Cottle-Taylor

“Expanding the Oral Care

Group in India”
S u b m i tt e d B y - G r o u p 1 2
Ayush Agarwal (PGP10011)
H a ti m C y c l e w a l a ( P G P 1 0 0 2 1 )
Mohini Singh (PGP10032)
Mona (PGP10095)
Rishabh Gupta (PGP10103)
Shubham Jalan (PGP10113)
Sudhanshi Parakh (PGP10055 )
Background of Company
Company
Founded in 1815 as hand-soap
manufacturer
More than 200 products in oral
care, personal care, home care
Revenue in 2009 was $11.5 billion
Operations in more than 75
countries
In India focused only on oral care
US headquarters relied on Indian
subsidiary for strategic advice and
research Indian market
Customers
Customers were categorized into
three different categories based
on their demographics
They catered to all categories
and had different products in the
low-range, mid-range and
battery operated high end-range
products
Collaborators
Wide distribution network
with more than 4,50,000
retailers
Products were sold from
small-bodegas in one-shop
towns to closet-sized urban
sidewalk vendors to
supermarkets and specialty
stores
Company partnered with IDA
to provide free dental
checkups, product samples,
etc
Competitors Context
Hinda-Daltan and Almost 50% of Indians (500
SarIndia were the main million) were still not
competitors concerned with preventing
or curing dental problems
Hinda Daltan had 21%
market share while 78% Indian population lived
SarIndia held 11% in rural areas
market share
37% of the population was
Other low-priced still below poverty line
products held 22% but
they had no brand Dentistry personnel were
recognition very less in India (1 per
10,000 people)
Dentists were seen as an
opportunity to cater to high-
end customers
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
Weightage % Patel Lang
Toothbrush Gross Revenues 100% 101.01 117.29
Less(-): Trade Discounts 10% 10.10 11.73
= Net Revenue 90% 90.9 105.56
Less(-): Variable Manufacturing, Selling and 46% 46.46 53.95
Distribution Costs
= Gross Margin 44% 44.44 51.61
Less(-): Advertising 9%(P)/12%(L) 9.09 14.07
Less(-): Consumer Promotions and 3% 3.03 3.52
Merchandising
Less(-): Selling, General and Administrative 14% 14.14 16.42
Costs
= Profits from Operations - 18.18 17.6

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.