Marketing Plan Outline: An introduction into the Team 6 Corporation and our product Shiny Grillz, the disposable toothbrush with toothpaste on it designed for the busy entrepreneur’s hectic lifestyle. I. Executive Summary—Overview of our corporation and our mission statement. Our company, Team 6 Corporation, was established on October 10, 2008, to create and promote our product, Shiny Grillz into the market. Our product is a disposable toothbrush that is small in size and already has the toothpaste inside the toothbrush. Our mission is to help the busy travelers, students, mothers, industry workers, and whoever else would be interested in a quick portable way to brush their teeth on the go. We feel that jails, hospitals, schools, clinics, and dentist offices would find our product to be very useful and convenient for their inmates or clients because of the nature of our product being disposable, convenient, inexpensive, and environmental friendly. The product is disposable so it is designed for the busy person on the go. All you need is a little water, which you would use anyway while brushing your teeth, to get the fresh clean feeling that everyone enjoys! II. Challenge—what potential issues face the Team 6 Corporation with our product Shiny Grillz in the business market? We have produced a disposable, portable and environmental friendly toothbrush that has toothpaste already on it. Our product only needs water to be activated. Our goal is to have 1 this product distributed to mass merchandisers, airport stores, airlines, vending machines, and convenience stores for any person who is in need of a quick, easy way to brush their teeth. Challenges arise when our product is marketed because if the customer base feels that the price is too high, they may resort to other options. However, the overall design of our product enables a possible joint business venture with hospitals, clinics, dentist’s offices, and correctional facilities due to the size, availability, and portability of our product. Also, there really is not a product on the market today that is like ours. III. Situation Analysis—this section covers six key areas: product, target market, distribution, competitors, financial and other issues that Team 6 Corporation analyzed in the creation of Shiny Grillz. Company Analysis— Team 6 Corporation’s goals, focus, culture, strengths, weaknesses, and market shares for our product Shiny Grillz. Goals: Team 6 Corporation’s goal is to produce a disposable miniature toothbrush with toothpaste in it—just squeeze the toothbrush and add water to activate. Also, we want to expand our concept into airport stores, airlines, corporations, institutions, jails, doctors offices to give our targeted markets an easy, cost effective solution for when they are in a situation that requires the use of a toothbrush and toothpaste, or in the event that they have suddenly realized that they are in need of a toothbrush and toothpaste. 2 Focus: The focus of our product, Shiny Grillz, is to provide an alternative to bad morning breath and by not having to carry around a full sized toothbrush and toothpaste. Now-a-days to get on an airplane you cannot even bring your full size toothpaste so our company focused on that information so make a product that will be very useful for airplane travelers. Another focus is to help out the busy consumers who, sometimes in a rush, forget to pack or bring their toothbrush and toothpaste. Culture: Culture in a business sense is defined as the set of values, norms, attitudes, and other behaviors that are transmitted from one generation to the next. Team 6 Corporation is focused on providing instant personal hygiene on-the-go. We want to reach those individuals who value feeling and smelling good no matter where they are in the world. Almost every culture, brushing teeth is part of daily routine for good hygiene. Our creativity and ingenuity is what will keep our current product and future products thriving. Strengths: The qualities that make Shiny Grillz stand out amongst the competition is portability, convenient, disposable, and only requires you to squeeze it and add a little water to activate product. Shiny Grillz is also environmental friendly and I believe that that is one of our very important strengths of our product. Shiny Grillz is small in size and is designed for the ability to keep more than one handy, for example when you have 3 guests staying over at your house that happen to forget their toothbrush then you can just bring out your extra stored away. There was a similar product on the market made by the Oral B Corporation called Brush Ups, however, our researchers went out to common mass merchandisers—Wal-Mart, Target, Walgreens, CVS, and Kroger and were unable to find the product on the shelves. Our researchers also looked on the Oral B Website (www.oralb.com) and were unable to find the product on the website. This gives our corporation an advantage because other than travel kits and the traditional toothbrush and toothpaste that are currently present on the market, we are anticipating dominance on the convenience of our product. But if Brush Ups were still on the market today, our advantage over them would be that our product, Shiny Grillz, has bristles to actually scrub the plaque of your teeth. Another strength of our company is that our product already has toothpaste in it and current security regulations on airlines (www.tsa.gov) require that a traveler is not allowed to carry toothpaste in their bags due to increased security measuresiii. Also because the toothbrush already has the toothpaste in it, you only need to buy one Shiny Grill, not a kit. It makes it less to carry around as well. Weaknesses: A potential