t
TABLE OF CONTENTSTABLE OF CONTENTS
EXECUTIVE SUMMARYEXECUTIVE SUMMARY.............................................................................................3
COMPANY PROFILECOMPANY PROFILE....................................................................................................
LOCATION OF ALA CHEMICALSLOCATION OF ALA CHEMICALS..............................................................................4
AIMS AND OBJECTIVESAIMS AND OBJECTIVES............................................................................................4
MARKETING MIXMARKETING MIX.......................................................................................................9
1). Product1). Product..............................................................................................................10
Dentonic Tooth PowderDentonic Tooth Powder..........................................................................................10
Dentonic Tooth PasteDentonic Tooth Paste...............................................................................................5
INGREDIENTSINGREDIENTS.......................................................................................................12
2). PRICE2). PRICE...............................................................................................................13
3). PACKAGING3). PACKAGING.......................................................................................................7
4). DISTRIBUTION (PLACE)4). DISTRIBUTION (PLACE)......................................................................................
DISTRIBUTION NETWORKDISTRIBUTION NETWORK......................................................................................14
SWOT ANALYSISSWOT ANALYSIS.....................................................................................................15
COMPETITORS’ PRICESCOMPETITORS’ PRICES.........................................................................................17
DENTONIC TOOTH PASTE - DENTONIC TOOTH PASTE - A GENERAL PERCEPTIONA GENERAL PERCEPTION....................................18
TARGET MARKETTARGET MARKET....................................................................................................12
CURRENT SALESCURRENT SALES........................................................................................................
ADVERTISING BUDGETSADVERTISING BUDGETS........................................................................................21
HOARDINGSHOARDINGS................................................................................................................
CONCLUSIONCONCLUSION..............................................................................................................
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
Dentonic Toothpaste – not quite a common name in the households of today and not
really a “must buy” for the women of today who want to give their family and more so
their kids the very best in dental protection. Dentonic toothpaste, ever since its
launch and inception has hit the doldrums and has not seen its sales and revenues
peak on a high note.
The project we undertook is basically to focus on the upheaval of Dentonic
toothpaste and brining it back to its feet. For this, our group conducted basic
research, brainstorming session, late night sit-ins and early morning newspaper
analyses which not only showed us the true state of Dentonic toothpaste in the
Pakistani market but also was an enlightening factor in detailing us what kind of
overhaul this brand needs in its inner ranks.
For re-launching, we touched upon the advertising rates and budgets, which
comprised of our running its commercials on PTV and GEO as well as displaying its
newsprint ads in the renowned dailies and their magazines. We also made use of the
outdoor media, i.e., the hoardings so that we could do our very best in making the
product a hit amongst its
target market, i.e., the classes B and C – to whom we are basically targeting
towards.
MISSION STATEMENTMISSION STATEMENT
”To develop and sell high quality oral dental care that will capture the
dominant share of mind in all markets”
COMPANY PROFILECOMPANY PROFILE
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ALA Chemicals has been in business since 1963, manufacturing and marketing the
quality oral care products for healthy and beautiful smiles. As per their commitment
with the nation and also with their valued consumers, they are consistently
maintaining excellent quality standards of their products at all the stages. Every
product that comes out of the Ala plant achieves the highest level of quality. The
company is proactive with the rapidly changing market requirements of the
consumers.
MANUFACTURING & PACKAGING PLANTMANUFACTURING & PACKAGING PLANT
LOCATION LOCATION Dentonic Plant is situated in the heart of the Industrial area of the country. The clean
and natural environment also highlights the core values of environmental friendly
approach that the company adopts and encourages others to live up with.
ADDRESS The factory is located at F- 60, Sindh Industrial Trading Estate Ltd. off
Hub River Road, which is commonly known as S.I.T.E.
