Marketing Plan for Oral-B Electric Toothbrushes in the US Market
Electric Oral-B toothbrushes are products that are light and slim making for easy use. James Gamble and William Proctor & Gamble Company, introduced these products in USA. On top of toothbrushes, the company also deals with production of other personal products like, food for pets and cleaning agents. Doctor Huston came up with the Oral-B brand in 1950. The company headquarters are in Ohio, America. Because of its high quality, the company is popular in the international market. It uses promotional techniques such as direct customer contact to advertise its products and who people how they can use it. The products as well sell at prices that are relatively fair in unison with high quality. The focus of this paper will be the target markets of the company and the opportunities available. The paper will allow proper assessment of the external and internal environmental factors (Armstrong & Kotler n.p).
Oral-B aims to solve the issue of oral care neglect by individuals leading to bad breath. Mainly, this affects people from the ages of 25 to 39 years, including those who are just starting their careers or are in the career routine already. The strategy behind the choice of target audience provides them with a convenience, ease, instant gratification and fast alternatives to their hectic daily, busy obligations. The opportunity that the company takes advantage of is the primary age of constant social networking among people and interviewing individuals in the age bracket of 25-39. As a result of this, they have spiked up the desire for fresh breath as compared to others, as such, the new product has a range of opportunities to be enjoyed. It is the only available technology for consumers who want to connect with experts, special opportunities are available for android or iOS using customers.
Evidence of the opportunity is the world’s first kind of connectivity Bluetooth. This has risen the standards in personal oral care. Such an invention also provides the customers with unprecedented control over oral care. It offers customers the opportunity to interact through connections it has with Oral-B using Bluetooth, which offers them guidance. It has a couple of accompanying features and advantages such as use of two-way communications, delivery of expert advice, focused care, data storage and assistance in staying informed. As such, the product has privilege of being the leading innovator in oral care with solutions that are data based. Evidence of its success is its leading position over $5 billion in the brushing market globally. Its increased use among children, oral professionals as well as adults is a sign that its future is brighter (Penick 44).
This section will provide a SWOT analysis of the company. Some of its strengths presently are high quality products, creativity and innovativeness, aggressive advertising, advanced technology, good leaders in oral care, increased good oral health care as well as a strong distribution network. Weaknesses includes a specific age bracket target of 25-39 years, a specific class of customers as a result of the high cost of the products; upper class, price wars with competitors as well as low margin availability. Opportunities for the company are available and they increase the leaders and population required in Bluetooth technology, company expansion throughout the globe other than the USA, high demand among oral professionals, and preference of customers for high quality, premium products with professional quality, lifestyle change and automated supply chain. Threats include production of substitutes that are low priced by local companies, inflationary trends of the economy, high costs of products and increased cost of raw materials.
SWOT Analysis Summary
The company is also working on a range of toothbrushes that make it the number one provider of oral health care globally. The current world markets are in 376 towns that are in different countries where the company is able to secure a section of the market. It has also managed to enjoy significant market share of 64% (Applegate and Art 67). This market share is huge taking into consideration it has numerous competitors in the global market as one of the major threats in its operations. They also have a plan to fulfill by increasing the level of awareness among the rising population in the region marking one of its opportunities. It however, continues to experience an increase in competition from similar companies as a major weakness, since the high level of competition makes it hard to expand its operations. What is more, it currently offers the best prices in the market when compared to Sonicare, which sells at $ 188. They also pursue high promotional and advertisement strategies currently. They are offering free trade on discounts and trade along with gifts occasionally. It also helps gain from the markets that are coming up since they are attracted to changes that benefit the company in return. According to researchers of the market, majority of people in the US are embracing toothbrushes. The use of technology and innovation in the product boasts of a wider market for the products. Besides, the dental field is in full support of the product use. Once endorsed by dental professional, people generally cease to doubt the product effectiveness in ensuring they enjoy great oral health. This forms a crucial section of strategies employed by the company to market its products. It must be noted the general performance of different brands is greatly similar and fail to form any significant consideration for the market (Chitty 78). Its current position within the market is based mostly on its endorsement by dental professionals, which always makes it possible for the company to maneuver the market. It should as well not be lost that it will remain as the major focus for future promotional activities in relation to the product provided to have a great advantage over competitors as a result of high technology products (Armstrong & Kotler n.p).
Our product and the company in general possesses a good image, which accounts for its popularity in the market. Since it gas to struggle for cost maintenance up to an affordable limit, it is forced to sacrifice its profits. As a result of this, the capacity effects a bit and must struggle hard in order to maintain its capital. The rotating electric brushes lower gingivitis leading to enhanced oral health (Kotler 56). It is supposed to be noted the product opens opportunities for further usage of technology in dental hygiene. In a couple of years, our product will penetrate international markets taking into consideration it surmounts global competition. Nevertheless, it has to continuously innovate in order to stay ahead of its rivals in the market. The company as well faces certain challenges in the attempt to expand its market share. The major challenge is aggressive competition it faces from our competitors. Colgate and Sonicare recently introduced similar products in the market and threatened to cut our market share further. This means we have to work around the clock to make sure we stay ahead of our competitors. This important strategy must use its continuous innovation through development and research as well as aggressive forms of advertising. Apart from that, the product is currently facing stiff competition from Crest, Colgate and Sonicare. These companies have already adopted aggressive strategies of marketing to purposely slice Oral-B market share because of its low profit margins. Nevertheless, it enjoys competitive edge over competitors taking into consideration its long history of high quality toothbrushes production (Armstrong & Kotler n.p).
Oral-B electric toothbrushes face stiff competition from local toothbrushes producers, selling their product at prices that are relatively cheaper in order to accommodate people from all economic ranks. It is known as a super-premium toothbrushes that guarantees quality oral hygiene. These competitors produce local substitutes less expensive compared to our toothbrushes. The local producers, lately focus on endorsement by dental professional to penetrate the global market. Our prices are accommodative to individuals who are part of the middle class and the upper class in regard to financial status and this gives local producers the opportunity to take advantage of matters. This makes them get chip materials and resources to deliver cheap products. Currently, the price is at $65 (Penick, 44). This is the bare minimum price at which the company is able to offer the product without necessarily recording losses. It implies any attempts by competitors to reduce prices further will drive them out of the market automatically. This as well is expected to stem competition from competitors who might wish to use pricing in order to enjoy competitive advantage.
The Perception of our Product vs. Competition
Currently, the product is promoted through use of different kinds of media outlets. For example, television and magazines are the most important promotion channels. The product as well has secured a large market in chemists in America. Distributors employed by the company supply these chemists with the toothbrushes which a cheap technique that proves convenient for users who purchase them from the chemists. In terms of target market, the company majorly focuses on upper and middle class since they prioritize oral health. Regardless of the aggressive competition from local producers, our company has differentiated its products such that they appear unique from products offered by our competitors through blending and branding the products.
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Chitty, William. Integrated Marketing Communication. South Melbourne, Vic: Cengage Learning, 2011. Print.
Kotler, Philip. Principles of Marketing. Harlow: Financial Times, Prentice Hall, 2013. Print.
Penick S.B. Stakeholder Thinking in Marketing. Bradford, England: Emerald Group Pub, 2005. Internet resource.
Philip Kotler, and Gary Armstrong. Marketing. Scarborough, Ont: Prentice-Hall Canada, 2011. Print