Professional Documents
Culture Documents
Brand Extension
Ebube Anizor (209347741) 11/12/2009
For the majority of the last 50 years Crest has been on top of the oral health market1 in North America. Our history and trust amongst consumers has enabled Crest to grow from its toothpaste heritage to what now seem like natural extensions into the broader oral health segment: toothbrushes, mouth rinses, floss and home whitening. As a consequence consumers now associate beautiful smiles and healthy teeth with Crest. We find ourselves at yet another juncture; where the opportunity to leverage our hard-won equity and grow into new categories must be considered. After careful evaluation into what defines the Crest brand and the general environment of the oral health industry it is clear that attractive opportunities to further extend the Crest brand exist. This proposal details my recommendation to extend the Crest brand in Canada into the dental gum category opening Crest to a share in the $400 million segment in Canada - and is supported by a rationale that respects the brand identity, current product portfolio and Crests position in the P&G family.
In the toothpaste category the health or beauty benefits of the product is integrated into the naming and resulting brand strategy (e.g. Crest Pro-Health, Crest Whitening). Toothpaste being core to the Crest business sub brands like Pro-Health or Sensitive play slave and co-driver roles in the spectrum
In the toothbrush category the focus around key Crest attributes is poorly evident. The category is centred on childrens products and co-branded with Sesame Street. P&G mostly offers toothbrushes via the Oral-B brand; if a priority shift occurs then Crest will need to re-consider its branding this area.
The floss category focuses primarily on health; with whitening and comfort being sub-benefits. Crest entered this category via the purchase of the strong Glide brand and plays a moderate endorser role
The rinse category is configured similarly to toothpaste in brand relationship and naming structure The whitening system category by definition endorses white teeth; products within this category then essential trade on the strength or potential capability of the product
Target Market
The Crest target demographic is very broad for the toothpaste business, child focused in the toothbrush business and primarily focused on adults in the rinse, stripes and floss businesses.
If the categories are in fact growing and have value yet to be extracted then Crest should avoid expansion. These businesses represent our core competencies developed over decades and expanded only after careful consideration. As an exception, if extending to a new category represents a unique opportunity that cannot
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be passed. The obvious example is Whitestrips which arguably created the home tooth whitening category now worth $500 million5, even in the midst of healthy growth in our core categories. As a growth driven business financial relevance must also be satisfied regardless of the climate of the current business (described above) and other brand factors (described below). As such: Expansion into the new category must produce a percentage growth in revenue that exceeds the expected growth in current categories over a 5 year span (i.e. opportunity cost) Required investments in expansion efforts should be proportioned to the potential return
Factors
When evaluating category extensions fit, value and brand equity are broad factors that must be considered.6
Fit
Must provide logical links and associations with oral health Must have clear value offerings of health and/or beauty (whiteness) and/or fresh breath The target consumer of the extension most provide a positive association for Crest7
Adding Value
Associating with the Crest brand is an obvious help to the new offering Must be a clear and distinct value proposition between current offerings and new category (customers are already fatigued and confused by the variety of products currently offered)
Does extension enhance Crests equity and grow its association with healthy, beautiful smiles Must not degrade Crests toothpaste business as this is both our heritage and core business Should not conflict with other offerings in P&Gs stable Can associations with other products in P&Gs broad personal care roster grow both businesses
New Brand
In instances when the category opportunity is substantial but the risk to the Crest brand is also substantial Crest should consider spinning off a new brand. In some cases Crest can play a lower risk weak-endorser role
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to help leverage equity. If not possible, the new brand can still avail itself of Crests market presence, distribution channels, human and other resources. Aspects of this policy are expanded further in Appendix C.
Naming Policy
An effective brand portfolio and naming structure helps to clarify the product offering for employees, partners and most importantly customers.8 Crests integral toothpaste category currently has 41 products; this volume underscores the important of an effective naming strategy. In Appendix B an audit of the naming structures across the categories was undertaken; minor recommendations were made in the toothpaste category for the Expressions and Whitening sub-brands to lessen the confusion and succinctly describe the core offerings. Appendix D outlines a policy for naming products going forward. In a nutshell the policy aims to brand products that strongly associate with Crests whiteness, health and fresh attributes as Crest products; products that go beyond our core will have a new brand with weaker links (or no links at all) to Crest. In all cases branding should not have more than 3 levels i.e. Crest sub-brand/primary benefit secondary benefit. Anything beyond that leads to confusion and shows that Crest is not clear about the value proposition. The only exception to the preceding would be to products that have plus Scope this is because the Scope is a brand unto itself and provides value to the offering.
