ProjectStrategySWOTAnalysis

KolodzikBusinessScholars

TeamProcter&GambleCrest

MaxAgranoff,AshleyBoggs,AustinBolger,KendallCappel,BradChamblin,HayleyColdiron,
ClementColeman,ShannonDowling,KatieGepford,NickHeiny,StaceyHelcher,JuliaHeyl,
ParkerJames,NoahKelley,LaurenMeyer,ZacMoore,JoeRatterman,EdwardRivin,Erica
Switzer,andChrisTankersley

EssentialsofBusiness:MGMT1051

ProfessorRicSweeney

November5,2014

TableofContents

Overview:Procter&Gamble
...3

Strengths
.4
I.
Introduction
II.
SuperiorProducts,Innovation,andCompanyStanding
III.
DiverseProductLine
IV.
Advertising
V.
Conclusion

Weaknesses
.8
I.
Introduction
II.
LackofRecognizableEndorsements
III.
ProductCompetition
IV.
Conclusion

Opportunities
...11
I.
Introduction
II.
SocialMedia
III.
GrowingElderlyPopulation
IV.
CrestBe
V.
Conclusion

Threats
..14
I.
Introduction
II.
LimitedChildrensLine
III.
BrandRecognition
IV.
CrestintheGlobalMarket
V.
Conclusion

StrategicRecommendations
18
I.
Introduction
II.
ExpandingtheDemographic
III.
MergeCrestandScope
IV.
CrestChewingGum
V.
Conclusion

References
.22

Appendix
...26

Overview:Procter&Gamble

Procter&Gamble(P&G)isawellestablishedcompanythathasbeenpresentsince1837
whenitwasknownasasoapandcandlecompany.Itwasstartedbytwobrotherinlaws,
WilliamProcterandJamesGamble.Over175yearsofcompanytherehavebeenmultiple
successesincludingthecreationoficonicbrands,suchasBounty,Charmin,Dawn,Pampers,
Tide,andCrest.Throughinnovation,determination,andlisteningtocustomers,P&Ghas
becomeaworldrenownedpresenceinmorethan180countries.Itservesnearly5billionofthe
morethan7billionpeopleontheplanet(Procter&Gamble).Thereareover8,000employees
whoaredrivingthiseffort,includingmorethan1,000withPhDs.Withalargeamountof
employeescomesopportunityforspecialization,whichP&Ghasaccomplished.Theyhold
presenceinbeauty/hair/personalcareproducts,baby/feminine/familycareproducts,fabricand
homecareproducts,andhealthandgroomingproducts.Thistotalsto37brandsthatbringin
anywherefrom$500millionto$10billioninannualsales(Procter&Gamble).
Allofthisgreatsuccesscouldnothavebeenpossiblewithouttheestablishmentoftheir
missionandvalues.Procter&Gamblesmissionstatementdeclares:

Wewillprovidebrandedproductsandservicesofsuperiorqualityandvaluethat
improvethelivesoftheworldsconsumers,nowandforgenerationstocome.As
aresult,consumerswillrewarduswithleadershipsales,profitandvaluecreation,
allowingourpeople,ourshareholdersandcommunitiesinwhichweliveand
worktoprosper(Procter&Gamble).

DuetothepercentageoftheworldP&Gserves,theyarealwayslookingtoimprovelivesin
waysthatenablethemtothrive.Theyarereachingfortheremainingconsumersoftheworld
P&Gistryingtoincreasequalityoflivingthroughsocialresponsibilityprograms.P&Gfeelsthat
theirpurposeunitesanextraordinarygroupofpeoplewhoareofover140nationalities
(Procter&Gamble).Thisdiversegroupcomestogethertotouchlivesandimprovelifeevery
day(Procter&Gamble).

InresearchingProcter&Gamble,specificallyCrest,credibleInternetsourceswere
pertinent.Withaccesstoaplethoraofwebsites,articles,andnewsallpertainingtoCrest,
researchingwasstraightforward.Also,internationalwebsitesallowedforglobalresearchof
Crest.InadditiontoInternetsources,employeesofProcter&Gambleservedasusefulsources.
AtourofP&GsHeritageandArchivesCenterwasgiventotheresearchteam,whichprovided
numerousinsightsintoproductadvertisementanddevelopmentthatprovedtobeadvantageous
intheproject.Severalemployeeswerecontactedviatelephoneoremail,suchasZoryaKluska
andDonnaChamblin,whoprovidedfeedbackonideas,suggestions,andanswerstoquestions.

Strengths

I.

Introduction

Sincetheproductionofthefirstfluoridetoothpastein1955,Cresthasremainedoneof
thestrongestdentalhygienelines.InternationalexpansionhasenabledCresttogrowanddevelop
intooneofthetopfiftybrandsglobally.ThedevelopmentofdifferentproductswithintheCrest
brandhasallowedittoappealtoconsumersofmostages.ProcterandGamblehasspentmillions
ofdollarsonadvertisingthisbrandoverthelastfewdecades,buildingareputationandcustomer
basethathasbeenloyalovertheyears.Ultimately,Crestssuperiorproductsandoperations,
diversityinmarkets,andadvertisinghavehelpedtokeepCrestatopcompetitorinitsfield.

II.
SuperiorProducts,Innovation,andCompanyStanding

SincetheCrestbrandwasdevelopedwiththehelpofIndianaUniversityresearchers,it
hasconsistentlyledthemarketinresearchanddevelopment.Comingintothemarketasthe
companywiththefirsttoothpasteholdinganAmericanDentalAssociationAcceptance,Crest
hasastrongbrandloyaltyallacrossUnitedStatesofAmerica.Whilebeingthefirstinamarket
categoryprovidesCrestwithanadvantageousposition,continuableinnovationisthemost
significantsignofacompanyssustainedgrowth.AccordingtoAssistantBrandManagerof
P&GOralCareGeorgeParker,notonlydoesCrestinnovatewithconsiderablefundinginto
researchanddevelopmentconductedbyPhDsandexperiencedresearchers,thecompanyhasset
aprecedentinpastyearstoextenditsproductlinesnearlyonceeverysixtotwelvemonths.
WhetherthisisdonethroughdevelopingproductlinessuchasCrestBeorCrest3DWhite,
orevencontinuingsocialscienceresearchintothebeliefsaverageAmericanshaveabouttheir
oralcare,Cresthasarobusthistoryofsustainedprogress.
AnexampleofCrestsuniquesuccessesisthebrandsreleaseofCrestProHealthin
2006.ThiswasthefirstandtheonlytoothpasteonthemarketthathasanADASealof
Acceptanceforfightingbadbreath,containingfluoride,havingteethwhiteningability,and
controllingplaque,gingivitis,sensitivity,andtartar(ADAAcceptedToothpaste).Notonlydid
thisproducttranscendthequalitiesofColgateTotal,italsolackedthenegativefacetsofthe
Colgatecompetingline.Colgatestruggledsignificantlywiththechemicaltriclosanonaccountof
findingthatthechemicalwasharmfultohumans.WhileColgatefoughtthelegalbattleof
keepingtheingredientintheirproducts,Crestprogressedseeminglywiththepromisethat
P&G
doesntproduceormarkettriclosancontainingoralcareproductsanywhere(Kary).

