1. Dr. John’s Products, Ltd.
Shelby Wailes

2. 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

3. 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

4. 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