Brand Extension
The attributes associated with Crests brand identity (Appendix A) spawned many associations that provided links to other categories such as health drinks, breath fresheners, medicines and even dentistry (Appendix D). However when viewed in the light of the Brand Extension policy described above and additional criteria such as organizational capability (Appendix D) the categories had to be abandoned to focus on two categories with the most promise: dental gum and denture cleaning.
The following summarizes how the denture cleaning category suits Crests branding policy. Further detail provided in Appendix D. Fit o Denture cleaning is part of the oral health market so there is a logical link o Offers the clear value / benefit of white teeth o Association with older target market may have negative associations and is not consistent with Crests marketing communications (skewed younger) Value o Consumers will not be confused about the offering of whiter dentures, its a logical link o Strong association of Crest brand and whiter teeth amongst all target consumers Equity o Does not conflict with any Crest offering; but P&Gs Kleenite is a denture cleaner o Could be co-branded with Kleenite to raise the fortunes of both brands Financial o Size of the denture cleaner market is expected to decline 15% over next 5 years (in the US) Other o 3 main brands in this category, so Crest could compete; although Colgate could easily follow
Recommendation
After evaluating both options, extending into the dental gum category was deemed to the have the most promise (Appendix D). Customers will be able to view the leap in to dental gum as a natural extension; while moving into the declining denture cleaners market is not financially sound, ages the brand and hurts its equity.
Launch
Product
A line of dental gums under the Crest Cavity, Crest Pro-Health, Crest Expressions and Crest Whitening brands. This helps to link to established products and brands in the other categories and provide a clear consistent message to oral health consumers. Additionally the key benefit each provides is clear Sample names include: Crest Pro-Health Dental Gum, Crest Expressions Dental Gum Wild Berry Offered in 12 to 14 piece packages that distinguish it from regular chewing gum
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Place
To avoid being lost in the clutter the gum should be offered primarily in the dental/oral hygiene aisle. This will necessarily require more marketing effort so customers know where to look With the endorsement of the ADA/CDA, the opportunity to promote at dental offices can be taken. Many offices now have a closed-circuit digital systems that can feature product ads/information
Price
A premium price of $2.50 to $3.50 per packet will signal to the consumer that the proven therapeutic result it achieves is worth the price. Similar products range from $1.50 to $2.50.
People
Crest can use its scientific / innovative origins and resources as a differentiator Crest (and P&G) has the marketing and channel expertise to enable a successful launch
Positioning Statement
For those that love that fresh, healthy, shiny feeling that you get after brushing your teeth, Crest Dental Gum gives you the fresh, healthy bright smile that Crest has been delivering your entire life. With our revolutionary whitening ability, tooth decay fighting ingredients and great flavours, Crest Dental Gums give you that freshness and benefits of brushing your teeth, in the convenience of a gum.