AIMS AND OBJECTIVES AIMS AND OBJECTIVES
We aim to increase our declining Market share through the introduction of new
Dentonic Fluoride. With better composition in the ingredients the new Dentonic
Fluoride contains clinically proven anti bacterial agent TRICLOSAN for healthier
gums and teeth with 2% extra MFP fluoride which also helps in treating sensitive
gums. We aim to cater the market of age 40 and above who are vigilant in their
choice of toothpaste because of sensitive gums and teeth.
We will achieve our objective by providing the marketplace with high quality Oral
Dental Care which caters to all their requirements including cleanliness, freshness
and preventing against their dental problems.
Customer satisfaction is and will be our top priority. To achieve customer
satisfaction, we anticipate with the rapidly changing market trends, monitoring the
customer wants through regular retail audit, maintaining quality of the products and
empowering our employees.
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Ritovischo machineTo check the particles size and binding force of toothpaste. 1000 millions pdm.
To check the shelf life of the product called as Oven.
We have positioned ourselves in question mark but it is very near to dog.
SEGMENTATION, TARGETING & POSITIONINGSEGMENTATION, TARGETING & POSITIONING
Segmentation
On the basis of Segmentation Variables:
Demographic
Male and female both 40+
Target Marketing
Target Market
Dentonic’s target market is on the basis of Niche marketing, because we are
targeting one large share of one segment
Target Marketing Strategy.
Target marketing strategy that Dentontic is using to re-launch is 40+
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Positioning for Competitive Advantage
Competitive advantages
- Distinctive: toothpaste is made especially for the consumers of 40 and above.
- Superior: on the basis of quality as it is approved by PDA .it is medicated BUT
steroid free (unlike Medicam toothpaste and Tochme toothpaste)
- Affordable: Price per pack is very reasonable and according to our survey no
price objection was determined.
Positioning statement
Looking graceful everyday
-Dentonic Toothpaste
40+
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PROCUCT LIFE CYCLEPROCUCT LIFE CYCLE
Dentonic fluoride toothpaste is on introduction stage as it is being re-launched with
improved formula and targeting different set of consumers.
Through research, test marketing and heavy promotions, we are trying to rebuild the
image of the product by overcoming the weaknesses and problems faced by the
consumers. Using price penetration strategy to capture more market share in lesser
time.
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Sales & Profit Life CyclesSales & Profit Life CyclesSales & Profit Life CyclesSales & Profit Life Cycles
IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline
TimeTimeSales and Profits
6
MARKETING MIX:
PRODUCTPRODUCT
Dentonic Tooth PowderDentonic Tooth Powder
Dentonic is one of the largest manufactures of the Oral Care Brands.
The Dentonic range of Oral care products is available throughout the
country.
Dentonic toothpowder is the pioneer in dental care products. Dentonic
was fairly famous among the all the classes and its presence was a
must in every household. Dentonic toothpowder due to its loyal
consumer remained a Market leader for more then 25 years .The
satisfactory feedback helped Dentonic to capture the market share as
well as it continued to grow successfully. Dentonic was able to
substitute medicines formerly used for sensitive gums and teeth.
Dentonic Toothpaste: Dentonic Toothpaste:
After the success of Dentonic Tooth powder among the masses Ala
Chemicals launched a better version in form of Dentonic Toothpaste.
Dentonic Toothpaste with dual action whitens your teeth and protects
from bacteria and other tooth decay. The MFP fluoride helps strengthen
teeth and effectively protects against cavities. It contains clinically
proven anti bacterial agent Triclosan for healthier gums and teeth.
Dentonic toothpaste contains gentle cleaning agents. Its Mint Flavor
gives consumers a fresh breath and a confident smile. The unique flavor
of the toothpaste makes the consumer feel good while using the
product.
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Dentonic Toothpaste 40+ Dentonic Toothpaste 40+
Since 1963 Dentonic Tooth powder of ala chemicals is into business
and proved its self a market leader for about 25 years and still is widely
acceptable all over Pakistan.
