What Actions Are Available to the Organization?

1. What actions are available to the organization?

Gwen Hearst believed that a line extension positioned against Plax, a recent entry to market, made the most sense. However, she also knew that there were questions regarding both the strategic and financial implications of such a proposal. There was a team that had been formed within P&G to examine various actions for Scope, which included individuals from product development (PDD), manufacturing, sales, market research, finance, advertising and operations. The actions that suggest by each department are:

Product Development (PDD):

Overall, PDD's preference was to not launch a new product but, instead, to add plaque-reduction claims to Scope. It is because PDD found that it was a product that was only equal in efficacy to Plax (the main competitor) and placebo rinses for plaque reduction.

Sales:

The sales people believe that Scope should respond quickly on the inroads Plax that had been making in the marketplace. In their opinion, as the stock keeping units (SKUs) had begun to proliferate in many categories, so to be listed on shelves, a brand must be seen as different enough(or unique) from the competition to build incremental purchases.

Market Research (MR):

MR had tested the options with consumer with "Now Scope fights plaque" and "Better-Tasting Prebrushing Dental Rinse", they suggested that Hearst looks at the other alternatives beyond just "a plaque reassurance on Scope-'Now Scope fights plaque'" or a "line extension positioned as a 'Better-Tasting Prebrushing Rinse '."

Advertising Agency:

The advertising agency favored a line extension and felt that making any new claims for Scope was a huge strategic shift for the brand. In their minds, a line extension would need to be supported on a going basis separately from Scope.

2. What are the costs and benefits of action in both qualitative and quantitative terms?

Product Development (PDD):

The PDD's suggestion was to have a line extension instead of launching a new product, and if a lie extension was pursued, a product test costing $ 20,000 would be required. The basic argument was that it was better to protect the business that P&G was already in than to launch a completely new entity. The PDD think that this action able to protect the business that P&G was already in.

Sales:

As mentioned before, the SKUs had begun to proliferate in many categories and it helps to build incremental purchases. Besides, if the new brand was viewed as not generating more sales, the manufacturer could pay approximately