Strategic Marketing Plan - 2013

Crest New So Mod Mouth Pods

TM


Team 2Alexandra DeFonce, Mark Perry, Geoffrey Presor, Jason Rozet
Marketing Strategy: Section 3



























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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














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EXECUTIVE SUMMARY

This marketing plan aims to breathe new life into Procter & Gambles 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 products 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.
























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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 Crests 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 ones 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.



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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. Crests 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 Crests 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 Crests 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 products 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.

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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 ones 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.

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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 Products 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 users 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, aa fruit extract, yerba mate leaf extract and
guarana seed extract will serve as a very slight stimulant. While these substances wont 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.
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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 products 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 Crests 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 Crests 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, Sams 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
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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 Americans 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
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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. Its common
knowledge that eye level is preferable, but reaffirming research wouldnt 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.
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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.