Clean Teeth, Inc.

1. Clean Teeth, Inc. Natalie Beck Jeff Morris Robert Simon

2. Part 1 PRODUCT DESCRIPTION

3. Product Description • We will make a toothbrush with a curved handle, shaped bristles, a grip for comfort, and a bristle indicator. • Our toothbrushes will be uniquely colored as well.

4. CBP • Satisfaction • Customer Service • Website for Information • Durability • Product Safety • Trust

5. CBP Diagram Satisfaction Customer Service Website for Information Toothbrush Trust Durability Product Safety

6. Part 2 Strategy Development

7. Strategy Development After scanning the environment, we found: • Basic toothbrushes fall within a price range of $2 to $5 . • Many toothbrush manufacturers have well-recognized names. • People of all ages use toothbrushes. • Toothbrushes are made of plastic, nylon, and metal.

8. Customer/Market Requirements • Our toothbrushes must have a handle and bristles that stay intact during use. • We must provide a toothbrush that is durable, semi-attractive, and competitively priced.

9. Market Opportunities • Everyone needs one! • Input materials are inexpensive and easy to obtain.

10. Main Competitors Oral B Colgate • In existence since 1950 • Used by more dentists and consumers than any other brand • Founded in 1806 • Products are sold in over 200 countries and territories

11. Market Threats • Brand recognition • Experience To overcome customer loyalty, we will need to make nice looking, well featured toothbrushes that are less expensive.

12. Part 3 Mission & Vision Statement

13. Mission and Vision Statement Mission Statement Vision Statement • To help people keep their teeth clean and healthy with our affordable, high quality toothbrushes. • We hope to make strides toward decreasing the occurrence of dental illness with the use of our toothbrushes.

14. Corporate Strategy • We will make toothbrushes for everyone. • Our core competencies will be a sole focus on toothbrushes, a good relationship with our suppliers, and a creative/cost-effective work force.

15. Business Strategy • We will concentrate on low cost and high quality. • Because we will only be making toothbrushes, we can buy supplies in bulk at lower prices. We will also be able to utilize our creative work force to make attractive, high quality products that are affordable.

16. Part 4 Dissatisfiers, satisfiers, and exciters/delighters

17. Satisfiers/Dissatisfiers Satisfiers Dissatisfiers • Easy Grip Handle • Brush Indicator • Shaped Bristles • Bristles • Handle • Durability • Cleans Teeth

18. Exciters/Delighters • Outstanding price for amount of quality • Unique colors

19. Part 5 Concept Development

20. Concept Development • We realized that dental hygiene companies with brand recognition often make a variety of products. If we focus on just toothbrushes, we can provide comparable quality at a lower price, while still making a nice profit.

21. Manufacturing Steps Melt plastic pellets Inject melted plastic into toothbrush mold Place rubber grip on top of melted plastic Filling machine combines bristles and wire, then injects into melted plastic Bristles are then trimmed Each toothbrush falls into package Package is then sealed

22. Toothbrush Equipment

23. Packaging Equipment

24. Financial Outlook Fixed Costs Variable Costs • Mortgage • Equipment Costs • Salaries • Taxes • Utilities • Insurance • Nylon, Plastic, Rubber, and Metal • Labor

25. Break Even Analysis • Fixed Costs = $51,500,000 • Variable Price/brush = $1.50 • Sales Price/brush = $2.50 BE Point: Q = __FC__ = 51,500,000 = 51.5 mil. SP - VC (2.50 – 1.50)

26. BE Time Table • Year 1 – 50.6 mil. brushes (.9 mil. behind) • Year 2 – 53.7 mil. brushes (104.3 mil. total – we have broken even plus some) • We will make money near the end of year 2. • We will continue to make a profit in future years if we produce more than 51.5 mil. brushes annually.

27. Preliminary Design and Testing • Curved handle with grip for comfort • Bristles shaped for nooks and crannies • Unique colors • Testing done on focus groups to determine likes/dislikes.

28. Resources and Equipment Needed Machinery Resources • Molding machinery • Bristle Injector machinery • Trimming machinery • Packaging machinery • Labor • Plant • Warehouse • Input Materials

29. Part 6 Forecasting Design

30. Colgate Revenue for 2005-2007

31. 5 Year Forecast Using Linear Regression

32. Forecasting Method • 38% of Colgate’s total revenues are comprised of oral care products. • According to our test marketing, we estimated that we could capture 1% of Colgate’s oral care market. • This would be equivalent to 50.6 million toothbrushes in our first year and 53.7 million in our second year.

33. Accuracy Check

34. Utilize Seasonal Forecasting • People buy toothbrushes year-round, without regard to a particular season. Therefore, we will not utilize Seasonal Forecasting.

35. Part 7 Production Capacity

36. Production Capacity • Our average forecasted sales for the first five years are million toothbrushes. • Our current facility is capable of producing 22 mil. toothbrushes per year. • This means that 91.8% of our capacity is being utilized. • We reserve some unutilized capacity for unexpected or sudden growth.

37. Capacity • If sales are as forecasted, we will maintain 91.8% utilization by adding machinery capable of producing 1.4 million additional units per year each year. • This will allow our capacity to reach 27.6 million toothbrushes per year by the fifth year. • With forecasted sales of 25.3 mil. in 2012, this capacity will allow us to maintain our 8.2% reserve capacity for unexpected growth.

38. Inputs and Outputs We will use multifactor productivity (MFP). MFP = ___Price of Toothbrush___ Labor Cost + Materials Cost = $2.50____ = 1.67/toothbrush ($1.00 + $0.50)