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3-Clean Meagan Lande Elana Schlar Joni Lind AGENDA 1. Company Profile 2. Product Description 3. Situation Analysis 4. Marketing Strategy 5. Implementation 6. Financial Projections 7. Export Potential 8. Conclusion 3-Clean Company Profile Subsidiary of Proctor and Gamble, Inc.

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meagan lande elana schlar joni lind

3-Clean

Meagan Lande

Elana Schlar

Joni Lind

slide2

AGENDA

1. Company Profile

2. Product Description

3. Situation Analysis

4. Marketing Strategy

5. Implementation

6. Financial Projections

7. Export Potential

8. Conclusion

slide3

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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

slide4

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Marketing Objective

To enhance Oral B’s 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 (> $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 B’s 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, MacLean’s
  • 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 B’s 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

Marketing Strategy

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

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

slide20

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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 & Gamble’s financial statements:

  • Selling, general, admin costs (includes R&D 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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Financial Projections

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

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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Financial Projections

Company Profile

Product

Situation Analysis

Marketing Strategy

Implementation

Finances

Export Potential

Conclusion

slide29
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

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Export Potential

Company Profile

Product

Situation Analysis

Marketing Strategy

Implementation

Finances

Export Potential

Conclusion

slide30
Entry Strategy

Joint venture with Alliance Unichem (Norway’s 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

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Export Potential

Company Profile

Product

Situation Analysis

Marketing Strategy

Implementation

Finances

Export Potential

Conclusion

slide31
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”

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Export Potential

Company Profile

Product

Situation Analysis

Marketing Strategy

Implementation

Finances

Export Potential

Conclusion

slide32

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Sources

  • Canada. Statistics Canada. Canada’s 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. “P&G 2006 Annual Report.”
  • Oral-B Website. “About Oral-B and Gillette.”

Company Profile

Product

Situation Analysis

Marketing Strategy

Implementation

Finances

Export Potential

Conclusion

group 10 december 4 th 2006

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Group 10

December 4th, 2006