COTTLE-TAYLOR

”Expanding the
Oral Care Group
1.
in India” S Y N D I C AT E :
E R RYN M . PA RA M YTH A 29115016
2. P U SPA DI VA N U R AQMARI N A 29115042
3. IRENE ANGELINA 29115075
4. NADIA ASTRID 29115202
AGENDA

Introduction of Cottle-Taylor

Indian People Condition

Cottle’s Strategy

Problems

Answer

Conclusion
INTRODUCTION COTTLE-TAYLOR

200
9

200 46%
4 Market
Revenu
Share of
e: Toothbru
181 $11.5 sh in
5 billion
India
Based in Sales
Philadelp grow: Operatio
hia as 8% ns in 200
hand annually countries
soap Net worldwid
 COTTLE-TAYLOR IN INDIA
Personal
• Focus only on oral care Care
• Wide distribution network with 4,50,000
retail outlets
• Outlets included small shops, road side
vendors, medium & large stores and Produc
even supermarkets ts
• 46% Market share of toothbrush sold in
india Oral Home
• Hinda-daltan and sarindia – main
Care Care
competitors
INDIAN PEOPLE CONDITION

• Population: 1.293.940.000 people (17,6% of people in world)

• More than 75% of Indians live on $2 a day
• 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
(based on 2007 study)
• One dentistry personnel for every 10.000 people
• Majority of population do not visit dentist
• No dental insurance in India
 INDIAN PEOPLE CONDITION
1. Survival is an ongoing
(RURAL)
struggle. Children often 4. Through the country, 33% of population lives
lack life’s basic needs, on U.S $ 1,25 day or less.
such as food, clothing,
5. Around 78% Indians is in rural
health care and shelter.
2. Working as an agricultural 6. Rural population 5 times more likely to refrain
laborers, parents earn from using dental care products over urban
meager wages, not nearly counterparts
enough to adequately 7. Many children may not advance beyond a
provide for their families. primary school education as they are
3. Uneducated themselves, frequently taken out of school to help their
also their parents too. families earn money for food.
 INDIAN PEOPLE CONDITION
(SEMI-URBAN)
1. Life is more advance in semi urban 4. Population living below poverty line
rather than in rural, but still face is 29.8%.
many challenges. 5. Many children may not advance
2. Consumer purchased most beyond a primary school education
household at small, cramped as they are frequently taken out of
independent grocery stores school to help their families earn
3. Children also commonly are money for food.
malnourished, and the widespread
lack of adequate sanitation puts their
well-being at risk. When children get
sick, parents tend to take them to
witch doctors rather than to a
medical clinic.
 INDIAN PEOPLE CONDITION
(URBAN)
1. Around 22% lived in Urban (255
million).
2. At least 75% of worker population
engaged in non-agricultural pursuits.
3. Purchase most household products
including oral care products.
4. The major occupations
are industrial,
administrative, and
professional in nature.
5. The social status of
individual is determined
not by heredity or birth
but by his merit,
intelligence, and
perseverance.
 INDIAN PEOPLE CONDITION
(BRUSHING FREQUENCY AND REPLACEMENT)

Brushing Incidence
Replacement Incidence In India

8.6 7%
23% 9%

22%

91.4
39%

1 Time/Week 2 Times/Week
3 Times/Week 1 Time/Day
2 Times/Day
COTTLE'S STRATEGY IN INDIA

• Partners Indian Dental association for promotion of oral hygiene

• Lowered price for basic toothpaste and toothpowder, because there’re new
competitors that offered low-priced and specialty offerings (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 and
increased demand )
• Plans to slowly introduce high end toothbrushes by cooperate with IDA to
communicate this through dentist
COTTLE’S STRATEGY - MARKETING BUDGET
• Cottle India’s oral care division spent:
– 9% of gross toothbrush sales for Advertisement Budget
advertising
– 3% promotions & merchandising
– 10% off-invoice allowances for trade Radio; 5%
deals Billboards & Outdoor Display; 15%

Television; 50%
• Target market for media advertising:
– Men and women aged 20-35 both in Newspaper; 30%

rural and urban locations

Television Newspaper
Billboards & Outdoor Display Radio
COTTLE’S STRATEGY - MESSAGES TO BE DELIVERED

• (1) Persuading consumers to brush for the first time

• (2) Increasing the incidence of brushing
• (3) Persuading consumers to upgrade to midrange/premium products

Patel’s instinct is to focus on message number 1 & 2

Lang’s plan is to focus on message number 3
 PLANNING IN 2010

• LANG’S VIEW (VP of Marketing

for Greater Asia & Africa)
• PATEL’S VIEW (Director of Oral Care Marketing)

– Believes: Increasing advertising

budget above 12% of sales, would
accelerate sales just like what
happened in Thailand in 2007
– Focus on premium product
(battery brushes) and focus on
persuading consumers to upgrade
their toothbrush
– Achieve projection growth 25-30%
unit sales growth in 2010
– Doubt: on duplicating Thailand,
because despite of economic
growth, more than three-quarters
lived on les then $2/day
– Focus on low-end toothbrushes
– Achieve projection growth 20% in
tooth brush unit sales
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 Urb
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

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
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.