Marketing Management

Master of Business Administration
Marketing Management
STU32219
Jayanthi LAKSHMINATHAN
Word count: 3536
Date for Submission: 22nd April 2013 (23:59 BST)
P&G Crest toothpaste Marketing plan
Table of Contents
Executive Summary....................................................................................................................3
Situation Analysis.......................................................................................................................5
Market Summary.........................................................................................................................6
Internal analysis of P&G.............................................................................................................7
External analysis of P&G (PESTLE)..........................................................................................9
SWOT Analysis.........................................................................................................................12
Competition...............................................................................................................................14
Crest Toothpaste - Product overview........................................................................................15
Marketing Objectives................................................................................................................15
Positioning................................................................................................................................16
Marketing advantages of strong brands....................................................................................17
Marketing strategies For Crest toothpaste launch.....................................................................18
E-commerce..............................................................................................................................20
Marketing budget and cost analysis..........................................................................................21
Marketing mix...........................................................................................................................21
Evaluation and Control system.................................................................................................22
Bibliography..............................................................................................................................24
Appendix...................................................................................................................................29
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Marketing Plan Crest Toothpaste

Executive Summary
P&G:
Procter & Gamble (P&G) has one of the robust portfolios of credible, quality, leadership brands and
serves approx. 4.6 billion consumers around the globe.
Figure: 1, P&G portfolio, source: P&G
P&G's objective is to contribute branded products and admirable services to improve the life of
consumers now and in future. Consequently, consumers will accolade them with leadership sales,
good earnings and value creation, which allow P&G, their shareholders and their communities to
accomplish (P&G 2013).
P&G India:
P&G is one of the largest Fast Moving Consumer Goods (FMCG) companies in India, rooted in
1964. Superior product presentations and technological innovations have facilitated P&G to gain
market foresight in a greater number of categories it is in.
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Figure: 2, P&G product range, P&G website
In terms of dental hygiene, India is still a blossoming country, with majority of the population still
not having entry to modern dental care and still use substances like coal ash and neem sticks
especially in the rural areas (Market survey 2010).
Figure: 3, sample crest product, source: Crest website
After conducting a nationwide market study, P&G India is preparing to enter the oral care market
with the introduction of its famous toothpaste brand Crest. Currently, Crest is graded as the
outstanding toothpaste brand in primary global markets (The Financial Express 2005). Oral care in
India has been eminently forced by innovation, trade availability, packaging and publicity. As we
know that the consumers need have changed and they wish a toothpaste that can guard them from
sensitivity and cavities, and offers whitening.
Mission: P&Gs growth strategy, influenced by their aspiration, is to embrace and augment more
consumers hearts in the entire world. The prime marketing objective of Crest launch is to attain
first-year market share of 10% with product selling. The essential financial goals are to bring about
1st financial year sales revenue of $ 1 billion, keep 1st year deficit to a lesser extent and break even
sooner than expected in the second year. They can effectively compete with many types of
toothpastes because their product - Crest offers an incomparable amalgamation of advanced
characteristics and functionality at a very competitive price (Reuters 2012).
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Situation Analysis
P&G India has to strengthen its portfolio down the road in many other brands and make it confined,
accessible and pleasurable for consumers. FMCG giant Procter and Gamble (P&G) is ready enough
to enter the toothpaste sector in India since it already has its triumphant toothbrush products OralB (The Financial Express 2005). The Oral care industry in India is worth $996 million annually,
comprises of: Toothpastes - 60 % of worth $599 million, Tooth powder 23% of worth $229
million and Toothbrushes - 17 % of value $169 million (Choudhary, A. et al. 2011).
The toothpaste division in India is largely a two player industry in India - Colgate Palmolive (CP) &
Hindustan Unilever (HUL). For years, CP has dominated the toothpaste market in India.
Penetration of oral hygiene products is expected to grow immensely over the period, as more
consumers aware and sophisticated about oral hygiene. The usage of multiple toothpastes in urban
households is expected to increase. Increased consumers demand toward specific toothpastes that
provide particular benefits, such as fresh breath,
whitening, anti-bacterial, etc. Along with this,
consumption of mouthwashes/dental rinses are
also set to rise in future. Rural consumers will
increasingly bypass tooth powders and jump
straight to toothpastes.
Figure: 4, Toothpaste consumption, source: Edelweiss research
Currently, toothpaste appreciates a nationwide penetration level of 55 %, with only 15 % of them

