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MARKETING MANAGEMENT CIA-III ON

‘ORAL-B’

PREPARED BY, YUGANK MODGILL

08D1026

SHASHANK BARANWAL

08D1061

OVERVIEW Oral-B is a brand name of toothbrush and other dental care products (such as dental floss) manufactured by Procter & Gamble who acquired Gillette in 2005. In 2006 it came into P&G's fold with its acquisition of Gillette worldwide. The brand also includes power toothbrushes and interdental products (such as irrigators and oral care centers). The company is based in Belmont, California. Oral-B Laboratories operates as a subsidiary of Gillette Co. Gillette claims that Oral-B toothbrushes are "used by more dentists and consumers than any other brand in the U.S. and in many international markets.

FOUNDER

Pre-1980's 1921 - Max Braun started an appliance workshop in Frankfurt, Germany. In 1950 The first Oral-B toothbrush was designed and patented in California by Dr. Robert Hutson, a California periodontist. The first product was called "Oral-B 60," as it had 60 bristles. Dr. Hutson started a familyowned company based on the brush.

HISTORY AND ORIGIN OF THE BRAND NAME It all started with a dentist, back in 1950, who created the first Oral-B toothbrush and its soft, end-rounded nylon bristles. Dr. Robert Hutson, a California periodontist, designed and patented the first Oral-B toothbrush. He

also created the Oral-B brand name. "The first product was known as the Oral-B 60," said Dr. Hutson, "because it had 60 tufts." Dr. Hutson started small, with a family business. He would wrap the orders in the basement, then load them in the back seat of the car and take them down to the post office to be mailed. The role of the dentist was critical from the very beginning. Dr. Hutson said, "I knew I had a good thing but the acceptance by the dentist was something I never expected—having a product that was accepted by the dentist and the dentist in turn told the people about it.

YEARWISE Pre-1980s 

1950

-

The

first

Oral-B toothbrush

was

designed

and

patented

in California by Dr. Robert Hutson, a California periodontist. The first product was called "Oral-B 60," as it had 60 tufts. Dr. Hutson started a family-owned company based on the brush. 

1969 - An Oral-B toothbrush is the first to go to the moon. It rode on the Apollo 11 mission.



1978 - The electric toothbrush called the "D1" was mass produced, simulating the manual side-to-side movements of a manual brush. It was sold predominantly in Europe.

1980s 

1981 - The "Oral-B Right Angle" was introduced.



1984 - Oral-B was acquired by Gillette. Braun introduced the first power toothbrush that combined vertical and horizontal movements. The Star Wars toothbrush is released for children.



1986 - Muppets toothbrushes and toothpaste for children were launched.



1987 - The Oral-B Ultra Plus is released, the first Oral-B product design with Braun collaboration.

1990s 

1991 - The D5 was released and clinically proven to clean better than a manual toothbrush. The Oral-B Indicator was released with fading bristles. The Chilean business Duralon was acquired.



1992 - The Oral-B Plaque Control Center, OC5, was released with a power toothbrush and oral irrigator.



1993 - The Oral-B Advantage toothbrush was released featuring multilevel trim patterns.



1994 - The D7 (with indicator bristles and nonslip gripping) and the Oral-B Compact Interdental brush were launched.



1995 - The Squish Grip and Gripper brushes were released. Oral-B UltraFloss dental floss is launched. The Pro business in Latin America was acquired.



1996 - The Advantage Control Grip toothbrush was released featuring micro-textured bristles and an ergonomic dual material handle. The D9 (Oral-B Plaque Remover) and the Oral-B Interclean Interdental Plaque Remover were launched.



1997 - Oral-B partners with Nickelodeon. Oral-B acquired the Prudent business in India.



1998 - The Oral-B 3D Plaque Remover, Oral-B CrossAction toothbrush and SATINfloss were released.

2000s 

2000 - The Oral-B 3D Excel, Oral-B Kids' Power toothbrush, and the Oral-B Battery Toothbrush were launched.



2001 - Oral-B entered into an exclusive license agreement with Disney to release products including manual, battery, and rechargeable power toothbrushes, showcasing Mickey Mouse, Winnie the Pooh, Buzz Lightyear, and the Disney Princesses.



2002 - The Oral-B Stages line is introduced, marking the first time children's toothbrushes are designed for the four different stages of a child's dental development.



2003 - The Oral-B CrossAction Power toothbrush is launched. The Oral-B CrossAction Vitalizer manual toothbrush and Stages Kids' Flossers are also introduced.



2004 - Oral-B introduces its first sonic toothbrush, the Oral-B Sonic Complete.

