Cottle Taylor Case Analysis

COTTLE-
TAYLOR
”Expanding the Oral
Care Group in India”
1.
S Y N D I C AT E :
E R RY N M . PA R A M Y T H A 29115016
2. P U S P A D I VA N U R A Q M A R I N A 2 9 1 1 5 0 4 2
3. IRENE ANGELINA 29115075
4. NADIA ASTRID 29115202
AGENDA
Introduction of Cottle-Taylor
Indian People Condition
Cottle’s Strategy
Problems
Answer
Conclusion
INTRODUCTION COTTLE-TAYLOR
2009
2004
46% Market
Revenue: Share of
$11.5 billion
Toothbrush in
India
Sales grow:
1815 8% annually Operations in
Based in Net Income: 200 countries
Philadelphia as 12% worldwide
hand soap Earning per
manufactures shares:
14%
COTTLE-TAYLOR IN INDIA
Personal
• Focus only on oral care Care
• Wide distribution network with 4,50,000 retail
outlets
• Outlets included small shops, road side vendors,
medium & large stores and even supermarkets Product
• 46% Market share of toothbrush sold in india s
• Hinda-daltan and sarindia – main competitors
Oral Home
Care Care
INDIAN PEOPLE CONDITION
• Population: 1.293.940.000 people (17,6% of people in world)

• More than 75% of Indians live on $2 a day
• Large portion of population still relies on traditional products like neem twigs, black salt,
tobacco, charcoal and ash
• 50% of Indians not concerned with preventing or curing dental problems (based on 2007 study)
• One dentistry personnel for every 10.000 people
• Majority of population do not visit dentist
• No dental insurance in India
(RURAL)
1. Survival is an ongoing struggle.
Children often lack life’s basic 4. Through the country, 33% of population lives on U.S $
1,25 day or less.
needs, such as food, clothing,
health care and shelter. 5. Around 78% Indians is in rural
2. Working as an agricultural 6. Rural population 5 times more likely to refrain from using
dental care products over urban counterparts
laborers, parents earn meager
wages, not nearly enough to 7. Many children may not advance beyond a primary school
adequately provide for their education as they are frequently taken out of school to
help their families earn money for food.
families.
3. Uneducated themselves, also their
parents too.
(SEMI-URBAN)
1. Life is more advance in semi urban rather than 4. Population living below poverty line is
29.8%.
in rural, but still face many challenges.
5. Many children may not advance beyond a
2. Consumer purchased most household at small, primary school education as they are
cramped independent grocery stores frequently taken out of school to help their
3. Children also commonly are malnourished, families earn money for food.
and the widespread lack of adequate sanitation
puts their well-being at risk. When children get
sick, parents tend to take them to witch doctors
rather than to a medical clinic.
(URBAN)
1. Around 22% lived in Urban (255 million).
2. At least 75% of worker population engaged
in non-agricultural pursuits. 4. The major occupations are
industrial, administrative, and
3. Purchase most household products including professional in nature.
oral care products.
5. The social status of individual
is determined not by heredity
or birth but by his merit,
intelligence, and perseverance.
(BRUSHING FREQUENCY AND REPLACEMENT)
Brushing Incidence
In India
Replacement Incidence
8.6
7%
23% 9%
22%
39%
1 Time/Week 2 Times/Week
91.4 3 Times/Week 1 Time/Day
2 Times/Day
COTTLE'S STRATEGY IN INDIA
• Partners Indian Dental association for promotion of oral hygiene

• Lowered price for basic toothpaste and toothpowder, because there’re new competitors that
offered low-priced and specialty offerings (margin reduced from 31% to 25%)
• As margin on toothpaste and tooth powder went down, focus shifted to low and mid range
toothbrushes (increase prices by 20% due to inflation and increased demand )
• Plans to slowly introduce high end toothbrushes by cooperate with IDA to communicate this
through dentist
COTTLE’S STRATEGY - MARKETING BUDGET
• Cottle India’s oral care division spent:
– 9% of gross toothbrush sales for advertising Advertisement Budget
Radio
– 3% promotions & merchandising 5%
– 10% off-invoice allowances for trade deals Billboards &

Outdoor Display
15%
• Target market for media advertising: Television

50%
– Men and women aged 20-35 both in rural and
Newspaper
urban locations 30%
Television Newspaper
Billboards & Outdoor Display Radio
COTTLE’S STRATEGY - MESSAGES TO BE DELIVERED
• (1) Persuading consumers to brush for the first time

