P&G marketing Plan

Strategic Marketing Plan - 2013

Crest ‘New’ So Mod Mouth Pods TM

Team 2│Alexandra DeFonce, Mark Perry, Geoffrey Presor, Jason Rozet

Marketing Strategy: Section 3

of 11

Table of Contents EXECUTIVE SUMMARY ...........................................................................................................3

SITUATION ANALYSIS: SWOT ...............................................................................................4

ISSUES ANALYSIS & OBJECTIVES ........................................................................................5

Issue #1 .........................................................................................................................................5

Issue #2 .....................................................................................................................................6

Issue #3 ..............................................................................................................................6

MARKETING MIX .......................................................................................................................7

Product .........................................................................................................................................7

Price ..........................................................................................................................................8

Promotion .............................................................................................................................8

Place ............................................................................................................................8

Target Market ...........................................................................................................9

RESEARCH & EVALUATION .................................................................................................10

Objective #1 ...............................................................................................................................10

Objective #2 ...................................................................................................................................10

Objective #3 ...............................................................................................................................11

AFTER LAUNCH ........................................................................................................................11

of 11

EXECUTIVE SUMMARY

This marketing plan aims to breathe new life into Procter & Gamble‟s aging and mature

product portfolio, specifically its Crest toothpaste product line. It will achieve one strategic

organizational goal: growth through product development focusing on the year 2013. This

growth will be the direct result of a new toothpaste product launch. The following plan draws on

related Industry, Competitive, and Consumer analyses to justify the production of a “mouth pod”

and the market for such a future-oriented design. The plan also provides an implementation plan

for the launch of this product, as well as a recovery plan. Overall, this “outside-the-box”

thinking will set Crest apart from its competitors.

Unfortunately, given the current state of the economy, there are insufficient resources to

support a national or even a regional launch of the new product. Thus, the product will initially

launch in only one New York County. Rochester, in Monroe County was chosen on the basis that

it holds the highest potential for the product‟s success. Syracuse in Onondaga County and

Binghamton in Broome County were not chosen. This choice is supported with data from a

comparative analysis that demonstrates how and why it is believed to be the best potential

geographical market. The recommended geographic area is premised on a detailed and careful

assessment of the geographic market(s) and how the chosen county best suits this proposed

strategy.

This will serve as a trial; if the product performs well in Monroe County, it will later be

rolled-out to more areas. This subsequent roll-out will determine whether the product is given a

national launch.

of 11

SITUATIONAL ANALYSIS: SWOT

STRENGTHS Inventive design, unlike any other

toothpaste product on the market.

TWBA Chiat Day will significantly assist

Crest in leveraging the So Mod Mouth

Pods™.

Consumers are seeking coupons due to the

current state of the economy.

WEAKNESSES Most of Crest‟s products are either mature

or declining within the product life cycle.

As a result, new products are continuously

introduced.

Competitors are able to quickly release

comparable products, intensifying

competition.

Toothpaste promotions often use sales to

drive new purchases based on price.

OPPORTUNITIES Product differentiation- with the amount of

rivalry, there is plenty of reason to invent

and innovate.

Essential to western hygiene- there is no one

who would argue that brushing one‟s teeth

with toothpaste is not a hygienic staple in

western culture.

Emerging markets- as is true with a large

variety of industries, the developing world

poses a huge opportunity for growth.

THREATS Everyone is essentially selling the same

thing- The company is no longer selling

toothpaste, but more the brand or the

features of the toothpaste.

Low switching costs- At one point,

toothpaste purchases were mainly driven by

individual habits, inclination towards

particular flavor and familiarity with the

product However, consumers are much

more price-sensitive after the recession,

even in the recovery stage. They do not

always stick to brands they desire, they are

now shopping for the best value.