According
toRobertGerlachoftheCrestProductDevelopmentAdvisoryBoard,thekeytoCrests
achievementinproducingworldclassproductscomesfromthefactthatthecompanytakes
decadelongventuresinresearching.ThisapproachundoubtedlyallowsforthegreatleapsCrest
takesineachnewmajorproductlinerelease,includingthereleaseofCrestProHealth.Dr.
RobertFazio,AssistantClinicalProfessorofSurgeryattheYaleSchoolofMedicine,statedthat
Crestsinnovativeusageoftheingredientsstannousfluoride,anactiveingredientfighting
cavitiesandgingivitis,andsodiumhexametaphosphate,acosmeticcleaner,demonstratesthe
integrityofthestellarresearchconductedwithinCrest.Dr.Fazioisalsoamemberofthe
Crest
ProHealthAdvisoryBoard,aboardcomprisingoftwomenandthreewomenwithprofessional
backgroundexperiencerangingfromcollegeprofessorstopersonaldentalcareoperations.By
4

havingthisdiverseleadership,thebrandpromotesdiversityinmovingforwardwithinnovations
intheCrestProHealthproductline.
Outsideofbasicproductdevelopment,Crestisextraordinaryatprotectingitsinternal
patents.Throughitsintensivelegalprotectionofproductpatentscoveringlineslikethe3D
WhiteStrips,Cresthasbeenabletodisqualifythemajorcompetitorsinitsmarketofwhitening
strips,whichhasatotalmarketsizeofclosetothreebilliondollars(Vasel).Recently,anoral
carecompanynamedClioproducedaproductlargelyresemblingtheCrest3DWhiteStrips.
ThisprovokedDeborahP.Majoras,P&G'schieflegalofficer,toexert[P&Gs]rightsasthe
lawallows"
(
Dulaney
)
.Easilywinningthefederalcourtcase,Crestsolidifiedits67%market
share,over$250millioninannualsales,anditsdominanceinNorthAmerica(Chapin).
DemonstratingthisprideinitselfanditsawardwinningresearchillustratesCrestswillingness
toprosperinthefaceofadversity.

III.
DiverseProductLine

AbroadrangeofmarketshaveallowedCresttoremainamajordentalline.Sincethe
introductionofthefirstfluoridetoothpaste,thecompanyhasestablishedcontinuitywith
innovativeproducts,releasinglinesrangingfromwhiteningstripstomouthwashes.Thediversity
ofmarketsCrestcaterstokeepsthebrandaheadofitscompetitionontheinnovationfrontierand
providescustomerswithanabundanceoforalhygieneproducts,enablingandencouragingbrand
loyalty.
ToothpastehasbeenthestaplepointintheCrestlinesincebeingfounded.Thetoothpaste
markethasextendedfromonetypetoseparatetoothpastesforadultsandchildren,aswellas
toothpastesforconsumersuniqueneeds.Differenttypesofadulttoothpastesincludegum
protection,glamorouswhite,andcavityprotection.Gumprotectiontoothpasteservesthepurpose
ofreversinggingivitis,aninflammationofthegums.Gingivitisisaproblemfacingnearlyfifty
percentofadults.Whilethisapproachesthebordersofanationwideepidemic,theCrestwebsite
statesthatthegingivitiscyclecanbereversedinjustfourweeks.Anothercorrectiveproduct,
stainprotectiontoothpaste,removesuptoninetypercentofsurfacestainsinjusttwoweeks.
Cavityprotectiontoothpastehastheabilitytofightcavitiesbystrengtheningtoothenamel.Kids
toothpasteusesacartooncharactercampaigntoencouragechildrentostarttakingcareoftheir
teeth.Thisproactiveapproachwillhelptoimproveoralhygieneovertime(CrestDental
HygieneProducts).
Sincethereleaseofwhiteningstripsfifteenyearsago,theyhavegrowninpopularityand
dominatedtherespectivemarket.Theyhavebeenrevolutionary,asconsumerswishingtowhiten
theirteethnolongerhavetheexpensesofprofessionalwhiteningservices.Similartothe
toothpastes,whiteningstripscomeinmultipleformsbasedonconsumersspecificneeds.The
productpromisestowhitenteethintwentydayshowever,visibleresultscanbeseeninasfewas
threedays.3DLuxeWhitestripsGlamorousWhiteareconsideredtobetwentyfivetimes
strongerthantheleadingbrandofwhiteningtoothpaste.GentleRoutinewhiteningstripsare
producedforcustomerswhoexperiencesorenessafterusingtraditionalwhiteningstrips.This
helpsopenthemarketevenfurthertoconsumers,providingCrestwithastrongadvantage.Crest
1HourExpressWhiteningStripsofferaquickalternativeforconsumerswhoareconstantly
onthego.Thestripsarewornforanhourandarehighlyeffective,showingvisibleresultsafter
justoneuse.SupremeFlexfitWhiteningStripsarethetopofthelinebrandofwhiteningstrips.
5

Theyaremoldabletoteeth,providingtheabilitytowhiteneachtoothevenly.Whiteningstrip
innovationhasallowedCresttosatisfyabroadrangeofconsumersthroughadiverseproduct
line(CrestDentalHygieneProducts).
SimilartootherproductsmadebyCrest,multipletypesofmouthwashareproduced.3D
WhiteGlamorousWhiteRinseMouthwashispartofthe3Dline,whichpromisesawhitersmile
inaslittleassevendays.Also,futuredentalstainsarepreventedwhileusingthisbrandof
mouthwash.ArecentinnovationinthemouthwashfrontwastheCrestProHealthRinse,which
limitstheburningsensationofalcohol.Thishasmadetheinnovativerinsepopularandtheflavor
moreenjoyable.Throughitsproductionofsuchadiverserangeofproducts,Cresthastheability
tomeetalltheneedsofitsconsumers,becominganallencompassingoralcarebrand(Crest
DentalHygieneProducts).

IV.
Advertising

ThroughCrestsstrengthinadvertising,ithassucceededinbecomingabilliondollar
brandwithinP&Gandahouseholdname.Overtheyears,Cresthasreachedmanymemorable
milestones.Crestfoundthatrecognizingandpublicizingthesenoteworthyaccomplishments
couldbecomeeffectiveadvertisingforthebrand.Oneoftheirmostpopularadvertisements,the
Look,MomNoCavities!campaign,waslaunchedinthelate1950s.Thisadvertisementwas
createdtoendorseCrestsnewfluoridetoothpaste,thefirstofitskindintheoralcaremarket.It
involvedacommercialandposterwhichdepictedsmilingkidsholdingnoticesfromtheirdentist
withtheadvertisingslogan(SeeAppendixA).P&Gspentover1.6milliondollarsonadvertising
theyearthiscampaignwasreleased.Theresultofthisattentiongrabbingmessagewasaraisein
theCreststockto$18in1960(CrestAmericasGreatestBrand).
CrestsnextmajoradvertisingcampaignbeganwhentheAmericanDentalAssociation
reportedthatCrestcreatedaneffectivedecaypreventativeagentwithitsProHealthToothpaste
andgavetheproductitsofficialapproval.WhenCrestbegantoadvertisethisstatementontheir
toothpastes,itincreasedcustomerinterestandsales.ThisdevelopmentenabledCresttobecome
theleaderofthesector.Afewyearslater,theAmericanChemicalSocietylistedCrestsfluoride
toothpasteasoneofthegreatdiscoveriesofthepast100years.Inthe1980s,theCrestbrandwas
furtherconsolidatedwiththeintroductionofnewtoothpastes,includingcavityprotectionand
tartarcontrol.ThesediscoveriesgreatlyhelpedCrestrisetobecomeoneofthetoporalcare
brands(
AmericasGreatestBrands
).
AbreakthroughforCrestoccurredin2006whenitlaunchedatoothpastethatprotected
againsteachofthesevenareasthatdentistscheckplaque,tartar,sensitivity,stains,gingivitis,
cavities,andfreshbreath.Ayearlater,CresttranscendedanothermilestonebylaunchingCrest
WhitestripsDailyMulticare,thefirstfiveminuteadaystrip.Crestsproductdevelopment
becamethemainadvertisingcampaignyearafteryear(
AmericasGreatestBrands
).The
effectiveadvertisinghasenabledCresttobecomeabilliondollarbrandwithinP&G,helping
theirhealthcaredepartmentgrowtobecome9%ofP&Gsnetsalesandearnings(P&G2014
AnnualReport).
P&GhassuccessfullyturnedCrestintooneofthetop5OralCareBrands,oneoftheTop
50BrandsGlobally,andOneoftheTop100BrandsintheUS(
BrandRanking
).Thesetitles
provethatCresthassuccessfullybuiltitsbrandreputation,particularlythroughadvertisingtothe
public.Crestisoneofthebiggestspendingbrandsintheadvertisementandawareness
6

