Case Study: Introduction
Case Study: Introduction
Case Study: Introduction
From: <mickey&pg.com>
To: <command&pg.com>
Hey!
Welcome to P&G! I'm so glad that more and more young and ambitious people like you are
joining us!
My name is Mickey, and I will be your mentor during your work on the project. I'm so
excited that you're joining our Oral Care team! You can ask me any questions about working
at P&G in general and the work we do in Oral Care. Oral Care is Paste, Manual Oral Care,
and Power Oral Care, and it is one of the most innovative business segments of the company.
The plan is for you to join the Oral-B team and help your colleagues work on a significant
sustainability challenge to reposition Oral-B through making its products more
environmentally friendly by improving packaging or introducing reuse and recycling
initiatives. I do hope that you'll enjoy it. Unfortunately, I can't contact you via video chat
today because I'm taking part in a major International Sustainability online conference. But
please, don't worry! I've got some really exciting tasks planned for you, which will allow you
to immerse yourself into our world and prepare yourself for the big challenge we must handle
at Oral-B that involves all its product categories. Meanwhile, you can dive into the topic and
look through some market insights and Recycling and Sustainability cases in P&G and Fast
Moving Consumer Goods (FMCG) in general.
You certainly know that Procter & Gamble is the world's largest FMCG company. Its Health
Care category includes the Oral Care sub-category and is one of the five business portfolios
within P&G and it represents 12% of the business. You may also know that P&G has the
largest lineup of leading brands in the industry, with 23 brands that have over $1 billion in
annual sales (our so-called "billion-dollar brands"). There are 2 "billion-dollar brands" that
belong to the Oral Care portfolio. Those are Crest and Oral-B.
This mission has become even more important due to the global COVID-19 pandemic.
People are now more focused on health and hygiene than ever before. This includes personal
hygiene, health and nutrition improvement, through doing more sports, various diets and
habit improvements, increased interest in product ingredients and, therefore, natural products
across personal care, including bio, organic, natural ingredients etc.
In 2010 P&G set goals related to climate, water and waste, and we have made great progress
there. For example, P&G made a commitment to making 90% of product packaging either
recyclable or having programs put in place that will create the ability to recycle it. We have
achieved 88% of this goal and have a strong, ongoing effort to further increase recyclability.
So much so that we have recently committed ourselves to Ambition 2030, our most
audacious set of sustainability goals yet!
Oral-B is testing circular solutions for its electric rechargeable and manual toothbrushes. The
manual Oral-B CLIC features a durable handle equipped with a mechanism that allows
consumers to exchange the brush head. The Loop, a global packaging and shopping circular
platform that is already working with P&G brands in the US, will recycle used brush heads
from both manual and electrical brushes. In several European countries, Oral-B is proposing
to its consumers to replace batteries in their electric rechargeable toothbrushes to increase the
life of the products, rather than buying a new one. Toothpastes and tubes are a tougher
challenge for recycling, but P&G is researching solutions there also.
All P&G brands, and the Oral Care category in particular, care about environmental
challenges, because resources are finite, and consumption is growing every year. Our
competitors are also providing environmentally friendly solutions, and we need and want to
improve our factories and our products to be the leader and make our world a better place.
With this in mind, what I'd like you to do is to review the data and find possible solutions for
the challenges that the company, and the Oral-B brand in particular, are currently facing. On
Monday, we will have a team meeting where we will discuss the findings, and I'm looking
forward to hearing your ideas.
In order to immerse you in the subject, I'd like to share some information on the key market
trends and the Oral-B brand's key strengths and current challenges. Please e-mail me if you
have any questions!
See you!
Mickey Jones
About P&G
The Procter & Gamble Company is focused on providing branded consumer packaged goods
of superior quality and value to improve the lives of consumers around the world. The
company was incorporated in Ohio in 1905, having been built from a business founded in
1837 by William Procter and James Gamble.
The company's purpose is to improve the lives of its consumers and today delivers this for 5
billion consumers in 180 countries through its leading, billion-dollar brands.
Fabric care
Home care
Baby care
Feminine care
Family care
Grooming
Oral care
Personal health care
Hair care
Personal and skin care
The business model relies on the continued growth and success of existing brands and
products, as well as the creation of new innovative products. The markets and industry
segments in which P&G offers products are highly competitive. In the first quarter of 2020,
the company's sales grew to reach $17.8 billion whilst delivering strong top-line growth,
profit margin expansion and cash productivity enabling it to increase its outlook for fiscal
year results.
P&G keeps track of the environmental sustainability of its own activities as well as of its
suppliers. In 2018 P&G released its new sustainability goals called Ambition 2030. These
broad-reaching goals have the purpose to enable and inspire positive impact on the
environment and society while creating value for P&G as a company, for its customers and
consumers.
