Crest Toothpaste
(Crest)
MKTG301-004
Prof. Martin, Melissa
Group Members: Alexander McGregor, Jason Zolkowski, Haiying Li, Nurten Freson,
SeungWoo Cho, Bomin Kim, Michael B Jones
Description of the Firm and Its Strategy
Procter and Gamble (P&G) is the world's largest consumer goods company and owns twentyfour brands comprising a wide variety and substantial number of products. Their products are
sold in “140 countries and employ almost 140,000 people in 80 countries worldwide” (Osborne
1). “Three billion times a day, P&G brands touch the lives of people around the world”
(“Procter & Gamble”). Their “corporate tradition is rooted in the principles of personal integrity,
respect for the individual and doing what's right for the long-term” (“Procter & Gamble”).
Crest, founded in 1955, is one of the most popular brands in oral healthcare products.
Consumers could potentially use Crest products multiple times every day when brushing their
teeth and using mouth rinse. Crest not only helps people keep teeth and gums clean, but also
freshens their breath. “Crest is among the most trusted household brands, a value reinforced by
the continued recognition of many of its products by the American Dental Association (ADA).
Crest’s dream is to lead the way in the passionate pursuit of perfect oral health so that everyone
can have a healthy, beautiful smile for life” (“Crest”).
Procter & Gamble began their first research on toothpaste in the early 1940s, when they “tried to
find ingredients that, when added to toothpaste, would reduce tooth decay” (“Crest”). Crest put
their toothpaste with Fluoristan onto the national market after a long period of research in 1956
(“Crest”). “In 1960, the American Dental Association confirmed that Crest effectively prevents
tooth decay. And by 1962, Crest had become the best-selling toothpaste in the United States”
(“Crest”).
Being a lead brand of oral care products, there are five product lines under the brand of Crest,
with many product categories. The first product line is Crest Toothpaste which is also their main
product line. Each type of toothpaste has a different flavor. Crest Baking Soda & Peroxide
Whitening with Tartar Protection Striped Toothpaste is one of the Crest toothpastes that “gives
you protection against tartar and cavities” and “freshens your breath” (“Crest”). Crest Extra
Whitening with Tartar Protection Gel Toothpaste is another product from its toothpaste product
line. They are well-known by customers for “fighting cavities and visible tartar with the
clinically proven tartar blockers and Fluoristat that help the natural whiteness of your teeth come
through by gently polishing away surface stains for a healthy, beautiful smile” (“Crest”). The
second product line that Crest possesses is toothbrushes. For example, the Crest Youth
Toothbrush possesses “soft, rippled bristles and a rubber-grip handle which helps children clean
deeply between teeth, fight cavities and plaque. And the tapered head and neck were specifically
designed for smaller mouths” (“Crest”). Rinses are a third product line that helps maintain fresh
oral hygiene such as Crest Pro-Health Night Rinse. Its highlights are killing germs, clean teeth,
preventing both gingivitis and plaque at night (“Crest”). Fourth, Crest Glide Floss has several
sizes for different customers. It “effectively removes tough plaque between teeth and just below
the gum line” (“Crest”). Additionally, Crest Whitestrips is a new fifth product line. Recently,
Crest released their new Whitestrips product advertised as Crest Whitestrips Advanced Seal. It
is “a teeth whitening system that removes surface stains and those below the enamel (“Crest”).”
Crest continues to study and release new products to the market, like Crest Pro-Health Enamel
Shield Toothpaste and Crest Weekly Clean Intensive Cleaning Paste-Refreshing Mint (“Crest”).
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Along with the fast growing market and technology advancement, Crest has grown a lead brand
of oral products by using different strategies. First, Crest always encourages product
development and innovation. Crest constantly improves existing products and while researching
new products with the use of technology. They try to introduce various flavors for their products
as well as create new products for “keeping healthy smiles on faces worldwide as a leader in
developing new technologies in dental care” (“Procter & Gamble”). Brand promotion is also an
important point of Crest’s marketing. Crest continues to use traditional media to promote their
products through the use of advertisements. In response to the rapid development of
technologies in the last few decades, Crest has begun using internet advertising by sending
coupons to customers via email. Third, their use of effective human resources helps Crest to
continue to grow. Crest also encourages employee diversity. Crest “rewards employees and
recognizes their contributions through financial compensation, promotions, freedom to influence
project selection and financial support for their projects” (“Procter & Gamble”). Fourth,
evaluation and testing help Crest reduce risks. Crest often evaluates their products through tests
and surveys. They have “put effective mechanisms in place to manage the development risks
and evaluate business results. Clear and measurable criteria for commercial success are
explicitly reviewed as a part of project establishment, continuation, capital investment and
progression to the market” (“Procter & Gamble”). These strategies not only help Crest become
one of the most popular brands of oral care products but they also create high revenue for Procter
& Gamble every year.
