oral-b toothbrush p&g

Marketing Management Assignment

Company Name: Procter & Gamble.

Product: Oral B Toothbrush

Submitted by

Ankita Patel MBA- C Roll No 27

Rohit Sarode MBA- C Roll No 38

Raunak Rathi MBA- C Roll No 35

Shikha Sharma MBA- C Roll No 42

Shweta Sharma MBA- C Roll No 42

4/3/2014

Marketing Assignment/IIMP/Oral-b Toothbrush/P&G Page 2

Industry Type: FMCG- An Overview

With a population of over one billion, India is one of the largest economies in the world in

terms of purchasing power and increasing consumer spending, next to China. The Indian

FMCG industry, with an estimated market size of `2 trillion, accounts for the fourth largest

sector in India. In the last decade, the FMCG sector has grown at an average of 11% a year;

in the last five years, annual growth accelerated at compounded rate of ~17.3%. The sector is

characterized by strong presence of global businesses, intense competition between organized

and unorganized players, well established distribution network and low operational cost.

Availability of key raw materials, cheaper labour costs and presence across the entire value

chain gives India a competitive advantage. During 2012, the country witnessed high inflation,

muted salary hikes and slowing economic growth, which affected the FMCG sector with

companies posting deceleration in volume growth in their quarterly results. However, the

trend seen in 2012 is likely to accelerate in 2013 as growth will come from rural dwellers that

are expected to see a rise in their disposable incomes.

Fast Facts: Indian FMCG Industry

The Indian FMCG industry represents nearly 2.5% of the countrys GDP.

The industry has tripled in size in past 10 years and has grown at ~17%CAGR in the

last 5 years driven by rising income levels, increasing urbanisation, strong rural

demand and favourable demographic trends.

The sector accounted for 1.9% of the nations total FDI inflows in April 2000-

September 2012. Cumulative FDI inflows into India from April 2000 to April 2013 in

the food processing sector stood at `9,000.3 crore, accounting for 0.96% of overall

FDI inflows while the soaps, cosmetics and toiletries, accounting for 0.32% of overall

FDI at `3,115.5 crore.

Food products and personal care together make up two-third of the sectors revenues.

Rural India accounts for more than 700 mn consumers or 70% of the Indian

population and accounts for 50% of the total FMCG market.


With changing lifestyle and increasing consumer demand, the Indian FMCG market is

expected to cross $80 bn by 2026 in towns with population of up to 10 lakh.

India's labor cost is amongst the lowest in the world, after China & Indonesia, giving

it a competitive advantage over other countries.

Unilever Plc's $5.4 billion bid for a 23% stake in Hindustan Unilever is the largest

Asia Pacific cross border inbound merger and acquisition (M&A) deal so far in FY14

and is the fifth largest India Inbound M&A transaction on record till date.

Excise duty on cigarette has been increased in the Union Budget for 2013-14, which

would hit major industrial conglomerates like ITC, VST Industries in the short term.

Opportunities in FMCG Sector:

Untapped rural market

India is one of the worlds biggest producers of a number of FMCG products but the

countrys exports account for a very small proportion of the overall output.

Food-processing Industry: With 200 mn people expected to shift to processed and

packaged food, India needs around USD 30 bn of investment in the food processing

industry.


Key Concerns for the sector:

High inflation

Rising cost of inputs

Emergence of private labels

Counterfeits and pass-offs

Rupee depreciation may hit margins of companies

Infrastructure bottlenecks


Company information-Procter&Gamble

Procter & Gamble Co. also known as P&G, is an

American multinational consumer goods company

headquartered in downtown Cincinnati, Ohio, United

States, founded by William Procter and James Gamble,

both from the United Kingdom. Its products include pet

foods, cleaning agents, and personal care products. Prior to the sale of Pringles to the Kellogg

Company, its product line included foods and beverages. In 2012, P&G recorded $83.68

billion in sales. P&G remains a highly selective employer as less than 1% of all applicants are

hired annually

History- William Procter, a candle maker, and James Gamble, a soap maker, both born in

the United Kingdom of Great Britain and Ireland, emigrated from England and Ireland

respectively. They settled in Cincinnati initially and met when they married sisters, Olivia

and Elizabeth Norris. Alexander Norris, their father-in-law, called a meeting in which he

persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result

of the suggestion, Procter & Gamble was created.

http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Downtown_Cincinnatihttp://en.wikipedia.org/wiki/William_Procter_(candlemaker)http://en.wikipedia.org/wiki/James_Gamble_(industrialist)http://en.wikipedia.org/wiki/Pet_foodhttp://en.wikipedia.org/wiki/Pet_foodhttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Personal_carehttp://en.wikipedia.org/wiki/Pringleshttp://en.wikipedia.org/wiki/Kellogg_Companyhttp://en.wikipedia.org/wiki/Kellogg_Companyhttp://en.wikipedia.org/wiki/United_Kingdom_of_Great_Britain_and_Ireland


New products launched by company

recently

Oral-B Smart Series

Added 13 Mar 2014

The new Oral-B Smart Series brings smart phone technology to oral care with the worlds

first-ever electric toothbrush with Bluetooth.

