Cottle Taylor Case

Group 2

Factors determining demand for toothbrushes

Oral Hygiene Healthier , Whiter Teeth and gums Plaque removal Fresh breath Preventing Cavities

How can demand be increased

By creating awareness about the importance of hygiene By instilling habit of brushing teeth daily By increasing the frequency of changing toothbrush

Cottle India
To remain competitive, Cottle had reduced price of toothpaste and toothpowder in India, which resulted in the dip of profit margins. With 46% of market share in Toothbrush market in India, Cottle is the market leader and enjoying first mover advantage. Cottle is trying to increase its customer base, by creating awareness about oral hygiene as around 50 % of Indians do not use oral care products.

Accelerate toothbrush market development

Educating and informing :increasing informative campaigns, observing oral health care month Ads in digital media :rather than just focusing on television promotion should also promote through online ads Clinically proven toothbrushes :launching more clinically proven toothbrushes

 Free offers with toothpaste :as already a market leader in toothpaste with more than 50% market share Targeting lower middle and upper lower class with cheaper and reasonable products :targeting people who use low quality products from China and Vietnam Collaboration with dentists :-increasing the collaborations Product websites :- launching websites for specific products highlighting their benefits and procedures of use.

Target Market Segments

According to SEC classification, all groups except E2 and E3 will be suitable target market for Cottle, i.e., A1,A2,A3 B1,B2 C1,C2 D1,D2,E1

Segments to Focus
Among above mentioned segments, Cottle should focus mainly on C1,C2,D1,D2, due to following : These segments constitutes the major chunk of consumers. Most of the Non-users come under these segments. These segments will be potential customers of high end products in future.

Cottle should not spend advertising dollars promoting battery-operated toothbrushes in India due to following reasons Large chunk of Indian population is not the potential target market for battery-operated toothbrushes .There will be a gradual shift to higher end brushes after customers are aware and conscious of oral hygiene . Presently Cottles focus is on securing market in low and mid range products. Therefore it will not be wise decision to promote batteryoperated toothbrushes

Toothbrush
The Complete

Tooth Paste
Basic

ToothPowder
Basic

Sensitooth

Advance

The FreshGum

The Surround

The Kidsie

The Zagger

Directionflex

The Swirl Swirl Refills

Exhibit 9 Cottle India: 2009 Percentage Income Statement from Toothbrushes Toothbrush gross revenues Less: Trade Discounts = Net Revenues Less: Variable manufacturing, selling and distribution costs = Gross Margin Less: Advertising Consumer promotions and merchandising Selling, general and administrative costs = Profit from Operations 100% 10.0% 90%

Exhibit 9 Cottle India: 2010 Expected Percentage Change in Income Statement from Toothbrushes Toothbrush gross revenues Less: Trade Discounts = Net Revenues Less: Variable manufacturing, selling and distribution costs = Gross Margin Less: Advertising Consumer promotions and merchandising Selling, general and administrative costs = Profit from Operations 100% 6.0% 94%

46% 44%

40% 54%

9% 3% 14% 18%

13% 3% 12% 26%