P&G has already exceeded several of its 2020 goals early, such as reducing water use in
manufacturing facilities by 20% against a 2010 baseline. GHG emissions have been cut by
16% in this time period, while more than 80% of its global manufacturing sites have achieved
zero-waste-to-landfill status.
11 000
1,6 %
Figure 2: Size of the Global Oral Care Market from 2019 to 2025 (in billion U.S. dollars)
Asia Pacific
o China
Regional
o Japan
Markets
o Australia
o Rest of Asia Pacific (RoAPAC)
Europe
o DACH – Germany, Austria, and Switzerland
o FBNL – France, Belgium, Netherlands
o UK/Nordics
o Italy
o Spain
o Russia
o Rest of Europe (RoE)
North America
o US
o Canada
Latin America
India, Middle East and Africa
Products Toothpaste
Manual Toothbrushes
Battery-Powered Toothbrushes
Rechargeable Electric Toothbrushes and Replacement Heads
Dental Flosses
Breath Fresheners / Mouthwashes / Rinse Products
Prescription and Non-Prescription Cosmetic Dental Whitening Products
Others
The Asia Pacific oral care market is expected to show the highest growth rate during the
forecast period from 2020 to 2025. The high growth rate can be attributed to the increase in
the size of geriatric population associated with edentulism, a growing prevalence of dental
caries and other periodontal diseases, increasing healthcare expenditure (coupled with rising
disposable income), rising awareness about oral healthcare, and willingness to spend more on
dental care. The analytics say that 36% of the market growth will come from Asia Pacific
region.
The Latin American and Middle Eastern and African markets exhibit significant growth
opportunities owing to the improving dental infrastructure in these regions.
North America holds the largest revenue share in terms of region. This can be attributed to
the presence of sophisticated electric toothbrushes, supportive government initiatives,
coupled with relatively higher disposable income in the region, and the presence of skilled
dentists and dental hygienists. A picture that is also similar in Europe. According to the
American Dental Hygienists' Association, in the U.S there are nearly 150,000 registered
dental hygienists. They encourage oral hygiene by providing a proper dental plan and hygiene
techniques, thus further propelling product demand
Figure 3: Global Oral Care Market Share, by Region, 2019, %
The oral care market is highly competitive, with a growing number of players operating at the
regional level. New local players in India, China, and Brazil offer oral care products at
competitive prices compared to the global players.
Oral hygiene awareness is an important contributor to market growth. Dentists and key
players in the market conduct various seminars and programs to increase awareness of dental
hygiene and the need for improvement of Oral Care habits as well as demonstrating newly
launched and technologically advanced products. This increases the adoption of healthy oral
care routines among consumers and promotes interest in new products.
The online distribution share shows the biggest growth when compared to other distribution
channels. The significant growth in the e-commerce sector is due to the increasing number of
internet users and its advantages, such as low cost, free delivery and the availability of multi-
brand oral care products. However, consumer stores continued to account for the largest share
of the oral care market in 2019. The large share that consumer stores hold in the case of oral
care products can be attributed to the large number of stores across the globe and their easy
access.
Question 5: Calculate the absolute growth of the oral care market attributed to the
Asia Pacific region in 2025 compared to 2020.
(Required)
10 billion
7,5 billion
5 billion
2,7 billion
Question 6: What was the largest distribution channel for the oral care market in
2019?
(Required)
Online distribution
Retail pharmacies
Dental dispensaries
Consumer stores
Question 8: Calculate the size of Asia Pacific oral care market if the oral care
market in Europe was worth nearly USD 12.9 billion in 2019.
(Required)
USD 6 672,4 million
USD 4 448,3 million
USD 1 141,4 million
Oral-B Today
Oral-B is a brand of oral hygiene products, which has been owned by P&G since 2006. It was
founded by a dentist in 1950 and now Oral-B is spread across 60 countries. Oral-B's
toothbrushes are used by more dentists and hygienists worldwide than any other.
paste
manual toothbrushes
electric toothbrushes (and replacement heads)
rinse
floss
irrigators (water jets for interdental cleaning)
children's range
The brand story of Oral-B started with an important health and consumer driven
improvement of toothbrushes. Oral-B introduced end-rounded bristle filaments that are
gentler and safer for gums. Health and consumer relevant innovation has been an important
driver for the brand since. As a result, the biggest strength that Oral-B has is their top of the
line electric toothbrushes. The company successfully provides its products to people looking
for the best quality and innovation, not only in the power oral care sector, but also the manual
oral care sector, as using a manual toothbrush remains the most common way of brushing
teeth for many people around the world.