Tide Simply Clean & Fresh

Added 05 Mar 2014

Tide Simply Clean & Fresh is a new liquid detergent from Tide formulated to provide a great

clean at a good price.


Tide Plus Collection

Added 05 Mar 2014

The New Tide + collection dials up the benefits of existing Tide variants so that consumers

can experience even more of what they love from Tide.

Tide Oxi Multi-Purpose Stain Remover

Added 05 Mar 2014

Tide Oxi Multi-Purpose Stain Remover is the first-ever Tide product designed to be used

inside and outside the wash.

Gain flings!


Added 05 Mar 2014

Gain flings! gives consumers an exceptional laundry experience with the best Gain ever.

h&s Fresh Scent Technology

Added 25 Feb 2014

Head & Shoulders with new Fresh Scent Technology is a breakthrough anti-dandruff

shampoo that provides scalp relief and beautiful, flake-free hair with a great scent.

Secret Clinical Strength Collection

Added 14 Feb 2014

The new Secret Clinical Strength Collection provides women with the first and only clinical

strength deodorant collection available with Clear Gel and Invisible Solid.


Vidal Sassoon Pro Series Color Finity Collection

Added 14 Feb 2014

Vidal Sassoon Pro Series Color Finity Collection provides a full regimen of products that

help lock in long-lasting vibrant color, prevent shade shifting, and maintain the precision of

vibrant, dimensional hair color.

Pantene Pro-V Anti-Oxidant Technology

Added 14 Feb 2014

Pantene Pro-V Anti-Oxidant Technology is Pantenes first clinically tested solution to

oxidative damage.


Old Spice Hair Care & Styling

Added 31 Jan 2014

The manliest grooming brand on the planet now has guys covered from head to toe, literally,

with the introduction of the Old Spice Hair Care & Styling product lineup.

Wella ME+

Added 31 Oct 2013

ME+ is the first hair dye technology to deliver full permanent color performance, while

allowing hair color formulations with reduced risk of developing allergy.


Gucci Made to Measure

Added 31 Oct 2013

Gucci Made to Measure is a new impeccably sophisticated and supremely masculine

fragrance for the man who demands the very best.

Product line information Oral B

(Toothbrush)

New and Featured

Our dental expert

development team is

always working on new

and innovative products

to enhance your oral care

experience. Check out

the latest advancements

and highlights in the

world of Oral-B

products.

Toothpaste

Search through the line

of Crest + Oral-B Pro-

Health Stages

toothpastes, designed

specifically for the

special needs for babies

and kids ages 2-7 Years.

Rechargeable Electric

Toothbrushes

Remove surface stains

and plaque while getting

Floss

Complete oral hygiene

involves more than

brushing teeth. Learn

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the professional-level

clean that comes from

brushing with an Oral-B

rechargeable electric

toothbrush.

how Oral-B and Oral-

B Glide dental floss

products are designed to

help keep your mouth

healthy by reaching the

spaces your brush

cannot.

Manual Toothbrushes:

From brushes designed

for bridges, crowns or

braces to brushes with

angled bristles and

brushes that pulse, these

manual brushes will help

you remove plaque and

achieve fresh clean teeth.

Products for Babies

and Kids: Kids change a

lot during their

developmental years.

Our line of special

products for babies and

kids is designed to meet

their distinct oral care

needs throughout every

stage of growth.

Replacement Brush

Heads

Every person brushes a

little differently. That's

why we offer several

replacement brush heads

for your battery-powered

or rechargeable electric

toothbrush. Whether you

want to try something

Specialty Dental

Products

Because certain

procedures can make

oral hygiene difficult, we

offer products that make

cleaning teeth around

dental and orthodontic

work effective and easy.

Explore products to help

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new or you're looking

for your tried-and-true,

find it here.

you floss with braces,

clean dentures and more.

Product information

Oral B Manual Toothbrush

Various Products are-

Oral B Complete Scope Scented Toothbrush

Oral B Pro-Health Clinical Pro Flex Toothbrush

Oral B Pro Health Toothbrush

Oral B Pro Health Vitalizer Toothbrush

Oral B Pro Health Gental Clean Toothbrush

Oral B Pulsar Pro Health Battery Powered Toothbrush

Oral B White Advanced Vivid Toothbrush

Oral B Pulsar Toothbrush

Oral B Advantage Complete Whole Mouth Clean Toothbrush

Oral B Advantage 3D White Vivid Toothbrush


Oral B Complete Deep Clean Toothbrush

Oral B Indicator Counter Clean Toothbrush

Oral B Cavity Defense Toothbrush

Oral B Pro Health All in one Toothbrush

Manual Toothbrushes helps remove plaque and achieves fresh clean teeth. These

brushes are mainly designed for bridges, crowns or braces to brushes with angled

bristles. Various features of this type of product are-

Enhances brushing experience through release of fresh Scope scent from the handle

