Download 2015 XLEAR® Marketing Case Competition

 UVU AMA Fall 2015 2015 XLEAR® Marketing Case Competition 2015 UVUAMA XLEAR Case WIN $14,OOO IN SCHOLARSHIP MONEY GAIN MARKETING EXPERINENCE 1 -­‐ 5 MEMBER TEAMS CAN COMPETE •
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• REGISTER BY OCT 28 @ MIDNIGHT WWW.UVUAMA.COM/XLEAR ST
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1 PLACE WINS $8,000, 2 PLACE WINS $4,000, 3 PLACE WINS $2,000 •
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CASE DETAILS •
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PREPARE A WINNING MARKETING PRESENTATION FINALISTS WILL PRESENT TO NATE JONES, FOUNDER OF XLEAR 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 QUESTIONS? •
[email protected] UVU AMA Fall 2015 $14,000 Xlear® Marketing Case Spry Dental Defense Gum UVUAMA Case Competition Brief Fall 2015 Case Purpose Write a marketing plan for the launch of Spry Dental Defense Gum. The focus of the launch is to communicate the most persuasive product benefits in the most compelling way to the target market. Your team will also need to create a strong promotion strategy that will maximize brand awareness and drive sales. Event Timelines Wednesday, October 21: Case kick-­‐off meeting SC 206A @ noon -­‐ 1:00 Wednesday, October 28: 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 30 @ midnight: Deadline to register for case competition at uvuama.com/Xlear® Friday, November 13: Case Competition SB 134 @ noon -­‐ 5:00 The case competition will take place on Friday, Nov 13 in SC 134. 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 Nate Jones, Founder of Xlear® and other Xlear® representatives. Introduction Nate Jones, Founder of Xlear®, and Kent Frogley, the Vice President of Marketing at XLEAR®, are researching the best way to launch a new gum product in the Spry Dental Defense System product line. They have created a new gum with more intense, longer-­‐lasting flavors than the previous line of Spry gum. 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 gum product offering to the target market. Your team will also suggest ideas for how to best promote and launch the product. 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 five-­‐
carbon 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 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 UVU AMA Fall 2015 creating bacteria from adhering to the teeth. To understand more about Xylitol, please read http://bit.ly/1ad4yLU You can also read more 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 gum in its Spray Dental Defense System product line. The gum, which comes in peppermint, spearmint, and wintergreen has the following product attributes: • Stronger longer-­‐lasting flavors • Five exposures of Spry Dental Defense (toothpaste, oral rinse, mints and gum) throughout the day for maximum health benefits • Made from natural ingredients • Better dental health • Safe for sugar-­‐controlled diets • Plant sourced sweetener-­‐not artificial, Xylitol • Dentist recommended • 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 long-­‐
lasting 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. 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 UVU AMA Fall 2015 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, Xylitol-­‐
sweetened 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? 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. 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 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 UVU AMA Fall 2015 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 gum is $2.29 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. Case Questions 1. 2. 3. Market Research: Please discuss the size and competition of the gum market. Using your choice of market research (secondary research, primary research, customer interviews, store observations, focus groups, and customer surveys) conduct consumer research to show what attributes consumers like in their gum. Research consumers’ reactions to Spry Dental Defense Gum in terms of Xylitol, flavors, product name and packaging. 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 whether Spry Dental Defense Gum should expand its target market. Should they target the traditional “naturally-­‐minded female target? Should they target a different segment of the market? If so, who is the new target by demographics, psychographics, and buyer behavior? Suggest triggers that make the consumer purchase the product. Product Recommendations: Based on your consumer behavior research and analysis of the best UVU AMA Fall 2015 target market for the gum, formulate a product strategy recommendation. Think about the product attributes, design, flavors and packaging. 4. Brand Awareness Campaign: Understanding the objective of launching the Spry Dental Defense Gum, 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®® Spry Dental Defense Gum in the market. Please provide specific recommendations and quantity support (research) for your analysis. Advertising: Create an advertising strategy to launch the gum 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 gum. Sales Promotions: Create a sales promotion strategy for the Spry Dental Defense Gum. Analyze and give recommendations for an effective sales promotion strategy. Digital Marketing: Recommend a digital marketing strategy for Xlear® to promotion the Spry Dental Defense Gum. Analyze and give recommendations for a direct marketing, email, Google Adwords, SEO, or social media campaign. 5. 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 on Friday Nov, 13 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. 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 – UVU AMA Fall 2015 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® Spry Dental Defense Gum UVUAMA Marketing Case Competition May the hardest working, most creative team win!!!!!!