Prepare a marketing plan for the forthcoming year.

Question

What will be an ideal response?

Answer 1

The marketing plans will vary, depending on the alternative selected by the student. The plan should be based on a foundation that incorporates segmentation, strategy, and position. The marketing mix should be consistent with the foundation.

As one example, the “Status Quo” alternative (i.e., no new product launch) with improved marketing of Scope could form the basis for a marketing program as follows:

Statement of Purpose and Strategy

We will continuously stay ahead of competition, while aggressively defending our established profitable businesses against major competitive challenges despite short-term profit consequences.

Segmentation

Scope will be segmented in the “breath freshener” segment, which contains only one other competitor, Listermint. Forty percent of consumers purchase mouthwash products in order to receive the benefit of fresh breath. Scope will remain the market leader in this segment and will continue to benefit from sizable profit margins.

Product

Scope will remain the same high-quality product that has enabled P&G to gain 33 percent market share. The long term may require Scope to investigate new flavors or packaging in order to stimulate demand during its late maturity stage.

Price

Prices will be increased by 5 percent in 1991. This will still allow Scope to be positioned as a low-price, high- quality product. Our focus is profit-oriented to maximize the benefit of the firm.

Distribution

Scope will continue to use its present distribution system, but more time will be devoted to improving distribution and shelf facings in drugstores and wholesale clubs.

Promotion

Advertising expenditures have been increased to $3.5 million to augment exposure of Scope. Selective-demand advertising and comparative advertising should be utilized to point out the key benefits of Scope versus its main competitors. Television advertising would be the most effective medium due to its ability to reach the largest number of people in the target market.

Promotional samples are being used in order to stimulate non-users to try our product and also to convince occasional users to try our product again. This will aid in obtaining market share from our competitors. Mailed couponing will be used to increase sales from our occasional users and to provide our loyal users with an incentive to continue to purchase Scope. In-store promotions include in-store couponing, point-of-sale displays to renew consumer awareness, and a drawing for a trip for two to a romantic getaway to Hawaii with proof of purchase of two Scope 750 ml. bottles.