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WHITE BRILLIANCE.
Term Paper ID:29434
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Toothpaste company's need for a new marketing strategy.... More...
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Paper Abstract:
Toothpaste company's need for a new marketing strategy. Current marketing situation and customer market. Competing products. Demographic forces. Social and cultural forces. Economic conditions. State of technology. Special interest groups. SWOT analysis. Recommends new marketing goal, target market and promotional activities. Appendix citing results of a consumer survey.
Paper Introduction:
Executive Summary
White Brilliance is a whitening agent that uses molds and a whitening solution to get rid of stains on consumers' teeth. Currently, the product is marketed through print advertising and Comtrad on the World Wide Web at a price of approximately $80 plus shipping and handling.
This is a market which appeals to the vanity of users and which competes with whitening procedures which can be done in a dentist's office as well as whitening toothpastes and products which are identical to White Brilliance. The company is in a good position financially to boost its market share by investing in additional promotional activities, including an infomercial, but the company also needs to change its marketing mix somewhat if it is to be successful.
The product name sh
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Another competing product is bleaching, which can be highlyabrasive and actually damage teeth over a long period of time. | | | | | ||I would be willing to pay more than $5 but |9 |2 |2 |11 |6 ||less than $1 for white teeth. Thecompany's own staff could appear in lab coats to reinforce the fact thatthis technology is entirely safe and that the product is identical to thatused by professional dentists, who charge significantly more for the sametreatment. If the marketing strategy is implemented effectively, Smile Whiteshould be able to realize a significant increase in its market share anddominate the whitening agent market within five years. Where companies such as Comtradonce relied on print media to spread the information about the product,products can now be featured on the Internet to increase customer awarenessand to reach new customers. | | | | | ||"Smile White" sounds like a tooth whitening |-- |2 |4 |4 |2 ||product. Long-term, however, thecompany should pursue placing Smile White in traditional retail outlets inorder to reach a larger audience. Occupation can also be used as a basis for segmentation in that somecareers (acting and modeling, for example) place a high value onappearance. This is an advantage that a single productcompany has in that it can realize economies of scale that companiesmanufacturing multiple products may take longer to enjoy. Marketing Objectives During the next 12 months, the goal is to double the company's marketshare. | | | | | ||I am not willing to pay extra for white teeth. Inaddition, threats are posed by larger companies such as Colgate-Palmolivewhich have not previously actively participated in this market, but who maywell recognize its potential. Thebaby boomers are likely to be concerned about their appearance as they ageand are likely to need a whitening agent to counteract a lifetime ofcoffee, tea and smoking. W. New breed of infomercials. Thisis purely a cosmetic need since the whiteness of teeth is not necessarilyrelated to health. In our primary research, Smile White receivedpositive responses from consumers. Age is another basis for segmentation which can be used for WhiteBrilliance since older consumers are likely to have teeth which havegreater stain problems due to a lifelong association with coffee, tea andother stain-producing products while younger consumers are interested inmaintaining a healthy and youthful image. However, our primary research revealsthat the current name, White Brilliance, is not immediately identified as atooth whitening product. Appendix A survey was conducted outside a drug store with adults leaving thestore approached. Typically,more than one application is necessary and treatment options can run ashigh as $8 . HFD-The Weekly HomeFurnishings Newspaper, p. Such treatments,while effective, are obviously inconvenient in that the consumer mustschedule the appointment at the convenience of the physician, and may haveto interrupt several days in order to go through the treatment. However, such adistribution strategy would require that the company form additionalrelationships with wholesalers and distributors, and the result could wellbe a decrease in the profit margin since pricing would need to beconsistent across distribution channels (so as not to alienate consumerswho purchase from one channel over another). Antecedents and consequences of marketing strategy. The current product packaging will have to be modified in order toinclude the new name, and the opportunity will be made to redo thesyringes, as well. Inthese procedures, dentist make molds to fit the upper and lower teeth, thenuse a solution similar to White Brilliance to whiten the teeth. Hall, J. However, as the economy has continued its expansion in recent months,there has been increased media attention on the likelihood that the Fedwill increase interest rates, resulting in slower growth and possibly evendownsizing on a widespread scale. Both of these demographic groups havedisposable income which supports the product, and both are given tospending more time on personal care than previous generations. 