costs Scope Fixed Cost 1990 Fixed Costs General Office Manufacturing Miscellaneous Total Fixed Cost
1,366 1,540 841 3,747
Fixed Costs YEAR
General Office
YEAR
Manufacturing
YEAR
Miscellaneous
1990
1366
1990
1540
1990
841
1991
1393.32
1991
1570.8
1991
857.82
1992
1421.1864
1992
1602.216
1992
874.9764
1993
1449.610128
1993
1634.26032
1993
892.475928
1994
1478.602331
1994
1666.945526
1994
910.3254466
1995
1508.174377
1995
1700.284437
1995
928.5319555
1996
1538.337865
1996
1734.290126
1996
947.1025946
1997
1569.104622
1997
1768.975928
1997
966.0446465
1998
1600.486714
1998
1804.355447
1998
985.3655394
1999
1632.496449
1999
1840.442556
1999
1005.07285
2000
1665.146378
2000
1877.251407
2000
1025.174307
2001
1698.449305
2001
1914.796435
2001
1045.677793
2002
1732.418291
2002
1953.092364
2002
1066.591349
2003
1767.066657
2003
1992.154211
2003
1087.923176
2004
1802.40799
2004
2031.997295
2004
1109.68164
2005
1838.45615
2005
2072.637241
2005
1131.875273
2006
1875.225273
2006
2114.089986
2006
1154.512778
2007
1912.729779
2007
2156.371786
2007
1177.603034
2008
1950.984374
2008
2199.499221
2008
1201.155094
2009
1990.004062
2009
2243.489206
2009
1225.178196
2010
2029.804143
2010
2288.35899
2010
1249.68176
2011
2070.400226
2011
2334.12617
2011
1274.675395
2012
2111.80823
2012
2380.808693
2012
1300.168903
2013
2154.044395
2013
2428.424867
2013
1326.172281
2014
2197.125283
2014
2476.993364
2014
1352.695727
2015
2241.067788
2015
2526.533231
2015
1379.749641
BMR3134 – STRATEGIC MARKETING
Page 19
PROCTER & GAMBLE, INC. - SCOPE
Tri 2, 2012
Marketing Spending Scope Marketing Spending Year 1990 were $3,160 Which is advertising $1,700 and Promotion $1,460 YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advertising
BMR3134 – STRATEGIC MARKETING
1700 1751 1803.53 1857.6359 1913.365 1970.7659 2029.8889 2090.7856 2153.5091 2218.1144 2284.6578 2353.1976 2423.7935 2496.5073 2571.4025 2648.5446 2728.0009 2809.841 2894.1362 2980.9603 3070.3891 3162.5008 3257.3758 3355.0971 3455.75 3559.4225
YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Promotion 1460 1503.8 1548.914 1595.3814 1643.2429 1692.5401 1743.3164 1795.6158 1849.4843 1904.9688 1962.1179 2020.9815 2081.6109 2144.0592 2208.381 2274.6324 2342.8714 2413.1575 2485.5523 2560.1188 2636.9224 2716.0301 2797.511 2881.4363 2967.8794 3056.9158
Page 20
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