weakness for Team 6 Corporation is that there is a similar product already on the market—however, in our previous section I had said there was a product on the market during our market research phase, but at this time the product is no longer in stores or on the company’s website. This product was made by the Oral B Corporation and it is called Brush Ups. The product was a 4 sleeve that fits over your index finger and you can quickly brush it across the front of your teeth to clean then and help make your breathe fresh. Another potential weakness about our product lies within the seasoned traveler or business travelers who will already have a toothbrush and toothpaste in their carry-on bag because they have purchased a travel size kit. Also, because our concept is relatively new and unknown to the common consumer, those who are in the travel and business industry will go out to the store and purchase a travel kit for when they need it. Market Share: At the current time, our beginning age demographics of our product will be designed for people in the age bracket 18-49. We feel that this market will help Shiny Grillz expand by using word of mouth about how convenient and innovative our product is. We hope to branch out further into the markets consisting of college students, business travelers, busy moms, industry workers, who are sometimes too busy to remember to pack a toothbrush and toothpaste in their bags. In the future, Shiny Grillz would like to expand our corporation with possible ventures in jails, hospitals, schools, clinics, dentists’ offices to further increase our client base and increase our product and name recognition along with increased profits. 5 Customer Analysis—detailed analysis regarding our customers and any potential customers that we are trying to market. Type: The consumer market that Team 6 Corporation is reaching with our product, Shiny Grillz, is busy travelers, and the people who find themselves at the last minute, in need of a toothbrush and toothpaste that has access to get to the grocery store or convenience store. Value Drivers: We feel that our price point, ease of usage, and immediate benefit will help the consumer to continue to buy our product again and again. Decision Process: We decided to market our product in the convenience stores along with the mass merchandisers because of the simplicity of those stores in what they carry and also the convenience of the consumer to walk into a store and purchase our product easily and economically. Concentration of customer base for particular product: We feel that our concentration of our product should be targeted for people who are in situations in which they need a toothbrush and toothpaste at that moment in time for an economical price along with the convienence of having our product readily available and properly distributed. 6 Competitor Analysis—Analysis of our product compared to our competition—current, future, and potential competitors. Market Position: We have strategically placed our product in the same area as dental products, such as mouthwash, toothpaste, toothbrush, and floss but stand out because we combine these products to become one item and by charging a very low price. Also we would like to have our product in the “impulse buys” area right by the checkouts so that while people are waiting to check out they can see our product and realize that they might have either forgotten that they could use something like that or want to try it and see what Shiny Grillz is all about. Since our product is relatively inexpensive, we hope that consumers will purchase the product to have in case they are ever in a situation that a toothbrush and toothpaste is needed. Our product is very convenient to not have to carry full size toothpaste and toothbrush separately but just one small combination of the two. Strengths: Our products strengths include portability, convenience, inexpensive, only needs water to be activated. Also, our product is disposable and recyclable. Instead of carrying your large toothbrush and toothpaste with you to go stay with a friend, just buy Shiny Grillz small disposable toothbrush with the toothpaste already in it. Weaknesses: 7 We feel that a potential weakness would be seasoned travelers; people who travel frequently have travel kits and or carry their own toothbrush and toothpaste. Market Shares : We will promote this product to anyone who would be traveling, hospitals, school districts, jails, mother to use for their children or for themselves when on the run, and any other corporation that would find it convenient to either sell or use our product for their employees or themselves. Collaborators—potential business ventures with clients to further expand our client base along with increases in sales and profits of Shiny Grillz Possible joint ventures with dentists, hospitals, clinics, jails, airlines, airport stores, health departments; possible business distribution venture with a company that distributes toothbrushes and toothpaste (Crest, Oral B) or mass merchandise retailers such as the Dollar Stores, Wal-Mart, Convenience stores, gas stations, and grocery stores. We feel that these future collaborative endeavors will give our product the recognition that we strive for and the profits that we expect. Climate Political and Legal environment : 8 We will put on every individual package, along with on the main box, which this is only for children 6 and up, we believe that the product is too small to give to a child any younger and would be an increased liability. Economic environment: Shiny Grillz economic environment includes busy travelers, college age students, people who stay out overnight often. Social and cultural environment: Previously stated in an earlier section that in every culture, everyone needs a toothbrush and toothpaste to brush their teeth—cultural norm. Technological environment: We feel that our product requires no technology due to the simplicity of our design. This product is pretty standard—a toothbrush with toothpaste already in it. Possibly need a chemical compound to allow the toothpaste to be activate with water would be considered an aspect of technology or chemistry. SWOT Analysis—analysis of the strengths, weaknesses, opportunities, and threats internally and externally within our environment. Strengths: Shiny Grillz design emphasizes the following qualities: portability, inexpensive, readily available, impulse item. With our design we feel that a possible strategic placement in stores and in vending machines will help promote our product. 