WAC-II ASSIGNMENT

Name-VIKAS PARIHAR

Cottle- Taylor: Expanding the Oral Care Group in India

Introduction
Cottle Taylor is an MNC based in Philadelphia. It broadly deals in products related to oral care, personal care and home care. It has a gamut of about 200 different products. Following its policy of global expansion, it had targeted four divisions, viz. North America, Latin America, Greater Asia and Africa. The policy also emphasized on providing quality products around the globe.

Cottle Taylor had a subsidiary in India which was christened as COTTLE INDIA.Brinda Patel was the director of marketing operations in India, who was subordinate to Michael Lang, manager. The current case involves the Indian toothbrush market and the decision to be taken regarding the same. Lang is unsatisfied with Brindas projection of 20% increase in unit sales, and rather suggests the Thailand model (2007) to be followed. As per the Thailand model Mr Michael Lang believed that by increasing advertising and promotions beyond 12% of sales, a growth rate of around 25-30% on unit sales can be achieved. However, Mr Lang had overlooked certain factors while making such a suggestion.

Toothbrush Market
The demand for toothbrushes as a commodity arises by the necessity of hygiene and non-availability of substitutes. From the two reasons at least the second weakens the demand in India. Many people in India still use traditional products like Neem Twigs, salt and other herbal products.

Further, various studies have revealed the following An average Indian just uses a paltry 82 gm. of toothpaste

WAC-II ASSIGNMENT

Name-VIKAS PARIHAR

The dentist to population ratio is 1:10000 As per a study in 2007 , 50% Indians are not concerned with preventing or curing Dental problems Only 2% visited regularly to a dentist. 80% of the toothbrush consumers used the toothbrush beyond the prescribed time of three months So the potential is huge but the market has to be created.

Cottle INDIAs Position

Cottle India has been operating in India for the last 50 years .Cottle India frequently partnered with IDA to promote dental care. This showed positive results as their products had a reputation in the market. Cottle Indias share of the Indian market was 38%. Cottle India had lowered their prices to tighten their grip in the dental market. Owing to the fact that requirements of high investments in toothbrush production and also taking into account that the margins from toothpaste and toothpowder were on a constant decline, the company focused its attention to toothbrush market. The three toothbrushes in the product line includedo o o Low End Manual Mid-Range Manual Battery-Operated

Target Market Segments

The Company aspires for a graduation of the existing consumers from the lower end to higher end toothbrush. Battery Operated Toothbrush

Battery operated toothbrush

The battery operated toothbrush fetched the highest margins obtained were from