brush twice a day. The per capita consumption in India stands at 127gms/year; one of the lowest in
the world (Roy, A. 2012 and Choudhary, A. et al. 2011).
To yield market share in this strenuous ambience, Crest must cautiously target distinct sectors with
esteemed specialities and plan for a next-generation product to keep brand power going.
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Competition exerting huge pressure on the profit margin of the companies compelling them to
continuously reduce their cost of operations, making their supply chain more lean and efficient
(Ideas Make Market 2011).
Market Summary
According to the recent NOHS Survey executed by the Indian Dental Council and Colgate (Colgate
2005):
According to the survey, 60% of Indian people have never accessed a dentist regularly and 50% are
inattentive about prevention and treatment of dental problems:
A national consumer survey conducted across 233 Indian cities has declared that dental issues in
India are due to their insufficient knowledge and poor oral hygiene (Chandigarh smiles, n.d.).
The Survey unveiled that people connect dental problems with lifestyle linked reasons like
inappropriate eating practice and inborn with bad teeth. It is more prevalent in rural areas.
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Besides attitudes, the Survey also followed practice. In the rural areas, people still use Neem stick,
charcoal and ash for brushing their teeth.
More than 50% of rural people in India does not utilise a toothbrush and at the same time >75% of
toothpaste purchasers brush once
a day or less than once. All these are reflected in the
comprehensive status of oral health care in India (Choudhary, A. et al.2011 and Rediff 2005).
Although dental problems may not be life threatening, their treatment is often expensive. They can
be prevented and controlled. Crest should join hands with National Oral Health Programme to
create oral hygiene and Crest brand awareness among people and increase the use of toothpaste in
India.
By knowing and satisfying the customers, Firm can taste the fruit of success (Vani.G. 2010). Valueadded products are achieving recognition especially in the town and city areas.
In future,
mouthwashes, dental floss, teeth whiteners are predicted to drive the oral care industry. By building
awareness of specific oral health problems, the effort is to migrate some of them especially those
suffering from those conditions on to the new products (Seeking Alpha 2013).
Internal analysis of P&G

Core competencies:
This company believes that its major competitive advantage is the people who work at P&G, their
mind and agility (P&G 2012).
Consumer Understanding:
Investing in Market research.
Interaction with consumers each year in different countries.
Conducting research. These help to better serve and exchange information with their
consumers.
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Figure: 5, Core competencies, source: P&G website
Innovation:
Recognised as the innovation forerunner.
Organic sales progress over the past 10 years occur nearly from new brands and refined
products.
Collaboration with a global mesh of research associates that include an outside partner too.
Past sixteen years, P&G has approximately 132 products on the top winners index.
Brand-Building:
Brand-building leader.
Powerful portfolio of brands with 50 leadership brands which make up at least 90% of
P&Gs business and >90% of profits.
P&G's 25 brands create > $1 billion dollars /year of sales.
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Go-to Market Capabilities:
Company is graded by popular retailers as a desirable supplier.
Ranked as an industry lion in a broad range of abilities, which include clear company
strategy, strong business basis and innovative marketing programs.
Scale:
Integration across their enterprise to act consistently as one company throughout their
businesses and markets to serve consumers around the world.
With working in unison, they can create scale advantages by assigning resources more
critically and effectively.
External analysis of P&G (PESTLE)

Political Factors:
India is one of the greatest economies in terms of buying power. It also has a strong middle class
population of 300 million. Due to the large size of the market, penetration level in India is low due
to the large size of market. Existence of untapped markets offer an attractive chance for the oral
care industry players (Maheskumar. S. n.d.). Review of political factors in emerging countries can
help a company to determine the barriers for new market entry based on environment and consumer
protection laws, local or national laws and the penalties. Indian Government regulations are
favourable for FDI (IBEF, n.d., and Bhattacharyya, S. et al. 2013).
Economical Factors:
FMCG segment is the fourth major sector in the Indian economy with a tremendous opportunity for
growth and offers several economic advantages to its nationals as well as foreign investors
(Maheskumar. S. n.d.).
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The Financial Survey 2012-13 has

