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NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc.

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Presentation on theme: "NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc."— Presentation transcript:

1 NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc.

2 PRODUCT DESCRIPTION Part 1

3 Product Description We will make a toothbrush with a curved handle, shaped bristles, a grip for comfort, and a bristle indicator. Our toothbrushes will be uniquely colored as well.

4 CBP Satisfaction Customer Service Website for Information Durability Product Safety Trust

5 CBP Diagram Toothbrush Satisfaction Durability Trust Product Safety Customer Service Website for Information

6 STRATEGY DEVELOPMENT Part 2

7 Strategy Development After scanning the environment, we found: Basic toothbrushes fall within a price range of $2 to $5. Many toothbrush manufacturers have well- recognized names. People of all ages use toothbrushes. Toothbrushes are made of plastic, nylon, and metal.

8 Customer/Market Requirements Our toothbrushes must have a handle and bristles that stay intact during use. We must provide a toothbrush that is durable, semi- attractive, and competitively priced.

9 Market Opportunities Everyone needs one! Input materials are inexpensive and easy to obtain.

10 Oral B Colgate In existence since 1950 Used by more dentists and consumers than any other brand Founded in 1806 Products are sold in over 200 countries and territories Main Competitors

11 Market Threats Brand recognition Experience To overcome customer loyalty, we will need to make nice looking, well featured toothbrushes that are less expensive.

12 MISSION & VISION STATEMENT Part 3

13 Mission Statement Vision Statement To help people keep their teeth clean and healthy with our affordable, high quality toothbrushes. We hope to make strides toward decreasing the occurrence of dental illness with the use of our toothbrushes. Mission and Vision Statement

14 Corporate Strategy We will make toothbrushes for everyone. Our core competencies will be a sole focus on toothbrushes, a good relationship with our suppliers, and a creative/cost-effective work force.

15 Business Strategy We will concentrate on low cost and high quality. Because we will only be making toothbrushes, we can buy supplies in bulk at lower prices. We will also be able to utilize our creative work force to make attractive, high quality products that are affordable.

16 DISSATISFIERS, SATISFIERS, AND EXCITERS/DELIGHTERS Part 4

17 Satisfiers Dissatisfiers Easy Grip Handle Brush Indicator Shaped Bristles Bristles Handle Durability Cleans Teeth Satisfiers/Dissatisfiers

18 Exciters/Delighters Outstanding price for amount of quality Unique colors

19 CONCEPT DEVELOPMENT Part 5

20 Concept Development We realized that dental hygiene companies with brand recognition often make a variety of products. If we focus on just toothbrushes, we can provide comparable quality at a lower price, while still making a nice profit.

21 Manufacturing Steps Melt plastic pellets Inject melted plastic into toothbrush mold Place rubber grip on top of melted plastic Filling machine combines bristles and wire, then injects into melted plastic Bristles are then trimmed Each toothbrush falls into package Package is then sealed

22 Toothbrush Equipment

23 Packaging Equipment

24 Fixed Costs Variable Costs Mortgage Equipment Costs Salaries Taxes Utilities Insurance Nylon, Plastic, Rubber, and Metal Labor Financial Outlook

25 Break Even Analysis Fixed Costs = $51,500,000 Variable Price/brush = $1.50 Sales Price/brush = $2.50 BE Point: Q = __FC__ = 51,500,000 = 51.5 mil. SP - VC (2.50 – 1.50)

26 BE Time Table Year 1 – 50.6 mil. brushes (.9 mil. behind) Year 2 – 53.7 mil. brushes (104.3 mil. total – we have broken even plus some) We will make money near the end of year 2. We will continue to make a profit in future years if we produce more than 51.5 mil. brushes annually.

27 Preliminary Design and Testing Curved handle with grip for comfort Bristles shaped for nooks and crannies Unique colors Testing done on focus groups to determine likes/dislikes.

28 Machinery Resources Molding machinery Bristle Injector machinery Trimming machinery Packaging machinery Labor Plant Warehouse Input Materials Resources and Equipment Needed

29 FORECASTING DESIGN Part 6

30 Colgate Revenue for

31 5 Year Forecast Using Linear Regression

32 Forecasting Method 38% of Colgate’s total revenues are comprised of oral care products. According to our test marketing, we estimated that we could capture 1% of Colgate’s oral care market. This would be equivalent to 50.6 million toothbrushes in our first year and 53.7 million in our second year.

33 Accuracy Check Year Forecast Revenue Actual Revenue Abs Deviation 1$50,567 $0 2$53,708$53,909$201 3$56,850$57,522$672 4$59,992$60,005$13 5$63,133$64,285$1,152 MAD MAPE0.68% TS5

34 Utilize Seasonal Forecasting People buy toothbrushes year-round, without regard to a particular season. Therefore, we will not utilize Seasonal Forecasting.

35 PRODUCTION CAPACITY Part 7

36 Production Capacity Our average forecasted sales for the first five years are million toothbrushes. Our current facility is capable of producing 22 mil. toothbrushes per year. This means that 91.8% of our capacity is being utilized. We reserve some unutilized capacity for unexpected or sudden growth.

37 Capacity If sales are as forecasted, we will maintain 91.8% utilization by adding machinery capable of producing 1.4 million additional units per year each year. This will allow our capacity to reach 27.6 million toothbrushes per year by the fifth year. With forecasted sales of 25.3 mil. in 2012, this capacity will allow us to maintain our 8.2% reserve capacity for unexpected growth.

38 Inputs and Outputs We will use multifactor productivity (MFP). MFP = ___Price of Toothbrush___ Labor Cost + Materials Cost = $2.50____ = 1.67/toothbrush ($ $0.50)


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