NATALIE BECK JEFF MORRIS

ROBERT SIMON

Clean Teeth, Inc.

PRODUCT DESCRIPTION

Part 1

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.

CBP

SatisfactionCustomer ServiceWebsite for InformationDurability Product SafetyTrust

CBP Diagram

Toothbrush

Satisfaction

DurabilityTrust

Product Safety

Customer Service

Website for Information

STRATEGY DEVELOPMENT

Part 2

Strategy DevelopmentAfter 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.

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.

Market Opportunities

Everyone needs one!Input materials are inexpensive and easy to

obtain.

Oral B Colgate

In existence since 1950

Used by more dentists and consumers than any other brand

Founded in 1806Products are sold in

over 200 countries and territories

Main Competitors

Market Threats

Brand recognition Experience

To overcome customer loyalty, we will needto make nice looking, well featuredtoothbrushes that are less expensive.

MISSION & VISION STATEMENT

Part 3

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

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.

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.

DISSATISFIERS, SATISFIERS, AND

EXCITERS/DELIGHTERS

Part 4

Satisfiers Dissatisfiers

Easy Grip HandleBrush IndicatorShaped Bristles

BristlesHandleDurabilityCleans Teeth

Satisfiers/Dissatisfiers

Exciters/Delighters

Outstanding price for amount of qualityUnique colors

CONCEPT DEVELOPMENT

Part 5

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.

Manufacturing Steps

Melt plastic pellets Inject melted plastic into toothbrush moldPlace rubber grip on top of melted plasticFilling machine combines bristles and wire,

then injects into melted plasticBristles are then trimmedEach toothbrush falls into packagePackage is then sealed

Toothbrush Equipment

Packaging Equipment

Fixed Costs Variable Costs

MortgageEquipment CostsSalariesTaxesUtilitiesInsurance

Nylon, Plastic, Rubber, and Metal

Labor

Financial Outlook

Break Even Analysis

Fixed Costs = $51,500,000Variable Price/brush = $1.50Sales Price/brush = $2.50

BE Point: Q = __FC__ = 51,500,000 = 51.5 mil.

SP - VC (2.50 – 1.50)

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.

Preliminary Design and Testing

Curved handle with grip for comfortBristles shaped for nooks and cranniesUnique colors

Testing done on focus groups to determine likes/dislikes.

Machinery Resources

Molding machineryBristle Injector

machineryTrimming

machineryPackaging

machinery

LaborPlantWarehouseInput Materials

Resources and Equipment Needed

FORECASTING DESIGN

Part 6

Colgate Revenue for 2005-2007

2005 2006 2007 $9,500,000.00

$10,000,000.00

$10,500,000.00

$11,000,000.00

$11,500,000.00

$12,000,000.00

$12,500,000.00

f(x) = 2258.87978142077 x − 76452862.431694R² = 0.999903741036747

Colgate Revenue

Years

Tota

l Rev

enue

(in

tho

usan

ds)

5 Year Forecast Using Linear Regression

2005 2006 2007 2008 2009 2010 2011 2012 $-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

f(x) = 2379.04951975708 x − 81082893.6439093R² = 0.99897668185848

5 Year Forecast for Colgate Revenues

Years

Tota

l Rev

enue

(in

tho

usan

ds)

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.

Accuracy Check

Year Forecast Revenue

Actual Revenue

Abs Deviation

1 $50,567 $50,567 $02 $53,708 $53,909 $2013 $56,850 $57,522 $6724 $59,992 $60,005 $135 $63,133 $64,285 $1,152

MAD 407.70MAPE 0.68%

TS 5

Utilize Seasonal Forecasting

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

PRODUCTION CAPACITY

Part 7

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.

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.

Inputs and Outputs

We will use multifactor productivity (MFP).

MFP = ___Price of Toothbrush___ Labor Cost + Materials Cost

= $2.50____ = 1.67/toothbrush ($1.00 + $0.50)