Cottle Taylor Presenation

7/27/2019 Cottle Taylor Presenation

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Cottle Taylor Expanding theOral Care group in India

By:

Group 6


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Agenda

Case Introduction

Major Problems

Solutions


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Case Introduction Cottle Taylor is a consumer-product company based in

Philadelphia.

The company has presence in 75 countries across the globe.

But, the revenues from existing markets are declining which

forced them to look for markets in emerging economies. In India, the companys focus is on Oral Care products.

Their marketing strategy is to enter with basic products with

competitive prices and then introduce premium products.

Cottle is a market leader in terms of sale of Toothpaste and

Toothpowder. But, high illiteracy, unawareness about Oral hygiene and low

income have proven to be roadblocks in their expansion strategy.


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Major Problems Gross margin on Toothpaste and Toothpowder was

dropping. Thus, they thought of leveraging theircompetitive advantage and higher margins intoothbrushes to counter the decline. But, toothbrush

market itself had an array of issues like:

a) 40% population didnt brush teeth regularly.

b) Unaware of consequences of bad Oral care.

c) 50% rural population didnt use toothbrush tobrush teeth.

d) Below 10% users changed toothbrush regularly.


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Major Problems Cottle Taylor didnt value its relationship with seed

distributors though they constituted around 300000retail outlets across the country. As a result:

a) Distributors didnt know key selling points of theCottles products.

b) There was issue with communication and retaildeliveries.


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Major Problems The senior management emphasized on shifting the

product mix towards mid-range and premiumproducts. This strategy worked in emerging marketslike Thailand. But, it had some inherent issues:

a) 37% population was still below poverty line.

b) Majority of the population didnt visit dentistregularly. Thus, the idea of partnering dentist forproduct promotion was not going to work.

c) Advertising budget constraints due to recession.


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Major Problems Cottle only spent 5% of the advertising budget on

Radio advertisement which is the only source ofentertainment of the rural population and around78% (905 Million) people lived in rural areas. Thus,the advertising in rural India by the company wasnot adequate.


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Solutions

The solution will be to first understand the dynamics of economic and

social conditions of the population of India. Thus the strategy to increase

revenues in this competitive market should be to:

The population should be divided into segments and for each segment adifferent line of product should be advertised which can cater to their needs

and should be affordable. For E.g. Low end toothbrush line to be marketed

for the economically weak people and mid-range or premium products for

people with income above 5000$/year (80 Million households).

Cottle should partner with IDA more and more to create awareness

among the people in rural areas about Oral Hygiene and also use this

opportunity to advertise their products. Also, at the same time partner with

the dentists to get help in the advertisement of mid-range or premium

products for the urban .


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Solutions

As the markets for Toothpaste, toothpowder and toothbrushes already

have several competitors, the focus should be on ancillary products like

mouthwash and Dental floss where market is fresh and the growth rate is

highest (62% growth in period 2004-09).

More budgets should be allocated for advertisement in rural areas which

could be in the form of radio broadcasts and billboards.

Relationship with seed distributors should be established and local

population should be used to more and more to counter the languageproblem. Also, the distributor should be trained for key selling points of the

Cottles products which will help the distributor to push the product to the

customer. Also, a reward program should be initiated for the distributors

who achieve the sales target decided by the company.


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THANK YOU

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