Meagan Lande

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3-Clean

• Meagan Lande
• Elana Schlar
• Joni Lind

2
AGENDA
1. Company Profile
2. Product Description
3. Situation Analysis
4. Marketing Strategy
5. Implementation
6. Financial Projections
7. Export Potential
8. Conclusion
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Company Profile

• Subsidiary of Proctor and Gamble, Inc.
• World leader in 4.5 billion manual and power
  toothbrush market
• Emphasis on innovation and diversity
• Oral B brushes used by more dentists and
  consumers than any other

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Marketing Objective

• To enhance Oral Bs brand name, loyal customer
  base, and sales through the invention of an
  affordable, revolutionary toothbrush and also by
  offering outstanding dental care to better serve
  its clients and encourage them to live a
  healthier lifestyle

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Product Description

• Multi-purpose electric toothbrush that combines
  toothpaste, mouthwash, and floss
• Includes hand grip, sleek style, and an array of
  colours
• Convenient time and space saver
• Offers a complete, professional clean every time

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Product Description
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Industry Analysis

• Oral hygiene market has grown 33.1 over last
  five years
• Current sales of 2.2 billion units
• Forecast to grow 53.1 between 2005 and 2010
• Toothbrush sales growing at 10.9 per year
• Consumers looking for value added products
• Little differentiation between products
• Currently no battery-powered toothbrush offers
  the 3-in-1 option

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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SWOT Analysis
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Target Market

• Business professionals and travelers
• Age 35 to 65
• Toronto area
• Professionals with above average income (gt
  75,000/year)
• Approximate market size of 1,351,577 consumers or
  27,018,024

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Product Strategy

• Offer consumers an innovative and affordable
  product
• Brush contains three main oral care products in
  one compact brush
• All products are refillable
• Offers convenience and acts as a time and space
  saver

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Product Strategy

• Packaging
• Prominently displays the Oral B logo and
  recognized seal of approval
• Clear plastic casing
• Insert that shows where each component is located
• Oral Bs signature colours - light blue,
  turquoise, and white
• Clearly display free package of floss that is
  included and indicate offer

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Pricing Strategy

• Penetration Pricing
• Price at 19.99
• 7 to 15 more than regular Oral B manual and
  battery-powered brushes
• 50 to 100 less than high-end Oral B electric
  toothbrushes
• Pack of refill brush heads at 19.99

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Promotional Strategy

• Promotional Objectives
• Create consumer awareness
• Generate consumer interest to learn more (online,
  store, and dentist)
• Gain positive consumer assessment
• Convince target market to purchase 3Clean
  toothbrush
• Stress low cost of refills so consumers continue
  to buy the product

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Promotional Strategy

• Our Message
• A complete clean every time
• Consistent with our marketing communication
  strategy
• Stresses innovative and convenient feature of
  3Clean toothbrush

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Promotional Strategy

• Print Ads
• Company colours (blue, white, turquoise)
• Show the design of the brush
• Appear in financial, travel, lifestyle sections
  of Toronto Star and Globe and Mail, MacLeans
• Possible large print ads in bus stops, subway
  cars, and airports

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Promotional Strategy

• Television Ads
• Use of humour
• Include 3Clean message
• Briefly outline advantages of brush
• Run during morning and evening news on CTV,
  CityTV, and the travel channel for a 6-month
  period
• Potential Ad

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Promotional Strategy

• Internet
• Add a descriptive section for 3Clean to Oral Bs
  website
• Detail the design, features, and advantages of
  3Clean
• Include a direct link to purchase the product
  online

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Place (Distribution) Strategy

• Well-recognized chains of drugstores and
  department stores
• Shoppers Drug Mart, Pharmaplus, Zellers,
  Wal-Mart, etc.

Company Profile
Product
Situation Analysis

• Available online through Oral B affiliated
  websites such as Amazon and several others

Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Implementation

• Launch mid-June 2007 in Toronto at start of
  busiest travel season
• Begin marketing several weeks before launch
• Use of TV, newspaper, and small billboard ads on
  buses and at airports
• Later expand into the rest of Canada
• Expand into foreign markets in future

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Implementation
Mid-June 2007 Launch 3Clean in Toronto area with
free gift
Company Profile
May 2007 Update Oral B website to include 3Clean
info
November 2007 Introduce Christmas ads
Product
Situation Analysis
Marketing Strategy
Implementation
Start-June 2007 Begin 3Clean advertising campaign
June 2008 Expand into rest of North American
market
Finances
Export Potential
September 2007 Discontinue free gift
Conclusion
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Implementation

• Failure Strategy
• Lower price to increase demand
• Look into other markets (other cities, rest of
  Canada, etc.)
• Expand and change promotional strategy (dental
  offices, possibly)

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Financial Projections

• 5 of target market purchases
• Sales grow at same rate as power toothbrushes

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Financial Projections
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Financial Projections

• From Proctor Gambles financial statements
• Selling, general, admin costs (includes RD and
  advertising) are 32.02 of net sales
• Cost of goods sold is 48.55 of net sales
• Assume 70 of costs are fixed, 30 are variable

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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3-Clean
Financial Projections
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
26
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Financial Projections
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Financial Projections

• Break-Even Analysis
• Units 58,823.5
• Sales 1,175,882.35

Company Profile
Product
Situation Analysis

• Market Share Analysis
• 82.3 million in power toothbrush sales in Canada
  in 2005
• 16.26 of population in Toronto (StatsCan)
• Therefore, 13.38 million in sales in Toronto
• Units 2.5
• Sales 10.1

Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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3-Clean
Financial Projections
Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
29
3-Clean
Export Potential

• Why export to Norway?
• Politics
• PRS 92.0 (Highest political stability rating in
  the World)
• Economics
• 283,802 GDP measured at PPP (international
  millions)
• Lifestyle
• Between 2000-2005 market for personal hygiene
  grew at an average annual rate of 1.4
• Very conscious of personal hygiene and health

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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Export Potential

• Entry Strategy
• Joint venture with Alliance Unichem (Norways
  largest pharmacy)
• Increasingly important distribution channels and
  contribute to growth in the oral hygiene
• Give professional advice
• Use existing distribution channel (saves time and
  money)
• Expertise in adapting to culture, satisfying
  customers, economic and operating capabilities
  increased

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
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3-Clean
Export Potential

• Changes to be made
• Similar cultures, therefore marketing strategy
  will remain constant from Canada
• Bilingual advertisements
• Norwegian
• Oral B TreFeilfri - en fullstendig feilfri hver
  gang
• English
• Oral B 3Clean - A Complete Clean Every Time

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
32
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Sources

• Canada. Statistics Canada. Canadas National
  Statistical Agency.
• Datamonitor. Oral Hygiene in the United
  States Industry Profile.
• Euromonitor International. "Cosmetics and
  Toiletries in Canada.
• PMB Print Measurement Bureau of Canada.
• Proctor and Gamble Inc. PG 2006 Annual
  Report.
• Oral-B Website. About Oral-B and Gillette.

Company Profile
Product
Situation Analysis
Marketing Strategy
Implementation
Finances
Export Potential
Conclusion
33
3-Clean

• Group 10
• December 4th, 2006