COTTLE TAYLOR: Expanding

the Oral Care Group in India

Submitted by : Group 4
 SALES BUDGETING AND FORECAST FOR COTTLE TAYLOR
Manufacturer Increased
Unit Sales (millions)
Selling Manufacturer Revenue
2008 2009 2010E (Lang) Price/Unit Selling Price/Unit
Toothbrush Products
Low-end Manual
Complete 197.6 230.6 267.5 $ 0.15 $ 0.18 $ 47.18
Sensitooth 25.7 29.9 34.7 $ 0.18 $ 0.22 $ 7.50 Revenue estimates as well as gross margin
Fresh Gum 12.8 15.0 17.4 $ 0.18 $ 0.21 $ 3.70
Surround 7.7 9.0 10.4 $ 0.19 $ 0.23 $ 2.39
for both Patel and Lang are similar for low
Kidsie 12.8 15.0 17.4 $ 0.12 $ 0.14 $ 2.47 end
Total 256.6 299.5 347.4 $ 63.25

Mid-Range Manual
Zagger 27.2 34.4 75.7 $ 0.29 $ 0.35 $ 26.72
Directionflex 6.8 8.6 18.9 $ 0.53 $ 0.64 $ 12.09
Total 34.0 43.0 94.7 $ 38.80

Battery Operated
Swirl Brush 1.30 1.5 1.9 $ 6.40 $ 7.68 $ 14.87 Revenue estimates as well as gross margin
Refills 0.16 0.2 0.2 $ 0.56 $ 0.67 $ 0.14
Total 1.5 1.7 2.2 $ 15.01
for mid range are lower according to
Total Toothbrush Unit Sales 292.1 344.2 444.2 $ 117.06 Patel’s estimates
Toothpaste Products
Basic (100 ml) 691.0 829.2 953.6 0.2 0.2
Advanced (100 ml) 112.9 132.1 153.2 0.3 0.3
Total Toothpaste Unit Sales 803.9 961.3 1,106.8

Toothpowder (100 ml) 669.9 783.8 917.1 0.2 0.2

Total Oral Care Unit Sales 1,765.90 2,089.30 2,468.00

 REVENUE AND PROFITIBILITY ANALYSIS
Manufacturer Increased Lang's Unit Sales
Unit Sales (millions)
Selling Manufacturer as per Thailand's
2008 2009 2010E (Lang) Price/Unit Selling Price/Unit Product Mix Thailand's Product Mix Allocation Units(millions) Avg.Price Revenue
Toothbrush Products
Low-end Manual Low end Manual 70% 310.93 $ 0.18 $ 56.61
Complete 197.6 230.6 267.5 $ 0.15 $ 0.18 239.41 Mid Range Manual 25% 111.05 $ 0.41 $ 45.52
Sensitooth 25.7 29.9 34.7 $ 0.18 $ 0.22 31.09 Battery Operated 5% 22.21 $ 6.98 $ 154.95
Fresh Gum 12.8 15.0 17.4 $ 0.18 $ 0.21 15.55 Total Revenue $ 257.08
Surround 7.7 9.0 10.4 $ 0.19 $ 0.23 9.33
Kidsie 12.8 15.0 17.4 $ 0.12 $ 0.14 15.55 Calculation for Profitability
Total 256.6 299.5 347.4 310.93 2010 2010 (Values)
Toothbrush gross revenues 120% $ 257.08
Mid-Range Manual Less: Trade Discounts 12.0% $ 25.71
Zagger 27.2 34.4 75.7 $ 0.29 $ 0.35 88.84 = Net Revenues 108% $ 231.38
Directionflex 6.8 8.6 18.9 $ 0.53 $ 0.64 22.21
Total 34.0 43.0 94.7 111.05 Less:
Variable manufacturing, selling and distribution costs 55% $ 118.26
Battery Operated = Gross Margin 53% $ 113.12
Swirl Brush 1.30 1.5 1.9 $ 6.40 $ 7.68 19.99
Refills 0.16 0.2 0.2 $ 0.56 $ 0.67 2.22 Less:
Total 1.5 1.7 2.2 22.21 Advertising 9% $ 19.28
Total Toothbrush Unit Sales 292.1 344.2 444.2 444.2 Consumer promotions and merchandising 3% $ 6.43
Selling, general and administrative costs 14% $ 29.99
Toothpaste Products = Profit from Operations 27% $ 57.42
Basic (100 ml) 691.0 829.2 953.6 0.2 0.2
Advanced (100 ml) 112.9 132.1 153.2 0.3 0.3 PROFITABILITY 22%
Total Toothpaste Unit Sales 803.9 961.3 1,106.8

Toothpowder (100 ml) 669.9 783.8 917.1 0.2 0.2 Revenue earned across categories would be more than $250
Total Oral Care Unit Sales 1,765.90 2,089.30 2,468.00
million
 SALES FORECAST ANALYSIS BY PATEL FOR 2010
Revenue
Manufacturer Increased Increased Distributor
Unit Sales (millions) Manufacture Retail Selling
Selling Manufacturer Manufacturer Selling Patel's Estimates Lang's Estimates
Gross Margin Price/Unit
2008 2009 2010E (Patel) 2010E (Lang) Price/Unit Selling Price/Unit Gross Margin Price/Unit
Toothbrush Products
Low-end Manual
Complete 197.6 230.6 276.7 267.5 $ 0.15 $ 0.18 47% 56% $ 0.20 $ 0.27 $ 48.81 $ 47.18
Sensitooth 25.7 29.9 35.9 34.7 $ 0.18 $ 0.22 50% 60% $ 0.24 $ 0.33 $ 7.76 $ 7.50
Fresh Gum 12.8 15.0 18.0 17.4 $ 0.18 $ 0.21 48% 58% $ 0.24 $ 0.32 $ 3.83 $ 3.70
Surround 7.7 9.0 9.7 10.4 $ 0.19 $ 0.23 47% 56% $ 0.26 $ 0.35 $ 2.22 $ 2.39
Kidsie 12.8 15.0 16.2 17.4 $ 0.12 $ 0.14 48% 58% $ 0.16 $ 0.22 $ 2.30 $ 2.47
Total 256.6 299.5 356.5 347.4 $ 64.92 $ 63.25

Mid-Range Manual
Zagger 27.2 34.4 43.0 75.7 $ 0.29 $ 0.35 40% 48% $ 0.44 $ 0.52 $ 15.18 $ 26.72
Directionflex 6.8 8.6 10.8 18.9 $ 0.53 $ 0.64 52% 62% $ 0.74 $ 0.98 $ 6.87 $ 12.09
Total 34.0 43.0 53.8 94.7 $ 22.05 $ 38.80

Battery Operated
Swirl Brush 1.30 1.5 1.7 1.9 $ 6.40 $ 7.68 40% 48% $ 8.96 $ 11.64 $ 13.08 $ 14.87
Refills 0.16 0.2 0.2 0.2 $ 0.56 $ 0.67 60% 72% $ 0.78 $ 1.02 $ 0.13 $ 0.14
Total 1.5 1.7 1.9 2.2 $ 13.21 $ 15.01
Total Toothbrush Unit Sales 292.1 344.2 412.2 444.2 $ 100.18 $ 117.06

Toothpaste Products
Basic (100 ml) 691.0 829.2 953.6 953.6 0.2 0.2 25% 25% 0.3 0.4
Advanced (100 ml) 112.9 132.1 153.2 153.2 0.3 0.3 23% 23% 0.3 0.5
Total Toothpaste Unit Sales 803.9 961.3 1,106.8 1,106.8