Tongue and Cheek Cleaner helps freshen breath by removing odour causing bacteria

from tongue and cheeks

Removes up to 93% of plaque in hard-to-reach areas

Removes up to 34% more plaque along the gum line

Works gently on enamel and gums

Reduces gingivitis to improve gum health

Removal of surface stains with a gentle pulsing action

Deep penetration between teeth

Sweeping away of food and plaque from the tooth surface

Adjustment to the contours of your teeth

Moderation of the amount of pressure applied to your teeth and gums

Helps you track the wear on your brush

Accepted by the American Dental Association

Provides comfort and control

Fits in most toothbrush holders

Indicator bristles tell you when to replace your brush


Oral B Rechargeable Electric Toothbrush-

Various Products in this category are-

Oral B Black 7000 Electric Toothbrush with Smart Guide

Oral B Deep Sweep 1000 Electric Toothbrush

Oral B Deep Sweep 5000 Electric Toothbrush with Wireless Smart guide

Oral B Pro Health For Me Vitality Electric toothbrush

Oral B Pulsonic Sonic Toothbrush

Oral B Professional Care Smart Series 5000 with SmartGuide Electric Toothbrush

Oral B Professional Care Smart Series 4000

Oral B Professional Care 3000

Oral B Vitality Floss Action Electric Toothbrush

Oral B Dual Clean Vitality Electric Toothbrush

Oral B Vitality Pro White Electric Toothbrush

Oral B Vitality Sensitive Electric Toothbrush

Oral B Cross Action Power Max Whitening Electric Toothbrush

Rechargeable Electric Toothbrushes removes surface stains while getting the plaque removal

benefits. Various features for this product includes-

Six High-Performance Brushing Modes: Daily Clean, Deep Clean, Whitening,

Massage, Sensitive and Tongue Cleaning.

Sophisticated pressure-sensor technology alerts you if youre brushing too hard and

automatically decelerates the pulsation and oscillation speeds of the brush head.


Wireless SmartGuide gives you real-time information about brushing modes, times

and areas.

Specially designed seals and gaskets keep the Oral-B Black water tolerant to 500

millibars of pressure.

Made of different high-tech materials like silicon, the black travel case protects all of

its vital technology.

Designed by the engineers at Braun, it removes up to 100% more plaque than a

regular manual brush.

Superior plaque removal plus helps prevent and reverse gingivitis

40,000 pulsations and 8,800 sweeps per minute

Electric toothbrush has a pressure sensor that slows the brush speed when you're

brushing too hard

Naturally whitens teeth by gently removing stains

Effectively removes plaque

Helps you brush in two minutes

Oral B Battery Powered Toothbrushes

Various products in this category are-

Oral B Complete Action Power Toothbrush Deep Clean

Oral B Complete Action Power Toothbrush with Anti-Microbial Bristle Protection

Oral B Pro Health Dual Clean Battery Powered Toothbrush

Oral B Pro Health Precision Clean Battery Powered Toothbrush


Oral B Pro Health Stages My Friends Tigger And Pooh Power Toothbrush

Oral B Pro Health Stages Disney Princess Power Toothbrush

Oral B Battery Powered Toothbrushes helps remove plaque, stimulate gums and power clean.

Various features are as follows-

Offers outstanding comfort and control

Rotating Power Head loosens and whisks away plaque from surfaces, gum line and

back teeth

Criss Cross bristles reach deep between teeth to lift out and sweep away plaque.

Cleans while stimulating gums

Significantly improves gum health

Significantly cleaner teeth than a regular manual toothbrush

Improved technology delivers more consistent battery performance

Reaches between teeth

Gently cleans

Makes brushing fun with Disney My Friends Tigger and Pooh characters

Makes brushing fun with Disney Princess characters

Oral-B Replacement Electric Toothbrush Heads

Replacement Brush Heads ensures wide variety that one can find perfect brush head

according to needs. Various Products are-

Oral B Deep Sweep

Oral B Power tip Replacement Electric Toothbrush Head

Oral B Floss Action Replacement Electric Toothbrush Head


Oral B Pro White Replacement Electric Toothbrush Head

Oral B Precision Clean Replacement Electric Toothbrush Head

Oral B Dual Clean Replacement Electric Toothbrush Head

Oral B Sensitive Replacement Electric Toothbrush Head

Oral B Ortho Replacement Electric Toothbrush Head

Oral B Braces Care Essential Pack

Oral B Pulsonic Replacement Electric Toothbrush Head

Oral B Cross Action Power Medium Replacement Electric Toothbrush Head

Oral B Complete Action deep Clean Refill

Oral B Complete Action Refill with Anti-Microbial Bristle Protection

Advantages for such type of brushes are-

Brush head features 3 cleaning zones to keep your teeth and gums healthy:

Moving power tip for hard-to-reach back teeth

Shorter, stationary bristles for thorough surface cleaning

Longer, sweeping bristles for deep between teeth

Superior plaque removal vs. a regular manual toothbrush helps prevent and reverse

gingivitis

The Oral-B Cross-Action Power Medium replacement power toothbrush head features

multi-angled Criss-Cross bristles that reach between teeth to lift out and sweep away

plaque.

Oral-B Braces Care Essentials Pack is a set of two replacement electric toothbrush

heads that provides effective and convenient cleaning and care of dental braces. It's a

braces toothbrush option for those interested in power brushing.

Cleans deep between teeth as well as around braces and orthodontic appliances

Cleans and gently removes plaque from teeth with braces.