Description of the Industry and Competition
Industry
Crest is a toothpaste and oral care products brand made by the Procter & Gamble Company.
Crest products are in the oral and dental subcategory of the personal care products category of
the consumer nondurable products industry. The total market for oral care products in the U.S.
exceeded $9 billion in 2008 (“U.S. Market”). There are many different companies active in the
oral care products market offering a wide variety of brands and products. According to Ms.
Braverman, Household & Personal Product Analyst, personal care products are a sub-division of
household nondurables (Braverman). The personal care products industry includes toiletry items
such as soap, shampoo, body wash, mouthwash, cosmetics and perfumes.
Oral care products are sold by a wide variety of retailers including supermarkets (Safeway,
Harris Teeter and Whole Foods), drug stores (CVS, Rite Aid) and discount retailers (Wal-Mart,
Target, K-Mart). Because the market for personal care products is very competitive, companies
spend a lot of money on advertising and marketing to promote their brands (Braverman). In
addition, innovation drives this market. Companies frequently launch all-new products, improve
existing products and add products under existing brands. Recently, the market for natural and
organic oral care products has been growing at a rate of 20% per year, while the overall market
for oral care products has grown much more slowly (“With Sales”).
Crest’s Competition
Procter & Gamble is the global leader in personal care and household products. The toothpaste
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industry is very competitive and includes many different firms, such as Colgate-Palmolive,
Church & Dwight, GlaxoSmithKline, Tom’s of Maine, McNeil-PPC, Inc., and CCA Industries,
Inc. Colgate-Palmolive’s toothpaste products include the following brands: Colgate Total,
Colgate Total Advanced Whitening, Colgate MaxFresh, Colgate 2in1, Colgate Sensitive, Colgate
Sparkling White, Colgate Baking Soda and Peroxide, Colgate Tartar Control, Colgate Cavity
Protection, and Colgate Ultrabrite. Church & Dwight’s toothpaste brands include: Arm &
Hammer, Close Up, Pepsodent, Mentadent and Aim. GlaxoSmithKline offers the Aquafresh and
Sensodyne brands of toothpaste. Besides these products, many large retailers offer store brand
oral care products that put pressure on prices. In addition, retailers often place their own store
brand products right next to the competing national brand products and refer to the national
brand on their packaging (for example, “Compare to Listerine”). For instance, Target places
store brand mouthwash and Crest mouthwash in the same aisle and on the same shelf.
Colgate (a brand by Colgate-Palmolive Company) is the largest competition for the Crest brand
by Procter & Gamble. These competitor companies frequently launch new products with new
features to improve their products’ performance.
SWOT Analysis
Strengths
According to Crest’s website, they are the creators of Fluoride. This was a major achievement in
oral hygiene. It is a major strength within the Crest brand to be the creators of such an innovation.
While they are the creators of this substance, they were able to allow others to use it and were
able to gain royalties because of Fluoride’s use. Allowing others to use Fluoride and gain money
because of the royalties led to more advancement of the Crest brand. They were able to use this
money to open the Oral Health Research Institute in Indianapolis and probably gained a better
advantage in the oral hygiene field.
The Crest brand was established in the early 1940s and has been a common name in oral
healthcare. The Crest brand has grown into many peoples evoked set and, since being a
commodity item, it is important for the brand to be well known and have a strong set of
customers. This is a very big strength for Crest because it allows for repeat customers and a wellknown brand.
According to the ADA, the Crest brand is only 1 of 12 brands that has a seal of approval for their
toothpaste. This strength allows Crest to be recognized by a national oral health organization.
Having national recognition is a major strength for any organization and having such a long
history with the ADA allows for a great strength for Crest.
Weaknesses
A major weakness of Crest is the fact that it is not its own brand. The Crest brand is under the
company Proctor and Gamble. This is mostly a weakness for the Crest brand because the money
that is coming into Crest may not being coming straight into Crest. It may be possible for money
that Crest brings to Proctor and Gamble to be used in other aspects of development within the
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company. If Crest was its own company, then it would be easier for it to develop the Crest brand
and use the revenue to exclusively do research and development for Crest.
