Situational Analysis

Marketing Plan Outline – Situation Analysis

Part A.

I. The current state of the economy, and any changes do not have a significant effect towards the Oral and Hygiene product industry by itself. While the industry is not immune and suffers on the bottom line like most other US companies, the nature of the industry tends to have stability during up and down times. The oral and hygiene products industry deals with consumer necessities and staples that are consider essential for general living. These products are often the last to be cut in times of economic stress. Therefore the industry, and its leaders, have held stable positions in terms of revenues and profits with the necessary consumer products. P&G, Colgate-Palmolive, J&J, Glaxosmithkline, Unilever and Church & Dwight’s make up the majority of the consumer oral and hygiene products. These companies have fared reasonably well on a income statement level. All of the companies have kept a mix of small declines, no-change, or increases in revenues over the past 3 years. On a consumer products level alone, these companies have been extremely stable in their revenues and net profits. The companies all contain multiple brands within the industry which makes for a very concentrated competitive market. Therefore the industry is focused more on each other in terms of competition than looking at macro-economic trends that will drive their business. While general market and economic improvements will no doubt help these companies.

II. The oral and hygiene industry has heavily penetrated every demographic in America. The Oral industry alone fits a necessity for any age, location, gender, salary, education, etc. Children are introduced to numerous “fun” ways to keep their teeth clean. Teens and adults are constantly using new products for whitening and oral care. The elderly use similar products but also fill the market for denture care. No matter who the consumer is and no matter where they are, they...