Competitors, namely Colgate, infringing on

prized shelf space.

of 11

ISSUES ANALYSIS &OBJECTIVES

Issue #1: Product differentiation The toothpaste product market is heavily saturated with products (and product lines) that

are very similar to each other. They all cover the range of benefits that toothpaste consumers

seek, from whitening to tartar control. Consumers are fatigued by the vast array and similarity of

toothpaste products available on store and virtual shelves. Fatigue in relation to innovation exists

as well, because toothpaste brands have pushed innovation to its limit. Even the newest

toothpaste products like Colgate „New‟ Optic White Toothpaste and Crest „New‟ 3D White

Toothpaste do not have much of an edge. Six months after launch, the perception of innovation

and relevance fades away. Whitening was once an innovative feature, but is now expected. For a

new toothpaste product to be successful, it will need to break free of this mold.

Objective: To achieve sales of 50,000 packs of day and night “mouth pods” by the second

quarter.

Strategy: Crest will follow a strategy based on innovation and disruption.

The launch of this new product will break through the clutter comprised of existing

toothpaste products. It will feature the Crest logo, thereby boosting brand awareness and sales of

other Crest products. Ultimately, a new product category may arise out of a successful campaign

for this launch.

The new product will be available in two versions: one made specifically for brushing in

the morning, and a companion product made specifically for brushing at night. The daytime use

product would have light-colored packaging, and the nighttime use product would have dark-

colored packaging. If the product is very successful, it could set other brands into their own

category of being “anytime” toothpaste products. Crest‟s new brand will gain market share from

being in its own niche. A companion product for nighttime use will push more people to brush

their teeth before going to sleep. This will not only improve the top line growth of Crest‟s new

brand, but it will also cause consumers to develop the good habit of brushing two or more times

a day; this may also increase the frequency in which a consumer must purchase toothpaste.

Tactics: The new product will have a slightly higher price point than that of Crest‟s current

„New‟ products and those of competitors. Since toothpaste is a low involvement purchase, tactics

will focus on drawing consumers‟ attention. Display stands and posters will accomplish this by

brining consumers‟ attention to the product‟s placement on retail shelves. The package design

will stand out amongst other toothpaste products on the shelves. Online promotions will include

banner ads on retail websites and social media profiles, including Facebook and Twitter. Special

offers for the product will be made both online and in stores.

Issue #2: Growth Stagnant growth in the U.S. market has plagued the toothpaste industry. As mentioned in

the Industry Analysis, 98% of Americans are users of toothpaste, which does not allow for much

growth. The population it is not increasing at a rate high enough to sustain our goals of driving

up sales in this country.

of 11

Objective: To move Crest to the position of market leader by at least 5% points by the end of the

fourth quarter. In current terms, Crest would need to gain another 6% of the market to ultimately

have 41% and a five point advantage over Colgate.

Strategy: Jump start the competition against Colgate by targeting a niche segment of the U.S.

population who already enjoy luxury grooming products and are willing to try wild and new

products. The primary target would be adults, ages 18-45 who consider themselves to be upper-

middle class. The secondary target includes 18-30 year-olds who are still experimenting with

new products and have not settled into a rut of brand loyalty. Our new product delivers the burst

of innovation that has been so severely lacking in the toothpaste industry. We are offering a

brand new delivery system and a feature that has yet to be mass-produced.

Tactics: Strategic product releases that start in higher end supermarkets and drugstores. Releases

will then move down the scale towards large discounters and superstores such as Wal-Mart.

Although the new product will be priced only slightly higher than the average toothpaste, the

goal is to position it as a more luxurious and fun way to brush one‟s teeth. The roll-out for the

test market will begin in January of 2013 and continue being released, hitting discount stores in

July. The time sensitivity of this product release is almost irrelevant because there is no season of

increased sales. Starting early in the year is just a ploy to have a fresh and energizing start to

2013. Placement on shelf will be further taken into consideration once packaging is completely

finalized.

Issue#3: Existing Brand Loyalty Consumers are more likely to continue purchasing toothpaste brands that they have used

since an early age. Therefore, in order to gain a leading market share within the toothpaste

segment of the oral care industry, it will be essential to break current purchasing behaviors of our

targeted consumers.