Oral-B Dual Clean replacement electric toothbrush head features two moving brush

heads in one, so it provides twice the cleaning action, removing more plaque than a

regular manual brush.

Provides twice the cleaning action

Delivers thorough cleaning, freshening, and gum care -all in one brush head

Penetrates hard-to-reach areas.


Competitors and market share

P&G had showcased the Oral-B Pro-Health toothpaste for India in a Goldman Sachs

Consumer Product Symposium in May and said the launch would be done in the

second quarter this year.

According to analysts, it makes more sense for P&G to launch the new toothpaste

under the Oral-B brand than under its flagship Crest brand since Oral-B, with close to

30% market share in the toothbrush segment, has a strong brand recall and will thus

have a better consumer connect.

P&Gs entry is expected to heat up competition in the Rs 6,000 crore oral care

market. Thats bad news for competitors such as Colgate, HUL and Dabur.

P&Gs entry will definitely lead to increased ad spend by other players as they try to

protect their margins. It will result in market share losses for a few players. The jury is

out on this one even as P&Gs Brazil experience suggests that it gained the maximum

market share from smaller, unorganised players and Unilever. Colgate did well to

protect its market share, though it felt margin pressure as well.

Colgate, which has a strong presence across all segments and price points, will be in

a better position to counter competition from the new entrant. However, Margins for

Colgate (among the highest in the consumer space) could come under pressure as its

pricing power will moderate due to P&Gs foray into the Indian toothpaste space.

P&G is believed to have started test-marketing the products in super markets since

May. The launch is also expected to be in a phased manner, starting with bigger states

like Maharashtra. Globally, the Oral-B Pro-Health brand toothpaste is positioned as

an all-in-one toothpaste that covers several aspects of oral care, including sensitivity

and whitening.


Oral-B, the consumer products division of The Gillette Company (acquired by

Procter & Gamble in 2005) that produces toothbrushes consists primarily of a

manual toothbrush that retails for $3 and an electric rechargeable power

toothbrush that retails for $50.

One year ago, a major competitor Church & Dwight Co. Introduced a battery-

powered electric spinbrush under the Arm & Hammer brand that retails for $5 and

now controls 1% of the worldwide toothbrush market. The client Oral-B currently

lacks a comparable offering.

One year ago, the worldwide market was made up of 80% manual and 20%

rechargeable toothbrushes. The spinbrushs 1% market share gain has come mostly at

the expense of rechargeable toothbrush sales.

Manual toothbrush:

The client Oral-Bs net profit margin on sales of manual toothbrushes is 66%.

The average manual toothbrush user goes through 4 toothbrushes per year.

On average, 2 toothbrushes per year are given to manual toothbrush users free of

charge by their dentists.

Rechargeable toothbrush:

Rechargeable toothbrushes are sold as two separate components: a base that retails

for $50 (with a 60% net profit margin) and an associated head that retails for $5

(with a 90% net profit margin).

1 base and 1 head are needed at all times for the device to work; no other components

are compatible.

The average base last 10 years.

The average rechargeable toothbrush user goes through 2 heads per year and

purchases bases as needed.

Spinbrush:

No specific cost data is known for the competitors spinbrush offering.


Client product development believes it could produce a spinbrush knockoff at a cost

of $3 per brush.

Colgate-Palmolive (India), the maker of flagship brand Colgate toothpaste, is losing ground

in the toothbrush segment in value terms to its US-based rival Procter & Gamble's (P&G)

Oral-B. The market share of Colgate toothbrush has declined by 300 basis points (100 basis

points (bps) is equal 1 percent) and 60 bps in the past 24 and 12 months, respectively to

P&G's Oral-B, according to data from market research firm Nielsen. Oral-B's value share has

gone up by nine percent in the past two years and three percent in the past 12 months and

now stands at 27.7 percent.

The oral care business including brushes and toothpastes are part of P&G's subsidiary,

Gillette. For the December 2013 quarter, oral care contributed nearly a quarter of Gillette's

revenues of Rs 427 crore, but this was largely led by brushes than toothpastes. Oral-B is a

strong number two in the brushing segment, with an estimated market share of 28 per cent.

Colgate has a volume market share of 41.5 per cent in the Rs 1,000-crore brushing category.

Like toothpastes, Colgate has upped the ante in toothbrushes too with launches such as

SlimSoft in recent months. But P&G has withstood this pressure, holding its ground against

the onslaught of Colgate. In toothpastes that hasn't been the case.


International markets

Procter & Gamble (P&G) plans to substantially increase its oral care market share following

the launch of its Oral-B toothbrushes into the Kenya and East African regional market.

The toothbrushes, which are part of the companys oral care range that comprises of

toothpastes and dental floss, is part of P&Gs onslaught for a bigger stake in the fast growing

oral care market coming against the backdrop of a highly health conscience consumer.

P&G is optimistic that following the launch of its Oral B toothbrushes the brand should see

share growth as it plans to increase promotional investments to grab more market share.

The Oral-B brand is a worldwide leader in the over $5 billion brushing market. Part of the

P&G Company since 2006, the Oral-B brand includes manual and power toothbrushes for

children and adults, oral irrigators, oral care centres and interdental products, such as dental

floss. Oral-B toothbrushes are used by more dentists than any other brand worldwide.