department.P&Gspentroughly9.3billiondollarsonadvertisingforCrestinthelastfewyears.
ThisisnearlyseventimestheamountP&Gwasspendingonadvertisementsin1987(See
AppendixB).Itsincreaseinadvertisinghashelpedthemincreasetheirsalesbyapproximately
20percentoverthelast25years,showingthattherewasaprofitablereturnonthisinvestment
(Johnson,SeeAppendixC).
Apartfromads,oneotheraspectofadvertisingthatCresthasmasteredisthepackaging
andappearanceofitsproducts.Comparedtootheroralhealthcareproducts,Cresthasamuch
moreappealingandrelativelysimplisticpresentationofitsmerchandise.Thevarietyofcolors
portrayedreds,bluesandgreensaremoreengagingtothecustomers,alongwiththe
placementonshelvesinstores.Witheveryproductlineextension,Crestmaintainstheconsistent
bluebackgroundofitsproducts.WhetheritisthebrightflashyblueoftheCrest3DWhiteboxes
ortheblueCrestScopelinethatiscomplementedwithamintgreenside,Crestsconsistency
supportsbrandrecognition.SelectingthecolorblueisalsoadvantageousforCrestinthatit
portraysstrengthanddependability,supportingthenotionofbrandloyalty.Inadditiontocolors,
Cresteffectivelyutilizesshelfspacebyconsolidatingdifferentproductlinesandcategories.This
tacticisespeciallyusefulinreachingdifferentiatedtargetmarkets.Indoingso,thebrand,in
conjunctionwithOralB,hasattained
fiveyearsofsustainedgrowthandvaluecreation
accordingtoP&GsCEOA.G.Lafley.
Crestssuccessasabrandcanlargelybeattributedtoitsabilitytocapitalizeonthemany
opportunitiesintheworldofmarketing.Byturningmajormilestonesintomarketable
advertisements,Crestbuiltabrandreputationthatimpressedconsumersandearnedtheirtrust.

V. Conclusion

AsoneofP&Gsbilliondollarbrands,itisclearthatCrestpossessesexpertiseregardingtheoral
caremarket.Crestsdedicationtoinnovationanddevelopingproductswiththespecificwantsandneeds
ofitscustomersinmindhasledittoofferdistinctproductlinesthatsatisfyitsdiverseconsumerbase.
ExpandingintothewhiteningstripandmouthwashmarketsfurtherdiversifiedtheproductsofCrestand
allowedittobecomeahouseholdname.Customerloyaltyincreasedwiththeinnovationofproductsand
publicityofmajormilestones,suchasachievingthetitleofoneoftheTop50BrandsGlobally.Dueto
theseskillsandstrategies,Cresthasexcelledatitscraftovertheyearsandproveditscaliberasanoral
carebrand.

Weaknesses

I.

Introduction

Aweaknessisdefinedasa
characteristicthatplacesthecompanyorprojectata
disadvantagerelativetoothercompanies.WhilestatisticsshowthatCrestcontinuestobea
largelyprofitablecompany,thereareareasinCrestthat,ifslightlymodified,couldpushsales
furtherthantheyalreadyare.AreasthatshouldbeimprovedinsidetheCrestcompanyincludeits
lackofrecognizableendorsementsandproductcannibalismwithScopeandOralB.

II.
LackofRecognizableEndorsements

ApointthatispushingsalesawayfromCrestisitslackofrecognizableendorsementsin
thedomesticmarket.Currently,theprominentendorsementthatCrestholdsisShakiraasa
globalambassador,withotherspokespeoplesuchasToddLowe,JimmyDeshler,BrandonTyler
Russell,andElizaRoberts.Thesenameshavenopullonthedomesticpopulationbecausethey
areunrecognizableandthushavenopositiveeffectonthebrand.WhileShakiraisarecognizable
nameworldwide,shehasnotwonanymajorawardsforhermusicsincethemid2000s.Itis
difficulttosaythatShakiraisstillaprominentfiguretoyoungergenerations.Itiscrucialthata
companythathassettledincontinuestoinnovatewithendorsements.Withafadingstar,Crest
lacksinthiscrucialareaandishurtingitsbrandreputation.
Ingeneral,Crestconsumersarestrugglingtoalignwiththevaluesofthecurrentcelebrity
endorsers.Withfinanciallystableadultsmakingthepurchasingdecisions,celebrities
representingCrestmustberecognizableandmemorable.Withoutwidelyspreadcelebrityname
recognition,theendorsementisnotlikelytomakeanimpact.
Anotherdisadvantagethatstemsfromtargetingspecificallyayoungergenerationof
buyersisthepromotionofthefamilyunitwithinads.Withadvertisementsthatincludeattractive
familieswithcrispwhitesmiles,Crestattractsconsumerswhoarelookingforabrandthatis
familyoriented.However,thisconverselyaffectsthecollegeagedpopulationandsingleadults
becausetheyaresearchingforaproductthathasvisibleresultsforagoodvalue.Toattractthese
kindsofconsumers,thebrandmuststepawayfromthefamilyaspectandfocusonwellknown
celebritieswhoarerelevanttothemodernAmerican.
AlargepercentageofAmericansmaynotadmireShakiraoralignwithhergoalsand
values.SheisarelevantspokespersonfortheHispaniccommunity,butnottheforthedomestic
consumerbase.Tofullycapitalizeonendorsementopportunities,Crestneedstoseekother
celebrityendorserswhowillhelpreachtheyoungerAmericangenerationandprovidean
incentivetobuyitsproducts.

III.
ProductCompetition

OneofthebiggestlimitationsplacedonthebrandwasasecondProcterandGamble
product,Scope.Whenfirstintroduced,thebrandCreststoodonlyforqualityintoothpasteand
toothbrushes.WhenCrestwasintroduced,thecommonbeliefamongP&Gexecutiveswasthat
eachbrandcouldonlystandforonecategory(CrestHeritage).Thismeansthatthecompany
wouldhaveonebrandthatwouldbeinthemanualtoothbrushandtoothpastecategory,anda
8

