Background
Product/Company Description
Oral-B electric toothbrushes will be the most effective and efficient toothbrush within the US market about ordinary toothbrushes. The reason is that Oral-B electric toothbrushes have physical attributes such as elegance and precision, which are considered by customers as of superior quality. Further, Oral-B electric toothbrushes have electromagnetic characteristics that offer increased competitive advantage over the ordinary toothbrushes. Generally, the auxiliary functions of Oral-B electric toothbrushes suit the customer needs and bring convenience, which is a mixture of value and quality.
Besides, the major differentiating factors that will enable the products to capture a sizeable market share include improved features that provide augmented value as well as low pricing strategy targeting the low-income clientele (Kotler and Keller 212). However, the prices of Oral-B electric toothbrushes should be middle-high with some of the products targeting high-end customers, while others are supposed to be made for low and middle incomes. The high-quality low-prices strategy should be applied particularly to outperform the competitors.
Also, the product and pricing strategy should be aimed at widening the spectrum of customers the firm is targeting (Solomon 202). Additionally, direct business to customer distribution strategy is the most appropriate and should be applied in dispensing the products to the target clientele. The major advantages of the direct business to customer distribution strategy are in attaining customer feedbacks straightway. Such information is critical in product improvements.
Moreover, the direct business to clientele distribution strategy has little effect on the final prices of the product, which provide an additional competitive advantage. Further, informative advertising and promotion strategies through the application of both old and new media should be utilized to increase product awareness. Essentially, through the application of appropriate marketing mix, Oral-B electric toothbrushes are expected to be the leading ones in terms of market share (Kotler and Keller 212).
Besides, Oral-B electronic toothbrushes should be targeting a wide range of clientele in terms of age, occupations, geographical location, as well as income levels. In particular, the firm should target the younger generation within the middle high-income levels that continuously utilize oral care products (Penick 44). However, the firm should widen the scope of its target clientele, including teenagers.
Opportunities
The constant utilization of sugary and fast foods poses a great threat to dental health. Moreover, there is an increased awareness of oral health among the American citizens, which provides an opportunity for new advanced oral care products to be introduced into the market. Despite the availability of various oral care products, particularly toothbrushes, dental problems continue to persist. As such, there is a need for improved oral care products and services. Oral-B electric toothbrushes are such products that offer additional advantages to the users. As indicated, the toothbrushes not only fulfill the cleaning purposes but also refill the dental cracks through electronic means (Penick 44).
Evidence of the Opportunities
The industry trends indicate that oral health awareness has increased not only within the US population but also around the globe (Penick 44). Also, the industry trends indicate the improved consumption of oral care products, particularly among the middle-income earners offering an opportunity to introduce new products. Moreover, researches on consumer demands show that the clients prefer high quality and innovative products that offer multiple solutions to dental problems.
Situation Analysis
Summary of the Current Situation
Currently, the Oral-B electric toothbrush is becoming the leading oral health care product in the world market. The product quality, innovativeness, and creativity are some of the attributes that increase the competitive advantage of the Oral-B electric toothbrush. Moreover, aggressive promotional mixes, including advertising and sale promotions have increased the product’s brand awareness among the target market. Also, the low pricing strategy offers a competitive edge over similar products (Armstrong and Kotler 23). Further, the direct product to customer distribution strategy ensures increased convenience and satisfaction among the clientele. Essentially, ensuring customer satisfaction in terms of quality and convenience is the major strength of the product (Solomon 56). However, the Oral-B electric toothbrush faces stiff competition from similar products.
SWOT Analysis
Strengths
The product’s brand forms its major strength. The Oral-B electric toothbrush is becoming a global brand, which is known to all consumers due to its superior quality. Also, the product’s trademark also provides an additional competitive advantage. Consumers perceive Oral-B electric toothbrush brands as superior and original. The brand name differentiates the product from other similar brands of toothbrushes. Moreover, the distribution channels ensure the presence of the products to the target consumers. Further, the perceived value of the product has made it more appealing to the clientele (Kotler and Keller 212). Oral-B electric toothbrushes are preferred among the consumers for their originality and technological contents that provide increased value to the clientele. The branded products with diverse prices ranging from the up-market finest to low-price values have proven useful in covering diverse classes of clientele from low-income to high-end consumers (Solomon 56).
