Project 1

Report
Clean Teeth, Inc.
NATALIE BECK
JEFF MORRIS
ROBERT SIMON
Part 1
PRODUCT
DESCRIPTION
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
 Satisfaction
 Customer Service
 Website for Information
 Durability
 Product Safety
 Trust
CBP Diagram
Satisfaction
Customer
Service
Website for
Information
Toothbrush
Durability
Trust
Product Safety
Part 2
STRATEGY
DEVELOPMENT
Strategy Development
After scanning the environment, we found:
 Basic toothbrushes fall within a price range of $2
to $5 .
 Many toothbrush manufacturers have wellrecognized 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.
Main Competitors
Oral B
Colgate
 In existence since 1950
 Founded in 1806
 Used by more dentists
 Products are sold in
and consumers than
any other brand
over 200 countries and
territories
Market Threats
 Brand recognition
 Experience
To overcome customer loyalty, we will need
to make nice looking, well featured
toothbrushes that are less expensive.
Part 3
MISSION & VISION
STATEMENT
Mission and Vision Statement
Mission Statement
 To help people keep
their teeth clean and
healthy with our
affordable, high quality
toothbrushes.
Vision Statement
 We hope to make
strides toward
decreasing the
occurrence of dental
illness with the use of
our toothbrushes.
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.
Part 4
DISSATISFIERS ,
SATISFIERS, AND
EXCITERS/DELIGHTERS
Satisfiers/Dissatisfiers
Satisfiers
Dissatisfiers
 Easy Grip Handle
 Bristles
 Brush Indicator
 Handle
 Shaped Bristles
 Durability
 Cleans Teeth
Exciters/Delighters
 Outstanding price for amount of quality
 Unique colors
Part 5
CONCEPT DEVELOPMENT
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 mold
 Place rubber grip on top of melted plastic
 Filling machine combines bristles and wire, then
injects into melted plastic
 Bristles are then trimmed
 Each toothbrush falls into package
 Package is then sealed
Toothbrush Equipment
Packaging Equipment
Financial Outlook
Fixed Costs
Variable Costs
 Mortgage
 Nylon, Plastic, Rubber,
 Equipment Costs
and Metal
 Labor
 Salaries
 Taxes
 Utilities
 Insurance
Break Even Analysis
 Fixed Costs = $51,500,000
 Variable Price/brush = $1.50
 Sales 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 comfort
 Bristles shaped for nooks and crannies
 Unique colors
 Testing done on focus groups to determine
likes/dislikes.
Resources and Equipment Needed
Resources
Machinery
 Molding machinery
 Labor
 Bristle Injector
 Plant
machinery
 Trimming machinery
 Packaging machinery
 Warehouse
 Input Materials
Part 6
FORECASTING DESIGN
Colgate Revenue for 2005-2007
Colgate Revenue
y = 2265.1x - 8E+07
R² = 0.9999
$12,500,000.00
Total Revenue (in thousands)
$12,000,000.00
$11,500,000.00
$11,000,000.00
$10,500,000.00
$10,000,000.00
$9,500,000.00
2005
2006
Years
2007
5 Year Forecast Using Linear Regression
5 Year Forecast for Colgate Revenues
y = 2384.8x - 8E+07
R² = 0.999
$18,000,000.00
Total Revenue (in thousands)
$16,000,000.00
$14,000,000.00
$12,000,000.00
$10,000,000.00
$8,000,000.00
$6,000,000.00
$4,000,000.00
$2,000,000.00
$2005
2006
2007
2008
2009
Years
2010
2011
2012
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
$0
2
$53,708
$53,909
$201
3
$56,850
$57,522
$672
4
$59,992
$60,005
$13
5
$63,133
$64,285
$1,152
MAD
407.70
MAPE
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.
Part 7
PRODUCTION CAPACITY
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)

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