separatebrandforothercategories,suchasmouthwashorelectrictoothbrushes.Foraperiodof
timethatlogicwasverysuccessfulforProcterandGamble.Recentlyhowever,thatlineof
thinkinghasbeenchallenged.
In2005,duringitsfiftiethanniversary,P&Gtestedtheideaofhavingabrandstandfor
highqualityoralcareinmultiplecategories.ThelaunchofCrestProHealthRinsemovedthe
brandawayfromatoothbrushandtoothpastemanufacturerandtowardafulllineoralcarebrand
(Timeline).AtthetimeCrestonlyofferedoneproductinthemouthrinsecategory,Crest
ProHealthRinse.Thelogicbehindthisparticularmouthwashwastocomplementthehealth
benefitsofitstoothpastes,fightingagainstplaque,gingivitis,andbadbreathgerms.Crestalso
soughttocreateamouthwashwithouttheburnofalcohol,somethingmanycustomersdisliked
abouttraditionalmouthrinses.Thishealthmindedandlessintensiveflavorfocusdifferentiated
CrestProHealthfromP&GsexistingmouthrinsebrandScope,aP&Gbrandsince1966
(ScopeHistory).Scopefocusedontwoimportantfactors:creatingacleanmouthfeelingand
killing99%ofbadbreathgerms.
SincethelaunchofCrestProHealth,thebrandhasexpandeditslineofproductsinthe
category.Today,Crestofferseightdifferentmouthrinses,threemorethanitsinternalrival
Scope.CresthasnotonlyexpandedpastScopeinthenumberofproductsoffered,ithasmoved
intobothScopesstrongerflavoredmouthrinseandkilling99%badbreathgermsniches.Only
twoofthemouthrinseslistedontheCrestMouthRinsewebsitenowlistavoidingtheburnof
alcoholasakeybenefitoftheproduct.Instead,sixofCrestsmouthrinsesusealcoholandfive
ofthemlistkillingbadbreathgermsasanimportantproductbenefit,thesamenumberof
productsScopehasaccomplishingthatgoal.CrestandScopemouthwashesbeganasdifferent
productsfordifferentcustomers,butinthenineyearssincethetwohavebecomecompetitors,a
situationmanyrefertoasmarketcannibalization,hasmaterialized.
CrestandScopearenotjustcompetitorsintheirproductdescriptionsrecentsales
numberssupporttheidea.From2012to2013thepercentagechangeinsalesofProcterand
Gamblemouthrinseproductshasdecreasedby3.8%(GroceryHeadquartersVendors).
Comparedtotheothertopninebrandsintheindustry,thisisthelargestdecreaseinsalesover
thetimeperiod.Whenthesalestrendsarebrokendownintothevariousproducts,weseethe
changeinsalesiscomingfromdifferenttrends.ForCrestsmouthrinsesales,therehasbeen
mixedresults.Crest3DWhitehadanincreaseof27.1%andCrestProHealthrinsehada
decreaseof9.9%from2012to2013.Scopeontheotherhandhashadboththeirtwolargest
productcategories,ScopeOutlastandScopeClassic,seesignificantdecreasesinsales.Scope
Outlasthadadecreaseof6.1%,andScopeClassichadadecreaseof19.9%oftheirsalesfrom
20122013(GroceryHeadquartersbrands).WhiletheCrestproductsproducedmixedresults,
allScopeproductshadasubstantialdecreaseinsales.
Initially,Procter&Gamblebelievedthatabrand,specificallyCrest,couldnotextend
itselfoutsideacategory.Becauseofthis,theycreatedadifferentbrandfortheirtoothpasteand
mouthwashes.Afterexperimentingwithproductsunderthesamebrandbranchingoutinto
differentcategories,theyfoundabrandcanstandformorethanjusttoothpaste,butalsofor
excellenceinoralcare.ThisledP&Gtocreatedifferentbrandsofmouthrinsethatservedtwo
differentpurposes.ThesuccessofCrestmouthrinsescausedthemtoexpandtheirlineof
productsandsomewherealongthelineendedupincompetitionwiththeirpreexistingbrand,
Scope.Whentheyserveddifferentpurposes,theexistenceofbothbrandsmadesense.However,
9

thisisnolongerthecaseandsalesarebeginningtoprovethisfact.Withoutdifferentiation,both
brandswillcontinuewastingmarketingbudgetsonpullingcustomersawayfromeachother.

IV.
Conclusion

Procter&Gambledoesnothaveoverglaringweaknessesthatcontributetothelossof
revenueonalargescale.However,therearesignificantareasinwhichthecompanycould
improvetheirinternalworkingsinordertoincreasetheirrevenues.Bycuttingsectorsoftheir
companythatarenotperformingortakingawayfromthepotentialgrowthofanothersectorand
usingmoremodernendorsers,Crestcangrowtobeevenlargerinsizeintoacompanythathas
thepotentialtohaveproductsineveryAmericanhousehold.

10

Opportunities

I.

Introduction

AlthoughCrestisaverystrongbrandandisextremelyprofitable,thereisalwaysroom
forimprovement.Innovationisconstantanditisimportanttocontinuallyimprove,nomatter
howsuccessfulacompanyorbrandiscurrently.Crestclearlyunderstandsthis,evidencedby
multiplenewbrandsandproductlineextensions,butCreststillcouldimproveinafewdifferent
areas.Crestcouldpotentiallybenefitfromimprovementsinsocialmedia,productsavailableto
theelderlymarket,andCrestBe.

II.
SocialMedia

AnareaofopportunityforCrestwouldbetoexpandthebrandssocialmediapresence.
Creststopcompetitor,Colgate,hasamuchstrongersocialmediaexistence.Forexample,on
Facebook,Colgatehasoverthreemillionpeoplewholikethepage,allowingthemtointeract
withandkeepupwithchangesintheColgatelineofdentalcare.TheCrestFacebookpagehas
lessthansevenhundredthousandlikes(CrestFacebookPage).AmajoropportunityforCrest
couldbetoinvestmoneyandexpandthismarketingtactic.IfCrestcanincreaseitsFacebook
pagelikestomatchColgate,thebrandcouldpotentiallygainmarketshare.Thepeoplewholike
ColgateonFacebookaremostlikelybrandusers.Whenapersonisscrollingthroughtheir
Facebooknewsfeedandseesabrandrepeatedly,thespecifiedbrandwillbemoreontopofmind
whentheygettothestoreshelf,leadingtoapurchase.Colgatehastheabilitytoplacetheir
advertisementsontheFacebookpagesofoverthreemillionconsumers,whileCrests
advertisementsarebeingseenbylessthanonemillionpeople.Increasinglikeswoulddrive
higherbrandrecognitionforCrestandwould,inturn,increasethemarketshare.Socialmediais
anareathathasalargeroomforimprovement,asFacebookiscommonplaceacrossmultiple
generations.Thisgivesthebrandthepotentialtoadvertisetopeopleofvariousdemographics.

ColgatehasverifiedstatusonFacebook,signifiedbyabluecheckmark,whileCrestis
not.Beingverifiedonsocialmediamakesthecompanyappearmoreprofessional,credible,and
trustworthy.IndividualsonFacebookcanseethatColgateisverified,andcanseethatthebrand
hasmanyfollowers.SinceCrestisnotverified,someconsumersmaynotbeastrustingofthe
brandsclaims.IfCrestbecomesverified,theycouldearnthetrustofconsumerswhousesocial
mediatoresearchproducts.

Inthelongrun,astrongersocialmediapresencewillbenefitCrest.Withmoresupporters
onFacebook,Twitter,andothersocialmediasites,Crestwillhavetheabilitytoadvertisetoa
largeraudience,whichwillincreasemarketshareandprofits.Thereisanunchartedamountof
opportunityintheworldofsocialmediaduetoitsexponentialgrowth.Witheachgeneration,
technologyandsocialmediaisbecomingmoreprevalentandimportant.Inordertokeepupwith
theamountofadvertisingthatColgateisdoingonFacebookandthenumberofconsumersthat
theiradvertisementsarereachingeachday,Crestneedstoimprovetheirsocialmediaplan.If
Crestincreasestheirnumberoflikesandbecomesverified,theywouldhavetheabilityto
increasethenumberofindividualsseeingwhatispostedaboutCrestandwouldappeartobea
trustworthybrand.

11

III.

GrowingElderlyPopulation

Theeraof19461964intheUnitedStatesofAmericabroughtabouttheBabyBoomer
generation.In2012,theBabyBoomersaccountedforovertwentypercentofthepopulationin
theUnitedStatesandismadeupofAmericansmostlyabovetheageoffifty.Itisknownthatthe
healthofahumanbeingdegeneratesasthebodygrowsinage,includingdentalhealth.
Asthedentalhealthofapersondecreases,theyshouldusemorespecificand
preventativedentalcareproducts.Aspeopleage,teethbecomemoresensitiveandhaveahigher
chanceofdecayingorgettingcavities.ProcterandGamblehasanopportunitytodevelopa
dentallineforseniorsthroughaCrestlineextensionfightingtoothsensitivity.Thebrandhas
continuallyinnovatedtocreaterelevantproductsforitsconsumersandnowitmustcatertothe
agingpopulation.ThiswouldcreateanopportunityforProcterandGambletogainmoreofthe
market,leadingtoadditionalrevenue.AfterobtainingFDAapprovalandusingProcterand
Gamblessuccessfulmarketingtactics,Crestwouldbesuccessfulinthesensitivetoothspace.
ThisopportunityfallsinlinewiththemissionofP&Ginordertocatertotheneedsofthe
companyandmakelifeeasierandhealthierfortheindividual.