Oral-B focuses on solving problems commonly associated with toothbrush use and has a
plethora of products that are essential to do this in oral care. The company introduces new
features regularly, which reaffirms its brand image as the most innovative oral-care brand.
Consumer perception of Oral-B is that it's a very reliable brand with high quality and dentist
endorsed products. Because it is seen as a premium brand, not everybody sees it as an
affordable brand for themselves. However, the Oral-B brand has products at virtually all
relevant consumer price tiers.
The brand has a huge presence at almost every location where people usually go and shop for
the products for their daily needs: small stores, hypermarkets, supermarkets, malls, electronic
stores and shopping centers. Oral-B brushes are also seen at Dentist's clinics. Though P&G
has a considerable and relatively well-spread distribution network, the Oral-B brand has less
penetration in the rural segment in comparison to cities. Also, P&G supports several
initiatives aimed at improving oral care for consumers and providing professional help for its
customers. One of the brightest examples is dentalcare.com. This is a web portal designed by
the brands Oral-B and Crest for use by dentists and students around the world. It delivers
education, research outcomes, news, and product information to equip dental professionals
with important information and experiences to better help their patients.
Question 10: You have several consumer profiles. Based on the information given
in the text, which of them are more likely to be Oral-B consumers? You can
choose several answers.
(Required)
An active, building a career in a big city, 35-year old man, who is environmentally
conscious.
A 21-year old student of IT, living with his parents and interested in video games.
An active, looks-conscious 50-year old man who suffers from dental problems and visits
the dentist every week for professional attention.
A 40-year old woman who has two children and provides her household with the newest
technological solutions.
Question 11: According to the data above, what is the most complete description
of the Oral-B brand strengths?
(Required)
Produces premium quality oral care products using innovative technologies at an
affordable price.
Makes toothbrushes used and recommended by dentists around the world.
Frequent innovations in a low involvement product like toothbrushes and focuses on
improving oral health.
Approved brand image to compete successfully with competitors' electric brushes and
manual toothbrushes.
TerraCycle and P&G are working together on a recycling program for Old Spice, Olay, and
Dawn Soft Packs. TerraCycle also has recycling programs for Oral Care in the US and China.
The project is based on the Loop platform – a global packaging and shopping circular
solution. It offers consumers the option to have their used product packaging collected from
their doorsteps for recycling or reuse. Participation in the program consists of four stages:
Once collected, the Soft Packs are cleaned and melted into hard plastic that can be remolded
to make new recycled products.
P&G also makes reusable packaging for its most popular products (i.e. through refilling). Its
scientists and engineers have developed innovative manufacturing, packaging and
distribution solutions that will make sustainable life easy for participating consumers. Strong
and reusable packaging is available for Pantene, Tide, Cascade and Crest with a further 11
brands planned to be connected in the future:
Pantene introduces a lightweight and durable aluminum bottle for shampoo and
conditioner.
Tide Purclean plant-based laundry detergent can be supplied in a sturdy stainless-steel
bottle with twist-off lid and spout.
Cascade has developed a new heavy-duty packaging for the Cascade ActionPac that
allows consumers to skip the pre-wash cycle.
Crest Platinum Mouthwash is packaged in a reusable glass bottle.
Most traditional toothpaste tubes are made of either multilayered plastic (PBL) or plastic and
aluminum (ABL) composites. While the first is technically recyclable, existing recycling
facilities struggle to recycle them. One of the major manufacturers of tubes on the market
created a tube made of high-density polyethylene (HDPE) - the same plastic used to make
milk bottles. This should improve the recyclability of tubes in the future.
Another eco-friendly brand's toothpaste comes in an all-aluminum tube with a small metal
key so that every last drop can be squeezed out. The inner metal is lined with a food grade
non-BPA6 cover so the paste will never come into contact with the aluminum tube. The outer
carton is FSC7 certified cardboard. The packaging of the toothpaste is manufactured in the
USA, as are 98% of its ingredients, such as calcium carbonate, sodium bicarb, xylitol (birch
derived), carrageenan (seaweed powder), mentha piperita (peppermint oil), hydrated silica
and sodium coccyx glutamate, which is the coconut alternative to SLS.
Within dentistry, environmental sustainability can be measured in several ways. One such
way is to analyze the carbon footprint, defined as the total greenhouse gas emissions
produced during the delivery of a specific activity or the manufacturing of a product,
expressed in equivalent tons of carbon dioxide (CO2-e). In order to understand how
sustainable a specific healthcare practice is, researchers analyze their carbon footprint as a
proxy measure of sustainability as analysis of the carbon footprint allows an understanding of
which elements of current practice are not sustainable.