fixed India's economic rise forecast at
6.1 - 6.7% in the forthcoming year
(The Economic Times 2013). The
Growing
population,
the
incomes,
education,
health
rising
care
awareness and
Figure: 6, Indian income,source: Euro monitor, BRICs Report
urbanisation, the advent of modern retail, upward trend in spending, people's mindset - people look
money for value, would drive to launch a new product which satisfies people's need (IBEF,n.d. p22). P&G Crest is required to comply with the needs of consumers who are ready for greater
variety and differentiation of products.
The local population would be benefited from the job opportunities created by new businesses.
Availability of natural resource, inexpensive labour charges and existence across the complete
value chain provides India a competitive favour (Bhattacharyya, S. et al. 2013).
Cost fluctuations can occur markedly due to changes in goods prices, raw materials, labour costs,
foreign exchange and interest rates. Management of these fluctuations can be done through sourcing
decisions, hedging transactions, productivity improvements, pricing and cost savings activities
(P&G 2011).
Socio-cultural factors:
People know they can trust a product used by their parents. People will reject the product, if their
religion/culture do not prefer it.
P&G should get involved in community development and oral health awareness programmes to
develop trust and create brand awareness among people.
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Technological factors:
P&G should keep their techniques and methodologies up to date for keeping their product
preferable in the market. Failing to stay on pace with competitors can put a company behind..
The managers would need to know the existing technologies and how their advancements could
affect the industry. Technological advances - Internet and e-commerce would support in better
logistics, greater collaboration and distribution.
Advertising on digital and social media save cost compared to the traditional one (advertising in TV
and Radio).
Environmental factors:
Companies will most likely have to acknowledge public opinion. The negative opinion of public on
a companys business practices, which in turn will hinder consumers from indulging in the business.
P&G always assess the impact of product life cycle as shown in the figure 7.
P&G design products that glee consumers while boosting the conservation of resources targeted on
creating efficiencies in energy, water, waste and emissions.
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Figure: 7, Life cycle assessment, source: P&G website
SWOT Analysis
Strengths
Weaknesses
Strong brand and diversified product portfolio Very limited oral care portfolio.
Established distribution networks
Strong competition with Colgate-Palmolive,
Presence of reputable brands in FMCG sector
HUL, GSK and Dabur.
Favourable government policies.
Views product performance only.
Strong focus on research and developments.
Few top brands of P&G are losing their
World market leader in oral hygiene products.
P&G is sluggish in online media presence and
P&G has more available capital.
leadership.
Cooperation with dental professionals

Focus on innovation and new product
Strong commitment to human resources
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Heavy culture and slow processes due to large

scale operation of the company and leads to
launches.
practices.
market share fast.
quality control issues.

The stock carries a P/E ratio of 22.66, making
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Extensive experience in marketing.
the stock look extremely pricey though it
The end-consumer understanding.
possesses only single digit growth (The
Noteworthy
Cost-Cutting
yet
without
Motley Fool 2012).

Increased promotional expenditure to keep
drawback on R&D spending.
the sales healthy.

Opportunities
Threats
Growing Indian FMCG - oral hygiene market Increasing no. of competitors and cut throat
with a population of over one billion.
competition in the FMCG sector.
Consumer behaviour lifestyle.
Tax and Regulatory environment.
Expand its customer base to capture larger Counterfeit goods at cheaper prices.
market share.
Downward pressure on pricing due to
Untapped rural market.
increased competition.
Indian consumer income, upward trend in Increase of regulations.

spending. People's mindset -
people look Substitute brands with cheaper prices.
money for value rather than value for Competitors growing their product portfolios
money
through acquisitions and rising their market
Increasing the distribution channels in India

provides great opportunities to diversify
market share and customer reach.
share through marketing and promotional

