In May 2008, the Procter & Gamble (P&G) North America Oral Care group was considering the launch of a new Crest White strips line, Advanced Seal. The product improves on existing at-home tooth enamel whitening treatments, providing better adhesion to the teeth and thus better whitening results. The group is concerned about the willingness of customers to adopt the new line and the effect the new line will have on existing P&G whitening products.

The task is to build a model to forecast the expected incremental cash flow from the initiative, with particular attention paid to the cannibalization of existing whitening business. The case in text book provides several alternative scenarios for launching the business.The research report is expected to comment on the value implications of each scenario. This case provides a good blend of both finance and marketing tools.

Produce a substantial and detailed research report (essay) that addresses the following key questions:

1. What is the situation at P&G, and what is the company's motivation for the Advanced Seal launch?
2. Does the project appear economically viable? Why or why not? Provide detailed examples.
3. Which strategic proposal do you find most appealing?
4. What are the key value drivers of the Advanced Seal investment?
5. What recommendation would should make to Roman for P&G's investment in Advanced Seal?

Use details from the case as presented in the text book, and the attached spreadsheet will also be valuable for conducting the research and analysis:

Exhibit 6 THE PROCTER & GAMBLE COMPANY: CREST WHITESTRIPS ADVANCED SEAL Crest Whitestrips Products: Gross Profit Comparison Advanced Seal Premium Product Basic Product Per unit revenue and costs Revenue $22 $18 $13 Cost of goods sold expenses $12 $7 $6 Gross profit $10 $11 $7 Note: The cost of goods sold figures exclude depreciation expense