This 10 page paper examines a case study supplied by the student. Fresh Breath, who produce a mouthwash are looking to expand into toothpaste. Their current operations consist of mostly part tine staff, and this move will mean for the first time, they are entering a market where they will be competing against major companies such as GlaxoSmithKline and Colgate-Palmolive. The paper stars with a market analysis, looking at the current position of the oral healthcare market in the UK, a literature review on virtual operations, such as Fresh Breath is followed by a SWOT analysis. This information is used to create recommendations. The bibliography cites 7 sources.
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and gives the user fresh breath. Fresh Breath bought the licence for this from Tel Aviv University seven years ago. The company is currently developing a toothpaste that has similar
properties which it intends to market and now wants to analysis the current position and how it may best proceed. For this we first need to look at the market
in which the company operate and then the product themselves. A literature review of virtual operations can then be followed with a SWOT analysis can be performed to identify
the internal strengths and weaknesses as well as the opportunities and threats. This can then be used to help develop a plan for the company to move forward.
2. The Market The company is competing in the oral hygiene market. In the UK market, where the company is operating, the current market has a total size of ?601.5 million
(Euromonitor, 2003). However this is a mature market and the sales are currently falling, with 2002 down on 2001 by 2.2% (Euromonitor, 2003). Mouthwash sales have seen some increases
in recent years. But the main sector is that to toothpaste which makes up 56% of oral hygiene sales in 2002 (Euromonitor, 2003). The company with the largest market
share is GlaxoSmithKline Plc who claim nearly 29% of the market, Colgate-Palmolive are second with 27.5% of the market, increasing their sales from the year before by 1% (Euromonitor, 2003).
As the market is maturing there is also the need for string marketing, in reflection of this the marketing expenditure in this market amounted to ?43.8 million in 2001 (Euromonitor,
2003). Most of the sales take place though the grocery stores, where 60.7% of sales took place in 2002 (Euromonitor, 2003). In terms of consumer expenditure, this is actually falling,
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