1) What significant changes have occurred in the Canadian mouthwash market in the past three years?
The mouthwash market had grown on an average increase of 3% per year for 12 years. Then in 1987, with the introduction of new flavors it shot up 26%, and after that it continued at a steady increase of 5% per year. Originally, Listerine was the market leader. It positioned itself as a germ killing mouthwash that eliminated bad breath. Scope was introduced in 1967 as a green, mint-tasting mouthwash that was mouth refreshing and provided bad breath protection. Scope branded itself not only protection to bad breath, but also that it tasted better than the other mouthwashes available. Competitors of Scope …show more content…
The negatives of doing nothing would be not to recognize how the market is changing. The competition of Plax could take an effect on Scope. Scope would then be left behind in the changing market of mouthwash. If Scope chose to do nothing, they are also not taking the opportunity to increase their market share.
B) Flanker Brand: Another option available for Scope is to introduce a Flanker Brand. Scope could create a product that is very similar to the successful Plax mouthwash. This could lead to increased profits and be able to have a mouthwash that is positioned differently than scope. It would help protect the Scope name by not trying to change the current position of Scope. Having a flanker brand can create direct competition to Plax. Cons of having a flanker brand would include very expensive marketing costs of a new product. It could also be difficult to position a new product in the market successfully so that it has a chance to compete with top telling brands such as Plax. A flanker brand would cause a whole new production line, which can be very costly.
C) Line Extension: Introducing a line extension could be beneficial for Scope because Scope is already a market leader and well established brand name. A line extension could use the great taste that Scope is known for to introduce the new product. This would be less costly than creating a flanker brand because they name is already known and the marketing already exists. A