Figure 5: Estimation of the Carbon Emissions NHS Dentistry, United Kingdom
Based on the UK data, within dentistry, the carbon footprint has been calculated to be around
3% of the total NHS footprint, or more precisely 675 kilotons of carbon dioxide equivalents
(CO2 e). Travel for NHS dentistry causes air pollution, and the associated travel impact (for
example, noise pollution, accidents) reduces overall population quality-adjusted life years by
14 minutes.
Question 13: How much carbon dioxide is generated in the UK when people travel
to receive health care (in kilotons)? Please round to whole number.
(Required)
183
196
210
221
Question 14: Researchers have proposed the development of special equipment
for dentists that uses half the nitrous oxide of traditional equipment. According to
the information above, what could have a greater positive effect on the
environment than the equipment proposed by scientists, with everything else being
equal? You can choose several answers.
(Required)
New versions of recyclable materials that were previously wasted after use.
A new version of traditional equipment that uses gas as an energy source instead of
electricity.
Equipment that uses less clean water for dental operations.
Equipment that allows you to use three times less electricity for dental operations.
Production. After receiving plastic pellets, manufacturers melt them and transform them into
the desired product. The plastic is melted and injected into a toothbrush mold. The bristles on
a toothbrush are usually made of nylon, which is made by pulling plastic through a fine
lattice mesh with many small holes that cut the plastic into thin threads. The nylon is then
inserted into the brush head and cut to the desired length using a machine.
Usage. If the hygienic recommendations are followed, a new manual toothbrush will last no
more than 3 months for the consumer, after which it will be thrown away. Most traditional
toothbrushes are non-recyclable, but some companies are starting to produce biodegradable
and recyclable oral care products that can be sent back to the manufacturer for recycling.
Lifecycle of a Toothpaste
Materials. There are multiple ingredients in toothpaste. The original minerals come from the
earth, but the compounds are made with chemicals in a lab. Therefore, processing is done in
the lab.
Packaging. Toothpastes are individually boxed and then put in a bigger box to be sent to the
warehouses. From there, consumers purchase the paste and use it until the tube is empty.
Usage. After it's gone, the tube is usually thrown away, not recycled. Toothpaste tubes can be
recycled, but it is quite a process. The tube must be cut open to clean out any remaining
toothpaste. The cap must also be removed. Each year, 1 billion plastic toothpaste tubes end
up in landfills.
Production. Dental floss is commonly made of two polymers, either nylon or Teflon. Nylon
is a fiber forming substance composed of a long chain synthetic polyamide. Teflon is a PTFE,
or polytetrafluoroethylene. Other materials may be added such as wax or flavoring.
Packaging. Most of the time, the dental floss cases are blister packaged, a plastic mold
affixed to a backing, made from cardboard.
Usage. The lifetime can vary depending on regularity of the user. Floss is normally thrown
away into the garbage, where it will later be disposed of in a landfill. Normally, floss is not
recycled, but by not being biodegradable, recycling may become a viable option. Recycling
floss requires cleaning and expanding new strands for future use. Waste such as PTFE is
hazardous and cannot be reused.
Production. Plastic pellets are melted and transformed into the product parts (handle,
brushing head body, travel case, charging station, etc.). The electronics are assembled
separately and combined with the handle, charging station and travel case. The bristles on a
toothbrush head are usually made of nylon, which is inserted into the brush head and cut to
the desired length using a machine. Batteries are inserted in the toothbrush and then is sealed
for waterproof resistance.
Usage. Powered toothbrushes are essentially two types of products. There are disposable
battery-powered toothbrushes and electric rechargeable toothbrushes. Battery-powered
disposables are supposed to be discarded after 3 months of usage, while rechargeable brushes
have a long-lasting 'body' which can work for 3-7 years and replacement heads which are
recommended to be changed every 3 months.
Question 15: Why are many oral care products and their packages not recyclable?
You can choose several answers.
(Required)
During their recycling, many hazardous substances are formed that are harmful to
health.
Packaging and components in many cases consist of several types of different materials
that are difficult to separate for recycling.
There is no need to recycle them as most of the packages are biodegradable.
Because this is a personal hygiene product, the recycling can be very complex due to
hygiene risks.
Question 16: Choose all true statements from the list below, based on the text.
(Required)
The easiest solution to the problem with recycling is biodegradable products.
Nowadays the main way a user can recycle their toothbrush is to send it back to the
manufacturer for recycling.
Recycling of oral care products is not widely used due to logistical difficulties.
Most oral care packaging uses plastic.
Open Questions
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Question 18: You have been asked to brainstorm Oral-B's position in reusable
packaging initiatives. Choose any product you want and write at least 3
suggestions about how the company could change its approach to ensure
sustainable growth.
(Required)
Additional Information
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