Cottle Taylor: Expanding the

Oral Care Group in India

Presented by,
Sambriddhi Ghimire
Sushil Neupane
Amit Pathak
Jay Poudel

Cottle Taylor - An Introduction

18152009

Founded in 1815 as
Hand Soap Manufacturer

Home Care
Products

Personal Care Products

Personal Care Prod

Operations in 200 Countries over 4

Geographical Divisions
Revenue: $11.5 billion ($5.7 billion from
Emerging Markets

Cottle Taylor In India

Called Cottle India.
Focused on Oral Care only.
Toothpaste
Toothbrush
Tooth Powder

Wide distribution network with 4,50,000 retail outlets.

According to projection of 2009, Market share was 38%.
46% Market share of toothbrush sold in india.
Hinda-daltan and sarindia main competitors

Few Facts !!!

More than 75% of Indians live on $2 a day
Indian market included urban, semi-urban and rural areas
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(2007 study)
Rural population 5 times more likely to refrain from using dental care products over urban
counterparts.
One dentistry personnel for every 10000 people
Majority of population do not visit dentist
No dental insurance in india.

Insight as per the India Market

Rural
Lacks basic facilities and basic health care
High illiteracy rate.
Extremely price sensitive
, few were getting information due to increased communication technology
(donot care about dental health at all, consider neem wigs, ashes as the best soluton, consider dental problems
as a result of bad eating habits or genetics

Semi Urban
.Do not visit a dentist or replace their toothbrush once in every three months
Consumer purchase most household products, including oral care products at small
groceries stores at affordable price.

Urban
Higher disposable income and less price sensitive.
Shops at convenient stores, departmental stores, supermarket.
Visit Dentists

Case Issues
Declining US revenues
looked to emerging markets to offset domestic loses.
He needs higher unit sales and revenue contribution
from india
Brinda patel, director of oral care marketing for india,
presents sales forecast supporting 20% increase in
toothbrush sales
Lang finds forecast conservative
Patel given 2 days to produce revised marketing plan to
achieve goal of 30% sales growth

The objectives of 2010

provide quality products with wide range of
variety
maximise profits
Minimise costs with quality standards

Marketing Objectives
30% growth in sales
Persuading customers to brush for the first
time
Increasing the incidence of brushing
Increasing sales of oral products

Marketing Strategy
Collaborate with IDA, NGOs for promotion,
distribution
Focus on ATL,BTL promotions
Promote via radio, fly overs, pamplets
Role plays, drama acts in rural areas
Collaborate with distributors also in the rural
areas on a compensation basis

Product Line Strategy

Toothpaste and Toothpowder
Inexpensive and locally available
ingredient, high competitions, less
gross margin

Toothbrush

More focus since less competitions

due to requirement of high financial
and manufacturing resources

Message 3

focus on urban people (tv ads, social media ads)

focus on semi- urban rural population- adults, teenagers,

old people (flyers, pamphlets, radio, tv ads)
focus on rural population- kids, young people and their
parents (role plays, tv ads, radios, text books that
emphasise brushing)

Message 2

Message 1

Promotional Strategy

4 Ps
Price
Premium price for high quality
products
affordable price for medium and
low quality products

Product
Bring wide varieties'
good quality products

4 Ps
Promotion
ATL,BTL, PR, NGOs, IDA, etc

Place
focus on the distribution channel
they have right now.

Strategy and Effects (Patels)

Strategy

Effect

Patel wanted to retain

expenditure at 9% of sales
Thought that company would not
like to spend too much money at
the time of recession
Wants to create new consumers
Wants to increase brush usage
Patel wanted to focus mainly on :

Increase in no of rural brushers

Create a larger customer base
for future
Drive sales of low end brushes
Keep expense minimum for
company
Sale of mid- range and
premium toothbrush unaffected
20% increase in sales respite
increase in toothbrush prices

Persuading consumers to brush

for first time
Increase incidence of brushing

Strategy and Effects (Langs)

Strategy
Lang proposed increase in
ad expense to 12%

Based on strategy used in

thailand

Strategy more focused on :

Persuading consumers to
upgrade to mid range or
premium products

Effect
Increase in expenses for
company (ad 12%)
New customers created is
comparatively lower
High increase in switching
from low end to mid range
and premium products
More sale of mid range and
premium products

Financial Projection
Patel's Expectation (2010)
Unit Sales
(2009) % Increase Unit Sales
Low End
Manual

Mid Range
Manual

Battery
Operated

Per Unit
sale ($)

p/u (after
20%
increase)

Lang's Expectation (2010)

Revenue % Increase Unit Sales

p/u (after
20%
increase)

Revenue

0.18

48.15

0.216

7.49

0.216

3.76

0.228

2.38

0.144

2.51

Complete

230.6

20%

276.72

0.15

0.18

49.8

16%

267.496

Sensitooth

29.9

20%

35.88

0.18

0.216

7.8

16%

34.684

Fresh Gum

15

20%

18

0.18

0.216

3.9

16%

17.4

Surround

7%

9.63

0.19

0.228

2.2

16%

10.44

Kidsie

15

8%

16.2

0.12

0.144

2.3

16%

17.4

Total

299.5

Zagger

34.4

25%

43

0.29

0.348

15.0

120%

75.68

Directionflex

8.6

25%

10.75

0.53

0.636

6.8

120%

18.92

Total

43

Swirl Brush

1.5

13%

1.695

6.4

7.68

13.0

25%

1.875

Refills

0.2

0.2

0.56

0.672

0.134

25%

0.25

Total

1.7

1.9

13.1520

2.125

14.57

344.2

412.08

100.9

444.145

117.22

Total

356.43

66.0

53.75

347.42

21.8

64.29
0.348
0.636

94.6

26.34
12.03

38.37
7.68
0.672

14.40
0.17

Conclusion
Langs strategy projects a revenue of $117.29 million compared to $101.01 Million
for patels strategy
but gross profit for patels strategy ($18.18 Million) is more than Langs strategy
($17.6 Million)
Patels strategy generates more users hence creating a larger customer base for future
Patels strategy should be followed for 2010 and langs strategy may be implemented
once first time users are increased
There should be different weightage given to the messages for rural, Urban and
semi-Urban areas

Recommendation
Urban
Organise Dental Camps
in Schools for Kids
Give Discount
Coupons to School
Kids
Use Celebrities for
Premium Products
Kiosk Marketing of
Mid Range and
Premium Products
outside Malls

Semi Urban
Organise Dental
Camps in Schools for
Kids and Parents
Give away free
merchandise to kids
Kiosk Marketing for
Low End and Mid
Range Products
Use Local Celebrities
for Marketing

Rural
Use On the Go
Marketing in Rural
Areas
Organise Dental
Camps
Give away free
Merchandise
Distribute pamphlet
for advertise
(pictographic)

Continued..
Revising the budgeting or rebdgeting
Employees should be given training so as to carry
the plan
A list of procedures to be made and implemented
as soon as possible.
Employees can be given incentives on
performance
Market survey and research
Effective CRM