19-2 . The World Wide Web is also an influence which did not exist ten yearsago. Market Segmentation Segmentation of the White Brilliance whitening agent cannot be basedon usage since all consumers use the product in the same way and with thesame results (whitening their teeth). (1999, December 27). Segmenting the marketing to address these occupations may wellresult in greater benefit to the organization as a whole. In addition, the system is delivered directly to the consumer's home,which also increases the convenience of the product and eliminatespotential embarrassment. The product name should be changed to Smile White so that theimmediate benefit of the product is recognized in the product name.Similarly, the company also needs to position its product as one whichoffers a high level of value for price, and which is convenient and easy touse. The productis made possible by the advances in dental technology which led to thedevelopment of a whitening agent that does not destroy tooth enamel, butwhich lasts longer than traditional "brushing" applications (such as PearlDrops). The biggest drawback to infomercials is the cost, both ofproduction and purchasing air time, but if medium sized markets are usedwith large concentrations of the target consumers (at least to start), thecash flow from the infomercial itself can be used to make media buys inlarger markets. The front of the box will have a blue background with "SmileWhite" printed in white on the background in a sans serif font (to give amodern, high-tech impression with the typeface). At this point, baby boomers have the disposableincome required to support products such as White Brilliance, and also havethe history of food consumption (coffee, tea) and smoking to have teethwhich may well be stained. Place (Distribution) Strategy Currently, the product is sold through Comtrad, both through theircatalog, their Web site and through advertisements placed in variousmagazines. Entrepreneur, pp. Dental hygiene products such as tooth brushes and tooth pastes areused by nearly everyone in the United States. In fact, since thisproduct competes against in-office treatments, some members of the ADA mayactively fight against the product, although lacking substantive evidencethat White Brilliance actually harms teeth or gums, this is unlikely.Still, the product will not be able to gain widespread endorsements fromthis recognized authority in the dental market. Their children (also a large population group)are now young adults entering the workforce interested in maintaining ahealthy and youthful appearance. | | | | | ||In general, I think whitening products can |1 |3 |2 |7 |8 ||damage teeth. This is a market which appeals to the vanity of users and whichcompetes with whitening procedures which can be done in a dentist's officeas well as whitening toothpastes and products which are identical to WhiteBrilliance. Because of this, the company is at risk ofhaving new competitors where previously the competitors were easilyidentified. Althoughthe company has invested significant resources in building its marketingprogram to this point, the brand recognition is considerably lacking. However, consumers who use this product are likely tobe interested in maintaining a healthy and more attractive appearance sincewhite teeth are associated with both health and attractiveness. BusinessWeek, p. This will make the product lessintimidating for everyday use. In the case ofSmile White (formerly known as White Brilliance), the marketing situationcan best be understood by analyzing the company's current market, thecompetition, environmental factors which influence the company'sperformance, and the strengths, weaknesses, opportunities and threats(SWOTs) facing the organization. Since this is purely a cosmeticproduct which has no effect on actual dental health, it is not likely toattract an endorsement or recognition by the ADA. Environmental Factors Environmental factors can have a significant effect on the success ofa new product, or a product which is undergoing changes in the market.These environmental factors are typically not under control of the companydoing the marketing, but they nonetheless need to be taken into account andresponded to if the company is to succeed. "All questions are to be answered in a scale of 1 to 5, with 1 beingthe statements you disagree with strongly and 5 being the statements youagree with strongly. 72). Over the next five years, the goal is to double the market shareduring each of the first three years, and increase it by half during thelast two years of the period. Pricing Strategy Smile White is currently priced at $79.95 plus $9.95 for shipping andhandling. 18-19. | | | | | ||I would be willing to spend an hour a day for a|4 |5 |11 |4 |6 ||month in order to have white teeth. 