To cope up with the technological advancement in the toothpaste
industry Ala chemicals launched toothpaste 2 years back.
Unfortunately, it couldn’t prove itself to be a success unlike tooth
powder due to some misconception and false perception about the
image of dentonic.
To over come the weaknesses and to control the bad word of mouth
we come up with an improved formula considering our target market
demands, with the name Dentonic 40+ which is also PDA affiliated.
Due to the age factor there are numerous mouth diseases a human
body experiences and it should be accepted as a natural phenomena.
The deficiency of fluoride weakens the teeth to fight against bacteria for
that matter we have launched a toothpaste with extra Fluoride .2%
and .5% (antibacterial) extra Triclosin.
To overcome weaknesses and control the bad word of mouth we are
using heavy promotional activities to change the consumer perception
about Dentonic.
Advantages of Using Dentonic Toothpaste 40+ Advantages of Using Dentonic Toothpaste 40+
With age changing every year, once you reach the age of 40, your teeth
requirements change for care, your teeth tend to become more sensitive, the gaps
between them widen and there are more chances for cavities. Understanding these
requirements Dentonic has re-launched toothpaste called DENTONIC
TOOTHPASTE 40+ to fulfill four teeth requirements perfectly. Dentionic toothpaste
40+ is being introduced in a minty flavor for you. RE-LAUNCH – – DDENTONIC ENTONIC TTOOTHPASTEOOTHPASTE 8
Ingredients of Dentonic Toothpaste 40+ (1500 kg)
Aqua 20.8
Calcium Glycerophosphate 1.95
Glycerine 30.00
Sodium Saccharin 3.9
TriSodium Phosphate 4.5
Formailn 0.4
Sodium Monofluorophosphate 11.25
Sodium Methyl Cocoyl Taurate 11.25
Iodine 3.00
Triclosan 15.75
TCP 4.5
Dentonic Toothpaste Line Extension
Dentonic is also launching its toothpaste called;
Dentonic toothpaste 40+ (Spearmint flavor-sugar free)
Dentonic toothpaste 40+ (Cinnamon flavor- sugar free)
Dentonic toothpaste 40+ (Ice-Mint flavor- sugar free)
We strongly advice our consumers to switch to the above mentioned brand of our
toothpaste as they are only excellent substitutes of Dentonic toothpaste 40+ (Mint
Flavor).
PRICEPRICE
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Prices of Dentonic Toothpaste 40+:Prices of Dentonic Toothpaste 40+:
According to our survey consumers are ready to pay 35 Rs for 75 gms Pack. As it is
formulated considering aging diseases of mouth it has 0.5 more Triclosan and .1 %
Fluoride and hence we are not adding any artificial and dangerous chemical for
temporarily soothing like steroids.
Price is
75gms = Rs. 45
50gms = Rs. 30
PACKAGINGPACKAGING
Dentonic Toothpaste is basically packed in Poly Vinyl Carbonate (PVC) -the
common name of which is plastic, boxboard, which has a thin
Laminated printing on it and toothpaste’s tube is made up of flexible plastic
packaging and therefore makes it a secondary packaging.
Packet size is 75 gms.
DISTRIBUTIONDISTRIBUTION
The toothpaste is available at every retail and general store in Classes B and C.
There are 6 mobile vans, which are responsible for the distribution of the product to
the retail outlets. Total sales force comprises of 12 sales representatives and 4 Area
Sales Officers for Karachi Region. For monitoring purpose we also have one Sales
Manager.
Distribution is done in boxes, 6, 8, 12 dozens packs per box. But we would only use
12 dozen packs per box.
Distribution networkDistribution network
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ALA CHEMICALS
Own distributionRETAILERSCONSUMERS
Retail Outlets:
The product will be made available in almost 129 retail outlets in different locations of Karachi where already dentonic is being distributed.
SWOT ANALYSISSWOT ANALYSIS
Strengths:
Dentonic is using NO steroid in their toothpaste as compared with Medicam
which is using Cortico steroid. And basically using any kind of steroid is illegal in
toothpaste.