9 Another strength is that with our product, the consumer only needs water for Shiny Grillz to be activated. The fact that our product is disposable and easily storable in a car or a bag will help our product sell off the shelves. Weaknesses: Current weaknesses that have been identified within our product include people having travel kits, mints, mouthwash, breath sprays, gum, or even already having a toothbrush and toothpaste in their car or bag. Opportunities: We feel that the ability to have our product readily available in case you find yourself in the situation where you need a toothbrush and toothpaste for the unexpected moments. Future options may include different styles and colors, and with different flavors of toothpaste. In our research we have considered future collaborations into the entertainment and or sports markets for promotions. Threats: Some threats include similar products out on the market, like the travel size toothbrush and toothpaste set. People are not aware of our products existence. IV. Market Segmentation—defined as the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Description : 10 Our product, Shiny Grillz, is a miniature toothbrush that has toothpaste in it. All you have to do is squeeze the disposable toothbrush and the toothpaste comes out. Just add water and enjoy the cleanliness and freshness of your mouth. Percent of sales : We believe 75% of our sales will come from travelers and the remaining 25% will come from at-home consumers What they want: We feel that consumers want a quick, easy, and cheap option to brushing their teeth when they travel or on the go. How they use product: Shiny Grillz is designed to be used multiple times a day, morning and night, after meals. Activate toothbrush with water and use once then place in the recycle bin. Support requirements: The only support that would be needed is in a case of a defective unit or a person not understanding how to operate the disposable toothbrush. Our product will not need a large support team. Most of everyone knows how to use a toothbrush. How to reach them: Advertising—radio, print media in targeted outletsiii Price sensitivity: 11 Our concern for our product and promotion is to make sure the price is right enough to sell product, but be aware that if the price point is too high people will either: deal with the bad breath until they get home, invest in mouthwash/mints/gum/spray, buy a spare toothbrush and toothpaste and just leave it with them in a bag or car, bundling options for buying product in bulk for institutional options. V. Alternative Marketing Strategies—alternative ideas for advancement on the Shiny Grillz product. Alternatives include creating a prototype that had dental floss attached to it, a toothbrush with toothpaste inside the handle, prototypes for electrical toothbrushes (attachment), promoting to colleges, jails, healthcare facilities, hotels, schools, airlines, dentists, offices. Possible placement in vending machines and in the impulse buys areas at convenience stores and gas stations. VI. Selected marketing strategy—defined as the selection and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges within the targeted markets. Product: defined as everything, both favorable and unfavorable, that a person receives in an exchange. 12 Brand name: Shiny Grillz Quality : Perfect Quality for one-time usage. No need to research for sustained usage as the product is disposable Scope of product line: One-time use for fresh teeth and breath. Product line is made for impulse buys. Warranty : Our product has no listed warranty but if you get a defective pack then you can call the number that is on the back of the package and we will send you another one. Packaging: Shiny Grillz is a plastic toothbrush with toothpaste already in it. The toothbrush is wrapped in plastic, disposable, recyclable and includes our company’s phone number along with our product and company name. Price—defined as that of which is given up in an exchange to acquire a good or service List price: Our list price to consumers: $0.99 for 1 and $2.99 for pack of 4 Discounts: 13 Discounts for purchases of larger quantities/ bulk items for institutions and mass retailers and merchandise outlets. Bundling: We do bundling of packs of 4 for $2.99, and we sell to our distributors quantity of 500 and over $0.60 cents each and under quantity of 500 $0.75 each Payment terms and financing options: None, payment due upon received. Leasing options: Leasing of attractive display units for retail stores, convenience stores, and airport stores for more exposure and sales. Distribution (Place)—determining the proper placement of our product to further enhance visibility along with increase profit. Distribution channels, such as direct, retail, distributors, intermediates: Airport stores, airlines, college, dining facilities, convenience