11). White Brilliance does not target children, but it does target thoseconsumers who are concerned about their appearance. This gives the company the ability totake advantage of lower wage rates in Mexico while still being able toeffectively move the goods back and forth. This reputation can be usedin marketing efforts in order to attract additional consumers to theproduct, and can be used to help gain additional financing to supportmarketing efforts. A minimum level of income is neededin order to support purchasing the product; above that income level, someconsumers will be interested in the value provided by the product relativeto the treatments offered in the dentist's office while other consumerswill find that the price is not a differentiating factor. These young adults, more than their parents,have been raised with the idea that science and technology can "fix"anything, and that products such as White Brilliance simply enhance theirappearance without having a serious "downside." These individuals are alsointerested in projecting a successful and healthy image in an era whenStarbucks' coffee shops are found in nearly every city and when sodas arecommonly offered at no charge to employees of high-technology companies.For these young professionals, products such as White Brilliance enablethem to "have it all," in that they can indulge their desire for variousconsumables such as sodas and still have white teeth simply by using areadily available product. Althoughconsumers receive the same benefit from the product regardless of wherethey are located, geographic segmentation should be used to the extent thaturban consumers are targeted over rural ones since urban consumers arelikely to have greater social interaction (even on a casual basis) and thusmay have greater concern about their physical appearance. (1999,April). 88). Select 3 if the statement is neutral to you."| |1 |2 |3 |4 |5 ||Having a white smile is important to me. (1999, June). Inexpensivealso puts the product in contrast to procedures which are not similar, butwhich (such as caps or crowns) nonetheless are substitute products. Analyze this. The company also intends to cultivateadditional manufacturing capacity and additional distributors in order toreduce its cost structure by 15 percent over the next five years, as well. Again, transportation and advances in logistics make itpossible to provide good customer service to these consumers regardless oftheir home country. A better option is Smile White, which immediatelyconveys key product characteristics, and which reinforces the idea ofsmiling as a positive product feature. The ADA endorses some types of oral hygiene products as beingeffective at fighting cavities (toothpastes and gels, for example) and alsoendorses certain medical practices. (1993, October 11). This aging population makes them idealcandidates for White Brilliance. Promotional materials should alsoemphasize that the product is safe to use and does not have to be usedevery day once the initial results have been achieved. Currently, the productis marketed through print advertising and Comtrad on the World Wide Web ata price of approximately $8 plus shipping and handling. It would appear thatit is critical to keep the product priced under $1 , and keeping theproduct priced at more than $5 seems to reinforce the idea that theproduct provides strong value for the money. These are 3 -minute long televisionprograms which can take the form of talk shows or demonstration shows, andwhich are typically used to sell products which can be demonstrated on-screen, such as cooking products, make-up and car care products. TargetMarketing, pp. However, White Brilliance also benefits from the children of the babyboomers who are now young adults and who are interested in projecting thebest possible image they can. Combined, these four factors caninfluence the success or failure of a particular product (Menon et al,1999, p. | | | | | ||"White Brilliance" sounds like a tooth |4 |5 |9 |7 |5 ||whitening product. 126). Thistargeted marketing and repeat buying is more effective than merely sellingblindly. Current Marketing Situation Before a company can change its marketing strategy, it must first besure that it understands the current marketing situation. This will result inlong-term profit gains, although initial revenues will be used to supportthe marketing effort. This site was chosen since health care products areoften purchased in drug stores. | | | | | ||I would be willing to pay more than $5 for |27 |-- |-- |-- |3 ||white teeth. "Excuse me. Conclusion Although White Brilliance has achieved modest success in its market,there is considerable potential for greater success. Strengths and Weaknesses White Brilliance has already been in the market for some period oftime and has built up a loyal customer base. 11. Recommended Target Markets Based on the segmentation possibilities, the immediate target marketsshould be consumers located in urban areas with individual incomes above$3 , . Ifthe marketing program up to this point had been more effective, the brandrecognition would be higher (as measured in the primary research).However, this does provide an opportunity for the company to change thename of the product without seriously eroding its current customer base. |4 |5 |5 |1 |6 ||I have used a whitening product in the past. One of the primary weaknesses associated with the product is that itis not the property of a well-known and established company such as Colgate-Palmolive. This is similar to the approach taken withdietary supplements which are not subject to FDA testing or approval. Bysegmenting the market, companies are able to develop specific marketingmessages which address the needs and characteristics of each market segmentand result in more effective marketing communication than if the companytried to use a single message for all potential