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Weaknesses:
No correspondence with dentists.
Bad word of mouth from desists & consumers.
Weak promotional strategies
Opportunities:
There are no local toothpaste brands afflicted with PDA currently, except for
Dentonic Fluoride toothpaste, where as International brands such as Colgate &
MacLean’s are foreign affiliated as well as with PDA.
Dentonic toothpaste can target the Classes B+ more effective once they get
affiliated with either BDA or ADA.
Product line-extension plans coming up to improve Dentoinic’s brand name &
increase the over all company’s market share, as they plan to enter in every field
of Oral Care products. Example: Mouth wash (spray), Fresh Breather &
Toothpaste for KIDS.
Threats:
Wide variety of International Substitutes can destroy Dentonic toothpaste’s brand
image due to non-affiliation from BDA (British Dental Association), or ADA
(American Dental Association).
It is very difficult to change over all perception of people who are destroying the
image of Dentonic thus it would be one big hurdle we have to face in re-launching
the product.
Fake Dentonic toothpowder spread out in different locations of Pakistan in many
retail outlets has been a major threat to Dentonic’s brand image from a long time.
Excise & Taxation department demands for under table commission.
COMPETITOR REVIEW
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We have one close local competitor who is Medicam and it is not PDA affiliated.
Other major competitors are MacLean’s 40+, Forhans and Sensodine. Dentists are
totally against of using Medicam because it is proved by Dental association that they
are using steroids for temporary pain relief. Hence, Medicam lost its image due to
human cries against it.
COMPETITOR PRICES
1. MACLEANS TOOTHPASTE
PRICE (in Rs.) Net Weight (in grams)
25 40
36 70
49 110
79 200
2. FORHANS TOOTHPASTE
PRICE (in Rs.) Net Weight (in grams)
19 40
29 70
45 120
54 160
3. MEDICAM TOOTHPASTE
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PRICE (in Rs.) Net Weight (in grams)
32 150
DENTONIC TOOTH PASTE - DENTONIC TOOTH PASTE - A GENERAL PERCEPTIONA GENERAL PERCEPTION
With no provision of advancement for a longer period of time Dentonic powder lost
it’s customers to other available brands. The shifting was caused because of no
improvement in the formula and no scientific recommendations were given from
Dental Association.
The general perception about Dentonic Powder in the minds of people was not
favorable for Dentonic Fluoride toothpaste and therefore people are reluctant in
trying the new Dentonic Toothpaste.
It is very difficult to change their perceptions and this is one big hurdle we have to
face in re-launching the product. The General perception can be overcome by
improving the quality of the product and also by affiliating it with PDA to ensure
proven quality.
RESEARCH PROCESSRESEARCH PROCESS
1) Defining the problem, the decision alternatives and the research
objectives:
We have conducted a research to find out the reasons of its non acceptance and
dissatisfaction among consumers and problems faced by them.
2) Research Plan:
Research is exploratory as we had to find the problems and reasons of its less
success though it has a large potential market.
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3) Data Sources:
We have gathered information from secondary and primary data both.
Secondary source of our data is Internet (www.dentonic.com.pk)
Whereas Primary research sources are:
Surveys
Personal Interviews
4) Research Instruments:
Questionnaires contained:
Open ended questions
Close ended questions.
5) Sampling Plan:
Sampling is done on the basis of convenience sampling.
Sample for a survey was 40 respondents of age 40 and above.
Sample for personal interviewing was, on the basis of arranged interviews that
include:
a) a) Dentonic employees: Mr. S.A. Alavi (Proprietor), Mr. Saheer Alavi (Director), Mr.
