1. Dr. John’s Products, Ltd. Case Study
Lauren Katz
4/26/2016

2. Qualitative Analysis Customer Value Proposition
SpinBrush: low-cost, high-quality, and simple electronic toothbrush
Low-cost gives it a huge competitive advantage in the electronic toothbrush space($6 vs. $50)
Shortcomings: water damage, wear out of brushes
“try-me” packaging and unique power/movement
Testing / MVP
Interviews with potential customers reveals high-cost objection and desire to maintain traditional way
Meijers sells significantly more than competition
NACDS2 Trade shows
Competitors:
Other electronic toothbrushes are too expensive
Competing with major brands such as Colgate and Crest that could easily enter this market for low-cost electronic toothbrushes  risky
Go-to-Market Plan
Global market: $3.3bil, US market: $800mil
Plan for direct distribution with large retailers avoid unnecessary costs, have credibility
Potential partnership with Crest to gain brand awareness would reduce risk of competition from other big brands
Used some guerilla-marketing
Handed out free toothbrushes giving people the product was effective
“try-me” packaging feature
Innovative and effective for sales
Technology and Operations Management
Patents on the power and packaging
Patent will not prevent other companies from developing similar tooth brushes since the patent is specific to angles and motions
Outsource
Chinese manufacturing partner reliable
Seeking computer system to track information
Team
Small and extremely qualified have credibility
Osher not specialized in oral care or big businesses but innovative and successful. Came up with small businesses and selling them
Profit Formula
$6 through FDM , $5 through retail giants

3. Quantitative Analysis
Revenues= 6000units * $5.50(average of $6 and $5) = $33,000/day$12,045,000/yr
Profit margins are attractive and high growth rates are sustainable
Reports from testing show that SpinBrush sales were 7/day per store while typical toothbrushes sell 1/week per store
In 2000 they were selling 6,000 units per day
Economy/stock market is booming
$9,274 billion GDP  people are more likely to spend money right now  good for sales  will it be this good later?
Global market size: $3.3 billion; US market size: $800million  if they can scale internationally, they would have a huge target market
Merger and Acquisition Transactions increased from $831.9billion to $1,480.7billion in just two years
Huge jump if they want to sell the company now is a great time
VC return/investments  huge increase
Procter & Gamble
Highest stock prices of selected consumer goods companies
Market share: 8.4 low compared to other companies
Assets and Investments:
1998: raised $1 million, invested his own $400,000, other managers invested total of $300,000
1999: raise additional $500,000

4. Recommendations: Sell company:
Sell company to Procter & Gamble  have an upcoming meeting with them
The extremely high economy/stock market and merger and acquisition transaction make it a perfect time to sell the company for a great return
Osher has no experience running a big business or in the oral care industry the huge companies he is hold great market share and have the technology to reproduce his weakly patented toothbrush  too risky
Osher has been successful in the past building companies and selling them for a high profit
Appeal to the fact that P&G needs SpinBrush since they are not in the electronic toothbrush market yet, and this will advance their comparatively low market share
Other Recommendations (Especially if P&G sale does not work):
Fix the water damage issue increase consumer retention rate
Patent any and all new features keep competition out for as long as possible
Alternative options are less promising:
Build a new company known for innovative products
 Unlike his experience with baby toys, there is little innovation potential in the toothbrush industry and bigger companies would continue to keep up with their new innovations.