NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc.
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Transcript of NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc.
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NATALIE BECK JEFF MORRIS
ROBERT SIMON
Clean Teeth, Inc.
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PRODUCT DESCRIPTION
Part 1
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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.
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CBP
SatisfactionCustomer ServiceWebsite for InformationDurability Product SafetyTrust
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CBP Diagram
Toothbrush
Satisfaction
DurabilityTrust
Product Safety
Customer Service
Website for Information
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STRATEGY DEVELOPMENT
Part 2
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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.
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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.
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Market Opportunities
Everyone needs one!Input materials are inexpensive and easy to
obtain.
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Oral B Colgate
In existence since 1950
Used by more dentists and consumers than any other brand
Founded in 1806Products are sold in
over 200 countries and territories
Main Competitors
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Market Threats
Brand recognition Experience
To overcome customer loyalty, we will needto make nice looking, well featuredtoothbrushes that are less expensive.
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MISSION & VISION STATEMENT
Part 3
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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.
Mission and Vision Statement
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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.
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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.
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DISSATISFIERS, SATISFIERS, AND
EXCITERS/DELIGHTERS
Part 4
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Satisfiers Dissatisfiers
Easy Grip HandleBrush IndicatorShaped Bristles
BristlesHandleDurabilityCleans Teeth
Satisfiers/Dissatisfiers
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Exciters/Delighters
Outstanding price for amount of qualityUnique colors
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CONCEPT DEVELOPMENT
Part 5
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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.
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Manufacturing Steps
Melt plastic pellets Inject melted plastic into toothbrush moldPlace rubber grip on top of melted plasticFilling machine combines bristles and wire,
then injects into melted plasticBristles are then trimmedEach toothbrush falls into packagePackage is then sealed
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Toothbrush Equipment
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Packaging Equipment
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Fixed Costs Variable Costs
MortgageEquipment CostsSalariesTaxesUtilitiesInsurance
Nylon, Plastic, Rubber, and Metal
Labor
Financial Outlook
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Break Even Analysis
Fixed Costs = $51,500,000Variable Price/brush = $1.50Sales Price/brush = $2.50
BE Point: Q = __FC__ = 51,500,000 = 51.5 mil.
SP - VC (2.50 – 1.50)
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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.
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Preliminary Design and Testing
Curved handle with grip for comfortBristles shaped for nooks and cranniesUnique colors
Testing done on focus groups to determine likes/dislikes.
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Machinery Resources
Molding machineryBristle Injector
machineryTrimming
machineryPackaging
machinery
LaborPlantWarehouseInput Materials
Resources and Equipment Needed
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FORECASTING DESIGN
Part 6
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Colgate Revenue for 2005-2007
2005 2006 2007 $9,500,000.00
$10,000,000.00
$10,500,000.00
$11,000,000.00
$11,500,000.00
$12,000,000.00
$12,500,000.00
f(x) = 2258.87978142077 x − 76452862.431694R² = 0.999903741036747
Colgate Revenue
Years
Tota
l R
evenue (
in t
housa
nds)
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5 Year Forecast Using Linear Regression
2005 2006 2007 2008 2009 2010 2011 2012 $-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
f(x) = 2379.04951975708 x − 81082893.6439093R² = 0.99897668185848
5 Year Forecast for Colgate Revenues
Years
Tota
l R
evenue (
in t
housa
nds)
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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.
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Accuracy Check
YearForecast Revenue
Actual Revenue
Abs Deviation
1 $50,567 $50,567 $0
2 $53,708 $53,909 $201
3 $56,850 $57,522 $672
4 $59,992 $60,005 $13
5 $63,133 $64,285 $1,152
MAD 407.70
MAPE 0.68%
TS 5
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Utilize Seasonal Forecasting
People buy toothbrushes year-round, without regard to a particular season. Therefore, we will not utilize Seasonal Forecasting.
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PRODUCTION CAPACITY
Part 7
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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.
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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.
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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)