Abdul Haq (Chief Chemist), Mr. Khalid Jhangir (Sales Manager), Mr. Ifran Ahmed
Siddique (Marketing Manager) & Lab Assistant.
b) Dentists: Dr. Shahjahan Katpar (Asst. Prof. / Maxillofacial &Dental Surgeons at
Hamdard College of Medicine & Dentistry, Hamdard University-Karachi), Dr. Shiraz
Burki (Dr. Burki Dental Clinic), Dr. Anthony (Dr. Anthony’s Clinic)
6) Information gathered / findings of the research:
Dentonic:
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Due to fake Dentonic spread out in different locations in Pakistan the reputable name
of Dentonic tooth powder’s image was severely damaged, and market declined.
Dentists & Respondents:
Because of no provision in advancement for a longer period of time Dentonic Powder
lost it’s customers to other available brands. The shifting was caused because of no
improvement in the formula and no scientific recommendations were given from
Dental Association.
The general perception about Dentonic Powder in the minds of people was not
favorable for Dentonic Fluoride toothpaste and therefore people are reluctant in
trying the new Dentonic Toothpaste.
SUGGESTIONS FROM RESPONDENTS:SUGGESTIONS FROM RESPONDENTS:
It is very difficult to change the respondents’ perceptions and this is one big hurdle
we have to face in re-launching the product. The respondents’ suggestions to
overcome the current perception are as follows:
1) Improving the quality of the product and also by affiliating it with PDA to ensure
proven quality (tooth powder & tooth paste)
2) Improved formula by adding more fluoride to it (tooth powder & tooth paste)
3) Making its particles finer (tooth powder)
4)70% people were suspicious and say it’s not trustworthy. So this company needs
some BDA or PDA certification.
ADVERTISING OBJECTIVE:ADVERTISING OBJECTIVE:We are using Reminder and Informational advertising.
Reminder advertising to remind all the loyal & switched consumers of Dentonic
Toothpowder about the existing Dentonic Toothpaste in the market. And Informative
advertising to aware and educate other consumers about Dentonic Toothpaste 40+
(Extra Fluoride Formula’s) existence in the market. But both advertising objectives
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convey one basic message of the revived Dentonic with promising customer
satisfaction.
ADVERTISING BUDGETSADVERTISING BUDGETSMedia
1) Television
2) Magazines & News paper
3) Hoardings
1. TV Media Vehicles
The channels we chose are GEO & Star Plus.
Channel: GEO
Duration: 3 Months
Rates per Minute:
(Between 8 pm and 9 pm)
4pots x 3 months = 12pots Prime Time on Sundays
I spot per week -4 spots a month 30000 for 30 sec add
Rate Rs. = 30000*4 = 120000/month
Channel: Star Plus
Duration: 3 Months
Rates per Minute:
8 Spots per day = Rs. 12,000/-month (10 pm and 11 pm)
Rate Rs. 12000*3= Rs 36,000/-for three months
Total TVC expense = Rs. 132000
(Inclusive of f Rs. 100000for making cost)
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2. Print Ad Media Vehicle:
The print ad media we chose for Magazine (Akhbaar-e-Jahan & Jung Sunday
Magazine) & for News Paper (Jung, Ummat & Awwam).
Designing Cost= Rs 10,000 for two different sizes that is half page and full page
magazine ad.
Magazine: Akhbaar-e-Jehan (Weekly) (Alternate Weeks)
Duration: 3 months
1st month 2nd month 3rd month
1time 1time 1time
Rate = Rs. 40000 per week
Half page ad
Details of Akhbaar-e-Jehan
Page Size = 40 cm x 20 cm; Column width = 4.25 cm; Column length = 37 cm;
No. of columns = 6; no. of pages (72 approx);
Paper used news print or offset
Outside cover = white offset
Circulation = It is the largest circulated Urdu weekly in Pakistan
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Magazine: Jang Sunday Magazine
Duration = 3 months
Karachi:
Rate per issue = Rs. 20000/-; size = Half page, color.
Twice a month alternate Sundays.
Technical Details of Jang Sunday Magazine
Add will be on the 3rd page.