Summary
As mentioned at the outset, Crest has an opportunity extend its hard earned equity into a new category that for consumers will be a natural extension of what they have come to know and trust in Crest products. By following the recommendation and executing the proposed marketing plan the extension will benefit from: 9 Improve brand image: dental gum will be better trusted leveraging Crests reputation Reduce perceived risk: likelihood of trial and distribution increased with Crests endorsement Marketing efficiency: dental gum can be positioned as extension of oral health program
New customers: market is growing for non-sugar & therapeutic gum Increased market coverage: Crest & P&G do not have products in the space Clarify brand meaning: extended to gum with therapeutic benefits solidifies Crests value proposition
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Product
Scope (oral hygiene) Toothpaste Mouthwash Floss Toothbrushes White Strips Attributes Healthy Child Friendly Flavourful Fresh/Refreshing Trustworthy Quality/Value Top brand Keeps teeth healthy & white Range of prices Use Experience Fresh tasting Healthy results Users Everyone Professionals/Denti st Marketed to < 40 Country of Origin USA
Organization
Attributes Large Successful Scientific
Person
Personality Young Fun Attractive Reliable Trustworthy Customer/Brand Relationships Loyalty
Symbol
Visual Image and Metaphors Shiny & bright smiles Brand Heritage N/A
Toothpastes
Toothbrushes
Floss
Rinse
Whitening System
Regular
Gel
Liquid Gel
Striped
Kid's
Youth
Regular
Picks
Threader
Rinse
Mouthwash
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Toothpaste Regular
Crest Cavity Crest Kid's Crest ProHealth Crest Sensitivity Crest Tartar Control Crest Cavity Crest Kid's
Gel/Liquid Gel
Crest Extra Whitening Crest Multicare Whitening Crest Natures Expression Crest Plus Scope Crest Tartar Crest Whitening Expressions Crest Wild Expressions Crest Vivid White Night
Striped
Crest Whitening Expressions Crest Whitening Crest Baking Soded & Peroxide with Tartar Crest Extra White Plus Scope
Regular
Sesame Street
Regular
Tartar Protection
Whitening
Plus Scope
plus Scope
plus Scope
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Toothbrushes Kid's
Licensed Brand (Sesame Street) Character
Figure 3: Toothbrush Brand Hierarchy
Youth
Regular
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Floss
Regular Floss Picks Crest Glide
Shred Guard Whitening
Crest Glide
Comfort Plus Deep Clean
Original
with Scope
Figure 4: Floss Brand Hierarchy
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Rinses Rinse
Crest Pro Pro-Health Enamel Shield Night Rinse
Figure 5: Rinse Brand Hierarchy
Crest Whitening
Scope.com FAQ
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Notes: Large competitor base, association with candy may hurt healthy identity, good association with fresh break, reinforces youthful market image Dental services o Cosmetic (teeth whitening) service stationary or mobile o General dental care (branded dental centre/franchise) Notes: Dont have core capabilities, possible issue of consumer trust with Crest service/recommendations since both a supplier and service provider, consumers have generally negative associations with dentists Mouth medicines o Tooth aches Notes: Positive connotations by helping people feel better, negative connotations with pain and dentistry From the above list the most promising options chewing gum and denture cleaners were selected for deeper evaluation. Dentistry/Whitening service is also examined to investigate the possibilities of fundamentally extending the Crest brand into services which may not seem like a logical avenue.
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Dental Gum
Crests healthy, whitening and fresh breath benefits can possibly be combined into a healthy chewing gum. Practically speaking the attributes may lean more towards fresh breath but the category can fit with Crests generally youthful messaging and reach the broadest range of consumers. The negative connotations that may be associated with chewing gum (e.g. sugar, tooth decay, etc.) could lead to negative brand associations. Prior efforts in the past to combine Crests science with Wrigleys market expertise and power have gone unnoticed. Currently Crest whitening science is used in Wrigleys Orbit gum, serving more of an ingredient brand11 role and therefore not marketed as a Crest product. Research shows that chewing sugar-free gum after eating is clinically proven to be an important part of good oral health. It stimulates the most important natural defence against tooth decay - saliva - which, in turn helps fight cavities, neutralize plaque acids, remineralize enamel to strengthen teeth and wash away food particles. 12 The American Dental Association has accepted sugar-free Orbit gum, so entering the space with Crests background and expertise along with CDA/ADA endorsement can be an advantage. The CDA does not currently recognize any the dental/therapeutic gum o Within two years of its ADA acceptance, Crests toothpaste sales nearly tripled, pushing Crest well ahead as the best-selling toothpaste in the United States (1960)13; so endorsements in gum category can grow sales There are many competitors in the general chewing gum category so Crest would have to offer a different value proposition. P&G does not have any offerings in this category so there will be no cannibalization issues. Trident White is probably best know product in sub segment but lacks oral health credibility Colgate has a branded dental gum only marked in the UK Nearly 68.7 Million Chew Sugarless Gum; 10.3 Million Chew Dental Gum (USA)14 Chewing gum market is $4.9 billion in North America; Sugar free sub-segment $378 million in Canada (2007)15
Denture Cleaner
While Crest has always been targeted to the entire family for entire life, communications have generally featured/targeted for young audiences and certainly not seniors. So moving into the denture cleaner area ages Crest somewhat and should be a consideration in how any products are branded or if the category is even entered. As people live longer and the demographics skew, a growth in denture wears may occur. Toothpaste is too rough on dentures, Crests rinse technology may be more appropriate Provides an opportunity to play up Crests scientific origins Fixodent part of P&Gs denture offering but only in adhesives. Fixodent with Scope cleaner also offered. 18
Kleenite part of P&G stable. Could co-brand with Crest; e.g. Kleenite with Crest. Could also abandon subordinate Kleenite brand because Crest is one of P&Gs billion dollar brands and warrants the status; e.g. Crest Whitening Denture Cleaner or Crest Kleenite Denture Cleaner. Competition is primarily Polident (GSK) and Efferdent (J&J) Nearly 27.2 Million People Use Denture Cleansers16 Denture products $405 million17 (2008). Denture Products to Continue Slide to $346 Million18 (2014)
Dental/Whitening Service
The popularity of Whitestrips met a latent consumer desire for white teeth without inconvenience and cost of traditional services. Leveraging its popularity in this area Crest could explore opening or endorsing a chain of centres focussed on whitening and other basic dental care for children and adults. The centres could provide a different experience and take away the stigma of dental visits.