consumers. (1996, February). The company is in a good position financially to boost itsmarket share by investing in additional promotional activities, includingan infomercial, but the company also needs to change its marketing mixsomewhat if it is to be successful. Opportunites for White Brilliance also come from the technologicalinnovations brought about by the Internet. The fact that the product is delivered directly to the customer alsoreinforces the convenience aspect. White Brilliance is not sold through traditional retailoutlets, although there is evidence (based on the primary research) thatthe product could do well in that distribution channel. Older consumers (those above age 45) should be targetedseparately from younger consumers with an emphasis on youth stressed inpromotional activities targeting the older consumer and an emphasis on ahealthful image stressed in the activities targeting the younger consumer. Did you buy an oral hygiene product today? |22 |-- |-- |-- |8 ||I use a non-toothpaste whitening product. Making WhiteBrilliance a part of their oral hygiene regimen is not very different fromtaking up working out or, as is more popular with young people, taking upan active lifestyle which includes activities designed to promote healthand fitness (or the image of health and fitness). Special Interest Groups There are few special interest groups associated with this type ofproduct, but the American Dental Association (ADA) is one of the mostimportant. Direct to retail. Awhitening product was even sold using infomercials in the early 199 s("Direct to Retail," 1993, p. In recent years, a variety of polishes have emerged onto the marketwhich offer whitening as part of the everyday dental hygiene regimen.These include products such as Pearl Drops, which are used in a mannersimilar to brushing with toothpaste. The product has a low cost structure which means that additional fundsfrom future sales can be funneled into marketing, if necessary, in order tobuild up the customer base. References Closely watching the wealth effect. Current Customer Market White Brilliance's current customer market is that of consumersinterested in obtaining whiter teeth inexpensively and conveniently. | | | | | ||I have used a whitening product at home. This is different from otherconsumer goods such as personal computers or adhesive tape where thevarious uses for the product can form a basis for segmentation. Market Segmentation and Recommended Target Markets Market segmentation recognizes that a single product might haveseveral different markets with different needs, all of which can beprofitable for the company and the product (Menon et al, 1999, p. State of Technology It is technology which has made possible both the product and theinnovative marketing techniques used to promote it thus far. Initially, the infomercial should run in Miami and SanDiego for a handful of times (research shows that infomercials can requirerepeat viewing before purchases are made) with later additional buys inCleveland, Chicago and eventually San Francisco, Los Angeles and New York(Hall, 1996, p. Individuals who are interested in usinga whitening product are likely to be attracted to White Brilliance becauseit offers strong value for the money, particularly when contrasted with thetreatment options available in the dentist's office. SWOT A SWOT (strengths, weaknesses, opportunities and threats) analysis canhelp a company identify areas where it might enjoy advantage as well asareas where it may be vulnerable (Henricks, 1999, p. The infomercial has the advantage of allowing the product to bedemonstrated (through before and after pictures in this situation) andallowing testimonials to be provided from satisfied customers. The new syringes will use a single marking to show how much SmileWhite should be placed in the tray. There can be particularemphasis on childrens' dental health and some toothpastes have gone toconsiderable lengths to court this market (Radice, 1996, p. In addition, the product targets consumers who are financiallyable to afford this type of product (although it is priced well below othertypes of treatment). The new packaging will also be a cube into which are packed thevarious items (including syringes, trays, and instruction booklet) with apicture of a before and after smile on the back of the box along with quickinstructions. This can be achievedby changing the name of the product to Smile White, and by focusing on theproduct's benefit of providing users with a healthy and youthful image.Full marketing advantage should be taken of the Internet and infomercialswith the result that profits will remain relatively stable despiteincreases in revenues over the next several years, but the company shoulddominate the market and have the largest market share within a few years'time. |2 |4 |4 |-- |2 ||I am willing to have the dentist perform a |6 |14 |4 |3 |3 ||special procedure once a year for white teeth. Smokers and those who have consumed stainingbeverages (coffee, tea, sodas) over a long period of time are also targetconsumers. Despite thisaging of the population, there is increased emphasis on health and healthylifestyles, and oral hygiene has been an important part of the babyboomers' upbringings. There is pressure to have an appealing, if not attractive, look forthese sites, and having a white smile is one way to accomplish this (ofcourse, digital technology can