After researching the Crest brand, it was very interesting to see that there was a lack of presence
of Crest online. I did not see any Crest products available through their website. The only way to
order Crest would be through a third party website (for example, Target or Wal-Mart). It is a
major weakness that people are unable to purchase directly from Crest. This would be something
that Crest could work on.
Like many companies, Crest has evolved with the number of products it offers. While it
continues to add products, such as white strips, floss, toothbrushes, mouthwash, etc., it may have
lost the focus it had with just toothpaste. Crest was known for the Fluoride in toothpaste and
growing the brand. While Crest continues to grow, it can grow too big and begin to lose focus on
the brand. Crest has become a huge part of Proctor and Gamble and, while becoming so big is a
success; it is also a curse because Crest may forget what it stands for. That is a weakness that
must not be neglected within any brand; it is dangerous to lose focus on your primary goal.
Opportunities
Crest has many opportunities to expand their current line of products along with developing new
and exciting products that will benefit many people. In the Crest line of products, there are many
different products that will help a person fight many forms of oral care issues, from tartar to
gingivitis. But in all of the different toothpastes that crest offers, there are only a handful of
toothpaste flavors. Some of the flavors are basic mint, cool mint, fresh mint, citrus splash,
cinnamon, wintergreen, and vanilla. For Crest to bring in more opportunities to their company,
they should expand their toothpaste flavors. One of the flavors that Crest could add to their
arsenal of flavors would be to combine mint with a fruity type of flavor. Another flavor that
Crest could create would be to combine their cinnamon flavor with their mint or even
wintergreen flavor to create a new and interesting flavor combination.
Crest has a great line of toothpaste that will protect against tartar along with helping to eliminate
current tartar build-up. The one problem that Crest has with this line of toothpaste is the lack of
different flavors that they offer. In their Tartar line of toothpaste, Crest only offers three flavors:
fresh mint, cool mint and regular. Although these three flavors are great, Crest should expand on
these flavors. Some flavors that they should bring to the Tartar line of toothpaste would be all of
their other flavors that they offer for the rest of their toothpastes along with new and interesting
flavors that can be just for the Tartar line of toothpaste.
Crest’s line of children’s toothpaste is limited to only a handful of products. The products that
Crest does have are pretty boring compared to their competition. What Crest can do to expand
their children’s line of products would be to have more then just one famous cartoon character
for their toothpaste tubes. Crest should expand this by having characters from some of the most
popular kid’s shows that are on TV. This will get children interested in having to brush their
teeth. Some of the opportunities that Crest should also take advantage of would be to expand
their Wild Expressions Gel Toothpaste line to include more wild and crazy flavors besides just
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bubblegum. Some of the other flavors could be wild berry or explosive fruit or even ice cream
Sunday blast.
Crest has a great line of mouth rinse that can eliminate oral diseases and give you fresh breath.
One of the products that Crest offers in this line is Crest Whitening Rinse, which whitens your
teeth at the same time it gives you great fresh breath. Some of the opportunities that Crest has to
expand on this great product would be to have more then just one flavor, mint. Some of the other
flavors that Crest could offer for this product would be wintergreen, cool mint, and fresh mint.
By doing this, Crest can offer a great product to people who don’t necessarily like the taste of
regular mint.
Crest has a lot of great products that will give you great oral health. One thing that Crest does not
have is a line of products that will eliminate cavities. Although many of Crest’s current
toothpastes help prevent cavities from forming, they do not eliminate them once they are already
formed. This product could save many people hundreds of dollars in dental bills by offering a
product that can eliminate those stubborn cavities. By Crest developing this product, they will
have full rain on the market by offering customers a great product at a great price.
Threats
Crest also has many threats from different companies like Colgate and Aquafresh. These two
companies offer great lines of products that can challenge Crest for their market. Some of the
threats that Colgate brings to the people at Crest are their expansive line of Children’s
Toothpaste. Colgate offers many different types of toothpaste for kids, along with many different
children’s cartoon characters on the tube. Along with the toothpaste, Colgate also offers
toothbrushes to go along with the toothpaste characters. For an example Colgate has a
SpongeBob Squarepants line of electric and regular toothbrushes to go along with their line of
SpongeBob toothpaste.
Aquafresh is also a huge threat to Crest through their new line of foaming toothpaste called IsoActive Whitening. This Aquafresh product is like no other toothpaste that Crest currently offers.
