Cottle-Taylor: Expanding The Oral Care Group in India

COTTLE-TAYLOR: Group 12
Manav Lakhina
EXPANDING THE Aakanksha Priya

Suraj S Nair
ORAL CARE GROUP Ankit Singla

Dirgha Prasad
IN INDIA Aakanksha Siwach

Introduction
• Operations in 200 Countries over 4
Geographical Divisions Revenue: $11.5 billion
($5.7 billion from Emerging Markets)
• Company had an international workforce
• Invested heavily in foreign Communities
• Manufacturing Units in 75 Countries
• HQ relies on Local Managers for Strategic
Advice and Research
• Secure early Market Share in Emerging
Markets
CALLED COTTLE INDIA
FOCUS ONLY ON ORAL CARE
WIDE DISTRIBUTION NETWORK WITH 4,50,000 RETAIL
COTTLE- OUTLETS
OUTLETS INCLUDED SMALL SHOPS, ROAD SIDE VENDORS,

TAYLOR IN MEDIUM & LARGE STORES AND EVEN SUPERMARKETS
INDIA MARKET SHARE (2009)- 38%
46% MARKET SHARE OF TOOTHBRUSH SOLD IN INDIA
HINDA-DALTAN AND SARINDIA – MAIN COMPETITORS

BRRUSHING REQUENCY AND REPLACEMENT
STRATEGY IN INDIA
AS MARGIN ON TOOTHPASTE
AND TOOTH POWDER WENT
LOWERED PRICE FOR BASIC
PARTNERS INDIAN DENTAL DOWN, FOCUS SHIFTED TO LOW
TOOTHPASTE AND
ASSOCIATION FOR PROMOTION AND MID RANGE
TOOTHPOWDER (MARGIN
OF ORAL HYGIENE TOOTHBRUSHES (INCREASE
REDUCED FROM 31% TO 25%)
PRICES BY 20% DUE TO
INFLATION )
PLANS TO SLOWLY INTRODUCE

HIGH END TOOTHBRUSHES AND
USE OF DENTISTS TO PUSH
ANCILLARY PRODUCTS LIKE
SALES
MOUTHWASH AND DENTAL
FLOSS
MARKETING TILL 2009
9% OF TOOTHBRUSH
HQ RELIED ON SALES SPENT ON
COUNTRY MANAGERS TOOTHBRUSH
TO ADD LOCAL ADVERTISING
FLAVOR TO GLOBAL
ADS Ad Expenses
ADS TARGET MEN 3% ON

AND WOMEN AGED PROMOTION AND
20-35 MERCHANDISING
10% ON OFF INVOICE

ALLOWANCES FOR
TRADE DEALS
CURRENT SCENARIO
BRINDA PATEL,
DIRECTOR OF
MICHAEL
ORAL CARE LANG WAS PATEL GIVEN 2
SENIOR LANG, VP OF
MARKETING PREVIOUSLY DAYS TO
MANAGEMENT MARKETING HE NEEDS
FOR INDIA, ABLE TO PRODUCE
LOOKED TO FOR GREATER HIGHER UNIT
PRESENTS LANG FINDS ACCELERATE REVISED
DECLINING US EMERGING ASIA AND SALES AND
SALES FORECAST GROWTH IN MARKETING
REVENUES MARKETS TO AFRICA, IS REVENUE
FORECAST CONSERVATIVE THAILAND AND PLAN TO
OFFSET UNDER CONTRIBUTION
SUPPORTING EXPECTS SAME ACHIEVE GOAL
DOMESTIC PRESSURE TO FROM INDIA
20% INCREASE PLAN TO WORK OF 30% SALES
LOSES DELIVER
IN IN INDIA GROWTH
RESULTS
TOOTHBRUSH
SALES
PROBLEMS TO BE SOLVED
1 2 3
DETERMINE WHOSE PLAN INCREASE UNIT SALES BY 30% DEVELOP A MARKETING PLAN
(PATEL OR LANG) WOULD BY WEIGHING 3 KEY FACTORS:
CREATE A HIGHER REVENUE • PERSUADING CONSUMERS TO BRUSH
FOR FIRST TIME
• INCREASE INCIDENCE OF BRUSHING
• PERSUADE CONSUMERS TO UPGRADE
TO MID RANGE OR PREMIUM
PRODUCTS
PATEL’S STRATEGY
THOUGHT THAT COMPANY
PATEL WANTED TO RETAIN
WOULD NOT LIKE TO SPEND WANTS TO CREATE NEW
EXPENDITURE AT 9% OF
TOO MUCH MONEY AT THE CONSUMERS
SALES
TIME OF RECESSION
PATEL WANTED TO FOCUS

