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Crest Rejuvenating Effects Brings Beauty Positioning To Oral Care

This article was originally published in The Tan Sheet

Executive Summary

Procter & Gamble's new multi-benefit dentifrice, Crest Rejuvenating Effects, will specifically target women by positioning itself primarily as a beauty product, according to the company

Procter & Gamble's new multi-benefit dentifrice, Crest Rejuvenating Effects , will specifically target women by positioning itself primarily as a beauty product, according to the company.

The launch of Rejuvenating Effects toothpaste comes in response to an increasing perception among women that oral care is an important part of their beauty regimen, P&G said.

The dentifrice represents "a reframing and a repositioning of the benefits of oral care," the firm stated.

Although P&G's effort to target female consumers appears to be unique in the toothpaste market, the anti-aging position signaled by the Rejuvenating Effects name has been tried before. Den-Mat's Rembrandt Age Defying toothpaste launched in the spring of 1988.

The fall debut of the new Crest product will be supported with a $50 mil. marketing campaign, including TV and print ads featuring actress/singer Vanessa Williams, P&G said. The ads are scheduled to break in October and Crest Rejuvenating is slated to reach store shelves in September.

The main differences between Rejuvenating Effects and other Crest products appear to be the toothpaste's positioning and presentation.

The dentifrice's performance claims will be in line with those of other multi-benefit Crest products, including whitening and cavity-prevention indications. However, the formula contains a "unique" flavor, which P&G describes as "energizing mint" with cinnamon and vanilla flavors.

Packaging for Rejuvenating Effects also is "more feminine" than other Crest products, with a teal-colored tube and pearl-colored exterior box, according to P&G. Pricing will be in line with other premium Crest products such as Crest Dual Action Whitening , the firm said.

The new product appears to be in line with P&G's strategy of focusing on core brands and using consumer research to innovate in high-growth categories.

Speaking at the Sanford Bernstein Strategic Decisions Conference in New York June 5, P&G CEO A.G. Lafley noted the company has renewed its focus on core brands.

"In the late '90's we...focused our innovation in an unbalanced way on new categories and new businesses," Lafley said. However, since taking over at P&G, he noted the company has attempted to innovate in its established brands.

"I do not believe there is a brand life-cycle," Lafley said. "I believe [a brand] can grow in its 55th year just as it grew in its fifth year. I think we are proving that by directing an appropriate level of research & development and coming out with innovations that are building the big brands."

Targeting women and reframing Crest as a beauty care product with Rejuvenating Effects could be seen as one example of P&G's effort to grow its oral care brand using this strategy. Lafley also pointed to the successful WhiteStrips launch to highlight his point (1 (Also see "Crest WhiteStrips" - Pink Sheet, 30 Apr, 2001.), In Brief).

"One of the best examples in the past couple of years of where this understanding has led us is the way we have reframed the Crest brand and reframed the oral care market," Lafley said.

"Two years ago at P&G we would be talking about dentifrice," he noted. "Today we are talking about home oral health and home oral care."

"As a result, you see a product line that includes everything from cavity prevention to whitening enhancing toothpastes...essentially many of the products and services that were only available in the dentist's office into your home," he said.

P&G's task of reframing its brands will not involve expanding them beyond their current categories, Lafley stressed. Responding to a question regarding the firm's view of "megabrands," Lafley stated P&G's brands "will stay focused on their current categories and adjacent categories...the segmentation is reasonably sophisticated [and] is reasonably well-defined."

The branding strategy appears to be paying dividends. On June 12, P&G announced it expected its core earnings-per-share, minus restructuring charges, would grow in "the high teens range" and exceed consensus estimates for the fiscal fourth quarter. Volume growth also is expected to increase 9% to 10%, with sales, excluding foreign exchange, rising "in the mid to high single digit[s]," P&G said.

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