• (2) Increasing the incidence of brushing
• (3) Persuading consumers to upgrade to midrange/premium products
Patel’s instinct is to focus on message number 1 & 2

Lang’s plan is to focus on message number 3
PLANNING IN 2010
• LANG’S VIEW (VP of Marketing for • PATEL’S VIEW (Director of Oral Care
Greater Asia & Africa) Marketing)
– Believes: Increasing advertising budget – Doubt: on duplicating Thailand, because

above 12% of sales, would accelerate sales despite of economic growth, more than
just like what happened in Thailand in 2007 three-quarters lived on les then $2/day
– Focus on premium product (battery – Focus on low-end toothbrushes
brushes) and focus on persuading
– Achieve projection growth 20% in tooth
consumers to upgrade their toothbrush
brush unit sales
– Achieve projection growth 25-30% unit
sales growth in 2010
PROBLEMS
1. What message would resonate most with them?

2. How many rural consumers had the desire to adopt a modern approach to oral care?
3. How quickly would those with growing disposable incomes perceive a need for more
sophisticated products?
4. What would 2009 revenue and profitability have looked like with Thailand’s product mix?
5. Would 3% increased in Ad dollars necessarily lead to higher revenues and profitability?
ANSWER : 1
• Message 1 : Brush for the first time (Most Resonate with Rural Area).
Targeting : Parents with their young children.
How ?? : - Educate parents about the important of brush the teeth.
- Educate children from their school.
- Partnership with IDA to implement an oral care program for the earlier age
 Message 2 : Increasing the incidence of brushing . (Most Resonate with Semi-Urban Area).
Targeting : All segment in Rural and Semi-urban area’s
How ?? : - Promote through all media (BTL and ATL).
- Rewarding campaign bonus (ex: bundling the toothbrush with toothpaste
 Message 3 : Upgrade to midrange/premium products (Most Resonate with Urban Area)

Targeting : All segment in urban area’s
How ?? : - Partnership with dentist.
- Educate urban the benefit from premium product related to their health
ANSWER: 2
Currently, only below 50% of rural consumers had the desire to adopt
modern approach to oral care. Because based on the data, above 50%
didn’t not use a toothbrush to clean teeth.
ANSWER: 3
The consumer buying power has been increase especially for the semi urban and urban
area. With disposable income above $5.000/year it is possible to upgrade into the more
sophisticated products.
ANSWER: 4 ( PRODUCT MIXED )
Based on the product mixed from product category, Langs has higher revenue than Patel
MARKETING PLAN – 2010
PROJECTION
MARKETING PLAN – 2010
PROJECTION
Better to choose Patel 2010, because the profit is higher than Lang 2010. It because Lang decide to
increase the marketing budget into 12%.
ANSWER: 5
• No, a 3% increase in Ad dollars would not definitively lead to higher revenues
and profitability in this situation.
• Increasing the amount of advertising dollars injected into a campaign does not
necessarily have a direct correlation on revenues and profit.
• Essentially, increasing the amount spent on advertising could increase consumer
awareness and volume, but it is plausible that consumers who do not have a lot of
money may not be influenced by advertisements. In India, 80% of citizens live on
less than $2 per day, which is a big obstacle for Cottle. Many Indians may not
have access to view the advertisements, and a 3% increase may just be a waste of
funding in the end. Finding an effective and feasible insight into how Indians
purchase oral care products should be priority #1 and custom tailoring a message
to each consumer group
CONCLUSION
• Brinda Patel’s plan must be approved as it based on local research,
not on success of other country with distinctive culture. As long as
50% of rural population didn’t use toothbrush Cottle’s messages
should concentrate on persuading consumers to brush for the first
time.
• Great majority of Indians are price-sensitive, and 80% Indians live
less than on $2, that means that Cottle’s should focused on the
product lines that consumers will most likely buy.

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COTTLE-

Indian People Condition

• Population: 1.293.940.000 people (17,6% of people in world)

• Partners Indian Dental association for promotion of oral hygiene

– 10% off-invoice allowances for trade deals Billboards &

• Target market for media advertising: Television

• (1) Persuading consumers to brush for the first time

Patel’s instinct is to focus on message number 1 & 2

– Believes: Increasing advertising budget – Doubt: on duplicating Thailand, because

1. What message would resonate most with them?

 Message 3 : Upgrade to midrange/premium products (Most Resonate with Urban Area)

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