stores, grocery stores Motivating the channel: Example, distributor margins – we will sell it to convenience stores, jails, etc for $0.75 per product and over the quantity of 500 $0.60 each Criteria for evaluating distributors: 14 We picked convenience stores, grocery stores, and pharmaceutical stores, and other familiar retails because when you are out of town and forget your toothbrush that is the place you will most likely go to find a toothbrush with the convenience of the toothpaste already in it. Locations: Locations for our product include convenience stores, vending machines, airport stores, gas stations, college campuses, dispensers in the restrooms, grocery stores, and airlines. Logistics, including transportations, warehousing, and order fulfillment: Logistics for our product include transport to airports, colleges, convenience stores, grocery stores, pharmaceutical stores, etc with a truck with the appropriate temperature so that the product does not go bad and will store the product in our warehouse, also with the appropriate temperature, until receive an order for them. Promotion –defined as communications by marketers that informs, persuades, and reminds the potential buyers of a product in order to influence an opinion or to elicit a response. Advertising, including how much and which media: Media (commercials, radio) Public relations: 15 Public relations are considered an important part of the Team 6 Corporation and the Shiny Grillz name. Promotional programs: Advertisements on college campuses, radio stations, commercials, and magazine ads. Budget; determine break-even point for any additional spending : See appendix for charts Projected results of the promotional programs bundled packs sold, how many sold, at what cost, how much: Sold to our distributors for quantity of 500 or more for $0.60 each VII. Short and long-term projections—goals for the short and long term successes of our product and company. Expected long-term results include promotion into the following areas: Airlines, hotel industry, jails, hospitals/clinics, schools, mass retailers, dentists’ offices, offices (corporate), discount stores, warehouse clubs. VIII. Conclusion In conclusion, Shiny Grillz has a bright future ahead due to the wide diversity of consumers who will be attracted to the ease of use, price, and benefit of using this 16 product. Having clean teeth and fresh breath is desired by literally every age group and culture in the world. By using an aggressive advertising campaign in the right markets combined with the expected word-of-mouth we expect to enter the hygiene market with authority! ii See appendix for more about the Oral B Brush ups iiii See appendix for more information regarding the Transportation Safety Authority’s list of acceptable carry on items for travel iii Commercial pitch for radio spot is included in the appendix Appendix: Commercial Pitch for Advertising into the Mass Media: Pitch: Have you ever unexpectedly spent the night somewhere and woke up in the morning realizing that you need a toothbrush? You don’t want to ask the person that you were with—maybe you don’t remember their name if they have a spare? You don’t want to walk around or talk with the horrible “morning breath” do you? Well….we have the product for you……. It’s called Shiny Grillz. Shiny Grillz is a disposable toothbrush that has toothpaste already on it. All you need is water and your morning breath is gone! We also have different flavors just in case mint is not your thing….so now you can keep a few on you for the unexpected emergencies…..and have minty fresh breath in the process! So go to your local store and buy Shiny Grillz...If they don’t have them…then request that they carry them….You now have no excuse for the morning breath..Save that for the dragon. Shiny Grillz……your breath and the other person will thank you!! Advertising Budget: We plan to evenly spend our advertising budget targeting our customers via radio and print media in targeted outlets. 17 Expected Profits 2009 2010 2011 2012 Sales $750,000 $900,000 $1,125,000 $1,462,500 Expenses $400,000 $475,000 $587,500 $756,250 Profits $350,000 $425,000 $537,500 $706,250 Expected percentage sales increase: 2009 -> 2010 = 20% 2010 -> 2011 = 25% 2011 -> 2012 = 30% 18 Oral-b brush-ups? Has anyone seen them in the stores? I've had samples and ran out of them. I can't find them in the stores anywhere!!!! 5 months ago Oral-B discontinued their Brush-Ups product well over a year ago and stores and internet sites have been selling out their stock. There's another similar product called Floss & Wipe (http://www.FlossAndWipe.com) that you can look at. I like them better than Brush-Ups anyway. Ensure all of your liquids or gels are in 3 ounce or smaller containers More than 3 ounces permitted in checked baggage Place those containers in a 1 quart-size, clear plastic, zip-top bag Place 1 bag only per traveler in the security bin for screening TSA’s Travel Tip: 3-1-1 to speed screening! 19 Break Even Analysis FIXED COST VARIABLE COST NUMBER OF UNITS UNIT PRICE NET UNITS 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 $ 4,000 $ 0.20 50 $ 0.99 NET REVENUE FIXED COST VARIABLE COST TOTAL COST TOTAL PROFIT $0 $50 $99 $149 $198 $248 $297 $347 $396 $446 $495 $545 $594 $644 $693 $743 $792 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 $160 $4,000 $4,010 $4,020 $4,030 $4,040 $4,050 $4,060 $4,070 $4,080 $4,090 $4,100 $4,110 $4,120 $4,130 $4,140 $4,150 $4,160 -$4,000 20 -$3,961 -$3,921 -$3,882 -$3,842 -$3,803 -$3,763 -$3,724 -$3,684 -$3,645 -$3,605 -$3,566 -$3,526 -$3,487 -$3,447 -$3,408 -$3,368 Breakeven Analysis $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 $0 0 COST-VOLUME-PROFIT $4,500 NET UNITS (000) 21