With 30% of Kenyans using toothbrushes, Oral B plans to invest significant resources in

consistently increasing its brand equity among consumers and oral health care professionals.

It also intends to utilize its wide distribution presence in Africa to make huge promotional

investments to attract customers.

On an average, the price of a toothbrush for an adult costs anywhere between KES 50 KES

350 depending on the quality. The convenience of use of the toothbrush, ability to reach

difficult areas of the mouth, design and aesthetics are some of the factors that consumer

consider when selecting a toothbrush.

Unlike ordinary toothbrushes with straight bristles, Oral-B Pro Expert Complete 7 toothbrush

has bristles designed at a perfect angle to flex and attack plaque for a healthy mouth. The

brushes key features:

Criss Cross Bristles angles for through cleaning

Tongue Cleaner for a fresher mouth

Ergonomic Handle for visual appeal, firmer grip and extra control during brushing


It is estimated that only five per cent of Kenyans have access to quality dental health care

because of lack of a proper health financing system which prevents most low income earners

from accessing dentists.

For oral health campaigns should consider addressing consumers such as school children who

must have good daily oral hygiene they are not likely to need more complex and expensive

dental treatment in the future.

According to a study title Oral health status and oral healthcare seeking behaviour of a rural

community in Kenya, there is widespread poor oral health and poor oral hygiene practices

among rural communities which imply there was a high demand for oral health care. The

study recommended public awareness of oral health, in particularly preventive oral health

measures with the aim of reducing the high levels of poor oral health status.

Due to an increased focus on core developed markets over faster growing developing

economies, P&G has conceded its share of the oral care industry to competitors such as

Colgate-Palmolive and Unilever in the past two fiscal years. However, the company has now

shifted its focus towards global expansion of the oral care business, and has entered 40

countries in the last four years. It has also hired singer and two time Grammy award winner,

Shakira, to promote its Crest 3D White and Oral-B brands around the world through print,

TV and online advertising.

Growing awareness about oral hygiene, more advertising by big players as well as population

and income growth are driving the robust expansion of the oral care industry in emerging

markets. To leverage the trend, P&G is expanding its reach in these markets by launching

new products. It launched the Crest 3D White toothpaste with Whitestrips in Brazil in Q2

2013, which resulted in 50% growth in oral care shipments to the country. Oral-Bs share of

the Brazilian toothpaste market also increased to 9% during the quarter. Demand for oral care

products in the country is expected to continue rising in the foreseeable future. The oral care

market in Brazil will grow at a CAGR of 8% during 20122017.

P&G also recently forayed into the Indian toothpaste market with the launch of Oral-B Pro-

Health. The market size of toothpastes alone is estimated to be around $1 billion in the

country. Although Colgate-Palmolive dominates the oral hygiene market in India with a share

of over 50%, there is immense potential for P&G to build a substantial presence as the market

is expected to grow at a CAGR of 14% during 20112015.


Market Segmentation

Geographic: Oral-B satisfies geographic market distribution as it is available in North

America, Europe, South America, Middle East and Asia Pacific. For the past 50 years, Oral-

B has been producing quality products that cater to the people and dental professionals, all

over the world.

Demographic: Oral-B is segmented demographically as it has products for children;

moreover, the kids brushes are also divided into four groups, depending upon the age from

four months of age to children who are above eight years of age. There are cartoon characters

in brushes to attract little children. Apart from brushes, kids toothpaste is also available.

Along with children, Oral-B offers various brushes.

Psychographic: The products of Oral-B can also be divided on the basis of psychographic

market segment. People can choose Oral-B toothbrushes according to their individual taste,

as variety of brushes with variable prices are in offer. They can also choose brushes

according to their colour fascination. Apart from manual toothbrushes, power products are

also available that comes with rotating oscillation that is effective in reducing gingivitis and

oral plaque. But, they are a bit expensive than manual brushes.

Behaviouristic: Oral-B products can also be segmented as per behavioural market

segmentation. Apart from numerous benefits that the products serve, they have brushes for

regular use and occasional use.

Target Audience

The target market for the Oral-B Advantage would be teenagers to adults. Oral-B targets

consumers who are everyday people concerned about their oral hygiene and prefer to use a

manual tooth brush. Oral-B helps lure their potential consumers in on the facts. The facts are

their brush is gentle on teeth and gums, reduces plaque, and helps remove surface stains.

Another fact is their manual brush has been proven to reduce gingivitis in four weeks, has a

freshening tongue cleaner, and has unique bristles which indicate when the brush needs to be


replaced. The fact the Advantage has a power tip with extra long bristles which cradle teeth

and aid in reaching the hard to reach places in the mouth aids in appeal to the target market.

The target market also likes the fact the handle can come in multiple colors to allow for a

display of personality but it also is equipped with a non-slip grip. The Advantage appeals to

teens and adults by showing personality through its sleek modern design while still getting

the job done. The brush acts as an all in one oral health package. Oral-B presents the

product in a way that encourages consumers to take the leap and trust them with your oral

care. Their slogan also helps with this: Trust the brush more dentists use. Since Oral-B

targets both teens and adults, they use a combined target market approach to appeal to both

consumer audiences concerns.

