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Leg & Nail Baking Soda company was founded in 1965 by Arnold Leggman, owner of
Leggman Pharmacy who introduced his baking soda product to aid housewives in their search
for cleaner, brighter clothing. Since then, baking soda has developed hundreds of uses and has
been integrated into many different products and grown to be integral in the oral hygiene and
care market.
The Market
Due to the increase in daily use of oral care products, mainly toothpaste and mouthwash,
the market has grown modestly. According to an Executive Oral Care Market Summary
conducted by Mintel, the U.S. oral care market achieved $6.4 billion in total retail sales, up
10% from the 5.8 billion in 2007 (Mintel pg. 1 2013) By 2017, Mintel predicts an increase in
total retail sales to reach $7.1 billion (Mintel pg. 1 2013).
Companies and brands benefit not only from the lack of competitive alternatives in the
market; but also the integration of total mouth care and enhancing the benefits of their
products. (See Figure 1) The integration is even more important with hesitant consumers
concerned with the current state of the economy.
An internet survey with 2,000 respondents ages 18 and up asked consumers about
products they use on a daily basis. 94% of consumers reported using toothpaste on a daily basis
(Mintel pg. 5 2013). Additionally, mouthwash and multi-purpose toothpaste tied for second with
63% of respondents stating they use these products.
Figure 2:
Application
Through analysis of primary and secondary research, we identified not only the strengths
and weakness for the current brand; but also the opportunities and threats currently lurking in the
Oral Care market.
Strengths
The proposed Breathless Campaign will benefit from the current market movement
towards integrated and cosmetic benefits (ie. baking soda and peroxide). As one of the first
baking soda companies in Northern America, Leg & Nail prospers due to the longevity of the
company and the brand recognition. Leg & Nail is a well known and trusted brand which will aid
them in their continued purchasing support of their loyal customers. Consumers are creatures of
habit and prefer to stick with the oral care products and brands that they know. This underlines
the role of trust in brands for a significant minority of shoppers (Mintel Infographic Overview
2013)
Weaknesses
However, the company has reached a plateau in the oral care market due to a lack of
branding, providing only basic products that fall short next to competitors products offering
multiple hygiene and cosmetic benefits.
Figure 4:
Current marketing tactics advertise Leg & Nail oral care products separately rather than
as products to be used in conjunction with one another which fails to entice customers to use our
brand solely for their oral care needs. Customers have moved towards utilizing multiple different
brands for each step in their current regimen.
Opportunities
Yet, there are large opportunities currently available in the market for increased sales
with products that offer multiple benefits to users. By capitalizing on a simple 3-step process, the
breathless campaign can gain a strong foothold in the integrated benefits segment of the oral
care market. The simplicity of the plan will entice busy young adults as well as older consumers
concerned with tooth decay and gum disease.
Threats
There are a significant amount of similar brands and products offered in the oral care
market that act as substitutes for Leg & Nail products. The largest competitor companies in the
market are Procter & Gamble and Colgate-Palmolive who together make up 55% of the Oral
care market (See figure 5). The closest competitive substitute to Leg & Nail is Church & Dwight
Co. Inc. who also manufacture and sell products with baking soda additives. Companies looking
to get consumers to switch brands have to offer strong incentive to consumers to do so, such as a
deep discount or a differentiating claim (Mintel Infographic Overview 2013).
Conclusion
The Leg & Nail Baking Soda Company will look to introduce a new line of oral care
products to be use in conjunction with each other and added to the daily regime of users. The
new products will capitalize on the integrated benefits movement with the baking soda
additives to all breath freshening products. The campaign will also partner with the ADA to aid
in the education and assimilation of daily oral health care into the daily use of consumers without
healthcare or access to a dentist. The campaign will need to be aware of consumer loyalty to
large competitor companies, especially among Hispanic and Black demographic segments.
However, they can overcome these threats by implementing strong discounts and differentiating
the product through the Breathless Campaign.