Download XLEAR® Marketing Case Competition

UVU AMA
Fall 2016
2016
XLEAR® Marketing Case Competition
2016 UVUAMA XLEAR Case
WIN $14,OOO IN SCHOLARSHIP MONEY
Competition
GAIN MARKETING EXPERINENCE
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1 - 5 MEMBER TEAMS CAN COMPETE
 REGISTER BY OCT 21 @ MIDNIGHT
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WWW.UVUAMA.COM/XLEAR
1ST PLACE WINS $8,000, 2ND PLACE WINS $4,000, 3RD PLACE WINS $2,000
CASE DETAILS
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PREPARE A WINNING MARKETING PRESENTATION
FINALISTS WILL PRESENT XLEAR EXECUTIVES
BUILD YOUR RESUME
HAVE FUN!
REQUIREMENTS
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ANY UVU STUDENT MAY ENTER
$50 REGISTRATION FEE PER TEAM
CASE KICK-OFF OCTOBER 21 @ NOON
[email protected]
UVU AMA
Fall 2016
$14,000 Xlear® Marketing Case
Xlear & Xlear Max
UVUAMA Case Competition Brief
Fall 2016
Case Purpose
Xlear has recently launched not only a new product, but into new markets. Your assignment is to develop a
brand message that will resonate with the new audience while maintaining the brand authenticity with
loyal customers. Xlear is launching its products into over 25,000 large box retailers and needs your help to
design a messaging campaign.
Event Timelines
Monday October 3,: Case kick-off meeting SC 206C @ noon - 1:00
Wednesday, October 19: Case Strategy Session WB 130 @ noon - 1:00 (Teams discuss their ideas with a
faculty or professional mentor to practice for the competition)
Friday, October 21 @ midnight: Deadline to register for case competition at uvuama.com/Xlear®
*WED/THUR, November 9/10: Case Competition SB 134 @ noon - 5:00
*TBD
The case competition is TBD. Please watch your email for a final schedule with your team’s presentation
time. After the initial round of judging, the finalist will present to executives of Xlear®.
Introduction
Nate Jones, Founder of Xlear®, and Kent Frogley, the Vice President of Marketing at XLEAR®, are interested
in campaign messaging for the launch of their flagship product Xlear and their newest product Xlear Max in
the main-stream supermarket industry. They have developed their product with more benefits, ingredients
and capabilities. They are researching the best way to position and launch the product into the market. As
their marketing consultants, your team will be asked to create a marketing plan that helps them evaluate
the product offering to the target market. Your team will also suggest ideas for how to best promote and
launch the product. Keep in mind these two products do not need two campaigns. They are the same
product with a little different. The Xlear Max is better used when symptoms are at their worse and the
Xlear product is better used as a frequent preventative.
Who is XLEAR?
Nate Jones, Founder of Xlear® wants to change the attitudes of consumers about their oral health. Nate’s
father, a well-respected physician studied ear-infections, asthma and sinusitis in his patients for many
years. After years of study, Dr. Jones read some research about using chewing gum with a unique fivecarbon sugar called Xylitol to prevent ear infections. After reading more research about Xylitol and how it
works, Dr. Jones realized that putting Xylitol in nasal and dental products would be effective in helping to
maintain, restore and prevent sinus and dental problems. As a doctor he tested Xylitol on his patients and
UVU AMA
Fall 2016
found that Xylitol treated upper respiratory problems of his patients without the harmful effects of
addiction that occurs with other leading nasal sprays. He also learned that Xylitol prevents harmful cavity
creating bacteria from adhering to the teeth. You can also read about Xlear® and Xylitol at www.Xlear®.com
and www.Xylitol.org.
Nate saw an opportunity in the market place and decided to start a business which he named Xlear®
(pronounced “clear”). Founded in 2000, Xlear®, Inc. is the leading manufacturers of Xylitol products, and
one of the largest importers of Xylitol in the United States. Xlear® is committed to providing consumers
with the health benefits of Xylitol by manufacturing all-natural, health-enhancing products. Xlear® offers a
line of dental health products under the Spry® Dental Defense System brand. Xlear®, Inc. is a private
company with headquarters in Orem, Utah.
For more information, including MSRP and product features, please visit www.Xlear®.com.
Case Background
Xlear® is launching a new, updated version of its flagship product Xlear – called Xlear Max. Xlear MAX nasal
spray is a homeopathic with the added benefits of capsicum annum 8x and natural aloe. The addition of
Aloe Vera and capsicum to the patented Xlear Nasal Spray formula gives faster relief when you need it.
Historically, capsicum has been used as a natural antihistamine and in clearing sinus and nasal congestion.
Aloe has been added for its soothing and healing properties. Xlear Mas is, essentially a stronger version of
Xlear used when symptoms are more evident.