Positioning:

Oral-B is positioned as Dentist's Choice of Toothbrush. The brand uses the tagline " The

brand more dentists use themselves worldwide". In India too, the brand uses the same tagline.

Unique Selling Proposition of Oral B is Global leader in toothbrush market. The brand is

currently on a hyper active mode in India with lot of promotions in the visual media. Oral-B

was positioned as a premium brand. Oral-B is a marketer's icon. A brand which has brought

so much value into a dull product category. Earlier, the choice available for a consumer was

whether the bristles are soft medium or hard. Now the choice is numerous. The introduction

of power brushes (battery powered) created a new premium segment of toothbrushes. The

shape and the size of the bristles and toothbrushes also have changed.

From the typical rectangular head to round shaped head. From straight bristles to Zigzag .

Many things are happening to the good old toothbrushes. The interesting fact is that these

innovations have created a change in them in the set of consumers. Earlier consumers

believed that Toothpaste is the central product in the oral care/hygiene. Toothbrush's role is

limited in the oral care. The innovations from these players have prompted the customers to

think that toothbrush is also an important product that needs some serious thinking before

purchase. In India, Oral-B's strategy has been in line with the Gillette strategy of increasing

the value of the market by providing value to the consumers. The company has adopted a

two-pronged approach for marketing its two brands: Prudent and Oral-B. While the former

has addressed the volumes market, the latter has been focussed on value.


Pricing Strategy

Pricing for the Oral-B Advantage was set by its target markets income levels and competitors

price range. People are willing to pay for a good product and because of great over all oral

care, the Advantage provides, consumers will pay extra for a brush that is worth the money.

The reputation of the product and trusted brand in buyers eyes also help to obtain a sale.

The product is priced at Rs. 30. Company officials attributed this pricing to superior design

and a technological breakthrough, saying Advantage comes with four US patents. Indian

patents have also been applied for.` `The brand is expensive on the face of it, but consumers

expect certain quality associations with the Oral-B brand,'' Mr. Pramanik said. In foreign

countries the company being a premium brand starts with a range of Rs. 300 till 1200. The

company does not compromise with the quality standards so it has the products priced so.

Intensive RnD is done before the product is finally launched in the market.

Product Mix

Width:

The width of a company's product mix pertains to the number of product lines that a company

sells. For example, if a company has two product lines, its product mix width is two. Small

and upstart businesses will usually not have a wide product mix. Product Depth is the number

of items within the product line. This combination is often referred to as Product/Service

Mix. Oral B has also introduced product brush for Babies & kids, manual toothbrush, floss,

toothpaste.

Length:

Product mix length pertains to the number of total products or items in a company's product

mix. Product length consists of different product that is related to each other and cant be

used solely. Eg- Oral B toothbrush, toothpaste & dental floss.


Product Depth:

Depth of a product mix pertains to the total number of variations for each product. Variations

can include size, flavour and any other distinguishing characteristic. For example, if a

company sells three sizes and two flavours of toothpaste, that particular brand of toothpaste

has a depth of six. Just like length, companies sometimes report the average depth of their

product lines; or the depth of a specific product line.

Oral B offers toothbrush which are rechargeable, toothbrushes whose head can be replaced,

battery powered toothbrushes, manual toothbrush.

Consistency:

Product mix consistency pertains to how closely related product lines are to one another--in

terms of use, production and distribution. A company's product mix may be consistent in

distribution but vastly different in use.

Product life cycle

Product life cycle is a business analysis that attempts to identify a set of common stages in

the life of commercial products. In other words the 'Product Life cycle' PLC is used to map

the lifespan of the product such as the stages through which a product goes during its lifespan

Stages:

Development

In the development stage, the product goes through testing and a prototype is developed. This

is after considerable market research to identify consumer needs and wants. If the product is

deemed commercially viable, then the product may be put into mass production and

launched.


It is important to remember at this stage expenditure for the company is high. No income is

being received as there are zero sales.

Introduction:

This is the stage in which a new product is first made available in the market. In the

introduction stage, customers are few, competition is less, sales are low, risk is high and

profits are low or nil. There are heavy distribution and promotion expenses. This stage is full

of risks and uncertainties. prices are also high because(1) costs are high due to low level of

output.(2) technological problems in production may not have been solved, and(3) high profit

margins are required to support the heavy promotion expenditure.

Growth:

If the product is popular with consumers, then sales will start to rise. It may be a rapid growth

or a slower one. Rapid growths that fall away just as quick are called 'Fads'.

Advertising is often still heavy at this point.

Maturity:

Once the product is well established and consumers are satisfied, then the product is widely

accepted and growth slows down. Before long, however, a successful product in this phase

will come under pressure from competitors. The producer will have to start spending again in

order to defend the product's market position or introduce extension strategies.

It may only be in the Maturity stage where companies will receive a return on their original

expenditure and investment due to potentially high start up and development costs.

Saturation:

At the very end of the Maturity stage, and where there is no further growth possible,

saturation occurs. This is also referred to as Saturation Point.

This is when little or no advertising is needed and sales are leveling off.

Decline:

Sooner or later sales fall due to changes in consumer tastes or new choices available from

competitor's products.