Objective: Our objective is to increase our brand equity by 25% within the first year of our pilot

phase, specifically from repeat purchases by conquest buyers, who initially try Crest „New‟ So

Mod Mouth Pods™ after being exposed to our integrated advertising campaign.

Strategy: To spend $3M on advertising and promotion through an integrated advertising

campaign that will highlight the benefits exclusively offered by our brand. Crest „New‟ So Mod

Mouth Pods™ will reinvent the functionality of toothpaste and will bring a refreshing change to

consumer perceptions of the category. P&G and its competitors provide toothpaste products that

meet current consumer expectations: whitening, plaque and tartar control, fluoride treatment,

sensitivity, cavity and gingivitis prevention, and fresh breath. However, P&G understands that

consumers more strongly demand value, quality, and convenience. Overall, P&G acknowledges

the current, stagnant, state of the oral care industry and projects that the “pod” design will be a

profitable opportunity to capitalize upon. Crest „New‟ So Mod Mouth Pods™ will fuse the

benefits of current products with such a futuristic product design, that in effect it will weaken the

bonds of loyalty non-Crest users have. The awareness of this fusion will be accomplished

through targeted advertisements.

of 11

Tactics: Advertising & Promotion

Ad Agency Service

P&G will assign TBWA Chiat Day responsibilities for the launch campaign of Crest „New‟ So

Mod Mouth Pods™, aligning our vision of Crest „New‟ So Mod Mouth Pods™ with the culture

of this agency that values the concept of disruption as the underlying basis of its campaigns.

Trial offer

P&G will send out to a sample of consumers $1.50 off any purchase of our Crest „New‟ So Mod

Mouth Pods™. This will be for a limited time of one month, before coupon discounts decline in

value.

Social Media

Facebook “Likes” & Free Samples: P&G will offer a 2-flavor sample pack to the first 1000

consumers, who “like” the Crest „New‟ So Mod Mouth Pods™ Facebook Page on the day of our

launch.

MARKETING MIX

Product: Crest „New‟ So Mod Mouth Pods™

A pack will contain 60 pods; consumers could use one to brush in the morning and one at

night. One product would be expected to last for one month before replacement.

Crest aims to provide a whole-mouth cleaning experience that is convenient and intuitive. The

product is sleek and modern in both look and feel.

Our New Product’s Features

The new product will have a mix of innovative and expected features. Innovative features

include the products formulation; it is a fusion of toothpaste, gel and mouthwash in a round

capsule. Within each capsule there will be invisible pockets of pressurized air. Like foaming

toothpastes, this product will begin to foam soon after popping in a user‟s mouth. The foam will

get in-between teeth to fight cavities and kill germs that cause bad breath. The volume of one

capsule is smaller than the amount of toothpaste generally applied by consumers to a toothbrush.

The mouth pods are safer than toothpaste in cases of accidental ingestion.

Active Ingredients:

Sodium Fluoride (0.243%). Energy blend: panax ginseng root extract, acai fruit extract,

yerba mate leaf extract, guarana seed extract. Inactive Ingredients: Glycerin, Hydrated Silica,

Water, Sorbitol, Sodium Hexametaphosphate, Propylene Glycol, Flavor, Peg-12,

Cocamidopropyl Betaine, Sodium Lauryl Sulfate, Carbomer 956, Sodium Saccharin, Poloxamer

407, Polyethylene Oxide, Xanthan Gum, Sodium Hydroxide, Cellulose Gum, Titanium Dioxide.

A blend of panax ginseng root extract, açaí fruit extract, yerba mate leaf extract and

guarana seed extract will serve as a very slight stimulant. While these substances won‟t provide

the kind of instant jolt expected from caffeine, they will deliver a healthier feeling of energy and

alertness. The product for use in mornings would promote this feature as a burst of energy, a

perfect way to start the day.

of 11

Silica is similar to what dentists use to create a professional clean feeling.