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Capsicum for greater relief
Aloe Vera to soothe irritated tissues
Made from natural ingredients
Moisturizing solution
Opens the airway
Homeopathic
Made in the USA
What is Xylitol
Xylitol has a wide variety of uses and benefits, from improving the health of your teeth to maintaining
upper respiratory health. When properly used, Xylitol results in fewer incidents of tooth decay.
It’s Effective -- Frequently eating foods high in sugars and starches can promote tooth decay. Xylitol may
reduce the risk of tooth decay. Many large-scale clinical studies have shown it to be related to having longlasting dental benefits. Over 25 years of clinical testing confirms that Xylitol is the best sweetener for teeth,
which has led to official endorsements by dental associations in Finland, Norway, Sweden, England, Ireland,
Estonia and the Netherlands of products containing high levels of this sweetener.
It’s Natural -- Xylitol is right here, inside, already. Our bodies naturally produce from 5 to 10 grams every
day from other food sources using established energy pathways. It is not a strange or artificial substance,
but a natural, normal part of everyday metabolism. It is widely distributed throughout nature in small
amounts, with some of the best sources being delicious fruits, berries, mushrooms, lettuce, hardwoods,
and corncobs.
UVU AMA
Fall 2016
Xylitol is Safe and Convenient -- In the amounts clinically proven to provide amazing oral health benefits
(less than 15 grams per day), it is safe for everyone, and can be conveniently delivered to your teeth via
chewing gum, tablets, toothpaste, mouthwash, or even candy. You can implement your Xylitol program
anywhere, anytime. It fits right in with the most frantic schedules. If chewing is uncomfortable, Xylitol mints
or candies can also stimulate saliva, the natural tooth protector. You don’t need to change your normal
routine to make room for Xylitol.
Xylitol is Something You Can Enjoy -- Some health regimens require iron willpower, discipline, and
commitment. But because it tastes so good and sweet, using Xylitol becomes automatic. Adults and
children love it, so there is no need to constantly remind the kids to take it. Choosing healthy options can
give you a great sense of fulfillment and results.
The unique ingredient in the gum is the five-carbon sugar called Xylitol. Xylitol is categorized by the U.S.
Food and Drug Administration as a food additive. Like other sugar alcohol-sweetened products, Xylitolsweetened products are allowed to be labeled with the claim that they do not promote dental cavities.
Because Xylitol is a sugar and not a drug, the advertising rules for Xylitol are undefined and clear cut
guidelines do not exist. Marketing copy cannot make claims about the health benefits or prevention of the
Xylitol; however, advertising photos and illustrations may show the benefits and preventative nature of the
products.
Brand awareness
Discussing the benefits of Xylitol has been the company’s marketing messaging for the last decade. In
addition to offering reports on the benefits of Xylitol, Xlear® also work with medical and dental
professionals to in educational efforts about the health benefits of Xylitol to share with their patients. Is
this the best marketing tactic for the company? Should the company continue to focus on the Xylitol
messaging or should it consider a different messaging strategy that highlights other benefits that may be
important to the consumer. Is there a successful way to combine the Xylitol messaging with another type
of messaging? As Xlear enters a new market and introduces new audiences and competitors what changes
will they need to make to their messaging?
Competition
Because Xylitol is not protected by a patent, other companies may enter the Xylitol market place. Xlear®
has patents on the toothpaste and oral rinse. The company would like to build general brand awareness
about Xylitol in the hope of changing consumers’ perceptions about their products. In addition to
competing against the more traditional gums, Xlear® will also need to fight competition from new products
in the natural foods market and now, directly (side-by-side) with competitors in major grocery chains all
over the nation.
FDA Government Advertising Regulations
In 1995, The Food and Drug Administration (FDA) relaxed its policies about Direct-to-Consumer
pharmaceutical advertising as long as pharmaceutical companies followed stringent advertising guidelines.
This change in policy created an opportunity for pharmaceutical companies to advertise their products
directly to consumers bypassing the health care professionals. However, it also created a regulation body
UVU AMA
Fall 2016
that oversees advertising in the country. Xlear® is in a difficult position because it is not technically
classified as a drug; however, the FDA still regulates its advertising. As John Peterson, Marketing Manager
at Xlear® said, “With regards to what you can and can’t say about our products in advertising, there is
nothing spelled out and there is not a website to give clear direction.” Some at the FDA suggest the
advertisers can show any picture they want to show the product, but the words choice for advertising is
highly scrutinized. Nate Jones explained it by saying, “That is the million-dollar question . . . neither we nor
the FDA are sure where we are classified as in terms of a drug or a food. We are not a supplement, but we
are not a drug, either. We are tentatively classified as a food additive, but that classification is shaky.” To
understand the regulations for drugs and other types of foods, please see www.fda.gov. Nate sums up the
advertising rules when he said, “In order to be a drug, you have to actively kill an invading organism
(antibiotics, chemo, radiation), change the structure or function of the body (steroids, a lot of diabetic
drugs, etc), or be perceived as a drug. Xylitol does not actively kill anything. Xylitol kills the organism
passively by starvation and preventing adherence to the teeth.” Nate wonders how he can create a
promotional marketing campaign that communicates the features and benefits of the product while
following the murky FDA regulations.