Weaknesses
The economic depression currently experienced affects the soaring expenses associated with livelihood and diminishing earnings in the hands of the consumers. The Oral-B electric toothbrush is likely to experience a reduction in demand due to reduced earnings. Further, in maintaining the status as a price leader in the market, the Procter & Gamble has to charge lower prices in all market segmentations, which in effect squeezes its margins. The other weakness that the product encounters arises from the fact that numerous brands of toothbrushes are emerging, which offers stiff competition (Penick 41).
Threats
Oral-B electric toothbrushes face stiff competition from products that utilize similar technology. In other words, the competitors can easily adopt the technology applied by Oral-B electric toothbrush (Neff 232). Also, Oral-B electric toothbrushes face the threat of fake and cheap substitutes within the market (Penick 41). Besides, Oral-B electric toothbrushes also face the threat of competition from various similar brands from other companies that have been pursuing the motive of invading the market. Also, the steady increase in the cost of raw materials is a concern for the firm since it has an impact on the products prices and revenue (Neff 232). Further, low-priced alternative toothbrushes produced locally pose an increased threat to Oral-B electric toothbrushes.
Opportunities
Procter & Gamble is a global company has the prospect of expanding into new markets through the application of various strategies (Armstrong and Kotler 231). In other words, the firm has increased opportunities to expand in countries where its products are not present. Also, the firm has a prospect of developing its customer base through the application of its advanced technological prowess. Further, there is a prospect of immense online business developments, including catalog purchases through the application of online facility enabling the firm to serve a large customer base. As a result, the firm will be able to achieve increased revenue margins.
Moreover, according to the industry trends, the increased oral health awareness offers a greater opportunity for the firm to launch a new product in the market. Besides, new prospects for the launch of the firm’s new products are emerging in the low and middle earnings category of the market. The younger generations, as well as the low and middle-income earners, are the highest in terms of demographic market segmentation (Kotler and Keller 120).
The Competitors
Oral-B electric toothbrush is currently competing with similar products from Sonicare, Shield, and Colgate companies. However, its biggest competitors in the market are products from Colgate (Berger 6). The competitors employ various strategies to outperform Oral-B electric toothbrush and capture a sizable market share. Nevertheless, the competitors can be categorized as either brand or product depending on the type of the products and how the products are marketed (Armstrong and Kotler 231).
The Colgate Company is the product competitor of Oral-B electric toothbrushes and engages in offering their products at reduced prices as well as offering incentives such as discounts (Berger 6). Moreover, the firm has engaged in aggressive promotional campaigns besides differentiating their products through diverse tastes and preferences.
Sonicare is the brand competitor of the firm and applies similar advanced technology in the manufacture of its products. The Sonicare products, including FlexCare and Elite 9000, are placed in a similar category as Oral-B electric toothbrushes. Similarly, Shield is a brand competitor. The shield is emphasizing on similar qualities and marketing mix strategies as Oral-B electric toothbrush.
Works Cited
Armstrong, Gary and Philip Kotler. Marketing. Upper Saddle River, NJ: Prentice Hall, 2011. Print.
Berger, Alexander. A Strategic Analysis of Colgate’s Toothpaste Product Line: Marketing Strategy. Munich, Germany: GRIN Verlag, 2011. Print.
Kotler, Phillip and Kevin Keller. Marketing Management. Upper Saddle River, NJ: Prentice Hall, 2012. Print.
Neff, Jack. “Is Proctor & Gamble Losing Its Edge?” Consumer Marketing, 21.4 (2013): 231-239. Print.
Penick, Catherine. “Power Toothbrushes: A Critical Review.” International Journal of Dental Hygiene, 2.1 (2004): 40-44. Print.
Solomon, Michael. Consumer Behavior; Buying, Having, and Being. Upper Saddle River, NJ: Pearson Education, 2012. Print.