COTTLE-TAYLOR:EXPANDING THE ORAL

CARE GROUP IN INDIA

Cottle Taylor

Cottle- US based company

1815

Range of 200 products

Main product categories: ORAL CARE

PERSONAL CARE

HOME CARE

$11.5 Billion.

What factors determine demand for toothbrush? How can demand be

increased?

80% of population lives with less than $2/day.

22% of Indian population is urban who are affluent.

Remaining 78% lives in the rural and are more price

sensitive.

These 78% account for 64% of Indian expenditures.

Factors determining the demand of

the toothbrush

Affordability

Oral hygiene Awareness

Frequency of use

Distribution and Accessibility

Educating the public about Oral Care.

Income group.

Brinda Patel – Director Of Cottle oral care

marketing

Michael Lang – VP of Marketing (Asia & Africa)

US – Personal care & Home care

Growth of sales 18% to 30%.

How is Cottle doing in in India?

2009 Market share: 38%

In India, just a little sub set of affluent purchasers could

manage the cost of a battery-worked toothbrush.

With restricted optional spending, the larger part of Indians

are using home-developed dental solutions and/or

reasonable inexpensive modern oral care products.

Toothbrush products of Cottle

IndiaLow-End Manual Mid-Range Manual Battery Operated

The Complete The Zagger The swirl

The Sensitooth The Directionflex Swirlrefil

The FreshGum

The Surround

The Kidsie

Has Cottle enjoyed a first mover advantages?

Focused Exclusive on Oral Care.

Product Category

Toothpaste,

Toothpowder

Tooth brush

Products were sold in more than 4,50,000 retail outlets,

from small shops in town to closet sized urban sidewalk vendors

to super markets & specialty retailers.

As the market for modern oral care products developed ,

Cottle planned to introduce ancillary products, including the

mouth wash and dental floss, hence safe to say yes.

Indian Market and Oral Care

General lack of knowledge.

Widespread practice of chew twigs from Neem

Tree.

50% of population not concerned with oral

care.

1 “dental personal” per 10,000 people.

In 2007, 50% of the rural India did not use a

tooth brush to clean teeth and few follow IDA’s

recommendations.

Cottle-Taylor’s Prices

Toothbrush

-Low-End Manual ->$0.20-$0.33

-Mid-Range Manual ->$0.52-$0.98

-Battery Operated ->$11.64 + refills $1.02

Toothpaste

-Basic (100ml) : $0.4

-Advanced (100ml):$0.5

Toothpowder

-100 ml :$03

How should Cottle accelerate the development of the

toothbrush market in India?

Persuade consumers to brush for the first time.

Increase the incident of brushing.

Persuade consumers to upgrade to mid-range or

premium products.

Increasing awareness through check up camps.

Tie ups with Schools and Institutions.

Promotion of safe brushing habits by working with IDA.

Gender and age targeted designs, products.

Above the Line Marketing Strategy Advertise through bill-boards in the streets

Advertise aggressively on mid-range toothbrush.

Link it to CSR activity to educate society on brushing twice and

market the product.

Below the Line Marketing Strategy Updating “Anganwadi” workers in villages about the oral hygiene

and providing the free samples to people who gets oral health

problems.

Free health check – ups in towns schools and colleges and provide

them with samples.

*What are Cottle’s target market

segments?

Largest Distributors (Mid and premium toothbrush)

Urban Locations

Focus on High Volume Retail Outlets

Largest Supermarket Chains

Medium-Sized Distributors(mid and low-end toothbrush)

Semi-urban Areas.

Served Wholesalers & Retailers.

Small-Sized Distributors(Low-end toothbrush)

Rural Locations

300,000 Outlets in small villages

Segments

Classified on basis of income:

Low Income

Middle Income

High Income

Geography:

Rural

Urban

Gender:

Male

Female

*Should Cottle spend advertising dollars prompting battery operated

toothbrushes? Why or Why not?

Advertisement budget was equally split through

the 3 messages until 2009.

Target Market for media advertising: Men and

women (Age 20-35) - Both rural and urban.

Campaign weighted to mid-range products and

encourages consumer to trade up.

TAKE:

Hence from the above given information, and

the data from the numerical excerpt, it is

evident that the majority of the sales are for

the mid level or middle income group.

Also, the electric toothbrush, being a slightly

premium products, caters to the crowd who

are aware of it and hence doesn’t justify the

investment on promoting it further through

advertisements.

2009 2010 Expected Patel 2010 Expected LANG

produd

ct

Unit

Sale

s

%

inc

Unit

sales

p/u

(after

20%

increa

se)

Reven

ue

%

incre

ase

Unit sales p/u (after

20%

increase)

Revenue

Base

year

(m)

(m) $(m) (m) $(m)

Low

end

manual

comp 230.

6

20 276.7 0.18 49.08 16 267.5 0.18 48.15

sensi 29.9 20 35.9 0.216 7.754 16 34.7 0.216 7.5

Fres 15 20 18 0.216 3.888 16 17.4 0.216 3.76

Surr 9 7 9.7 0.228 2.212 16 10.4 0.228 2.91

kidsie 15 8 16.2 0.144 2.333 16 17.4 0.144 2.51

Total 299.

5

356.5 65.99 347.4 64.82

Mid

range

manual

zagget 34.4 25 43 0.348 14.96 120 75.7 0.348 26.34

Direc 8.6 25 10.8 0.63 6.804 120 18.9 0.63 11.9

Total 43 53.8 21.77 94.62 38.24

Battery

operate

d

swirl 1.5 13 1.7 7.68 13.06 25 1.87 7.68 14.36

refills 0.2 0 0.2 0.67 0.134 25 0.25 0.67 0.17

Total 1.7 1.9 13.19 2.12 14.53

344.

2

412.2 101 444.1 117.6

Issues – For Marketing Plan

Distributors didn’t always understood the key selling points of Cottle’s toothbrushes.

Difficulty in communicating in rural locations - don’t speak local dialect.

Regional holidays & culture practices often complicated distributor staffing &retail deliveries.

Rural Retailer un-certainity:

Inventory planning - because sales are influence by customer daily or weekly incomes.

Wages of Day laborers have high fluctuations due to job availability and weather.

Proposal for Advertising Marketing

Plan

Message 1 “Brush for the 1st time”.

Message 2 “Brush more often”.

Message 3 “Upgrade the brush”

Questions?