strategies.
Increase in price of raw material, commodity
Lower pricing and good quality.
cost and currency exchange rate place strong
Extensive marketing. Capitalizing on online
pressure on the industry.
media.
The existence of companies that operate
New possession opportunities.
regionally or even locally e.g. Dabur still
Merchandising directly to consumers.
poses a challenge (Seeking Alpha, Trefis,
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More range to expand margins by improving
2012).
output.
The growth of the middle class in India
should act as a growth adjuvant .
Possibility of capturing market share from
competitors through promotional tasks.
E-commerce also endeavours further revenue
streams and customer infiltration.
Cheap labour costs and availability of raw
materials (Guenette, R. 2012)
Competition
Colgate is India's popular dental
products company with >95% of its
sales coming from the oral care
product with 54.5% of market share.
HUL is the second largest competitor,
had carried off few marketing steps to
maintain its
Figure: 8, Toothpaste market in India, source: Sana Research
position with the re-launch of Close Up (Singh, N. 2012 and Growth Avenues 2012). Dabur is in
third place with market share of 10.2%. The big three are sharing each others pie by coming out
with products in which they have proficiency (Ideas Make Market 2011). To view the Competitors
of Crest toothpaste in India and their price ranges, see appendix 1.a.
Despite strong strife, Crest toothpaste can mould a definite image and receive recognition among
targeted area. Their alluring combination of features - specific functions (treatment of gingivitis,
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tartar, dental caries, cavity and whitening), different flavours (cinnamon, vanilla and herbal),
attractive package, offers, and low price, are crucial point of differentiation for ambitious advantage
and will have strong brand recognition in future (The Financial Express 2005).
Crest Toothpaste - Product overview
Figure: 9, Range of crest products, source: Crest website
Crest is a toothpaste that has consistently pushed to improvise oral health since 1955. Crest agrees
with rules and regulations vested by the FDA and ADA (Massucci, E.2013). Crests vision is to
drive the way in the chase of absolute oral care so that everyone can hold a healthy, beautiful smile
for life (Crest, 2013). In oral care , P&G has the No. 2 market share stand with approximately 20%
of the world market. In 2010, CEO Robert McDonald disclosed an aggressive goal to achieve one
billion extra customers by 2015 and, to convert everyone in this world into a customer. In order to
attain this, company plans to touch more lives especially in India and China (Best, A. et al. 2013
and SMU 2011). View appendix 1.c. to realise the available crest products globally.
Marketing Objectives
Selling existing product (Crest toothpaste) into new market and improve sales growth of
P&G Oral care portfolio which includes toothpaste, brushes, mouthwash, floss, etc.
Creating 50% awareness of our products to the target customers in 6 months (January 2014
June 2014).
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To gain market share by the end of July 2014.
Increase net profit to >8% of sales by the end of 2014.
To introduce our products such as different variety of adult and kids toothpastes,
toothbrushes, and dental floss, mouthwashes etc. nationwide around July 2015.
Distribution:
Figure: 10, Distribution channel
Distribution will be restricted to selected states of India, with appropriate sales promotion support.
Later it can be expanded nationwide by the end of year 2015. Crest's product distribution should be
immense. Almost all super markets, local mini stores, discount chains, dentists, and pharmacies
should carry this toothpaste (Ryken, C. 2012). A typical distribution channel is shown in figure 10.
Positioning
Utilising product differentiation and cost leadership, P&G position
the crest toothpaste as the most multifaceted, convenient, valueadded product for oral care.
It focuses especially on the care offered, additional benefits, range of
size, colour, flavour etc. Through investment in brand recognition, firms are able to aid consumer
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attraction and promote the differentiation principle needed for competition.

In order to be effective in this industry you should decrease costs as much as possible (Kerschen. R.
2013). The innovation helps to introduce upgraded version of the company's popular products as
the customer's attention gets diverted if same product runs for a long time. Reducing packaging
sizes to affordable smaller sizes with various proportions and eliminating costly insignificant
ingredients are essential in order to differentiate itself from its competitors (Best, A. et al. 2011).
With the introduction of crest toothpaste, I believe the oral care category will never look the same
again.
Marketing advantages of strong brands
Figure: 11, Advantages of strong brand
According to Rossiter and Prey (1987), the brand familiarity comes first in the buying process
(Vani. G. 2010). Kotler and Keller (2013, p-242) explains advantages of strong brand which are
shown in figure 11.
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Marketing strategies For Crest toothpaste launch