Expected Features

Initially in relation to the research found about our target market, there will be a variety

of basic flavors like Mint and Bubblegum. One of the product‟s ingredients is a patented flavor

booster to keep breath ultra fresh. The product uses a fluoride mineral formulation to strengthen

weakened tooth enamel. It reinforces enamel layers by rebuilding the weak spots on teeth. A

sensitive element in the formulation protects against painful oral sensation. The product provides

twelve hour protection from gingivitis, plaque, tender gums, bad breath, cavities and tartar. It

promotes healthy gums and safely lifts off yellowing surface stains to restore natural whiteness

to teeth.

Packaging Design:

The packaging will divide its capacity amongst a place for the day pods and the night

pods. It will be clearly labeled. An advantage of this is that two different flavors can be

included in one package, which gives the consumer the ability to have choice. This is innovative

because usually a consumer is confined to one flavor, until they purchase a new tube of paste.

Price

With an analysis of current products and our assumptions of the cost of goods sold, we

believe Crest „New‟ So Mod Mouth Pods™ must initially be priced at $5.25 unit cost (without

sales tax or shipping cost).

Promotion An integrated marketing communications campaign will leverage the strengths of

outdoor, print and television advertisements to create positive brand impressions. Online

promotions will also be used: the design of Crest‟s website is modern and easily navigable, with

links to social media extensions. A Facebook page will be created to focus solely on the new

product, while Crest‟s main Twitter account will promote the new product.

Word of mouth buzz will be generated as the product becomes more popular. It will stem

from creative in-store displays and social media communications.

Place & Distribution Channels Crest „New‟ So Mod Mouth Pods™ will be available in the oral health care aisle of many

stores in Monroe County, including CVS Pharmacy, Wegmans, Target, Walgreens, Wal-Mart,

K-Mart, Sam‟s Club, and Costco. It will further be available for purchase online at the following

websites: CVS.com, Target.com, Costco.com, Drugstore.com, Walgreens.com, Amazon.com,

and Soap.com.

Target Market Overall, the current target consumers for Crest „New‟ Toothpaste Pods™ are adults, ages

18-45 who consider themselves to be upper-middle class. The secondary target includes 18-30

year-olds who are still experimenting with new products and have not settled into a rut of brand

loyalty. The basis for this decision is supported by the overall situational analysis, and

of 11

specifically the Consumer Analysis, which demonstrates that young adults are the largest

demographic segment that adopts new product innovations. In effect, introducing a higher priced

innovative product will be perceived as attractive to younger men and women, who are

financially able and willing to try a new product.

Given the research completed within the Consumer Analysis the county that best fulfills

our target market is Monroe County. This county contains the highest population size of all three

counties with a population of 735,343 people (Census, 2010). As shown in figure 1, Rochester

(the largest metropolis area in Monroe County) has one the largest percentage of individuals

between the ages of 15-49. Figure 1 also indicates that Rochester contains the highest

percentage of the population with households containing individuals less than 18 years of age.

By capturing this segment of the market, Crest can capitalize on repeat purchasing of these

individuals, who will eventually be purchasing their own products. The Rochester area contains

the highest population of African Americans of the three major cities with 41.7% (Census 2010).

This is a concern when marketing a new toothpaste product because as mentioned in the

Consumer Analysis, African Americans are the most prone out of any demographic to purchase

store brands over national brand toothpastes. However, when looking at the snap shot of the

three counties provided in the Consumer Analysis African American‟s only represent 15.2% out

of 735,343. This makes the finding insignificant and should not hinder the success of our new

product when looking at the total population of the county.

Figure 1: Overview of the three most populous areas in each of the counties

Monroe Broome Onondaga

Households with individuals under 18 years 30.40% 23.40% 29%

15-49 54% 44.60% 54.70%

0-49,999 70.30% 67.60% 70.00%

$50,000 to $200,000+ 29.70% 32.40% 30%

Per capita money income in past 12 months (2010

dollars) 2006-2010

$17,865 $21,455 $17,866

Median household income 2006-2010 $30,138 $30,702 $30,891

Persons below poverty level, percent, 2006-2010 30.40% 27.80% 31.10%

(Census 2010)

Since we are marketing a new innovative toothpaste product, promotion is another

primary aspect in reaching our target market. The advertisements that accompany the launch of

the „New‟ So Mod Mouth Pods™ should focus on the point of differentiation that this product

will provide, such as convenience and multi-functionality. This will propel the product into a

of 11

more diverse demographic segment as well.

