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Strategic recommendation to VP of Marketing for Brite-White

Question 21
Your company, UNITED INCORPORATED, markets a variety of consumer products similar to that of Colgate-Palmolive (hairspray, shampoo, deodorant, mouthwash). One of your company's products, Brite-White (a whitening toothpaste introduced in 2002), has a 3.4% share of the toothpaste market as of 30 December 2010. When the product first came out, it garnered about 5.9% market share in its first two years... but a gradual erosion has occurred. Brite-White is marketed by the Personal Products Division and is one of 15 products marketed by this division.

Total dollar sales of these 15 products in 2010 equals 6.51B dollars - net profitability of the division, after taxes, is $317M. Brite White generates sales of $ 123M and generates $4.1M in net profit.

Brite-White's primary competition includes Crest (35% of the toothpaste market), Colgate (33%), Aquafresh (16%), and Sensodyne (8%), These are the Top Four toothpaste products and their market share (at least for this midterm exam question). According to the, US demand for dental products will rise 4.5 percent annually through 2012, aided by favorable population trends and continued interest in cosmetic dentistry. More concern about overall good health will provide added opportunities for mouthwash/dental rinses, sealants, fluoride treatments and other products.

You are the Division Vice President. As such you are responsible for the division's overall growth and overall profitability. Given this responsibility for overall division profitability, what specific strategic recommendation would you make as to what to do with Brite-White? Extensive marketing research done in October 2010 indicated that althought Brite-White is seen as a good toothpaste, there was nothing extraordinary about it and consumers already had "settled in" on their favorite brand, e.g., Crest, Colgate, etc. Brite-White is profitable. What would you recommend? Why?

As you offer your strategic recommendation to the VP of Marketing, provide three (3) benefits AND three (3) risks of your recommendation. Demonstrate critical analysis and critical thinking in your strategic answer that will likely run several paragraphs.

Question 22

Virtually all firms have mission statements to help guide and inspire employees, as well as signal what is important to the firm to those outside the firm. Mission statements are often the product of much deliberation and discussion. At the same time, critics claim that mission statements sometimes lack "teeth" and lack specificity. Other critics will maintain that in many cases, mission statements do not vary much from firm to firm and make the same empty promises.

What is your company's (or former company's) mission statement? You must include this in your answer to receive credit. Comparing the words that your company's mission statement contains, does your mission statement follow that which Kotler suggests makes for a "good" mission statement? Or is your mission statement just words that "look nice" but are not backed up by deeds? Comment and defend your position. If your company's Mission Statement does not meet Kotler's criteria, CREATE ONE that demonstrates a market-focused (not product-focused) Mission Statement.


Solution Preview

1. Brite White is an excellent product. It is however, boring. Like Pepsodent, it has fallen into a category of uninteresting products.

The first thing is to find out what customers are buying in terms of other products, flavors, additives, and innovations.
The second part of the plan should be to analyze which of these would be appropriate for further research within the company's R&D and how to innovate a good solid product into a great one. Based on the information, marketing would then work with R&D to decide on the best product improvements. Approaching the problem from the point of view of health care and use by an ...

Solution Summary

The strategic recommendations to the vice president of marketing for Brite-White is determined. The mission statement is determined.