MAINLY ON :
• PERSUADING CONSUMERS TO WANTS TO INCREASE BRUSH
BRUSH FOR FIRST TIME USAGE
• INCREASE INCIDENCE OF
BRUSHING
EFFECTS OF PATELS STRATEGY
INCREASE IN
NO OF
RURAL
BRUSHERS
KEEP
EXPENSE
MINIMUM
FOR
COMPANY
LANGS STRATEGY
1 2 3
• LANG PROPOSED BASED ON STRATEGY STRATEGY MORE
INCREASE IN AD USED IN THAILAND FOCUSED ON:
EXPENSE TO 12% • PERSUADING CONSUMERS
TO UPGRADE TO MID
RANGE OR PREMIUM
PRODUCTS
EFFECT OF LANGS STRATEGY
INCREASE IN EXPENSES FOR COMPANY (AD 12%)
NEW CUSTOMERS CREATED IS COMPARATIVELY LOWER
HIGH INCREASE IN SWITCHING FROM LOW END TO MID

RANGE AND PREMIUM PRODUCTS
MORE SALE OF MID RANGE AND PREMIUM PRODUCTS

STRATEGY IMPLEMENTATION
Urban Areas (Metros and Semi-Urban (Small Cities,

Rural Areas (Villages)
Large Cities) City Outskirts)
• Organise Dental Camps in • Organise Dental Camps in • Use “On the Go”
Schools for Kids Schools for Kids and Marketing in Rrural Areas
• Give Discount Coupons to Parents • Organise Dental Camps
School Kids • Give away free • Give away free
• Use Celebrities for merchandise to kids Merchandise
Premium Products • Kiosk Marketing for Low • Distribute pamphlet for
• Kiosk Marketing of Mid End and Mid Range advertise (pictographic)
Range and Premium Products
Products outside Malls • Use Local Celebrities for
Marketing
CONCLUSIONS
PATELS STRATEGY THERE SHOULD BE

LANGS STRATEGY BUT GROSS PROFIT PATELS STRATEGY
SHOULD BE FOLLOWED DIFFERENT
PROJECTS A REVENUE FOR PATELS STRATEGY GENERATES MORE
FOR 2010 AND LANGS WEIGHTAGE GIVEN TO
OF $117.29 MILLION ($18.18 MILLION) IS USERS HENCE
STRATEGY MAY BE THE 3 KEY MESSAGES
COMPARED TO MORE THAN LANGS CREATING A LARGER
IMPLEMENTED ONCE FOR RURAL, URBAN
$101.01 MILLION FOR STRATEGY ($17.6 CUSTOMER BASE FOR
FIRST TIME USERS ARE AND SEMI-URBAN
PATELS STRATEGY MILLION) FUTURE
INCREASED AREAS

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COTTLE-TAYLOR: Group 12

EXPANDING THE Aakanksha Priya

ORAL CARE GROUP Ankit Singla

IN INDIA Aakanksha Siwach

FOCUS ONLY ON ORAL CARE

WIDE DISTRIBUTION NETWORK WITH 4,50,000 RETAIL

OUTLETS INCLUDED SMALL SHOPS, ROAD SIDE VENDORS,

INDIA MARKET SHARE (2009)- 38%

46% MARKET SHARE OF TOOTHBRUSH SOLD IN INDIA

HINDA-DALTAN AND SARINDIA – MAIN COMPETITORS

PLANS TO SLOWLY INTRODUCE

ADS TARGET MEN 3% ON

10% ON OFF INVOICE

PATEL WANTED TO FOCUS

INCREASE IN EXPENSES FOR COMPANY (AD 12%)

NEW CUSTOMERS CREATED IS COMPARATIVELY LOWER

HIGH INCREASE IN SWITCHING FROM LOW END TO MID

MORE SALE OF MID RANGE AND PREMIUM PRODUCTS

Urban Areas (Metros and Semi-Urban (Small Cities,

PATELS STRATEGY THERE SHOULD BE

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