Evaluation
The feasible options have been narrowed down based on criteria that centre on fit, value, equity, opportunity and capability. Each criterion has been given a ranking from 1 to 3 (3 being the most important) and weighted according to its importance in the evaluation scheme. Criteria Option 1 Option 2 Option 3 Weight Chewing Gum Denture Dental/Whitening Cleaner Service Fit/credibility 2 2 4 6
Promotes healthy teeth and beautiful smile
Success Factors
Do Crest strengths align with key needs
2 2 1.5 1 1.5 1 1 1 1 1
4 6 4.5 1 3 2 3 2 3 3 34.5
6 4 3 3 2 1 2 3 2 2 32
2 2 1.5 2 1 3 1 1 1 1 21.5
Business Opportunity
Size of category warrants effort
Differentiation
Is new value proposition offered
Defensible
Compete with incumbents and fend off competitors
Market Growth
Stagnant, shrinking or growing
Adding value
Does not cannibalize existing Crest or P&G business
Brand equity
Enhanced or tarnished by entry into new business
Organizational capability
Existing or easily attainable skills
Brand aspirations
Alignment with overall Crest goals
Professional Recommendation
Dentist endorsement likely
Total
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Colgate/ Crest: Brand Profiles, http://www.adbrands.net/us/crest_us.htm, accessed November 2, 2009 Datamonitor, Canada-personal products (2004) 3 Crest , http://www.americasgreatestbrands.com/volume7/assets/AGB%20pdfs/AGB%20Crest.pdf, accessed November 10, 2009 4 Light, Lary; Kiddon, Joan. Brand Revitalziation. Wharton School Publishing 5 Extensions: Crest Biting Back With Whiter Strips http://www.allbusiness.com/marketing-advertising/branding-branddevelopment/4681531-1.html, accessed November 10, 2009 6 Aaker, David; Joachimsthaler, Erich. Brand Leadership. The Free Press. 7 Tybout, Alice M.; Calkins, Tim. Kellogg on Branding. Wiley 8 Aaker, David; Joachimsthaler, Erich. Brand Leadership. The Free Press. 9 Lecture #6 10 Benefits (from Crest.com) : Professional Care | Experience | Cavity Fighting | Easy on Sensitive Teeth | Whitening | Kids | Breath Freshening 11 Tybout, Alice M.; Calkins, Tim. Kellogg on Branding. Wiley 12 Oral Health Benefits, http://www.wrigley.com/global/benefits-of-chewing/improve-oral-health.aspx, accessed November 11, 2009 13 Crest , http://www.americasgreatestbrands.com/volume7/assets/AGB%20pdfs/AGB%20Crest.pdf, accessed November 10, 2009 14 Press release, http://www.reuters.com/article/pressRelease/idUS137206+14-Apr-2009+BW20090414, accessed November 10, 2009 15 The Canadian market for confectionary gum products, http://www.ats.agr.gc.ca/can/4500-eng.htm, , accessed November 11, 2009 16 Press release, http://www.reuters.com/article/pressRelease/idUS137206+14-Apr-2009+BW20090414, accessed November 10, 2009 17 ibid 18 ibid
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