This product foams and gets in between your teeth to help clean and whiten them. Crest currently
offers products that are similar but not exactly like what Aquafresh is offering. The major
difference is that Crest’s line of toothpaste does not foam and whiten your teeth like Aquafresh’s
Iso-Active Whitening. This in turn could threaten the market share for Crest’s whitening line of
products.
Product Analysis
Key Users
The key users of “Crest Extra White Plus Scope Outlast Toothpaste” are everybody except
young children because there is a separate product line of “Crest Kids” designed for young
children. Crest Extra White Plus Scope Outlast Toothpaste’s major distinction from ordinary
toothpaste is that it contains Scope. Scope is a mouthwash that “gives you fresh breath and
confidence to get close.” By combining Scope with Crest toothpaste, this special toothpaste
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allows fresh breath to stay for 5 times longer than do ordinary toothpastes. In addition, like any
other Crest toothpaste, it whitens teeth, protects teeth against cavities, and fights tartar (Crest).
How is the brand viewed in the marketplace?
Crest is prominent in the marketplace; almost everybody in the U.S. has used a Crest product.
Before Crest was first introduced to consumers in 1955, Colgate occupied most of the toothpaste
market. Nevertheless, Crest was introduced into the market with endorsement from the American
Dental Association as an “effective decay-preventive dentifrice that can be of significant value”
and was able to become number one (P&G). Nowadays, Crest products include toothpaste,
mouthwash, dental floss, whitestrips and more.
Why would consumers choose this product over its competitors?
Toothpaste is a convenience good, which means consumers do not spend a lot of time choosing a
brand. Thus, having a well-known brand name is crucial, and Crest is a well-established brand in
the market. One of its products that have a lot of current consumers is Scope mouthwash.
Consumers who use Scope and different brand toothpaste might switch to use Crest Extra White
Plus Scope Outlast Toothpaste for convenience.
Future Trends
Most products in the market have whitening ability. Even Crest, from the year 2003, started to
put more focus on the beauty element of whitening than on oral health care (Marketing Week).
According to the Consumer Report, however, their test of 41 toothpastes showed that they do not
have significant whitening effect (Consumer Reports). However, it is an ongoing trend to focus
on whitening ingredients.
Problems
In consumeraffairs.com, consumers complain about Crest Pro Health Toothpaste. Just in the year
2009, there have been 30 complaints mentioned in a single article. Consumers have complained
of a burning sensation on the tongue after using Crest Pro Health Toothpaste. Some even have
said their tongue is so sore that they cannot even eat or brush their teeth again (Crest Toothpaste
Consumers).
Discussion of Segmentation Approach
Because a toothpaste market has a broad range of customers with harsh competition, define the
different segments correctly and deliver right image to customers can help to increase the market
share of our products. Crest has already evolved with the amount of products by the full of brand
extension, so this segmentation approach is about strengthening our power of the oral health care
on market by developing our current products. Based on SWOT analysis we perceived the needs
of targeting three important segments.
Mid-age Women (Who Have Kids)
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Mid-age women segment is one of the most important market segments, because they will buy
toothpastes concerning their families’ health, especially for their kids. Our analysis found that
our line of children’s toothpaste is limited and boring compared to our competitors. Crest need
to have more kids’ favorite characters like Colgate Children’s Toothpaste. We can also add
more delicious flavors for them. However, Crest has grown with image of the leading brand for
oral health care. This is the major strength that Crest has acquired pursuing the prefect oral
health. Emphasizing our brand image and continuing product innovation will help to increase the
market share on this segment.
Benefit Seekers following trends
Due to harsh competition, customers want to buy toothpaste on the basis of the benefits they
derive from the products. According to future trends, toothpaste industry started to focus on the
beauty element of whiting than on oral health care (Marketing Week). Crest also developed new
product line, Crest Whitestrips, to provide visibly whiter teeth. However, Aquafresh’s IsoActive Whitening is threatening the market share for Crest’s whitening line of products. The key
product to overcome this harsh competition is Crest Extra White Plus Scope Outlast Toothpaste.
It whitens teeth and also allows fresh breath to stay for 5 times longer.
Somewhat Loyal Customers
Toothpaste is considered a convenience good and therefore customers may not spend much time
debating their choice. However, our strong brand name has built loyalty worldwide and has
attracted customers into their evoked set. Du to this successful brand extension, almost
everybody in the US has used a Crest product. We need to focus on somewhat loyalty customers
who have tried our products and have had positive impressions so we must continue to work in
order make them completely loyal. Trying not to lose focus on our strength and brand image, we
need to add special attractive innovation. On our analysis, we saw the great opportunities on
expanding our toothpaste flavors. For people who have positive impression on our oral health care,
now we can offer different flavors that other competitors don’t have. The toothpaste that contains
Scope is also making differential competitive advantage from others’ products.