Target Market
Traditionally, Xlear® products which include the Spry Nasal Spray, Spry Toothpaste and Spry Oral Rinse
products have been targeted at the “naturally- minded” mostly, female consumer segment. Distribution of
the product began in the health food distribution channel with retailers like Whole Foods and Sprouts. Over
time the distribution has begun to reach major retails like Amazon, CVS and Target. Expanding distribution
from natural product retailers into mainstream grocery, drug and big box retailers requires reevaluation of
messaging, target audience and marketing tactics and vehicles. What marketing messages and tactics
should change to appeal to a larger target market?
Price and Place (Distribution)
The retail price for the Xlear Max 1.5 fl. Oz. is $14.99 and it will be sold in the usual health food channels
like Sprouts Farmer Market, Whole Foods, and in mainstream grocery and drug stores like CVS, Target and
others as well as online at Amazon. The company is wondering what the best type of promotions might be
to launch the product. They also sell it as .75 fl. Oz. ($6.99 SRP) and a 3 pack of .75 fl. Oz. ($18.99)
Case Questions
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Market Research: Please understand the new market segment; launching Xlear Max into 25,000
major retail locations. Using your choice of market research (secondary research, primary research,
customer interviews, store observations, focus groups, and customer surveys) conduct consumer
research to show key attributes, benefits and value proposition in Xlear’s space. Research
consumers’ reactions to Xlear and Xlear Max in terms of Xylitol, flavors, product name and
packaging.
2.
Target Market: Evaluate the current naturally-minded, predominately female target including
demographics, psychographics, and buyer behavior. Please illustrate the triggers that make the
target market purchase the product. Evaluate competitors and messaging techniques. How should
Xlear position itself in the market? How is pricing/benefits going to play into messaging. How does
UVU AMA
Fall 2016
Xlear launch a new product to a new demographic?
3.
Brand Awareness Campaign: Understanding the objective of launching Xlear Max, please discuss
ways your team will create brand awareness using the promotion mix elements for a product
launch. Using the promotional mix provided below, create a launch strategy for Xlear Max into the
market. Please provide specific recommendations and quantity support (research) for your
analysis.
Advertising: Create an advertising strategy to launch Xlear Max into the marketplace. Think about
traditional advertising like TV, billboard, print, and radio using campaign tagline(s)/themes. Suggest
words and phrases that are FDA regulation friendly while creating a positioning for the product in the
consumers’ mind.
Public Relations: Evaluate the current PR strategy being used by Xlear® to promote Xylitol in the
market. Analyze and give recommendations for how to create more brand awareness through a
public relations campaign for the Xylitol and Xlear Max.
Sales Promotions: Create a sales promotion strategy for Xlear Max. Analyze and give
recommendations for an effective sales promotion strategy.
Digital Marketing: Recommend a digital marketing strategy for Xlear® to promote the Xlear and Xlear
Max product to the new demographic. Analyze and give recommendations for a direct marketing,
email, Google Adwords, SEO, or social media campaign.
4.
Budget: Using a $2 million promotional budget, develop a comprehensive marketing campaign.
Deliverables
Each team will prepare a PowerPoint slide deck and a 12-minute oral presentation that explains their
findings and recommendations to the marketing problems. Your team will present for 12-minute and you
will answer 3 minutes of Q & A between noon and 5 pm. Your team will bring the PowerPoint presentation
on a thumb drive to the presentation. When you have finished with the presentation, you will give the
thumb drive to Xlear®. Xlear® will retain ownership of your presentation and the thumb drive. The thumb
drive will not be returned to your team.
UVU AMA
Fall 2016
Judging Criteria and Prizes
Presentations will be judge using the following rubric as a guide:
Market Research 10%
Target Market Analysis 10%
Brand Awareness Campaign –
Advertising 30%
PR 10%
Sales Promotion 10%
Digital Marketing 30%
Based on the scores from the above rubric and the overall value delivered, the top three teams
will be awarded the following prizes:
1st Place Prize: $8,000
2nd Place Prize: $4,000
3rd Place Prize: $2,000
Thank you for participating in the
$15,000 Xlear® Xlear Max
UVUAMA Marketing Case Competition
May the hardest working, most creative team win!!!!!!