COTTLE-TAYLOR

Expanding the
Oral Care Group
in India
S Y N D I C AT E :

1.

E R RYN M . PA RA M YTH A

29115016

2.

P U SPA DI VA N U R AQMARI N A

3.

IRENE ANGELINA

4.

NADIA ASTRID

29115042
29115075

29115202

AGENDA
Introduction of Cottle-Taylor
Indian People Condition
Cottles Strategy
Problems
Answer
Conclusion

INTRODUCTION COTTLE-TAYLOR
200
9
200
4

181
5

Revenu
e:
$11.5
billion

Based in
Philadelp
hia as
hand
soap

Sales
grow:

8%
annually

Net

46%
Market
Share of
Toothbru
sh in
India
Operatio
ns in 200
countries
worldwid

COTTLE-TAYLOR IN INDIA
Personal
Care

Focus only on oral care

Wide distribution network with 4,50,000
retail outlets
Outlets included small shops, road side
vendors, medium & large stores and
even supermarkets
46% Market share of toothbrush sold in
india
Hinda-daltan and sarindia main
competitors

Produc
ts

Oral
Care

Home
Care

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
struggle. Children often
lack lifes basic needs,
such as food, clothing,
health care and shelter.

(RURAL)

4.

Through the country, 33% of population lives

on U.S $ 1,25 day or less.

5.

Around 78% Indians is in rural

2. Working as an agricultural 6. Rural population 5 times more likely to refrain

from using dental care products over urban
laborers, parents earn
counterparts
meager wages, not nearly
enough to adequately
7. Many children may not advance beyond a
provide for their families.
primary school education as they are
frequently taken out of school to help their
3. Uneducated themselves,
families earn money for food.
also their parents too.

INDIAN PEOPLE CONDITION

(SEMI-URBAN)

1. Life is more advance in semi urban

rather than in rural, but still face
many challenges.
2. Consumer purchased most
household at small, cramped
independent grocery stores
3. Children also commonly are
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.

4.

Population living below poverty line

is 29.8%.

5.

Many children may not advance

beyond a primary school education
as they are frequently taken out of
school to help their families earn
money for food.

INDIAN PEOPLE CONDITION

(URBAN)

1. Around 22% lived in Urban (255

million).
2. At least 75% of worker population
4.
engaged in non-agricultural pursuits.
3. Purchase most household products
including oral care products.

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)

Replacement Incidence

Brushing Incidence
In India

8.6

7%
23%

9%

22%

91.4

39%

1 Time/Week
3 Times/Week
2 Times/Day

2 Times/Week
1 Time/Day

COTTLE'S STRATEGY IN INDIA

Partners Indian Dental association for promotion of oral hygiene
Lowered price for basic toothpaste and toothpowder, because therere 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

COTTLES STRATEGY - MARKETING BUDGET

Cottle Indias oral care division spent:
9% of gross toothbrush sales for
advertising

Advertisement Budget

3% promotions & merchandising

10% off-invoice allowances for trade
deals

Radio; 5%
Billboards & Outdoor Display; 15%

Television; 50%

Target market for media advertising:

Men and women aged 20-35 both in
rural and urban locations

Newspaper; 30%

Television
Billboards & Outdoor Display

Newspaper
Radio

COTTLES 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
Patels instinct is to focus on message number 1 & 2
Langs plan is to focus on message number 3

PLANNING IN 2010
LANGS VIEW (VP of Marketing
for Greater Asia & Africa)

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

PATELS VIEW (Director of Oral Care Marketing)

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
Thailands 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 areas
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 areas
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% didnt 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 Patels 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 didnt use
toothbrush Cottles 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 Cottles
should focused on the product lines that consumers will
most likely buy.