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Work Cited
Braverman, Loran. “Household & Personal Products Analyst.” Standard & Poor’s. June 4,
2009.
<http://www.netadvantage.standardandpoors.com.mutex.gmu.edu/NASApp/NetAdvanta
ge/showIndustrySurvey.do?code=hnd>.
Consumer Reports. "Toothpaste." 1 August 2006. Consumer Reports. 20 October 2009
<http://www.consumerreports.org/health/healthy-living/beauty-personal-care/personalcare/toothpaste/toothpaste-8-06/overview/0608_toothpaste_ov_1.htm>.
“Crest”. “Crest” 20 Oct. 2009.
<http://www.crest.com/about-crest/>.
Crest. Crest Extra White Plus Scope Outlast Toothpaste — Long Lasting Mint. 209. 21 October
2009 <http://www.crest.com/crest-products/scope-outlast-toothpaste-mint.aspx>.
Crest Toothpaste Consumers. Crest Toothpaste. 7 October 2009. 20 October 2009
<http://www.consumeraffairs.com/cosmetics/crest.html>.
Marketing Week. "Crest set for new wave of brand activity." Marketing Week (01419285)
(2003): 8.
Osborne, Jim. “Procter & Gamble Cleans and Grooms the World”. suite101. 7 May. 2009.
20 Oct. 2009.
<http://consumer-goodsmanufacturers.suite101.com/article.cfm/procter_gamble_cleans_and_grooms_the_world.
P&G. History of Crest. 2009. 20 October 2009
<http://www.pg.com/company/who_we_are/crest_history.shtml>.
“Procter & Gamble Company (PG).” The Procter & Gamble Company. 20 Oct. 2009.
<http://www.pg.com/science/rd_formula_success.shtml>
"U.S. Market for Oral Care Products." Business Wire. 14 April 2009. ABI/INFORM Dateline,
ProQuest. Web. 21 Oct. 2009.
"With Sales Increasing by 20% a Year, the Natural & Organic Sector is the Fastest Growing in
the North American Cosmetics & Toiletries Market." Business Wire. 1 July 2008
ABI/INFORM Dateline, ProQuest. Web. 21 Oct. 2009.
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Charts/Graphs
Appendix A:
Crest Toothpaste
--Crest Baking Soda
& Peroxide
Whitening with
Tartar Protection
Striped Toothpaste
--Crest Cavity
Protection
Toothpaste
--Crest Extra White
Plus Scope Outlast
Toothpaste
-- Crest Sensitivity
Original Toothpaste
--Crest Pro-Health
Toothpaste, etc.
Crest
Toothbrush
-- Crest Youth
Toothbrush
-- Oral B
CrossAction
Pro-Health
Toothbrush
-- Oral-B
Pulsar ProHealth
Toothbrush
Crest Rinses
Crest Glide Floss Crest Whitestrips
-- Crest ProHealth Night
Rinse
--Crest ProHealth Rinse
-- Crest
Whitening
Rinse
-- Scope
Mouthwash,
etc.
--Original
--Comfort plus
--Whitening plus
Scope
--Shred Guard
--Deep Clear
--Floss Picks
--Threader Floss
-- Crest
Whitestrips Classic
-- Crest
Whitestrips Pro
Effects
-- Crest
Whitestrips
Advanced Seal
-- Crest
Whitestrips Daily
Whitening
Multicare
-- Crest
Whitestrips Daily
Whitening + Tartar
Protection, etc.
Source: http://www.crest.com/crest-products, accessed Oct 20, 2009.
Appendix B
Opportunities:
- Crest needs to have more varieties of flavors besides the basic mint, cool mint, fresh mint,
citrus splash, cinnamon, wintergreen, and vanilla.
- Expand the tartar line of toothpaste to include more flavors besides the mints and the
regular.
- Expand the children’s line of toothpaste products.
- Expand on the Crest Whitening rinse to incorporate more flavors.
- Create a product that will eliminate cavities that have already been formed
Threats:
- Intense competition from Colgate
- Colgate using famous cartoon characters on children’s toothpaste containers.
- Competition from Aquafresh
- Aquafresh has a new line of foaming toothpaste that gets in-between your teeth for an
extreme clean
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