IV.
CrestBe

Procter&Gamblestargetmarketconsistsofcateringtothecustomerwithdisposable
income.Forthisreasontheyhavenotfocusedasmanyresourcesintomarketingtowards
youngergenerations.P&Ghasstartedtomarkettowardsthisnextgenerationhowever,through
introducingBetoothpaste.Betoothpasteincorporatesthehygienicpropertiesthatcustomers
havecometoexpectfromCrestwithboldnewflavorsthataredifferentfromtheprohealthline.
AccordingtoEuromonitor,
Consumerscaninfluenceotherspurchasinghabitsthankstosocial
networks,sobrandsneedtoworkharderthanevertoearnconsumerloyalty.Becauseofthis,it
isimportantthatP&GhasalargesocialmediapresencewiththeintroductionofBe.Thecurrent
taglineforBetoothpasteisBeAdventurous/Dynamic/Inspired,whichdrawsfeelingsof
adventureandfunfortheyoungconsumer.Behastheopportunitytodrawinnewcustomersto
theCrestbrand.Competitors,suchasSensodineandPronamel,havereleasednothingfor
youngergenerations,astheirproductsareassociatedwitholderconsumers.
Whencomparingpricesoftoothpastes,BeisthemostexpensiveproductCrestoffers,
evenmoresothanCrestspremiertoothpaste,3DWhiteLuxeGlamorousWhite.Asitis,there
arenovisibleaddedhealthbenefitstousingBeitjustsimplysaysonthepackagefluoride
toothpaste.Atthispricepoint,theproductislessaffordablefortheirtargetmarket.Thereisno
incentivetobuyBe,asconsumerscanbuyatopofthelinetoothpasteforthesameprice.Behas
alargeopportunitytocaptureitstargetmarketwithitswildandboldnewflavors,butitneedsan
increasedpresenceonsocialmediaandachangeinpriceifitplanstoreachitsfullpotential.

V. Conclusion

ForalargecompanylikeP&G,constantinnovationisvital.Withcontinuousinnovation,
Crestcouldincreasesalesandrevenueinmultipleways.Crestcouldpotentiallyincreaseits
marketsharebyhavingastrongerpresenceonsocialmediathroughmoreadvertisements.Italso
couldexpandintoproductsspecializedfortheelderly,astheagingbabyboomersmakeupa
12

largeportionofthemarket.Crestcouldalsocatermoretotheneedsoftheadventurous
consumerbygrowingitsCrestBebrand.

13

Threats

I.

Introduction
Asabusinessintheoralcareindustry,Cresthasanestablishedglobalmarket.Global
competitionandaneedtobestronginallproductcategoriesarealsopresentwithaglobal
market.Withtheseglobalcompetitors,Crestsbrandrecognition,credibility,andthefulfillment
ofdiverseneedsisessentialtodifferentiatetheirproducts.Currently,Crestislackingnotonlyin
itschildrensline,butalsoinitsbrandrecognitionandglobalmarketingcomparedtoitsmain
competitors,includingColgatePalmolive,GlaxoKlineSmith,andJohnson&Johnson,whoare
alloutshiningCrestintheseways.ThisposesamajorthreattoCrestsoverallsales,brand
loyalty,andmarketingstrength.

II.
LimitedChildrensLine

Abusinessintheoralcareindustrycreatesproductsdesignedtoaidinthepracticeof
keepingthemouthcleanandhealthybybrushingandflossingtopreventtoothdecayandgum
disease(OralHygiene).Suchoralcareproductscanincludedifferenttypesoftoothbrushes,
toothpaste,dentalflossandmouthwashes.Themostsuccessfulcompaniesofferdiversityintheir
productportfolio,allowingthemtoappealtoadiversegroupofcustomers.Therefore,tobe
successfulinoralcarebusiness,companiesmustprovidemorethanjusttheessentialsneededfor
oralhygiene.Mostoralcarebrandsbranchouttomeettheneedsofvariousagegroups,levelsof
sensitivity,andwhiteningwhileprovidingdifferentdesignsandfeatures.Crest,overall,isavery
competitivebrandintheoralcaremarket,offeringextensiveadultproductswithwhitening,
sensitivity,andflavoroptions(CrestDentalHygieneProducts).However,thechildrensline
ofproductsisfallingbehindProcter&Gamblescompetitors,ColgatePalmolive,and
GlaxoKlineSmith(Firestein).
Crestscurrentchildrenslineconsistsofelevendifferenttoothpastesandthreedifferent
toothbrushes.Withinthetoothpasteline,bothregularandtwoliquidgeltoothpasteproductsare
offeredindifferentflavorsandinconvenientpackaging.Overall,tenDisneycharactersranging
fromWinniethePoohtotheAvengersarefeaturedonpackaging.Threetoothbrushesand
toothpastesaremarketedasmatchingcharactersetsfeaturingDisneyFairies,HelloKittyand
SesameStreet.Inadditiontothesethreesets,thereareeightotheruniquecharactertoothpastes.
Crestsmatchingsets,consistingofatoothbrushandtoothpaste,offeroptionsforgirls,featuring
characterstheyaremorelikelytoenjoy,whileofferingnomatchingsetswithcharactersfor
boys.Ratherthansegmentingproductsbyagegroup,anencompassinglinefocusingonchildren
twoandolderisprovided.Noproductsareofferedtoyoungerchildrenwiththeideologythat
fluorideisharmfultosmallchildren,astoothpasteisoftenswallowed(CrestKidsDental
HygieneProducts).Thelimitedselectionofthesesetsforchildrenarehinderingthestrides
Procter&GamblesCrestcouldbetaking.
Creststopcompetitor,ColgatePalmolive,takesadifferentapproachwithitschildoral
careline.Ratherthananencompassingline,oralcareproductsaredividedintosegmentsbased
onage,includingagestwoandunder,twotofive,fivetoeight,andeighttotwelve.Children
growupusingColgatePalmoliveproductswitheachagegrouptheyfitinto,withtheproducts
tailoredtomeeteachsegmentsparticularneed.Forchildrenundertheageoftwo,three
toothbrushesandfluoridefreetoothpasteareoffered.Fortheotheragegroups,various
14

