Based on Case Study, "Cottle-Taylor:Expanding the Oral Care Group in India"

1. COTTLE-TAYLOR:
EXPANDING THE ORAL CARE
GROUP IN INDIA
BY-JASHON
YAMNAM
KANU PRIYA SINGH
KRITIKA JINDAL
KUNAL SURVE
MANAN SETH
MANAS RANJAN TRIPATHY

2. COTTLE-TAYLOR: AN INTRODUCTION
1815 to
2009
Hand Soap
Home Care
Products
Personal Care
Products
Oral Care
Products
Operations in 200 Countries over 4 Geographical
DReivviesniounes: $11.5 billion ($5.7 billion from
Emerging Markets)
Operating out of
Philadelphia
• Company had an international workforce
• Invested heavily in foreign Communities
• Manufacturing Units in 75 Countries
• HQ relies on Local Managers for Strategic Advice and
Research
• Secure early Market Share in Emerging Markets

3. COTTLE-TAYLOR IN INDIA
• CALLED COTTLE INDIA
• FOCUS ONLY ON ORAL CARE
• WIDE DISTRIBUTION NETWORK WITH 4,50,000 RETAIL OUTLETS
• OUTLETS INCLUDED SMALL SHOPS, ROAD SIDE VENDORS, MEDIUM & LARGE
STORES AND EVEN SUPERMARKETS
• MARKET SHARE (2009)- 38%
• 46% MARKET SHARE OF TOOTHBRUSH SOLD IN INDIA
• HINDA-DALTAN AND SARINDIA – MAIN COMPETITORS
% Market Share
21
11
22
46
Hinda-Daltan SarIndia

4. INDIAN CONDITIONS
• 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

5. BRUSHING FREQUENCY AND REPLACEMENT
Brushing Incidence
7
9
22
39
23
In India
1 Time/Week 2 Times/Week 3 Times/Week
1 Time/Day 2 Times/Day
Replacement Incidence
8.6
91.4
Replaced in 3 Months

6. STRATEGY IN INDIA
• PARTNERS INDIAN DENTAL ASSOCIATION FOR PROMOTION OF ORAL
HYGIENE
• LOWERED PRICE FOR BASIC TOOTHPASTE AND TOOTHPOWDER (MARGIN
REDUCED FROM 31% TO 25%)
• AS MARGIN ON TOOTHPASTE AND TOOTH POWDER WENT DOWN, FOCUS
SHIFTED TO LOW AND MID RANGE TOOTHBRUSHES (INCREASE PRICES BY
20% DUE TO INFLATION )
• PLANS TO SLOWLY INTRODUCE HIGH END TOOTHBRUSHES AND ANCILLARY
PRODUCTS LIKE MOUTHWASH AND DENTAL FLOSS
• USE OF DENTISTS TO PUSH SALES

7. MARKETING TILL 2009
• 9% OF TOOTHBRUSH SALES SPENT ON TOOTHBRUSH ADVERTISING
• 3% ON PROMOTION AND MERCHANDISING
• 10% ON OFF INVOICE ALLOWANCES FOR TRADE DEALS
• ADS TARGET MEN AND WOMEN AGED 20-35
• HQ RELIED ON COUNTRY MANAGERS TO ADD LOCAL FLAVOR TO
GLOBAL ADS Ad Expenses
TV Newspapers
Billboards Radio

8. CURRENT SCENARIO
• DECLINING US REVENUES
• SENIOR MANAGEMENT LOOKED TO EMERGING MARKETS TO OFFSET
DOMESTIC LOSES
• MICHAEL LANG, VP OF MARKETING FOR GREATER ASIA AND AFRICA, IS
UNDER PRESSURE TO DELIVER RESULTS
• 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
• LANG WAS PREVIOUSLY ABLE TO ACCELERATE GROWTH IN THAILAND
AND EXPECTS SAME PLAN TO WORK IN INDIA
• PATEL GIVEN 2 DAYS TO PRODUCE REVISED MARKETING PLAN TO
ACHIEVE GOAL OF 30% SALES GROWTH

9. PROBLEMS TO BE SOLVED
• DETERMINE WHOSE PLAN (PATEL OR LANG) WOULD CREATE A HIGHER
REVENUE
• INCREASE UNIT SALES BY 30%
• DEVELOP A MARKETING PLAN BY WEIGHING 3 KEY FACTORS:
PERSUADING CONSUMERS TO BRUSH FOR FIRST TIME
INCREASE INCIDENCE OF BRUSHING
PERSUADE CONSUMERS TO UPGRADE TO MID RANGE OR PREMIUM
PRODUCTS

10. PATELS 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

11. EFFECTS OF PATELS STRATEGY
• 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

12. 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

13. EFFECT OF LANGS STRATEGY
• 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

14. SALES PROJECTION
Toothbrush Products 2009
In
millions
2010 E
Patel
In millions
2010 E
Lang
In millions
$
Price/Uni
t (After
20%
Increase)
Revenue
In millions ($)
Patel Lang
Low End
Manual
Complete 230.6 276.7 267.5
+
16
%
0.18 49.81 48.15
Sensitooth 29.9 35.9 34.7 0.216 7.75 7.5
Fresh Gum 15 18 17.4 0.216 3.89 3.76
Surround 9 9.7 10.4 0.228 2.21 2.37
Kidsie 15 16.2 17.4 0.144 2.33 2.51
Total 299.5 356.5 347.4 - 65.99 64.29
Mid Range
Manual
Zagger 34.4 43 75.7 +
120
%
0.348 14.96 26.34
Directionflex 8.6 10.8 18.9 0.636 6.87 12.02
Total 43 53.8 94.6 - 21.83 38.36
Battery
Operated
Brushes and
Refills
Swirl Brush 1.5 1.7 1.88 +
25
%
7.68 13.06 14.44
Refills 0.2 0.2 0.3 0.672 0.13 0.2
Total 1.7 1.9 2.18 - 13.19 14.64
Total 344.2 412.2 444.18 - 101.01 117.29

15. INCOME STATEMENT
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 Distribution Costs
46% 46.46 53.95
= Gross Margin 44% 44.44 51.61
Less(-): Advertising 9%(P)/12%(L
)
9.09 14.07
Less(-): Consumer Promotions and
Merchandising
3% 3.03 3.52
Less(-): Selling, General and
Administrative Costs
14% 14.14 16.42
= Profits from Operations - 18.18 17.6

16. 120
100
80
60
40
20
0
COMPARISON BETWEEN THE TWO
101.01
117.29
APPROACHES
18.18 17.6
Patel Lang
Revenue

17. SUGGESTIONS
5
%
40%
55%
Urban Areas
Semi Urban Areas
15%
55%
30%
Message 1 Message 2
70%
25%
Rural Area
5%

18. STRATEGY IMPLEMENTATION
Urban Areas (Metros and
Large Cities)
Semi-Urban (Small Cities,
City Outskirts)
Rural Areas (Villages)
• 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
• 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
• Use “On the Go”
Marketing in Rrural Areas
• Organise Dental Camps
• Give away free
Merchandise
• Distribute pamphlet for
advertise (pictographic)

19. CONCLUSIONS
• 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 3 KEY MESSAGES FOR
RURAL, URBAN AND SEMI-URBAN AREAS