Cottle Taylor: Expanding the

Oral Care Group in India

Presented by,
Sambriddhi Ghimire
Sushil Neupane
Amit Pathak
Jay Poudel
 Cottle Taylor - An Introduction

1815-
2009

Founded in 1815 as Hand Soap Home Care Products Personal Care Products Personal Care Product
Manufacturer

•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, NGO’s 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
 Promotional Strategy
• focus on rural population- kids, young people and their
parents (role plays, tv ad’s, radio’s, text books that
Message 1 emphasise brushing)

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

Message 2 old people (flyers, pamphlets, radio, tv ad’s)

• focus on urban people (tv ad’s, social media ad’s)

Message 3
 4 P’s
Price
Product Premium price for high quality
Bring wide varieties' products
good quality products affordable price for medium and low
quality products

4 P’s
Place
focus on the distribution channel Promotion
they have right now. ATL,BTL, PR, NGO’s, IDA, etc
Strategy and Effects (Patel’s)
Strategy
• 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 :
 Persuading consumers to
brush for first time
 Increase incidence of brushing
Effect
• 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
Strategy and Effects (Lang’s)
Strategy Effect
• Lang proposed increase in • Increase in expenses for
ad expense to 12% company (ad 12%)
• Based on strategy used in • New customers created is
thailand comparatively lower
• Strategy more focused on : • High increase in switching
• Persuading consumers to
from low end to mid range
upgrade to mid range or and premium products
premium products • More sale of mid range and
premium products
 Financial Projection
Patel's Expectation (2010) Lang's Expectation (2010)

Unit Sales p/u (after p/u (after

(2009) % Increase Unit Sales Per Unit sale 20% Revenue % Increase Unit Sales 20% Revenue
($)
increase) increase)
Low End Complete 230.6 20% 276.72 0.15 0.18 49.8 16% 267.496
0.18 48.15
Manual
Sensitooth 29.9 20% 35.88 0.18 0.216 7.8 16% 34.684
0.216 7.49
Fresh Gum 15 20% 18 0.18 0.216 3.9 16% 17.4
0.216 3.76
Surround 9 7% 9.63 0.19 0.228 2.2 16% 10.44
0.228 2.38
Kidsie 15 8% 16.2 0.12 0.144 2.3 16% 17.4
0.144 2.51
Total 299.5 356.43 66.0 347.42 64.29
Mid Range Zagger 34.4 25% 43 0.29 0.348 15.0 120% 75.68
0.348 26.34
Manual
Directionflex 8.6 25% 10.75 0.53 0.636 6.8 120% 18.92
0.636 12.03
Total 43 53.75 21.8 94.6 38.37
Battery Swirl Brush 1.5 13% 1.695 6.4 7.68 13.0 25% 1.875
7.68 14.40
Operated
Refills 0.2 0 0.2 0.56 0.672 0.134 25% 0.25
0.672 0.17
Total 1.7 1.9 13.1520 2.125 14.57
Total 344.2 412.08 100.9 444.145 117.22
 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 Semi Urban Rural
• Organise Dental • Organise Dental • Use “On the Go”
Camps in Schools for Camps in Schools for Marketing in Rural
Kids Kids and Parents Areas
• Give Discount • Give away free • Organise Dental
Coupons to School Camps
Kids merchandise to kids
• Kiosk Marketing for • Give away free
• Use Celebrities for Merchandise
Premium Products Low End and Mid
Range Products • Distribute pamphlet
• Kiosk Marketing of for advertise
Mid Range and • Use Local Celebrities (pictographic)
Premium Products for Marketing
outside Malls
 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