Marketing Group Project Paper 1
December 2, 2013
Our groups given product is Binaca brand toothpaste. Binaca is manufactured by Dr. Fresh Inc.. Dr. Fresh was founded in 1998 to provide innovative, high quality ,and affordable personal care products that exceed consumer expectations.
We sell to chain stores such as CVS, Kmart, Kroger, Safeway, Target, and Wal-Mart. We are a multinational company with distribution in over 35 countries worldwide with major offices in London, UK and Schenzhen, China. Headquartered in Los Angeles, California, the company offers consumers over 250 quality and affordable personal care products.
Dr. Fresh makes Binaca brand anticavity fluoride toothpaste.
We offer a peppermint flavor which is preferable to our target audience and offers cavity protection, fresh breath and strengthens teeth. Active ingredient is sodium monofluorophosphate (0.76%) is an anticavity with a series of inactive ingredients.
Target market includes low income individuals, students, head of household, and elderly. The projected loss for our product in the current fiscal year is predicted $50,000 net loss. Variable costs to obtain a product and store in our warehouse is $0.50 per unit. This variable cost cannot be reduced any further and will remain constant for the next two years regardless of volume. We have a unique advantage that our production can instantly vary to any output without increasing fixed costs or inventory costs. Our annual fixed costs are $250,000 annually including salaries, benefits, office supplies, warehouse space and our other product related expenses. This does not include any promotion like advertising, public relations or personal selling.
Our mission is to provide innovative, high quality and affordable personal care products that exceed consumer expectations. The mission includes being the leader in the oral care category through fully understanding and addressing consumer needs.
Our companies’ SWOT Analysis includes our strength to offer a low price, have an effective product, and a good price to feature ratio. We offer multiple oral healthcare products which increase customer susceptibility to our product. Binaca has had previous advertising in movies, and television which help our product recognition.
Our weaknesses include lack of brand recognition and are unknown, lack of features including whitening, tartar control, sensitivity and also fluoride, low promotion budget, subpar quality and we offer smaller quantities than competitors for the price. Other weaknesses is that we do not have very many wholesalers and sell most of our product through retailers.
Company opportunities include easy sales to wholesalers because of price. We can offer to convenience stores and also vending machines to increase sales without extra cost. We also have the opportunity to advertise to dentist offices and to get support.
Threats include name brand competitors, other low cost entrants, supplier power, buyer power, rivalry between other low cost competitors, and also threat of substitute products affect our business. 95% of our sales are at the price point of $1.15 through wholesalers. The wholesalers sell to retailers, who sell our product at $1.61 per unit. The other 5% of sales occur over the internet at $1.49 each. We show a fixed cost of 250,000 + (.50 per unit vc *units). We are selling at this price and are estimated to lose $50,000 this year. In order to market this toothpaste, and achieve a goal of $50,000 profitability a year we must sell 400,000 units. In order to hit this strategic goal we must attain more market share.
The overall oral healthcare market is worth 10.9...
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