Product:
Packaging establishes an immediate link with the purchasers at the buying point since it can modify
the views they have for a certain brand (Vani.G.2010).
Increase range of
sizes/colours/material offered.
Increase range of benefits

offered.
Develop separate products for

different markets.
Figure: 12, Buy process percentages
Establish a quality image through
the development of quality products.
Distinguish Crest from their competitors products in the eye of the customers.
Establish innovation.
Pricing:
Use different prices and different price lists for different

markets. Analysing economic condition is the main task
for the company to fix the price (Vani.G,2010).
Set price at 5 - 10% below market leader to obtain profit.
Reduce price of product to maximize sales (to allow increased production and reduce unit
production cost).
Fix low price for new product to dishearten the competitors.
Raise turnover to level where product become beneficial at this price level.
Offer quantity discount to encourage large purchases (Ryken, C. 2012).
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Place:
Set own dispersion direct to stores.
Alter distribution for areas.
Increase product warehouses.
Set up national service network (Fonce. A. 2013).
Promotion:
Procter & Gamble (P&G) often ranks top for
advertising expenditures both in U.S. and
internationally (Kasi 2011).
The Crest Toothpaste promotions should be
found throughout the marketing mix in a variety
of mediums that appeals to the target consumer.
Brand familiarity can also affect their decisions.
Website: Crest should have an influential website with the title, Keep your smile healthy and
beautiful,. It should carry details about products, Dental hygiene topics, company history, enewsletter and special offers. It should be presented in different regional languages of India.
Crest should create social media page on Facebook, Linkedin, Twitter, Youtube, etc. since they are
cost-effective marketing tools. This helps to occupy the consumers to get involved with their oral
health and the Crest Company.
Coupons/Discounts: Gift coupons, discounts, extra quantity and price off. Offering free gift is a
vital tool in boosting the product (Vani.G. 2010).
Television/Radio: Crest and its advertising agency produce advertisements using humour and
pretentious scientific shows.
Magazines/Outdoor: Marketing campaigns should use historical, sexual and sociocultural
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interpretations in their advertisements.

Promotional event launch: Crest smile India movement launch. Bollywood actress/actor or famous
Indian cricketer should promote the event as The Chief Smile Officer.
Once the customer starts spending more with you during the year, the marketing cost of attracting
customer will decrease and your profit will increase (Kotler and Keller, 2013, p-687 and Kasi.
2011).
E-commerce
It refers to purchasing and selling of goods/services on the Internet. It is braced by a number of
procedures such as:
Catalogue grazing and selection.
Making order/maintenance/acceptance/rejection and tracking.
Delivery scheduling.
Payment scheduling/authorisation.
Billing and profile management.
E-commerce is soaring as the organised retail is still not present everywhere in the country.
Growing internet penetration has assisted to increase the possible customer pool. Recognition of
online shopping (e.g. Flipkart.com, Junglee.com) as a secure shopping method would help to hike
e-commerce intake (Cole.D, 2012).
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Marketing budget and cost analysis

The 1st year sales revenue for the Crest toothpaste is proposed at roughly $18,000 million budget
and signifies to plan for marketing spending, scheduling and operations as predicted in the image:
For the sample allocation of marketing budget, refer appendix 1.c.
Marketing mix
The Crest will be introduced in January 2014. Summary of P&G Crest's activities to be required for
the first six months to procure their stated objectives.
January: Launching a Rs. 2 billion trade sales promotion expedition and participating in famous
trade shows to educate retailers/dealers and provoke channels' help for the product Intro in
February. Generating fizz by giving samples to inspiring and influential celebrities, reviewers,
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opinion leaders, and bloggers. Working with retail sales faculties at main chains to reveal the Crest's
features, benefits, and other advantages.
February: Beginning a mixed print/radio/internet campaign with focus on rural and urban
consumers. The campaign will illustrate the benefits of Crest. This Interactive campaign would be
sustained by point-of-sale, online-ads, and video tours. Creating oral health awareness in rural areas
especially with the help of Indian Dental association(IDA) and NGOs.
March: As the multimedia advertising continues, Crest could add other sales
promotions like, a contest in which consumers mail their Smiles to the Website. Distribution of
new point-of-buy displays to support the retailers. Partnering with dentists would be very helpful.
April: Holding a trade sales competition offering elite for the retail organisation and salesperson
who sells the most during a month period.
May: Rolling out a national ad campaign. The radio advertisements will feature famous star voices
saying about crest's performance. The dashing print and online ads would show images of these
popular figures brushing with Crest. Launching Smile India Movement to create oral health
awareness with the support of Dentists and IDA.
June: Evaluating the results of customer satisfaction research would be useful in future campaigns
and product improvement efforts.
Evaluation and Control system