Other products introduced in 2004 are the CrossAction Power Max and ProfessionalCare 8000 series of electric toothbrushes, the Advantage Artica manual toothbrush, Stages power toothbrushes and Stages tooth & gum cleanser. Oral-B acquires the Zooth brand of children's power toothbrushes which feature sculpted characters like Barbie, Hello Kitty, My Little Pony, Finding Nemo, and Hot Wheels. 

2005 - The Gillette Company is acquired by Procter & Gamble, uniting Oral-B and Crest beneath the umbrella of P&G Oral Care. P&G Oral Care

becomes the only company to have offerings across all key segments of the category - providing consumers with a broad range of products for their

full

oral

health

regimen,

including

toothpaste,

toothbrushes, mouthwash, dental floss, whitening and dentures.

An independent review by the prestigious Cochrane Collaboration, a Britishbased non-profit health research group, found oscillating-rotating technology, pioneered by Oral-B, to be consistently better at removing plaque and reducing gingivitis than manual tooth brushing. Oral-B Triumph ProfessionalCare 9000 is introduced, featuring "smart technology". Oral-B Pulsar is introduced featuring the first manual toothbrush with a pulse. 

2006 - Oral-B Vitality is launched, marking the first time rechargeable power toothbrushes are available at an affordable price of less than $20, including Sonic technology.

Oral-B Sensitive Advantage is introduced - an extra soft brush for sensitive gums. 

2007 - Oral-B introduces Pulsar Pro-Health, combining the bristle and brush head innovation from Oral-B Pulsar with new gentle ProSoft bristles.

Oral-B Triumph with SmartGuide is launched. It is the first rechargeable power toothbrush to combine cleaning and gum care with a wireless remote display to provide while-you-brush feedback for optimal brushing habits.

BRAND DETAILS Brand Analysis Count: 280 TAGLINE

The brand uses the tagline " The brand more dentists use themselves worldwide" worldwide. They use the same tagline in India too. LOGO

COMPETITORS AND MARKET SHARE RIVALS 

Colgate-Palmolive



Johnson & Johnson's Reach



Sunstar's Butler and G.U.M.



Rembrandt

Big 3 players in oral care 2007 sales Colgate Crest Gillette oral care

$2.5B $1.1B $860.7M

Oral-B

$787.0M

Rembrandt

$73.7M

Oral-B has a 34 percent market share, according to Gillette. Last year, the whitening segment grew 25 percent to $328 million, with the Crest (oral b) brand accounting for the bulk of those dollars with sales of more than $200 million. Colgate followed with $81.5 million and Rembrandt came in a distant third with sales of $22 million, according to Information Resources Inc. data

for the 52 weeks ended Dec. 28. Crest's traditional toothpaste is the No. 1 U.S. brand, with a 13.6 percent share in 2006, according to Euromonitor data. Crest Pro-Health captured 1.8 percent share in 2006 after its August debut. But Colgate is still the leading toothpaste company, with 36 percent of the U.S. market in 2006, slightly ahead of Crest's 35.7 percent, based on Euromonitor data. In India, it is the second largest player behind Colgate. India is considered to be the second largest market for toothbrushes and the market is estimated to be around Rs 600-700 crore. The electric toothbrush category accounts for about 40% of the toothbrush market in terms of dollar value. Oral-B has an estimated 70% share of the electric toothbrush market. Oral-B rising from less than 10% market share to 24% share in 18 months in 2008. The brand rapidly achieved market leadership. U.S. consumers spend nearly $4 billion annually on products to keep their pearly whites as bright as Julia Roberts's. According to Mintel, a market research firm, power toothbrushes accounted for $350 million in 2006. Procter & Gamble's Oral-B brand is the category leader with more than 40%.

PRODUCT LINE & PRODUCT MIX DETAILS The Oral-B product line contains the following

POWER PRODUCTS

MANUAL TOOTHBRUS HES

FLOSS AND INTERDENTAL S



Triumph with  SmartGuide

Sensitive  Advantage



Triumph

Pulsar *



ProfessionalCar  e: 5000, 7000 & 8000 Series; 7900 OxyJet Center 





Sonic Complete



Vitality



AdvancePower: 400 & 900  Series, Kids 





 

CrossAction Power & Power  Max Hummingbird (phased out in 2006)

CrossActio  n: Toothbrus  h, Vitalizer  Advantage : Artica,  Plus,  Control Grip Indicator

Specialty Toothbrus hes

Hummingbi  rd (phased out in 2006)

Kids' Fluoride Toothpas te

Satin Floss

Mouth Rinse



Ultra Floss Essential Floss Super Floss Interdental Brush System



Denture Brush



Ends-Tufted Brush



Sulcus Brush



Orthodonti c Brush



Gum Stimulator

Stages

THOOTHPA STE, MOUTHRIN SE, CLEANSER



Amosan Oral Wound Cleanser

ON-THE-GO ORAL CARE



Brush-Ups (phased out in 2006)



Hummingbi rd (phased out in 2006)

Pulsonic Power Brushheads

* Pulsar is a battery powered toothbrush which contains one vibrational motor that creates a pulsing effect in the bristles for added plaque removal.

