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Cottle Taylor Assignment July 22
Cottle Taylor Assignment July 22
$ 122.0 53%
$ 462.1 60%
$ 308.1 30%
$ 3.4 62%
$ 895.6 47%
Exhibit 7: Cottle-Taylor India 2009 Product Lines and Margin Structure
Manufacturer Distributor
Mid-Range Manual
Zagger $ 0.29 40% $ 0.44 $ 0.52 27.2
Directionflex $ 0.53 52% $ 0.74 $ 0.98 6.8
Total 34.0
Battery Operated
Swirl Brush $ 6.40 40% $ 8.96 $ 11.64 1.30
Refills $ 0.56 60% $ 0.78 $ 1.02 0.16
Total 1.5
Total Toothbrush Unit Sales 292.1
Note: Manufacturer Selling Price does not incorporate the 2010 Toothbrush price increase of 20% (does not apply to Toothpa
BRINDA
BRINDA BRINDA BRINDA
Contribution
Revenue (Unit (revenue revenue
sales by Selling multiplied by Mfr ( assuming 20%
Unit Sales (millions) Price per unit) gross margin) growth) Contribution
2009 2010E (Patel) 2009 2009 2010 2010
Projection
( page 9 of the
case)
Revenue Contribution
2010 2010
Less:
75.73 $ 26.72 $ 10.69 Variable manufacturing, selling
18.93 $ 12.09 $ 6.28 = Gross Margin
38.80 16.97
Less:
Advertising
1.94 $ 14.87 $ 5.95 Consumer promotions and merc
0.22 $ 0.14 $ 0.09 Selling, general and administrat
15.01 6.03 Profit from Operations
444.2 117.1 53.0
Lang 2010E Plan
% of Sales 2010E ($ Millions) Income Statement Projecti % of Sales 2010E ($ Millions)
1 100.2 Revenues 1 117.1
0.1 10.0 Trade Discount 0.1 11.7
0.9 90.2 Net Revenues 0.9 105.4
Less:
0.4 44.4 Variable manufacturing, sell 0.45 52.3
0.5 45.8 = Gross Margin 0.45 53.0
Less:
0.09 9.0 Advertising 0.09 10.5
0.03 3.0 Consumer promotions and 0.03 3.5
0.14 14.0 Selling, general and admini 0.14 16.4
19.7 Profit from Operations 22.6
Lang 2010E Plan (with 3% Increase in Advertising)
Income Statement% of Sales 2010E ($ Millions)
Revenues 1 117.1
Trade Discount 0.1 11.7
Net Revenues 0.9 105.4
Less:
Variable manufactu 0.45 52.3
= Gross Margin 0.45 53.0
Less:
Advertising 0.12 14.1
Consumer promoti 0.03 3.5
Selling, general a 0.14 16.4
Profit from Operations 19.1
Exhibit 8: 2009 Cottle Toothbrush Sales by Product Category for India, Thailand and Japan
Less:
Variable manufacturing, selling and distribution costs 46%
= Gross Margin 44%
Less:
Advertising 9%
Consumer promotions and merchandising 3%
Selling, general and administrative costs 14%
= Profit from Operations 18%
Exhibit 10: Cottle Thailand Toothbrush Unit Sales 2005 - 2007