Procter & Gamble, Inc.
As Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the Canadian mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As brand manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble's (P&G) brand in the mouthwash market. She was responsible for maximizing the market share, volume, and profitability ...view middle of the document...
Between 1987 and 1990, worldwide sales of P&G had increased by $8 billion and net earnings by $1.3 billion. P&G executives attributed the company's success to a variety of factors, including the ability to develop truly innovative products to meet consumers' needs. Exhibit 1 on page 252 contains the statement of purpose and strat-egy of the Canadian subsidiary.
P&G Canada has five operating divisions, organized by product category. The divisions, and some of the major brands, are:
1. Paper products: Royale, Pampers, Luvs, Attends, Always
2. Food and beverage: Duncan Hines, Crisco, Pringles, Sunny Delight
3. Beauty care: Head & Shoulders, Pantene, Pert, Vidal Sassoon, Clearasil, Clarion,
Cover Girl, Max Factor, Oil of Olay, Noxzcma, Secret
This case was prepared by Professors Gordon H. G. McDougall and Franklin Rantsoomair, of the Wilfrid laurier I niversin•. as a basis for class discussion and is not designed to illustrate effective or ineffective handling of an administrative situation. Used with permission.
252 CHAPTER 5 PROI)UCT AND SERVICE S TRATEGY AND BRAND MANAGEMENT
A Statement of Purpose and Strategy: Procter & Gamble, Canada
We will provide products of superior quality and value that best fill the needs of consumers.
We will achieve that purpose through an organization and a working environment which attracts the finest people; fully develops and challenges our individual talents; encourages our free and spirited collaboration to drive the business ahead; and maintains the Company's historic principles of integrity and doing the right thing.
We will build a profitable business in Canada. We will apply P&G worldwide learning and resources to maximize our success rate. We will concentrate our resources on the most profitable categories and on unique, important Canadian market opportunities. We will also contribute to the development of outstanding people and innovative business ideas for worldwide company use.
We will reach our business goals and achieve optimum cost efficiencies through continuing innovation, strategic planning, and the continuous pursuit of excellence in everything we do.
We will continuously stay ahead of competition while aggressively defending our established prof-
itable businesses against major competitive challenges despite short-term profit consequences.
Through the successful pursuit of our commitment, we expect our brands to achieve leadership...