Once the battery is completely discharged (approximately 3 months of normal use), the user should replace the brush, in line with dental professional recommendations.

MARKETING MIX

Product Strategy:

Oral-B has produced hundreds of innovative products over the past fifty years.

Oral-B

adds imaginative and therapeutic products for use in the professional practice

and

at

home.

Along with Oral-B products the buyer gets not only excellent value, but also quality,

innovation,

efficiency, and outstanding customer service. Their product offerings have established

them

as

the market leader since the 1960's! To the industrial dental market Oral-B offers 21 products in their current catalog. There is an outstanding product depth in their lines as well as many innovative

products.

The

company offers many children's lines of toothbrushes, as well as oral care products

tailored

to

the individual's needs. Consultative selling of their products is a valuable practice

with

Oral-B.

Orders of products, sizes, variations, dentist's name and address on the products, whatever the dentist requests. Oral-B strives to meet the individual and

unique

needs

of

all

their

customers.

Oral-B's product catalog is unique. Oral-B offer dentists a wide array of product

purchasing tactics. Dentists can order in any quantity they wish, realizing cost

savings

in

larger

orders. If a dentist is unsure of a newer or untried Oral-B product, the company has no problem sending the dentist samples to try out at no charge. This type of strategy strengthens the buyer- supplier relationship for future dealings. Oral-B also includes demonstrations of its products to dentists upon request, before

the

purchase process takes place. Oral-B will send a sales rep to a dentist's office

to

perform

demonstrations and answer any questions the dentist may have.

Pricing Strategy: The product is priced at Rs. 30. Company officials attributed this pricing to superior design and a technological breakthrough, saying Advantage comes with four US patents. Indian patents have also been applied for. ``The brand is expensive on the face of it, but consumers expect certain quality associations with the Oral-B brand,'' Mr. Pramanik said. In foreign countries the company being a premium brand starts with a range of Rs. 300 till 1200. The company does not compromise with the quality standards so it has the products priced so. Intensive RnD is done before the product is finally launched in the market.

Place:

The company operates under Gillette throughout the world. It is available in all the retail stores both-organized and unorganized. The distribution network of oral-b is very robust. They have P&G‟s distribution network in addition to Gillette India’s existing one. The distribution network follows a hub and spoke model. The hubs are the 20 cities.

Promotion: The launch of Advantage will be supported by media advertising, display drives and a strong distribution network of over 3,20,000 outlets. The ad campaign for Oral-B Advantage is to break in the media. The company will has placed advertisements in print which has named the outlets where the offer is available. The number of outlets will be over 100. A new Oral-B Advantage is being given free in exchange for any old toothbrush. For every old toothbrush collected, Oral-B will donate Rs. 3 to Prayaas (Mumbai based NGO). The programme is to be held for two days in six cities each. ORGANISATIONAL STRUCTURE (GILLETTE)

UPS AND POSITIONING Oral-B is positioned as Dentist's Choice of Toothbrush. The brand uses the tagline " The brand more dentists use themselves worldwide". In India too, the brand uses the same tagline. The brand is currently on a hyperactive mode in India with lot of promotions in the visual media. Oral-B was positioned as a premium brand. Oral-B is a marketer's icon. A brand which has brought so much value into a dull product category. Earlier, the choice available for a consumer was whether the bristles are soft medium or hard. Now the choice is numerous. The introduction of power brushes (battery powered) created a new premium segment of toothbrushes. The shape and the size of the bristles and toothbrushes also have changed.

From the typical rectangular head to round shaped head. From straight bristles to Zigzag . Many things are happening to the good old toothbrushes. The interesting fact is that these innovations have created a change in the mindset of consumers. Earlier consumers believed that Toothpaste is the central product in the oral care/hygiene. Toothbrush's role is limited in the oral care. The innovations from these players have prompted the customers to think that toothbrush is also an important product that needs some serious thinking before purchase. In India, Oral-B's strategy has been in line with the Gillette strategy of increasing the value of the market by providing value to the consumers. The company has adopted a two-pronged approach for marketing its two brands: Prudent and Oral-B. While the former has addressed the volumes market, the latter has been focussed on value.