Again, extension strategies may be open to the company to keep the product alive. The

product can be declined if there is no proper growth and the later stage which has been

discussed above.

Product-lifecycle of oral b toothbrush:

In 1950 the first Oral-B toothbrush was born. Since then, Oral-B has developed oral hygiene

products. Procter and Gamble own Oral-B and uses individual branding for Oral-B. Oral-B

is Procter and Gambles family name for their toothbrush lines. The Oral-B Advantage is the

brand and trademark name of the product. Even though the Advantage is a newer Oral-B

product, the age and success of the company and its products, set the life cycle stage of the

toothbrush as mature. The redesign of this product helps keep the toothbrush in the mature

cycle and out of the declining stage. The Advantage can be classified into three good

categories. The convenience good category is an option because people usually spend little

time or effort looking for a toothbrush and it doesnt matter where or when they make the

purchase as long as it is handy for them. It is an everyday staple that needs to be replaced. It

could be seen as a specialty good because people may specifically seek the product and or

brand searching specifically for it. The third classification could be a homogeneous good

because it has similar competitors and the customer may not even think about the product

they just want a toothbrush.


Branding and Packaging

Like many other products, the Oral-B Advantage uses mass sales. There are ads in

magazines, on the internet, on television, and coupons in newspapers. These ads show the

versatility and effectiveness of the brush. They emphasize on the sleek design and the ability

to pick the colour of your choice. They have people showing the visual effects of how these

toothbrushes have helped their oral health. They have people give accounts of how clean

their mouth feels. The Oral-B slogan trust the brush more dentists use litters ads and

encourages consumers to be part of the Oral-B experience. All of this seems attractive to

retailers and helps Oral-B get on their shelves. Then Oral-B representatives can do some face

to face personal selling to further promote the product. The company uses frequent

promotions, plus occasional BOGOs (buy-one-get-one-free deals) to maintain premium shelf

space in retail stores. Because their product quality is so high, its almost impossible to go

back to a straight-bristle brush after using a Cross Action, so the promo accomplishes its goal

of winning a new loyal customer. Even if you dont share my delight in diagonal bristles, its

hard not be impressed with Oral-Bs ability to brush away the competition and earn a mint in

profits. Do you have an example of a brand you couldnt live without?

1984 : Oral-B revolutionized Kid's toothbrush market with its Star Wars range which had the

characters in the toothbrush

1984 : The first Power Toothbrush launched under the Braun brand.

1987 : Oral-B Ultra plus was launched which had round head

1991 : Oral-B Indicator with fading bristles.

For the entire range of innovations, visit the brand website at : Oralb.com

http://2.bp.blogspot.com/_1pKvii0Z9Cs/RwZTwIQhueI/AAAAAAAAA4U/aAael8-E2bY/s1600-h/oralb_triumph.jpg


2007 saw another mind-blowing futuristic innovation from this brand- Oral-B Triumph with

Smart Guide Technology. The toothpaste now comes with a wireless digital monitor which

will guide the consumer to use the toothbrush in the ideal manner. The wireless digital

monitor have a timer which guide the customer to brush for 2 minutes and also indicates the

various motions and even indicates the replacement of the toothbrush head.

These innovations have made this product category a highly segmented and a high

involvement category. Earlier, the choice available for a consumer was whether the bristles

are soft medium or hard. Now the choice is numerous.

Packaging

What is packaging?

Packaging comprises of all activities of designing and producing the container

for the product. This container may include up to three levels of material:

Primary Package: Tetra pack, bottle, sachet, etc

Secondary Package: cardboard box, etc

Shipping Package: Cartons, etc

WHY PACKAGING?

Packaging has been getting increasing focus as a marketing tool for the following

reasons:

They promote Company and /or Brand Image

It is an opportunity to incorporate innovative features which can bring added convenience to

the consumer and in turn higher profits to the producer.

With rising incomes, consumers increasingly are willing to pay a little more for the

appearance and prestige of well designed packages.


Procter & Gamble has eliminated the use of polyvinyl chloride (PVC) in packaging for its

Oral-B manual toothbrushes. They are more into environmental free packaging.

The packages are now made with Octal Petrochemicals' proprietary DPET (direct

polyethylene terephthalate [PET]) sheet.

Distribution System of Oral B Toothbrush

The distribution network of oral b is very robust. They have P&Gs distribution network in

addition to Gillette Indias existing one. The distribution network is a combination of own

network and that of a franchisee. As of now, Gillette India has the same distributors in the 20

cities that P&G operates with. The distribution network follows a hub and spoke model. The

hubs are the 20 cities. It is under these stores that all the products of oral b are sold. Apart

from this the local retail shops and organized retail shops also sell their products. The spokes

are the various Tier 2 and Tier 3 cities and towns around the major hub. These cities are

managed by the exclusive distributors in those cities. Every city has only one franchisee

distributor. These tier 2 and 3 cities (spokes) thus serve a feeder market to the hubs. Each

franchisee distributor has his own set of employees working for him. The distributor also

manages his own fleet costs to supply to the retailers. There are no wholesalers. It is in this

form.

The sales representatives go with the drivers to the various Retailers under their geographic

span and take orders every week. The credit period offered is one week. So, for every week

the order is taken and supplied, the amounts due for the previous week would be collected.

