Dr. John’s Products, Ltd. Shelby Wailes

Qualitative Analysis Technology and Operations Management Technology uses combination of stationary and moving bristles Patented, but still possible for large companies to compete with similar products CEO John Osher: long history of success in entrepreneurial endeavors, goal is to create a great product Sales expert Joe O’Connor: valuable relationship with Walmart, previously responsible for $1 billion in annual business with Walmart, scrappy with guerilla-marketing at soccer matches Profit Formula High profit margin As of date no marketing costs By early 2000 selling 6,000 units per day Customer Value Proposition Simple, cheap electric toothbrush. Feeling of brushing teeth manually with deeper clean Target customer: People who do not want to/ cannot pay for expensive electric toothbrushes currently on the market Go-to-Market Analysis Price $6 or under $5 for major retail chains, much cheaper than competition at average price $50 Lean start-up strategy: Limited test that proved high demand Trade show success with pre-orders from showing hand-made prototypes Difficulties with low lifetime with early units sold $800 million market in the US for toothbrushes, electric toothbrush market growing. Stock Market doing well for similar companies Competition: Potential competion from huge brand One strategy: Partner with Proctor and Gamble to use their brand

Quantitative Analysis Market Potential Global Market for toothbrushes $3.3 billion, US market $800 million Market for electronic toothbrushes increasing Units sold: 6,000 units Average price: ($5+$6)/2=$5.50 Annual revenue: $5.50*6,000*365=$12,045,000 Money raised: $1 million by mid-1998 to launch ($400,000 from Osher and $300,000 from 3 previous managers), $500,000 in late 1999 for initial inventories Procter & Gamble share of the market: 1997: 9.6%; 1998: 10.0%; 1999: 8.4% Market share has decreased from previous year, stock price doing well Private companies’ market share for toothbrushes is only 2.7%, the rest of the market is dominated by 6 major brands with high shares

Recommendation Partner with Proctor & Gamble. Go public The Crest brand is extremely widely known Current success not sustainable if big brand creates competative product, must think about future competition Procter & Gamble has not yet marketed an electric toothbrush Their market share has decreased from the previous year, so they may be willing to put their brand on a new product to gain it back After partnering, Dr. John’s will not need to do expensive marketing campaign, brand name and technology will sell itself John Osher’s goal is to create a product, not a brand by himself Go public Stock prices are consistently increasing in this space Company value would have potential to increase