also make a smile more white for use on theWeb). Theseare substantially more expensive and invasive, but do not necessarilyproduce more satisfactory results than a whitening agent. Another weakness comes from the product name itself, which has littlerecognition among consumers as being a whitening agent for teeth. Economic Conditions Today's economic conditions favor the use of a product such as WhiteBrilliance since consumers are benefiting from the so-called "wealtheffect." This is the effect of the paper profits which have been made inthe stock market in recent years, and which enable individuals to have afeeling of economic well-being which may be different from their actualbank balance ("Closely Watching," 1999, p. In addition, changes in the regulationsregarding commercial advertising on television make it possible to createand distribute long-form commercials which can be used to show the productto its maximum potential. T., & Edison, S. The product has achieved strong customer response at this pricelevel, and there is evidence that the price has strong support based on theprimary research, particularly since the product does not have to be useddaily for month upon month in order to be effective. |3 |8 |8 |5 |6 ||I currently use a whitening toothpaste. Young adults today are also interested in maintaining healthylifestyles and in taking are of themselves more than other generations havetraditionally been, and White Brilliance falls into the category of helpingthese individuals realize their full image potential. Product Strategy The product works in a satisfactory manner, so there is no need tochange the product characteristics. In addition, there are other productson the market (including Just Smiles) which are similar to White Brilliancein the product design and delivery system. Competition Competition for White Brilliance comes from a variety of products in avariety of price ranges. Currently, the syringes are marked similar to thesyringes found in medical offices, with individual markings all along thetube. At the same time, advances in technology, including the World WideWeb, have made it possible to reach large numbers of people for relativelysmall amounts of capital spent in marketing. A product such as White Brilliance, which mightotherwise be considered a non-essential or even luxury good can become moreaccessible during periods of relative economic prosperity. In addition, infomercials(which are being suggested for use as a way to reach more consumers) onlybecame popular during the 199 s both as a result of government deregulationof television advertising as well as better telecommunications. Social and Cultural Forces The social and cultural factors which affect White Brilliance includethe need for social acceptance which runs high in the United States, andthe focus on appearance, which is also high, particularly in large cities.Actors and actresses are likely to feel particular pressure to haveespecially white teeth, as are models, and white teeth can convey an imageof health (which is not necessarily an accurate image) and beauty. The North American Free TradeAgreement (NAFTA), which includes Canada, Mexico and the United States,also has enhanced the ability of even small and medium sized Americancompanies to produce their goods in Mexico for sale elsewhere. This price point can also be supported by the target market, which isa market which is established in careers and professions and which islikely to have the discretionary income necessary to support this productchoice. |3 |-- |-- |-- |22 ||I would depend on my dentist to recommend a |5 |3 |4 |7 |11 ||whitening product. The only other agency which might have an interest in the product isthe Food and Drug Administration (FDA), but since the product is classifiedas neither a food nor a drug, it would not be subject to the purview ofthis federal agency, either. Similarly, ifadditional advances are made in this technology, there are few barriers toprevent entry into this market. In addition, the name soundssimilar to "Smile Right," which serves to again reinforce positive imagerywith the "right" reference. Executive Summary White Brilliance is a whitening agent that uses molds and a whiteningsolution to get rid of stains on consumers' teeth. The inexpensive characteristic is in contrast totreatments which are similar in nature but which can cost hundreds ofdollars and which must be performed in a physician's office. In the following chart, the number ofanswers for each question are given in the table under the appropriatecolumn. At the same time, the price can provide a strong promotionalaspect in that consumers will perceive a strong value over treatmentsprovided in a dentist's office which would cost hundreds of dollars. Finally, White Brilliance competes with "whitening" toothpastes whichcombine whitening agents with other ingredients (including fluoride andbreath fresheners) to make a toothpaste or gel which is multi-purpose.Although these products do not work quickly, and the effect is halted whenthe consumer stops using the toothpaste, they have the advantage of beingcost effective (adding only slightly to the cost of the toothpaste) andeasy to use, requiring only that the user switch toothpaste brands ratherthan forcing a new oral hygiene regimen on the consumer. When individuals perceivethat they have made profits in the stock market, they are willing to takeon additional