DISTRIBUTION CHANNELS The distribution network of oral b is very robust. They have P&G‟s distribution network in addition to Gillette India’s existing one. The distribution network is a combination of own network and that of a franchisee. As of now, Gillette India has the same distributors in the 20 cities that P&G operates with. The distribution network follows a hub and spoke model. The hubs are the 20 cities. It is under these stores that all the products of oral b are sold. Apart from this the local retail shops and organized retail shops also sell their products. The spokes are the various Tier 2 and Tier 3 cities and towns around the major hub. These cities are managed by the exclusive distributors in those cities. Every city has only one franchisee distributor. These tier 2 and 3 cities (spokes) thus serve as a feeder market to the hubs. Each franchisee distributor has his own set of employees working for him. The distributor also manages his own fleet costs to supply to the retailers. There are no wholesalers. It is in this form.

The sales representatives go with the drivers to the various Retailers under their geographic span and take orders every week. The credit period offered is one week. So, for every week the order is taken and supplied, the amounts due for the previous week would be collected. The two sales managers have split the city into two parts for their span of control. They are in charge of the big retailers, super markets etc.

PROMOTION ADS ORAL-B DENTAL FLOSS

ORAL-B POWER TOOTHBRUSH

ORAL-B in ARGENTINA

ORAL-B FLOSS

INNOVATIONS AND DEVELOPMENTS

The innovations of Oral-B are mind blowing. Some note worthy innovations is listed below.

1984: Oral-B revolutionized Kid's toothbrush market with its Star Wars range which had the characters in the toothbrush 1984: The first Power Toothbrush launched under the Braun brand. 1987: Oral-B Ultraplus was launched which had round head 1991: Oral-B Indicator with fading bristles. 2007 saw another mind blowing futuristic innovation from this brand- Oral-B Triumph with Smart Guide Technology. The toothpaste now comes with a wireless digital monitor which will guide the consumer to use the toothbrush in the ideal manner. The wireless digital monitor have a timer which guide the customer to brush for 2 minutes and also indicates the various motions and even indicates the replacement of the toothbrush head. The Oral-b CrossAction toothbrush features innovative technology clinically proven to provide a greater level of manual plaque removal. Oral-B’s strategy for growth relies on a combination of new product development and geographic expansion.

The oral care category has

experienced growth due to new product development of both manual and power assisted toothbrushes. Oral-B holds about 20 percent of the worldwide market for manual toothbrushes and a nearly 70 percent market share for

power-assisted toothbrushes.

Geographic expansion continues with the

establishment of sales organizations in emerging economies, and the opening of a toothbrush manufacturing plant in Vietnam. These strategies are supported by strong advertising and promotion campaigns in an effort to sustain Oral-B’s worldwide growth. Gillette has launched Oral-B Stages, a line of toothbrushes designed to meet the needs of children's dental development stages from infancy to preteens. The toothbrushes spotlight the differences in the development of teeth and gums, motor skills and coordination, which are grouped into four key stages: 4-24 months (Stage 1); 2-4 years (Stage 2); 5-7 years (Stage 3) and eight years and up (Stage 4). Each toothbrush addresses what Gillette calls the 3D's of development--dentition, dexterity and development. If customers visit this link http://www.oralb.com/arabia/en/learningcenter/, they will arrive to a learning centre which educates the viewers on good oral care. It also has a glossary of all the technical oral care terms.

CONCLUSION For more than 50 years, Oral-B has produced the highest quality dental hygiene products for the families and dental professionals worldwide. Trust the brand more dentists use themselves worldwide. Oral-B is a special brand. The brand is the global leader in the toothbrush market. Oral-B is a special brand since it bought so many innovations in a low involvement product like Toothbrush. In fact, Oral-B is a brand that made Toothbrush a high involvement product category. In a strong and well-established partnership with dental professionals, Oral-B develops and markets a broad range of superior oral care products worldwide.

Led by toothbrushes, the Oral-B line also includes interdental

products, specialty toothpastes, mouth rinses, and professional dental products. Sales and profits continue to increase in this segment as a result of technological developments and product innovations.

For example, the

Oral-B CrossAction toothbrush features innovative technology clinically proven to provide a greater level of manual plaque removal.

Oral-B’s strategy for growth relies on a combination of new product development and geographic expansion.

The oral care category has

experienced growth due to new product development of both manual and power assisted toothbrushes.

Oral-B holds about 20 percent of the

worldwide market for manual toothbrushes and a nearly 70 percent market share for power-assisted toothbrushes. Geographic expansion continues with the establishment of sales organizations in emerging economies, and the opening of a toothbrush manufacturing plant in Vietnam. These strategies are supported by strong advertising and promotion campaigns in an effort to sustain Oral-B’s worldwide growth.

BIBLIOGRAPHY www.wikipedia.com www.orab.com http://www.oralbprofessional.com/us/aboutus/about_history.asp www.oralb.com/arabia/en/aboutus/history.asp

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