The two sales managers have split the city into two parts for their span of control. They are in

charge of the big retailers, super markets etc.

http://www.drbicuspid.com/index.asp?sec=vdp&sub=vendors&pag=vendordetail&vendorid=22468


Promotional Mix

Oral-B is a highly promotional company in the industrial market. Oral-B uses the

following promotional techniques: product samples for dentists as well as bundling products,

focus on the buyer, trade show participation, infomercials on television, licensing agreement

with Disney, web site promotion and on site promotion of products Product samples for

dentists are what all the dentist's interviewed commented on as a favourable gesture by the

Oral-B company. Whenever a dentist was curious or interested in a new product's use, a

simple call to their supplier or Oral-B rep was made and free product samples were

immediately shipped to their office. Many times, Oral-B would take it upon themselves to

ship free samples of new products to dentists who were on their buying list. This strategy

promotes strong relationships, strong brand loyalty, as well as customer satisfaction.

Often, Oral-B will bundle products together to make them more attractive to dentists in the

purchasing process. A popular selling product is often bundled with a newer or little known

product to increase the awareness of the latter which could lead to future sales. This

technique also provides the buying dentist with the vision of getting something for free for

buying a commodity type product.


Oral-B focuses strongly on the buyer during the buying process. Oral-B take a broader view

of supply in the value creation process, which most dentists favour. Oral-B combines

excellent sourcing capabilities and efficient operations which attract their buyers. Positioning

of their products is well used to secure a valued categorization in the mind of a buyer. Some

buyers value economy utmost, some performance, some order process efficiency, and others

after sale service. Oral-B makes sure it focuses on each individual buyer needs, to form a

positive relationship not only in the selling process, but for future relations.

Oral-B is an active participant at dental industry trade shows all over the world. Oral-B most

often has the largest exhibit at trade shows it attends with on site demonstration of its

products, as well as promotional price reductions, and free samples. Oral-B states the main

goals of attendance at trade shows is to strengthen customer relationships, and build further

relationships with trade press (such as major industry magazines like Dentistry Today, and

Oral Health).

Oral-B recently has taken part in another booming form of sales promotion, infomercials.

Oral-B decided to integrate infomercials into its marketing mix because the product could not

be adequately demonstrated in a 30-second or 60-second spot. The infomercial format,

however, provided time to thoroughly demonstrate the product benefits. Oral-B increased its

market share significantly and overtook its competitors to gain the leadership position within

most of their product categories. The infomercials were also very effective in helping expand

the categories. Oral-B wanted advertising that is breakthrough, state-of-the art, and unlike

anything in the industry categories.

In 2001, Oral-B entered into an exclusive licensing agreement with The Disney Company to

market a wide range of oral care products for children featuring beloved Disney characters

including Mickey Mouse, Winnie the Pooh, Buzz Lightyear and Disney Princesses. This

strategy targeted the most popular entertainment characters of children, to appear on their

toothbrushes to not only promote use by children, but to promote dentists to order these

brushes for their many children patients.

With the emergence of the Internet (World Wide Web), Oral-B puts to use their very

informative and interactive web site to educate their potential customers. The website is

loaded with information for any type of customer which features: many articles, product

demonstrations, product information, contact information, lessons on dental care, frequently


asked questions, and company information. The Internet offers another form of exposure, and

company/product education.

Finally, a type of promotional strategy that has been around forever is on site promotion. This

is when Oral-B sends a sales representative to a dentists office and tries to sell products the

company is offering at the time. The rep will often provide demonstrations, one time only

sales discounts, and assured customer service and warranty of the products. The dentist

would be able to ask any questions pertaining to the products usefulness and co-ordinate an

onsite purchase right then and there. Another form of this type of promotion occurs when the

sales rep sends gifts to the dentist to either butter them up for a future purchase, or a way of

saying thank you for past business and looking forward to future dealings. Such gifts include

CD's, books, clothing, even as high as VCR's, DVD players, and individual golf clubs and

golf ball packs!

Conclusion

For more than 50 years Oral B had produced the highest quality dental hygiene products for

the families and dental professional worldwide. Trust the brand more dentist use themselves

worldwide. Oral B is a special brand. The brand is global leader in the toothbrush market.

Oral B is a special brand since it bought so many innovations in a low involvement product

like toothbrush. In fact Oral B is a brand that made toothbrush is high involvement

Product category.

In a strong and well established partnership with dental professional, Oral B develops and

markets a broad range of superior oral care products worldwide. Led by toothbrush, the Oral

B line also includes interdental products, speciality toothpastes, moth rinses, and professional

dental products.

Oral B strategy for growth relies on a combination of new product development and

geographic expansion. The oral care category has experiment growth due to new product

development of both manual and power assisted toothbrushes. Oral B holds about 20% of the

worldwide market for manual toothbrushes and a nearly 70% market share for power assisted


toothbrushes. Geographic expansion continues with the establishment of sales organisation in

emerging economies, and the opening of a toothbrush manufacturing in Vietnam. These

strategies are supported by strong and promotion campaigns in an effort to sustain Oral B

worldwide growth.

oral-b toothbrush p&g

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