COTTLE TAYLOR EXPANDING THE ORAL GROUP IN INDIA

PRESENTERS

Abdul WadoodRoma Qadeer

Muhammad TahirBassam Altaf

Usman Ahmad

Background

PRESENTED BY ABDUL WADOOD

BACKGROUND

• Cottle-Taylor• Start up (1815)

• 4 main geographic divisions(200 countries)• North America, Europe, Latin America, Greater Asia/Africa.

• Product Lines• Oral care• Home care• Personal care

BACKGROUND

• HR Practices• International work force (Local talent

hiring).• Collaborative environment.

• Operations• 200 countries.• Manufacturing facilities in 75 countries.

BACKGROUND

• Subsidiary cottle India• Focusing exclusively on oral care• Product Categories

• Toothpaste• Toothpowder• Toothbrushes

• Push Strategy through dentists.

TARGET MARKET & MEDIA VEHICLES

• Both rural and urban• Men and women (Age 20-35) Media• Television Ad 50%• Print Ad 30%• Billboards 15%• Radio 5%

Current Scenario

PRESENTED BY ROOMA QADEER

CURRENT SCENARIO

• Global recession (US sales decline)• Targets

• Get offset of sales from emerging markets • Brinda Patel(Director Marketing India)

projected 20% growth in sales.• Michael Lang(VP Marketing for Asia/Africa)

had pressure to increase it up to 25-30% from the region

CURRENT SCENARIO

• India• World’s Largest Democracy.• Rapid GDP Growth (146 times greater than

1990).• 78% Rural and 22% Urban Population.• 37% lived below the poverty line.• 80% lived on less than $2/ day.• 93 million lives in Slums.

CURRENT SCENARIO

• 50% of Indians were not concerned with dental problems.

• Rural people are 5x more reluctant to use modern oral care than Urban counterparts

• 10% growth from 2008-09

Problems

PRESENTED BY USMAN AHMAD

ISSUES

• To develop a revised data driven marketing plan

• Which of the three messages would better resonate with urban and rural areas

• How to design the effect of product mix for higher revenue

• Which projection would meet a higher revenue

THREE KEY MESSAGES TO BE ADRESSED

1. Persuading consumers to brush for the first time.

2. Increasing the incidence of brushing.3. Persuading consumers to upgrade to

mid range or premium products.

RECOMMENDATIONS

• Urban, semi urban:• Message 1 (10%)• Message 2 (40%)• Message 3 (50%)

• Rural:• Message 1 (60%)• Message 2 (35%)• Message 3 (5%)

Uneven distribution of messages

Solutions

PRESENTED BYMUHAMMAD TAHIR

RECOMMENDATIONS

• Designing product mix:

ProductCategory

Patel’s Projection

Thailand in 2007

Unit Sales (m)

Lang’s Projectio

n 2010

Unit sales

projected

Low end 86.54% 70% 310.9 78.2% 347.4

Mid range 13.0% 25% 111.035 21.3% 94.62

Battery operated

0.46% 5% 22.2 0.5% 2.12

Revenue 100.9508

121.33 117.59

Solutions

PRESENTED BY BASSAM ALTAF

  2009 2010 Expected Patel 2010 Expected LANG

   Unit Sales (m)

% increase

Unit sales(m)

p/u (after 20%

increase)

Revenue$(m)

% increase

Unit sales(m)

p/u (after 20%

increase)

Revenue$(m)

Low end manual

complete 230.6 20 276.7 0.18 49.08 16 267.5 0.18 48.15

sensitooth 29.9 20 35.9 0.216 7.7544 16 34.7 0.216 7.5

fresh gum 15 20 18 0.216 3.888 16 17.4 0.216 3.76

surround 9 7 9.7 0.228 2.2116 16 10.4 0.228 2.91

kidsie 15 8 16.2 0.144 2.3328 16 17.4 0.144 2.51Total 299.5   356.5   65.9928   347.4   64.82

Mid range manual

zagget 34.4 25 43 0.348 14.964 120 75.7 0.348 26.34

directionflex 8.6 25 10.8 0.63 6.804 120 18.9 0.63 11.9Total 43   53.8   21.768   94.62   38.24

Battery operated

swirl brush 1.5 13 1.7 7.68 13.056 25 1.87 7.68 14.36

refills 0.2 0 0.2 0.67 0.134 25 0.25 0.67 0.17Total 1.7   1.9   13.19   2.12   14.53

    344.2   412.2   100.951   444.14   117.59

*Revenue (2009) $70.1 m

RECOMMENDATIONS

INCOME STATEMENT OF TOOTHBRUSHES

% 2009Patel 2010

(E)

2010 expected

LANG Gross Revenue 100 70.1 100.9508 117.59Less: Trade Discounts 10 7.01 10.09508 11.759NetRevenues 90 63.09 90.85572 105.831Less:

Variable Manufacturing, selling costs 46 32.246 46.4273 54.0914Gross Margin 44 30.844 44.418352 51.7396Less:

Advertising 9 6.309 9.085572Ad(12%)14.110

8Consumer promotions 3 2.103 3.028524 3.5277Selling,admin costs 14 9.814 14.13312 16.4626Profit from Operations 18 12.618 18.171444 17.6385