Steps may help you to review and evaluate the performance of your marketing strategy:
1. Regularly monitor your marketing activities and
their expedition toward objectives on profitability,
deposits, income, loans,
spending and other
tangible objectives.
2. Return on investment is always a major concern
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when it comes to marketing or any other business expense.

3.Identify performance gaps and determine why they exist. Observe competitor and consumer
response.
4.Seek out opportunities to improve and take corrective action or adjust your targets.
5.Evaluate your advertising programs at least once a quarter to keep them up to date.
In consideration of market expansion, it is almost always a good idea to access it enthusiastically
and also with extreme care. Moving into different market is a new ball game. You need to prove
yourself all over again by managing more employees, new customers and competitors.
A common error in market expansion is the tendency to spread oneself too thin and try to do all at
once. I think, It can be avoided by expanding region by region, market by market rather than trying
to be everywhere. If one region gets excited about your product or service, automatically the next
region would be waiting for you to come down the road. The decision to heighten your business
into other markets, can be both exciting and stressful. Moreover, you're anticipating for sales and
profit growth. On the other hand, however, you're confronted with uncertainty about the strife and
cost of expansion. By following the steps mentioned above, the business will have an excellent
chance of flourishing in a new market (The Business Expander 2012).
Figure: 13, Source: Crest website
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Appendix
1.a. Competitors of Crest toothpaste and their price range
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1.b. Available Crest products
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1.c. Marketing budget plan
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Master of Business Administration

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P&G Crest toothpaste Marketing plan

P&G Crest toothpaste Marketing plan

Marketing Plan Crest Toothpaste

Figure: 1, P&G portfolio, source: P&G

P&G Crest toothpaste Marketing plan

Figure: 2, P&G product range, P&G website

Figure: 3, sample crest product, source: Crest website

P&G Crest toothpaste Marketing plan

Currently, toothpaste appreciates a nationwide penetration level of 55 %, with only 15 % of them

P&G Crest toothpaste Marketing plan

P&G Crest toothpaste Marketing plan

a day or less than once. All these are reflected in the

Internal analysis of P&G

Investing in Market research.

Interaction with consumers each year in different countries.

P&G Crest toothpaste Marketing plan

Figure: 5, Core competencies, source: P&G website

P&G's 25 brands create > $1 billion dollars /year of sales.

P&G Crest toothpaste Marketing plan

Go-to Market Capabilities:

Company is graded by popular retailers as a desirable supplier.

External analysis of P&G (PESTLE)

P&G Crest toothpaste Marketing plan

The Financial Survey 2012-13 has

P&G Crest toothpaste Marketing plan

P&G Crest toothpaste Marketing plan

Figure: 7, Life cycle assessment, source: P&G website

Strong competition with Colgate-Palmolive,

Presence of reputable brands in FMCG sector

HUL, GSK and Dabur.

Favourable government policies.

Views product performance only.

Strong focus on research and developments.

Few top brands of P&G are losing their

World market leader in oral hygiene products.

P&G is sluggish in online media presence and

P&G has more available capital.

Cooperation with dental professionals

Strong commitment to human resources

Heavy culture and slow processes due to large

market share fast.

quality control issues.

P&G Crest toothpaste Marketing plan

Extensive experience in marketing.

the stock look extremely pricey though it

The end-consumer understanding.

possesses only single digit growth (The

Motley Fool 2012).

drawback on R&D spending.

the sales healthy.

competition in the FMCG sector.

Consumer behaviour lifestyle.

Tax and Regulatory environment.

Downward pressure on pricing due to

Untapped rural market.

Indian consumer income, upward trend in Increase of regulations.

people look Substitute brands with cheaper prices.

through acquisitions and rising their market

Increasing the distribution channels in India

share through marketing and promotional

Lower pricing and good quality.

cost and currency exchange rate place strong