Slide 1

Cottle Taylor: Expanding the Oral Care Group in IndiaPresented by,Sambriddhi GhimireSushil Neupane Amit PathakJay PoudelCottle Taylor - An Introduction

1815-2009

Founded in 1815 as Hand Soap ManufacturerHome Care ProductsPersonal Care ProductsPersonal Care ProductsOperations in 200 Countries over 4 Geographical Divisions Revenue: $11.5 billion ($5.7 billion from Emerging Markets2Cottle Taylor In IndiaCalled Cottle India.Focused on Oral Care only.ToothpasteToothbrushTooth PowderWide distribution network with 4,50,000 retail outlets.According to projection of 2009, Market share was 38%.46% Market share of toothbrush sold in india. Hinda-daltan and sarindia main competitors

Few Facts !!!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.

Insight as per the India Market Case IssuesDeclining US revenueslooked to emerging markets to offset domestic loses.He needs higher unit sales and revenue contribution from indiaBrinda patel, director of oral care marketing for india, presents sales forecast supporting 20% increase in toothbrush salesLang finds forecast conservativePatel given 2 days to produce revised marketing plan to achieve goal of 30% sales growth

The objectives of 2010provide quality products with wide range of variety maximise profitsMinimise costs with quality standardsMarketing Objectives30% growth in salesPersuading customers to brush for the first timeIncreasing the incidence of brushingIncreasing sales of oral products

Marketing StrategyCollaborate with IDA, NGOs for promotion, distributionFocus on ATL,BTL promotionsPromote via radio, fly overs, pampletsRole plays, drama acts in rural areasCollaborate with distributors also in the rural areas on a compensation basisProduct Line StrategyPromotional Strategy 4 Ps Strategy and Effects (Patels)StrategyPatel wanted to retain expenditure at 9% of salesThought that company would not like to spend too much money at the time of recessionWants to create new consumersWants to increase brush usagePatel wanted to focus mainly on :Persuading consumers to brush for first timeIncrease incidence of brushing

EffectIncrease in no of rural brushersCreate a larger customer base for futureDrive sales of low end brushesKeep expense minimum for companySale of mid- range and premium toothbrush unaffected20% increase in sales respite increase in toothbrush prices

Strategy and Effects (Langs)StrategyLang proposed increase in ad expense to 12%Based on strategy used in thailandStrategy more focused on :Persuading consumers to upgrade to mid range or premium products

EffectIncrease in expenses for company (ad 12%)New customers created is comparatively lowerHigh increase in switching from low end to mid range and premium productsMore sale of mid range and premium products

Financial ProjectionUnit Sales (2009)Patel's Expectation (2010)Lang's Expectation (2010)% IncreaseUnit Sales Per Unit sale ($)p/u (after 20% increase)Revenue% IncreaseUnit Sales p/u (after 20% increase)RevenueLow End ManualComplete 230.620%276.720.150.1849.816%267.4960.1848.15Sensitooth 29.920%35.880.180.2167.816%34.6840.2167.49Fresh Gum 1520%180.180.2163.916%17.40.2163.76Surround 97%9.630.190.2282.216%10.440.2282.38Kidsie 158%16.20.120.1442.316%17.40.1442.51Total 299.5356.4366.0347.4264.29Mid Range ManualZagger 34.425%430.290.34815.0120%75.680.34826.34Directionflex 8.625%10.750.530.6366.8120%18.920.63612.03Total 4353.7521.894.638.37Battery Operated Swirl Brush 1.513%1.6956.47.6813.025%1.8757.6814.40Refills 0.200.20.560.6720.13425%0.250.6720.17Total 1.71.913.15202.12514.57Total 344.2412.08100.9444.145117.2215ConclusionLangs 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 messages for rural, Urban and semi-Urban areas

RecommendationUrbanOrganise Dental Camps in Schools for KidsGive Discount Coupons to School KidsUse Celebrities for Premium ProductsKiosk Marketing of Mid Range and Premium Products outside Malls

Semi UrbanOrganise Dental Camps in Schools for Kids and ParentsGive away free merchandise to kidsKiosk Marketing for Low End and Mid Range ProductsUse Local Celebrities for Marketing

RuralUse On the Go Marketing in Rural AreasOrganise Dental Camps Give away free MerchandiseDistribute pamphlet for advertise (pictographic)

Continued..Revising the budgeting or rebdgetingEmployees should be given training so as to carry the planA list of procedures to be made and implemented as soon as possible.Employees can be given incentives on performanceMarket survey and research Effective CRM