toothpastes,regulartoothbrushes,andbatterypoweredtoothbrushesareoffered.Theseproducts
aresoldinmatchingcharactersetsconsistingofatoothbrushandtoothpasteakeypackaging
setup.Concerningthesematchingsets,childrenhavetoothpaste,andthentheoptiontochoose
betweenthreedifferentmanualtoothbrushesorthreedifferentbatterypoweredones.Unlike
Crest,Colgateoffersmatchingoralcaresetsfeaturingcharactersforboysandgirls.Colgate
holdstheadvantagenotnecessarilybyfeaturingmorechildrenscharactersontheirproducts,but
byofferingmoresetoptionswithinthecharacterspresented(WelcometoColgateKids).
Anothertopcompetitor,GlaxoKlineSmith,themanufacturerofAquafresh,takesa
similarstrategytoColgatePalmoliveconcerningthesegmentorganization.However,
GlaxoKlineSmithsoralcareproductsaredividedintofewersegmentsincludingagestwoand
under,twotosix,andolderthansix.Overall,thechildrenslineissmallerandthecompany
focusesmoreonadultproducts.Intotal,thechildrenslineconsistsofsixdifferenttoothpastesin
variousflavorsandtwotoothbrushes.However,unlikebothCrestandColgatePalmolive,
famouschildrenscharactersarenotfeaturedonpackaging.Instead,smilingteethandtoothpaste
squigglesdominatethecontainers(AGreatStarttoaLifetimeofHappyTeeth).
Overall,Crestschildrenslineisfallingbehindinseveralregards.Ratherthanoffering
anagesegmentedbrand,anencompassingbrandlosesmanyoftheyoungercustomers.Parents
whobuyaspecificoralcarebrandfortheirchildrenaremorelikelytostayloyaltothatcompany
iftheyofferproductsthatcorrespondtothegrowingchild.Crestdoesnotofferasmany
matchingcharactersets,especiallywhenfocusingonproductsforboys.Childrentendtofocus
notonthehealthbenefitsaparticulartoothpasteoffers,butontheirfavoriteTVshowcharacters
onthepackaging.Inrespectstomatchingcharactersets,Crestdoesnotofferabatterypowered
toothbrushoptionforchildrenwhohavetroublewithusingamanualtoothbrush,whichposesa
problemforyoungerchildren.ColgatePalmoliveandGlaxoKlineSmitharedominatingthe
marketinthechildoralcareline,posingaseriousthreattoCrest.

III.
BrandRecognition

Brandrecognitionistheextenttowhichthegeneralpublicoranorganization'starget
marketisabletoidentifyabrandbyitsattributesandsubsequentlyexhibitbrandloyalty.Brand
recognitioniswhenconsumerscanrecallaspecificbrandwithoutbeingexplicitlyexposedtothe
company'sname,butthroughvisualsignifierslikelogosandslogans(BrandRecognition).
Brandrecognitionisvitallyimportantinorderforaproducttobesuccessfulintodays
competitiveglobalmarketplace.Domesticallyandinternationally,Procter&Gamblesmain
competitor,Colgate,isbeatingoutCrestinbrandrecognitionandloyalty.
TheAmericanDentalAssociation,commonlyabbreviatedADA,isthepremier
organizationfordentistsnationally.TheAmericanDentalAssociationgivescertaintoothpastesa
SealofAcceptance.AccordingtotheAmericanDentalAssociationwebsite,theADASealof
Acceptanceprogrambeganin1931andtothisday,dentistsandconsumersrecognizetheADA
SealofAcceptanceasthegoldstandardwhenitcomestoevaluatingthesafetyandefficacyof
dentalproducts(ADASealofAcceptance).AbigthreattoCrestisthatColgatehastwelve
differenttoothpastesthathaveSealsofAcceptancefromtheAmericanDentalAssociation,while
Crestonlyhasnine(ADASealProductCategory).Duringastudentledsurveyoflocal
toothpasteshoppersataCincinnatiKrogerstore,whenaskedwhyconsumersboughtColgateor
Crest,mostpeoplerespondedthattheyalwayshadboughtthatbrandoruseditasachild.
15

Statisticsshowthat43%ofconsumersremainloyaltoaparticulartoothpastebrand(Agredano).
Withmoredentistrecommendedtoothpasteoffered,consumersaremorelikelytopurchase
ColgatetoothpasteandwillcontinuetomakerepeatedpurchasesofColgateproducts,further
increasingtheirbrandrecognitionandloyalty.ColgateTotalisthe"onlytoothpasteapprovedby
theFoodandDrugAdministrationtopreventgingivitis,aswellasbytheAmericanDental
Associationtofightplaqueandgingivitis(Williams).ThisthreatdemonstratesColgatebrand
recognitionthatisunmatchedinthemarketplace.In2010,ColgatePalmolivehad33%ofmarket
shareinthetoothpasteindustrywhileCrestsmarketsharewaslistedat20%(WhyColgate
BeatsP&GinOralCare).BecauseColgatehasalargermarketsharethanCrest,more
customersarelikelytorecognizetheColgatebrandandexhibitloyaltytothebrand,bothnow
andinthefuture.

IV.
CrestintheGlobalMarket

Whileresearchingdentalassociationsacrosstheglobe,itbecomesclearthattheColgate
brandhasmoreofapresence.Boththroughsponsorshipsandapprovedproductsbythese
organizations,Colgateholdstheupperhand.Twoassociations,theBritishDentalAssociation
andtheHispanicDentalAssociation,arepartiallysponsoredbyColgate,asclearlyshownon
theirwebsites(ColgateSponsors).Twootherorganizations,theAustralianDental
AssociationandtheNewZealandDentalAssociation,donothavesponsorsbuthavealistof
oralcareproductsthatearntheirsealofapproval,helpingthepublicdecidewhichbrandsto
purchase.TheAustralianDentalAssociationhasapproved19Colgatetoothpastes,22products
total,andzeroCrestproducts(Toothbrush.).TheNewZealandDentalAssociationhas
approved10Colgatetoothpastes,13productstotal,andzeroCrestproducts(Approved
Products).Inaddition,Colgatesproductsareshownontheirwebsiteprintedinmultiple
languages,whichpromotesinclusivityandfamiliarity.Consumersinforeigncountrieswillfeel
muchmorefamiliarwithColgatebecausethewebsitesnotonlycatertotheirlanguage,butshow
theproductnamesandbenefitsonthepackageitselfintherespectivelanguage.
Outofallthedentalassociationsresearched,onlyonehasanofficialconnectiontoCrest.
ThebrandsponsorstheHispanicDentalAssociation,whichisbasedoutoftheUnitedStates.No
otherforeignassociationshaveanyproductsapproved.Cresthassomeproductsprintedin
differentlanguages,butfarlessthantheamountfoundonColgateswebsite(OralHygiene
ProductsCrest.).
EvenJohnson&JohnsonhasmoreglobalawarenessthanCrest.Johnson&Johnson,the
produceroftheListerinemouthwash,sponsorstheBritishDentalAssociationandispartnered
withtheEuropeanFederationofPeriodontology,oneofthelargestdentalorganizationsin
Europe(JohnsonandJohnson).TheEFPincludes29NationalPeriodontalmembersocieties
acrossthecontinent(WelcometotheEFPWebsite).TheNewZealandDentalAssociationhas
alsoofficiallyapprovedfiveListerinemouthwashes.Intheglobaloralcaremarket,Crestis
lagginginapprovals,threateningthebrandpresence.

V. Conclusion

Consumerstypicallymaketheirpurchasingdecisionsbasedonavailabilityinstores,wide
productselectionandawarenessofproducts.Availabilityandawarenessofproductshasadirect
16

linktoabrandrecognition,whichprovidesforalargermarketshareandmoreinstoreshelf
space.Furthermorewhendentalassociationsaresponsoredbyorapproveofcertainbrands,it
becomesahugemarketingadvantageasitfurthersbrandcredibility.Consumersaremorelikely
topurchaseabrandtheyarefamiliarwithinapositiveway.Showcasingawellknowndental
associationsSealofAcceptanceonthepackagingispowerful,especiallyconsideringmost
consumersintheoralcaremarketaresensitivetohealthbenefits.Incombinationwithhealth
benefits,manycustomerswanttofulfilltheneedsofvariousagegroups,levelsofsensitivity,
andwhitening.Crestisfallingbehindthecompetitionandneedstocreatenew,diverseproducts
andpartnershipstostayrelevantinthemarketplace.

17

StrategicRecommendations

I.

Introduction

Afterconductingresearch,datahasbeenanalyzedandconclusionshavebeendrawn.The
resultisasetofthreerecommendationsfortheCrestbrandbasedonitscurrentstrengths,
weaknesses,threatsandopportunities.ThefirstrecommendationistoincreaseCrestsclientele
byexpandingcurrentproductlinesandtargetingcertaindemographics.Next,Crestshouldavoid
confusionandproductcannibalismbyScopemouthwashwiththecurrentCrestmouthwashes.
Lastly,CrestshouldenterintoanentirelynewmarketbyintroducingaCrestChewingGum.All
oftheserecommendationswillexpandCrestscurrentprofitsandmarketshare.