Only on Sundays
20000*2 =40000/month
40000*3= 120000
40000/month
Newspaper: Awaam
Duration = 3 months
Rate per day 4 column, 30 cm = Rs. 3,925/-
Add will be on the 3rd page
On Monday and Friday
4 Weeks in a month x 2 days per week = 8 times x 3 months = 24 x 3,925 = Rs.
94,000/-
Per month 31300.
Total Print Ad Expense = Rs.83130
3. Hoarding
We placed Dentonic toothpaste hoardings in the following areas of Pakistan, which
were basically according to its target market, i.e., of classes B and C. These places
along with 3 months (quarterly) rates were:
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Every hoarding is 10 X 20; Rate = Rs. 28,500/-
Designing and Printing Cost= Rs .65 per sq ft (130*65= Rs. 8,450)
Total Expense for 3 months = Rs. 85500(28500*3)
85500* 3hoardings = Rs. 598500
Total hoarding expense =256500=8450= 264950/3 months
88316=per month hoarding exp
KARACHI (LOCATIONS FOR HORDINGS)
Shara-e-Fasial (Hoarding with skin and light)
Garden (Amma Tower)
Gulshan (Nipa Chowrangi)
Total Advertising expense
Print ads 83130
Tvc 132000
Making tvc 25000
Total ad exp / months
Total advertising expense per month = Rs. 240130
MANUFACTURING COST:
Rs. 80 per kg is the cost of Raw material that is inclusive of 30 Rs per Kg Triclosin.
The total pieces of 75 gm manufactured in 200 kg paste will be 26,000/-
The total paste manufactured; 200*6= 12, 00. One batch is equals to 200 kg and
total production in a day is 6 batches.
200kg *6=1200kg
1200*1000gms=1200000
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200,000 gm/ 75 gm = Rs. 16000 pieces is produced / month.(1piece=75gms)
------1200kg *70= 84000(cost of paste) rs
Cost of goods sold
16000*4=64000
16000*2=40000
Printing and manufacturing cost =104000 Rs
Per piece=6.5
Total tooth paste manufacturing cost 16000 pieces
Making toothpaste 84000
Printing and tubing 104000
Total manufacturing cost 188000
Per piece 11.5
8000 pieces 94000
Total pieces manufactured in a month 28000 =282000s Distributors 12 % 34000 315840 Retailers discount 20% 63168 Cost of good sold for 240000 pieces 379008 Cost of one piece =16.00
TOTAL EXPENSE
Utility Expense
Electricity Rs. 50,0000- Telephone Rs. 10000 Gas Rs. 5000/-
Total 65000
Salary Expense
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5sales force
7 sales rep 5000 *5 250002 area officers 2*10000 20000Sales manager 70001marketing manager 8000Chemist 20000Allowances 20000Helpers 3000 *2 6000 Total salary expense = 106000
Utility exp 70000
Other miscellaneous expense 20000Advertising expense 240130 Sales tax 126000 Total expenses 562130
Cost + expenses =total cost.Total cost = 844130
Quantity *price =revenue 24000*45=1080000
Revenue – manufacturing cost =gross profit.108000 -282000= 798000
Revenue – total cost = 235870 Net income
SALES PROMOTION PLANSSALES PROMOTION PLANSAbove the line Activities (Consumer Promotion Tools):
1. Sweepstakes
2. Contests
3. Free samples
4. Free trials
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Below the line Activities (Trade Promotion Tools):
1. Free Goods (12+1)
2. Sales Contest
3. Specialty Items (Wall Clocks, Pens etc)
OUR SUGGESTION
1) Arrange meetings/seminars with dentists to clarify their views on Dentonic products, with in their manufacturing location with a complete survey of the plant.
2) Scientific Recommendations from renowned dentists.
3) Follow the ADA approval as soon as possible.
4) Promotional strategies should use in different locations other than the one’s they are already targeting.
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