expenses. | | | | | ||I would not use a whitening product my dentist |3 |9 |7 |8 |3 ||did not recommend. SmileWhite, on the other hand, can be used in the privacy and convenience of theconsumer's home, and does not involve complicated tasks. Henricks, M. |28 |-- |-- |-- |2 ||Toothpaste provides sufficient whitening. | | | | | | "Thank you for your time." Other Environmental Considerations This type of product is not difficult to manufacture, and the largeconsumer brands (such as Colgate-Palmolive) could enter this market quicklyand with considerable marketing resources behind them. Positioning Smile White intends to position itself as the inexpensive, easy-to-usetooth whitening system. Marketing Mix The marketing mix consists of four primary components: product, place(distribution), promotion and price. | | | | | ||I would be willing to pay more than $1 but |2 |1 |-- |5 |4 ||less than $5 for white teeth. Inthis way, the product can be priced to appeal to consumers who areinterested in value pricing. Finally, the product targets those who aresufficiently concerned with their appearance to be willing to invest thetime as well as the money in having whiter teeth. G., Adidam, P. The infomercial and Comtrad combination will help build a database ofcustomers who can be targeted for repeat purchases over several years(keeping in mind that part of the appeal of Smile White is that it does nothave to be used daily, but that stains will reappear over time). 19). Threats to the product come from existing competitors, who tend to besmaller organizations rather than larger ones, who are interested inexploiting the same opportunities identified by White Brilliance. These can includeyoung professionals who are concerned about their appearance forprofessional reasons as well as those individuals who are simply notpleased with their smile. 72-74. Such companies can bring considerableresources to bear in a concentrated marketing effort and could put pricepressure on White Brilliance and similar products. This enhances the positioning of the product andreinforces the idea that Smile White is indeed convenient. Journal ofMarketing, pp. Opportunities and Threats There is considerable opportunity in the market with the baby boomersand their children representing the company's primary target markets. 88. Lacking the financial resources that such a company can bringto the market, the company is vulnerable to competition from largercompanies, or from companies which can work with smaller profit margins forlonger periods of time in order to force White Brilliance off the market. Promotion Strategy One way to make the transition from Comtrad to traditional retail isthrough the use of infomercials. With the introduction of the Web, increasing numbers of companies,particularly small companies and start-ups which attract youngprofessionals, are putting pictures of employees and managers in the publicview. Demographic Forces White Brilliance benefits from the fact that the American public isgrowing older as the baby boomers into their 5 s and 6 s. Marketing Strategy and Action Programs The marketing strategy defines how a company intends to achieve itsmarketing objectives, and reinforces the company's overall mission. Individuals may alsobe more interested in using a whitening agent in order to improve theirperformance in job interviews and in situations which may otherwise furthertheir professional positions. Themarketing strategy includes the market segmentation and positioning, aswell as the marketing mix for a particular product (Menon et al, 1999, p.18). 18). Telecommunications and advances in transportation and logistics havealso made it possible for this company to manufacture its product in Mexicofor import to the United States. Not manydentists approve of this method, but it can be done for teeth which havebeen stained by coffee, tea and smoking over long periods of time. Otherdental hygiene products (such as mouthwashes and "adult" toothpastes) focuson alleviating bad breath and on whitening teeth, reinforcing the idea thatthese products are as much products designed to enhance the socialattractiveness of the user as they are products which maintain good oralhygiene. 18). | | | | | ||I would use a whitening product once a week if |2 |6 |4 |14 |4 ||it did not damage my teeth. (If no, thankthe person and move on.) We are taking a survey today to help us market anew tooth whitening product called Smile White, and we would appreciate afew minutes of your time to get your opinion on dental products. | | | | | ||"Smile Right" sounds like a tooth whitening |6 |6 |8 |6 |4 ||product. Menon, A., Bharadwaj, S. Easy-to-use is critical again in positioning the product directlyagainst those which must be used in the dentist's office. There is, for example, the various treatmentsavailable in dental offices which are similar to White Brilliance. |5 |-- |-- |-- |25 ||I have used a whitening product at the |19 |-- |-- |-- |6 ||dentist's office. Similarly, the Internet and specifically the Comtrad Web site make itpossible to market the whitening agent to consumers around the world, notonly in the United States, although there is a bias toward English-speakingconsumers. Income can be a basis for segmentation for this product in thatconsumers must have sufficient income in order to justify the product sinceit is not a basic personal care item.
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