II.
ExpandingtheDemographicbyReachingAllMarkets

Withanincreasingemphasisonoralhygieneinthegrowingpopulation,anopportunity
forCrestisarising.Untappedmarketsforpotentialclienteleandreworkedmarketingstrategies
canprovideCrestwithanexpansioninsales,clients,andresearchanddevelopment.Crest
shouldbemarketedtoallagegroups.Thiscanbedonebydividingitsmarketintothree
segments:children,middleaged,andelderly,andthencreatingadifferentapproachforeachage
group.Byusingamultisegmentapproach,Crestwillbeabletoadvertisetoandsatisfythe
needsoftheentiremarket.
ThefirsttargetmarketthatCrestcanreachischildren.AnexternalthreatisthatCrests
competitorsallhaveawiderangeofproductsfordifferentagegroupsofchildren,whileCrest
onlyofferstoothpasteforthoseabovetheageoftwo.Becauseofthis,customerswithchildren
undertheageoftwoarecurrentlygoingtocompetitorsforthosechildren'stoothpastes.With
provenbrandloyalty,Crestshouldimplementatoothpasteforchildrenundertwo.Bydoingso,
Crestwillincreasenotonlyitscurrentconsumerbasebutalsoitsbrandloyaltyforexisting
consumers.Byattractingparentswithchildrenofthisage,itwillbelikelytoattractthese
customersforlifeandinturnincreasethepercentageofconsumersthatremainloyaltoits
toothpastebrand.
Anotherwaytobetterreachthedemographicofchildrenistoexpanditscurrent
childrenslineofproducts.Crestskidslinelackstheorganizationalstructurefoundedbyits
competitors.Colgatefoundsuccessthroughastructured,agedbasedkidslinewithmatching
characterproducts.ByexpandingandorganizingCrestskidslineinasimilarwaytotheir
competitors,Crestwilleffectivelyexpandtheirtargetmarkettoincludechildrenofallages.
Crestalsohastheopportunitytocreateamultitudeofdifferentcharacterstochoosefrom.
Childrenaremorelikelytobehappywiththeirchoicesandlookforwardtobrushingtheirteeth.
Anexcitedandmotivatedchildbrushingteethcanleadtosatisfiedparents,increasingCrests
brandloyalty.
Thesecondmarketsegmentencompassesmiddleagedadults.Crestdoesnothaveto
modifyanyproductsoraddnewonesbecausetheexistingproductsalreadycatertothissegment.
However,Crestshouldmakethemovetoreachouttothisagegroupthroughtheuseofsocial
mediaadvertising.PeopleofallagesareonsocialmediawebsitesincludingFacebook,Twitter,
andInstagram.Infact,74%ofadultsusesocialnetworkingsites(Facts).Simplybecoming
18

verifiedonthesesitesandactivelypostingupdateswillreachalargemarketofthemiddleaged
demographicwhoareonsocialmediaandhavethepotentialtobeloyalCrestconsumers.
ThethirdtargetmarketthatwebelieveCrestcanreachisthebabyboomerdemographic.
Ascustomersage,theyhavealargerchanceofdevelopingoraldiseases.Inresponsetothis,
Crestcouldmakeatoothpasteandmouthwashline,similartoitsCrest3DWhiteandProHealth
lines,targetedspecificallytowardsthosewhoareagingandconcernedaboutthehealthoftheir
teeth.Therefore,thislineofproducts,possiblycalledCrestSilver,willactaspreventiveand
protectiveagentsfortheirteeththathavehaddecadesofwearandteardonetothem.The
toothpastewillhelppreventdarkeningteeth,rootdecay,badbreath,andgumdisease,whichall
aremoresusceptibleinelderlymouths(Prince).Themouthwashwillalsohelpfightbadbreath,
keeptheirteethclean,andhelpcustomerswhohavedrymouths(Dental).ProducingCrestSilver
willbothbenefitProcter&Gambleandthelargestandmostinfluentialdemographicinthe
UnitedStates.
Sincetoothpasteisaveryelasticproductandmostcustomerspurchasewhicheveris
cheapest,itisimperativethatCreststrivestosatisfyitsentiremarketsneeds.Byincreasing
brandloyalty,Crestcanmaketheirtoothpastemoredesired.Whensomeonethinksoftoothpaste
anddentalcare,theyshouldthinkofCrest,andinturn,grabCrestoffoftheshelvesratherthan
itscompetitors.

III.
MergeCrestandScope

SincethelaunchofScopein1966,Procter&Gamblehashadaninfluenceinboththe
toothpasteandmouthwashmarkets.Scopedominatesthemouthwashmarket,butCresthas
productsinthissectoraswell.Scopespastrevenuesaleshavebeenincreasinglylowerthan
Crests.ThiscanbeseenwithonespecificexampleregardinglinesofCresttoothpastes.Plus
Scope,atoothpasteline,wasreleasedindicatingthatScopehadbeenaddedtovarioustiersof
Cresttoothpastes.However,therearenoScopeproductsinfusedwithCrest.Thisinitselfshows
howScope,asabrand,isinferiortoCrest.
DatashowsthatCrestmouthwashhasoutperformedScopemouthwashinrecentyears,
eventhoughtheentireScopebrandsfocusisinthisrespectivecategory.In2013,Crest3D
Whiteaccountedfor4.2%oftotalmouthwashanddentalsalesintheUnitedStates,Crest
ProHealthMultiProtectionaccountedfor4.1%,andCrestProHealthCompleteaccountedfor
3.4%.ScopeOriginalaccountedfor3.2%,andScopeOutlastaccountedfor2.3%(Percentage).
AllthreeofCrestsmouthwashesoutperformedtheScopemouthwashesintermsofpercentages
oftotalmouthwashessoldintheUnitedStates.Moreover,thedatafromtotalsalesofleading
mouthwashbrandsin2013providesfurtherevidencetosupportthisclaim.In2013,Crest
broughtin$56.4millionfromsalesofCrest3DWhitemouthwash,$54.9millionfromsalesof
CrestProHealthMultiProtection,and$45.5millionfromsalesCrestProHealthComplete.
Scopeonlybroughtin$43.2millionfromsalesofScopeOriginaland$30.8millionfromsales
ofScopeOutlast(SalesGrowth).Intotal,Crestmade$156.8millionfrommouthwashsales
whileScopeonlymade$74million.Itisimperativeinlookingatthesestatisticstonotethat
Crestsmouthwashisnottheproductofthebrandwiththehighestpriority,butratheritssecond
leadingproductisputoutonshelves,yetCreststillmorethandoubledScopessalesof
mouthwashesin2013.
19

ThroughthemergingofCrestandScope,newproductinnovationwouldresult,andthe
samerecognizablebrandswouldstillexist.ThisisamoreproductivewayofgettingridofScope
thanjustsellingitoffwhichmanyspeculatewillhappenafterA.G.Lafleysannouncement
aboutcuttingupto100weakP&Gbrandsfromtheirportfolio.BycombiningCrestandScope
mouthwashes,alltheCrestmouthwasheswouldstillbeinexistence,butnewCrestmouthwash
infusedwithScopetechnologywouldbeintroduced.ThisideaofinfusingScopeintoCrest
productswouldbeawidespreadeffortapplyingtoallCrestproducts,includingeachtierofCrest
toothpasteandeachtierofCrestmouthwashes.MostofScopesloyalcustomerswillmakethe
transitionovertothesenewCrestwithScopemouthwashes.Overall,themergingofCrestand
Scopewouldbebeneficialtobothbrands.

