Crest Toothpaste Brand Analysis

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Table of Contents

Introduction
Background
Marketing Mix Analysis
Product
Pricing
Placement
Promotion
Recommendation
References

Introduction

The purpose of this essay is to assess the marketing mix of the crest toothpaste brand, and also make possible recommendations for changes to the brand.

Background

The Crest toothpaste brand is manufactured by Proctor & Gamble and was first introduced into the United States in 1955. The brand is sold globally, with a majority of the European countries such as Russia, Germany, Poland, Serbia, Bulgaria, and Ukraine selling it using the Blend-A-Mend brand name. This is the brand name is a renowned toothpaste in Germany, and it was acquired in 1987 by P& G (Toothpaste industry market report, 2007).

The product line of the crest brand consists of toothpaste, dental floss, mouthwash, toothbrushes, and whitening products. The depth of a product line is used in reference to the various product versions that each line has to offer. In the case of the Crest toothpaste by P & G, the brand is normally offered in two formulations (gel and paste), and three sizes (economy, medium, and large) (Neff, 20004).

With respect to the target market for Crest toothpaste, P & G has thus far identified a total of six different segments of the market for the toothpaste, on the basis of ethnic differences and age. For example, there is a segment for the children, the African Americans, as well as one for the Latinos (Neff, 2004). In addition, P & G has also developed appeals for the various segments by way of using various distribution, promotion, and strategic positioning of the product to suit the needs of the various segments.

The toothpaste market could be differentiated on the basis of the benefits sought by the customers. For this reason, there are variations in the use and packaging, seeing that some of the toothpaste brands are normally dispensed via a pump, while others still rely on the conventional tube.

Additionally, there are those that whiten teeth, others assist in the control of plaque, removal of stains, as well as cavity prevention. The childrens toothpaste market is often targeted by such manufacturers as P & G by the use of toothpaste that is flavored with, for example, vanilla flavor.

As such, both the benefits feature of a product, as well as the attributes of such a product, is a useful pointer to the positioning strategy of such a product (Michman et al, 2003). In the case of the crest toothpaste, the product is able to position itself on the basis of preventing cavities.

On the other hand, Aim toothpaste employs the positioning strategy of fighting cavities and a pleasant taste. Aquafresh has positioned itself on the basis of fighting cavities, while at the same time also offering fresh breath as an added benefit (Toothpaste industry market report, 2007).

Marketing Mix Analysis

Overall, the Crest toothpaste brand has not been doing as well as it ought to. Between 1987 and 1997, the market share for the product plummeted by 12 points, from 39 percent to stand at 27 percent (Neff, 2004). This has been attributed to an overextended strategy of the benefit sought. In light of this, Crest has for far too long banked on cavity prevention as the only main strategy to help retain its market share. As such, the brand has failed to keep pace with the developmental changes in marketing.

In 1997, Colgate launched Total, an innovative product that got the approval of the FDA as the only oral care product capable of helping fight gingivitis, a gum disease that affects some 100 million consumers in the North American region. Thanks to Total, Colgate gained a 30 percent share of the market by the end of 1998, while Crest still remained at 26 percent (Neff, 2004).

Product

Crest toothpaste is a toothpaste with fluoride, often classified under the oral care market that includes such other segments as mouthwash products, toothbrushes, dental floss, and whiteners. The market of toothpaste has been categorized as a mature one, with growth pegged at a dismal 2 percent year-on-year (Neff, 2004). For this reason, any form of growth often experienced by a brand comes at a price. This is usually in the form of a negative impact on another brand.

As with any other mature market, competition tends to be quite stiff in the toothpaste market. In addition, the main players in the market engage in intensive marketing promotion campaigns to either win a market share from their competitors or just to maintain their current share (Sandhusen, 2000). Barriers to entry are also low, meaning that more and more commentators are likely to enter the market. The maturity stage of products is the time when a company reaps benefits following aggressive research and development stages of the product, followed by aggressive marketing strategies.

Crest has been positioned as an oral care product that offers prevention against cavities, relative to similar products in the market (Neff, 2004). Furthermore, the Crest brand comes in the form of a dispenser, and this eases the difficulty in usage by the consumers. Additionally, there is a wide range of product sizes to choose from, depending on the price and needs.

Pricing

Crest employs a product line pricing strategy. This is where the various prices of the different products lines for the brand shall be different, as they are targeted at different target markets. Furthermore, the products also serve various benefits that are much sought after by consumers. As such, Crest complete, Crest MultiCare, Crest kids (sparkle Gel), Crest vivid white, and Crest whitening (plus scope) all have different prices based on their feature attributes and benefits sought by consumers (Michman et al, 2003). Nevertheless, the price of Crest brands is relatively comparable to that of the penetration price of the market.

Placement

According to available data by AC Nelsen, a renowned company in market research, supermarkets have emerged as the key outlets for the sale of toothpaste, accounting for 50 percent of all the distribution outlets. These are then followed by bulk merchandising agents at 23 percent, and drug stores (12 percent), in that order. Warehouses and other kinds of stores come in last, at 8 percent and 7 percent respectively (Toothpaste industry market report, 2007).

Promotion

The success of anyone given brand (or a lack of it) is dependent upon the effect of sales promotion and advertisement. Nevertheless, understanding the mindset of consumers remains among the most critical areas that challenge marketers to a great deal (Michman et al, 2003). P & G has often heavily invested in a television advertisement in order to promote its Crest brand.

Furthermore, offers and discounts are still relied upon to help attract customers, in the face of stiff competition. A majority of the companies in the toothpaste market offer free gifts, extra quantity, and price offs, as a way of attracting customers. Crest has also benefited from publicity, in the form of news articles that features a new cavity fighter. Furthermore, sales promotions for the brand have been geared towards relationship marketing with the customers, with a view to obtaining brand loyalty, and hence a repeat purchase by customers.

Recommendation

There is a need to thoroughly assess the various aspects of the marketing strategies for the Crest brand, in line with the different kinds of external market trends, with a view to identifying new strategies that are aimed at facilitating the establishment of a greater market share.

Furthermore, there is also a need to identify those marketing strategies that need to be rejuvenated, along with a change in the organizations culture in order to embrace the introduction of more innovations.

References

Michman, R, N., Mazee, E, M, & James, A. (2003). Lifestyle marketing: reaching the new American consumers. New York: Greenwood Publishing Group.
Neff, J. (2004). P& G, Colgate step up oral-care fight. Advertising Age, p. 10.
Sandhusen, R, L. (2000). Marketing. London: Barrons.
Toothpaste industry market report (2007). Can Procter & Gamble change its culture, protect its market share, and find the next tide?
Tucker, R. (2001). P & G struggles to regain Crests toothpaste lead, The Cincinnati Enquirer.

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