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COTTLE

TAYLOR PRESENTATION BY GROUP 9

Atul Verma
Niharika Choudhary
Onkar Pardeshi
Rohit Jain
Shivam Sharma
Shreyansh Utkarsh
Saurabh Soparkar
Yushey Ahmed
78% Indians live in rural
More than 50% of rural
Case Facts- towns Indians do not use a
22% in urban settings. toothbrush

Opportunity to grab 500 million 1 Dentist per 10000 people


population

Products sold in more than 4.5 Lakh


retail outlets

Cottle-Taylor Market share- Revenue


Toothbrush - 46% - 70.1 Million USD According to 2005
Gross Margin on toothbrush- 44% survey, Majority of
Indians had never visited
a dentist
Competitors- Market share
Hinda-Daltan- 21%
SAR India- 11% Less than 2% of Indians
Low priced from China and Vietnam - 22% do regular dental check-
up
Factors determining Demand
The Economic Condition
The economic condition & political condition of India is showing growth & stability, so the overall
demand is increasing.

Price
Due to inflationary pressure, company is going to increase the prices. So, there may be a decrease in
demand.

Income of Customers
The comparison of disposable income at 2005 & 2009 shows that the disposable income of consumer is
rising. This is a pull factor for demand.

Change in demographic
trends
Exposure & Adoption to the western culture through copying & practicing their habits. More consumer
would acquire the toothbrush habits ultimately increasing the demand
Factors determining Demand
Role of ‘IDA’
Rising concerns over the dental problems in India & partnering with IDA providing free samples, free dental
checkups are important. This is creating a good image of the Cottle products.

Migration towards the urban area


People are migrating towards the urban area. Ease in access & more exposure to the advertisement can pull the
demand for these toothbrush products.

Distribution & Retailing


Network
Due to partnership with large distributor network, company can create a push demand for their products. This is a
competitive advantage for Cottle India.

Availability of Substitutes
Major competitors of Cottle India Hinda-Daltan (French consumer products company), SarIndia (Indian
consumer products company). In the past Cottle India lower its prices because of its competitors.
Marketing plans and activities suggested to improve
demand Rural Semi urban Urban
Will put products on front
shelf on small shops,
To induce habit of changing Not a good market to target for
Advertise using self
Low-manual explanatory billboards.
toothbrush and brush use, Urban users.
provide yearly pack of 4.
Packaging should be in
regional language.

Promote products to regular Focus towards providing Run campaigns to educate


Mid-manual customers only by giving discounts, offers like buy 4 get students and their parents about
multiple discounts. 1, pack of 4 for yearly usage. oral care and hygiene.

Promoting Battery operated brush


Not a good market to target
through Dental personnel.
for battery operated products, No need to market battery
Battery operated as they have not enough operated products.
Promote using Ads showing
reduction in efforts as compare
disposable income
manual toothbrush.
Cottle in
India
Market Share(by Product Sales
volume)
62% Toothpaste Toothpowder
Others 48.7% 33.8%
Cottle
38% Toothbrush
17.5%
COTTLE and its First Mover Advantage

● Partnered with IDA to conduct research studies and outreach campaigns. Developed
awareness.

● Strong distribution network in Urban and semi-urban areas. Already in a place to


introduce more profitable lines and advanced products.

● Indians considered Cottle an authority on oral care and held their product in high
regard.

● The market share for Toothbrush is ruled by Cottle with 46% of total market share.
Market Segment
(Geographical)
Higher disposable Incomes. Less Price Sensitive.
People shopped at convenient stores,
departmental stores, supermarkets, etc

URBAN AREAS 22%

In Semi Urban areas, products were bought at


small cramped independent grocery stores

RURAL AREAS 78%


Lacked transit, electricity, running water, and waste
treatment systems. Access to basic healthcare was
limited. Illiteracy rates were high. Lacked access to
credit.
But, still accounted for 64% of the total Indian
Expenditure.
MARKET
SEGMENTS
Low income group
(Income based)
Middle income group

High income group

Bifurcation of products based on


disposable income.
Target-
● Low income group with Low-
end manual.

● Middle income with Mid-range


manual.

● High income group with Battery


operated toothbrush.
Cottle-Taylor’s Retail Prices
Toothbrus
h Low-end Manual $ 0.22 - 0.35 /unit

Mid-end Manual $ 0.52 - 0.98 /unit

Battery-Operated $ 1.02 - 11.64 /unit

Toothpast
e Basic (100 ml) $ 0.4 /unit

Basic (100 ml) $ 0.5 /unit

Toothpowde
r 100 ml $ 0.3 /unit
Revenue Projections -
Based on Lang(25% growth) and Patel(20 % growth) estimation

Lang Plan of action gives 14.6325 total revenue because of increase in advertising cost from 9% to 12%.
Patel Plan of action gives 15.102 total revenue because of keeping advertising cost 9% only and showing confidence in
her data-driven market plan.

NOTE-Toothbrush gross revenue calculated on the basis of growth projection of 25% and 20% estimated by Lang and
Patel respectively.
Thanks!

Questions ?

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