The income of the consumer is another factor driving the sales of this product. The

Claritas‟ profiles that were identified in the Rochester Area were as follows: Suburban Sprawl,

Young Influential, Domestic Duos, Home Sweet Home, New Empty Nests, and Country

Casuals. These profiles were seen to be the most apt to be innovators or at the very least have the

capital to try a new product. As outlined in the Consumer Analysis, these profiles have the

income as well as the innovator psyche. When analyzing the areas surrounding Rochester, Esri

data shows that the population contains affluent Prosperous Empty Nesters, College Towns,

Sophisticated Squires, Connoisseurs, and Aspiring Young Families. The profiles of the

surrounding areas of Rochester are ideal consumers for our new product because they indicate

savvy consumers, who have the appropriate discretionary income to spend on new innovations

and are motivated to do so. The Rochester area contains a number of colleges and universities,

which will further fuel the sales of this new product, with convenience as the primary selling

point.

The benefits analysis section within the Consumer Analysis outlines what the consumer

needs are. Consumers desire a product that makes clear points of difference, making the selection

process less cumbersome. Since So Mod Mouth Pods™ are so unique from the other typical

toothpaste products available, it will be easy for the consumer to perceive the added benefits of

this product. So Mod Mouth Pods™ provide the consumer with all the mainstream benefits,

while reinventing the toothpaste industry.

RESEARCH & EVALUATION

1. Objective: To achieve sales of 50,000 packs of day and night mouth pods by the

second quarter.

Evaluation Mechanisms: Sales will be monitored by retail databases as they occur, and reported

back to Crest immediately.

2. Objective: To move Crest to the position of market leader by at least five (5)

percentage points by the end of the fourth quarter. In current terms, Crest would

need to gain another 6% of the market to ultimately have 41% and a five point

advantage over Colgate.

Evaluation Mechanisms: Market-share charts

The issue of stagnant growth, will need a constant eye on the whole industry.

Specifically, the amount of sales each company is acquiring. A market-share chart will become

the most important tool in keeping the goal of becoming the industry leader on track. Sales will

be monitored by retail databases as they occur, and reported back to Crest immediately.

Other research will come from reevaluating the most desirable shelf space in stores. To

negotiate the best spot in the aisle, the most looked-at spot needs to be known. It‟s common

knowledge that eye level is preferable, but reaffirming research wouldn‟t hurt. The research on

market share will begin immediately and continue throughout 2013. The ideal shelf space

research will finish 3 months prior to the launch to allow time for negotiation with retailers.

of 11

Evaluation of the tactics will come via tracking sales figures, units sold, and the market share

throughout 2013.

3. Objective: Our objective is to increase our brand equity by 25% within the first

year of our pilot phase, specifically from repeat purchases by conquest buyers, who

initially try Crest „New‟ So Mod Mouth Pods™ after being exposed to our

integrated advertising campaign.

Evaluation Mechanisms: Management Dashboard

Through the use of our Active Data Warehouse we will be able to track all of our

marketing campaigns and how closely they are aligning with our strategies stated above. We

will initially be offering $1.50 coupons, and will be actively measuring the impact of this on our

weekly sales and revenue. Furthermore, TWBA Chiat Day will gather extensive consumer data

based upon the advertising and promotion campaigns that the agency puts forth to implement

within the next year.

AFTER LAUNCH PHASE

At the end of the test launch, the metrics that have been outlined above will be reviewed

and assessed of their overall success. If it is indicated that our strategies met the goals we set

forth, a plan for a national launch will be initiated. Furthermore, the preference for new flavors

will be explored. However, if it becomes clear through feedback that Crest „New‟ So Mod

Mouth Pods™ were a failure, Procter and Gamble will reassess if this product can be improved

and re-launched or if it collectively should be terminated.

P&G marketing Plan

Documents

Transcript of P&G marketing Plan