IV.
CrestChewingGum

TheaverageCrestuserhastwointeractionswithitsproductperday.Bothoftheseoccur
whentheuserisbrushingtheirteeth:onceinthemorningandonceatnight.However,withthe
exceptionofthosefewwhobrushtheirteethafterlunch,theaverageuserdoesnothaveany
interactionwiththeproductbetweenuses.Duringthistime,thecustomeriseatingmealsand
drinkingsugarysodas,alongwithenjoyingtheoccasionalsnack.Themajorityofcustomersdo
verylittlewhenitcomestooralcareinthemiddleoftheday.WhileCrestshouldnottakeona
newstrategythatwouldchangetheusershabitsandgetthemtobrushtheirteethinthemiddle
oftheday,onecouldbetailoredtoahabitthattheyalreadypossess:chewinggum.
Thechewinggumindustryisvaluedaround$19billion,withannualsalesapproaching
$2billioneveryyear(Topic).Onaverage,anAmericanchewsapproximately280piecesofgum
everyyear(Chewing).Usersofchewinggumciteseveralreasonsfortheusageandhabits.While
somechewgumsimplyforthefavor,amajorityusegumtoremoveanyparticlesstuckintheir
teethandtofreshentheirbreath.Crestcustomersusechewingguminthemiddleofthedayasa
substituteforbrushingtheirteeth,soaninnovativemovewouldbetoprovidethemwitha
productthatdoesjustthat.
CrestChewingGumwillprovideCrestuserswithaquickandeasywaytotendtotheir
teethinthemiddleoftheday.Thisgumwouldnotonlyprovidethefunctionsofnormalchewing
gumsuchasfresheningbreathandclearingtheteethofparticles,butwouldalsocontributetothe
healthofthecustomersteeth.AccordingtotheAmericanDentalAssociation,clinicalstudies
haveshownthatchewingsugarlessgumfor20minutesfollowingmealscanhelppreventtooth
decay(Learn).TheADAdoesnotendorsereplacingtheaveragesugarlessgumwithbrushing
teeth,butinsteadusingthetwotogetherforcleanerteeth.Whilethisisaninnovativeidea,there
isproofthatitispossible.Researchforgumthatcancleanteethhasalreadybeencompletedby
theUnitedStatesMilitary.SoldierscanuseitsCombatGumwhentheydonotpossessclean
watertousetobrushtheirteeth(Tan).Procter&Gamblecanuseitsresearchanddevelopment
departmenttomaketheproductmoreaffordableforconsumers.TheCombatGumsmain
cleaningingredientis
antimicrobialpeptideandcandestroytheaverageoralbacteriainaround
fiveminutes(
Morais
).CrestGumwouldcombinethebenefitsofsugarlessgumwiththe
extremelyeffectivepeptideofCombatGumtomakeagreatproductthatcouldimprovethelives
ofCrestscurrentandfutureconsumers.
CrestGumwillhaveastrongercleaningpowerthanregulargumwhilefresheningbreath
andcustomerswillpurchaseitduetoitsquickandeasywaytodosomethinghealthyfortheir
20

teeth.Whenenteringthechewinggummarket,Crestwillhaveacompetitiveadvantagegiven
theirgreatreputationandrecognitionintheoralhealthmarket.Crestcanevenexpandtheirline
ofCrestGumtoonemodelingCrestProHealthandanotherfocusingonCrest3DWhite.There
canalsobeaKidsCrestGumforparentswhoareworriedabouttheeffectivenessoftheirchilds
brushing.CrestGumisaninnovativeproductthathaspotentialintheexistingoralhygiene
market,butalsohaspotentialtomakeadifferenceinunderdevelopedcountries.Procter&
Gamblehasbeendedicatedtohelpingthe783millionpeopleintheworldwhodonothavesafe
drinkingwaterwithitsChildrensSafeDrinkingWaterProgramanditsProcter&GambleWater
PurificationPackets(P&GChildrens).FormulatingatypeofCrestGumthatcouldbefocused
ontheneedsofpeoplewhodonothavegreatdentalservicesandcleanwatercouldchangelives
aroundtheworldbecausethisisaproductthatcleansteethwithoutusingwater.Therearea
varietyofopportunitieswithCrestGum,andCresthastheresourcestobeapioneerinthis
developingfield.
CrestcanenterawholenewmarketbycreatingCrestchewinggum,providingour
customerswithanalternativetobrushingtheirteethinthemiddleoftheday.Thisproductwill
notonlyfreshentheusersbreathandremoveparticlesfromtheirteeth,butwillalsobeinfused
withfluoridetopromotethehealthofourusersteeth.Crestsreputationinoralcarewillgreatly
contributetothesuccessofCrestChewingGum,andhasthepotentialtobeamarketleaderin
thiscategory.

V. Conclusion

TherearemanyopportunitiesseenhereforCresttogrow.Thefirstsuggestionisthat
Crestcanmonetizeonitsuntappeddemographicsbystandardizingandincreasingtheirkids
lines,increasingtheirpresenceonsocialmediatobecomemoreconnectedwiththeadult
demographic,andcreatingaCrestSilverlinefortheexpandingBabyBoomerpopulation.
AnotherrecommendationistocombineCrestandScopemouthwashes.Thisisaneffectiveway
ofmovingtheloyalScopeuserstoCrestMouthwash,anditgoesalongwithProcter&Gambles
planofslimmingdowntheirportfolioofbrandsbygettingridoftheweakerbrands.Finally,
CrestChewingGumcanprovidecustomerswithanewoptionfororalcareandprovideCrest
withanewproductcategorythatalignswiththeirexistinglineup.Byimplementingthese
strategicrecommendations,Crestwillfurtherexpanditsshareintheoralhealthindustry.

21

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"CrestSensiStopStrips."
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25

Appendix

A. LookMomNoCavitiesAdvertisement
(LookMomNoCavities!)

B. P&GStatistics2012vs.1987(
Johnson)

2012

1987

Worldwidesales($B)

$83.680

$17.000

U.S.sales($B)

$29.500

$11.805

U.S.as%ofworldwidesales

35.3%

69.4%

Worldwideadspending($B)

$9.345

$1.386

Adspendingas%ofsales

11.2%

8.2%

Researchanddevelopmentexpenses($B)

$2.029

$0.576

2.4%

3.4%

126,000

73,000

R&Das%ofsales
Worldwideemployees
FiscalyearsendedJune30.Source:AdAgeDataCenteranalysisofProcter&Gamble
Co.'s10Kandannualreportdisclosures.

26

C.
P&GWorldwideAdSpendingasPercentofSales(
Johnson
)

Sales($B)

Adexpenses($B)

Adspending
as%ofsales

1987

17.000

1.386

8.2%

1988

19.336

1.594

8.2%

1989

21.398

1.660

7.8%

1990

24.081

2.059

8.6%

1991

27.026

2.511

9.3%

1992

29.390

2.693

9.2%

1993

30.498

2.973

9.7%

1994

30.385

2.996

9.9%

1995

33.482

3.284

9.8%

1996

35.284

3.374

9.6%

1997

35.764

3.414

9.5%

1998

37.154

3.638

9.8%

1999

36.710

3.471

9.5%

2000

38.545

3.828

9.9%

2001

37.855

3.654

9.7%

2002

38.965

3.696

9.5%

2003

42.133

4.406

10.5%

2004

50.128

5.401

10.8%

2005

53.210

5.804

10.9%

2006

64.416

7.010

10.9%

2007

71.095

7.714

10.9%

2008

77.714

8.426

10.8%

2009

75.295

7.453

9.9%

2010

77.567

8.475

10.9%

2011

81.104

9.210

11.4%

2012

83.680

9.345

11.2%

Year

FiscalyearsendedJune30.Source:AdAge
DataCenter
analysisofProcter&GambleCo.'s10Kandannualreport
disclosures.SomedatareflectrestatedP&Gfigures.

27