Cottle Taylor: Expanding the

Oral Care Group in India

Group 3
 What factors determine demand for
toothbrushes? How can demand be increased?
• The main factors affecting can be divided into these categories:

•  A) The economic condition & Price of toothbrush

• B) The impact of advertisement
• C) Role of IDA and strategic partners (dentist & Distribution Network)
• D) Consumer perception and change in demographs
• F) Competition
Economic Condition and Price of Toothbrush

• The increase in disposable income from Exhibit 4 is an indicator of push

factor in increasing demand. The overall demand for the products are
increasing, 1.4% growth annually and 17% growth in the last decade
clearly indicate the potential for future growth.
• Price is negatively related to demand and the case clearly say that due to
inflationary pressure they were going to increase the prices. So there may
be a decrease in the demand but the case is salient about that factors.
 Impact of Advertisement
• Again the demand is positively related with advertisements.
• The more company advertises under a limit the more will be the revenue.
Advertisement is a push factor of demand. 
• For 2009 cottle spent 9% of sales on advertising, 3% on promotion and
merchandizing and 10% on trade deals. 50% of the ad budget was spent
on television, 30% on newspapers, 15% on billboards and 5% on radio.
Campaigns concentrated on mid-range products to encourage consumer
trade-up
 Role of IDA and strategic partners
•  Partnering with IDA providing free samples, free dental checkups are
important are creating a good image of the Cottle products and have
positive effects on consumer.

• The case shows that Cottle partnered with IDA to conduct research studies
and dental health outreach campaigns. Rural residents exposed to the
campaign were twice as likely to adopt to toothbrushing within a year than
those who were not
 Distributors
• Cottle competitive edge in India is due to the partnership with large
distributor network, so he can also use this source to create a push demand
for their products.
• 3 categories:
• 20 largest distributors: high volume retail outlets in urban locations
• 250 medium sized distributors: Wholesalers and retailers in semi-urban
areas
• Seed Distributors: 300000 outlets in small villages
 Dentists
• They are the key influencers to a small but lucrative group
• Overall penetration was very low
• Only 2% of the population visited dentists regularly
• Many of them migrated to foreign countries for higher compensation
• WHO says only one dentistry personnel in 10000 people
• Fees charged is high typically $10 t0 $500
 Consumer Perception and Change in
Demographics
• More oral health conscious the customer is more the demand
• Rural customers did not associate dental problems with bad oral health care but
with improper eating habits or genetics. 50% were not even concerned with
prevention and cure
• 78% of the Indians lived in rural areas and 80% of them lived on less than $2/day
• High seasonality in the income and large number dependent on daily wages so no
savings
• Rapid migration to urban areas by farmers but poverty remained there as well
 Competition
• The demand for the Cottle brush also depends upon the availability of
substitutes.
• Cottle India faces two competitor, Hinda-Daltan was a subsidiary of
French consumer products company, SarIndia, an Indian consumer
products company with 21% and 11% market share .
• In the past Cottle India lower its prices due to lowering prices by its
competitors (entrepreneurs form China and India)
 How can demand be Increased?
• Introduction of a new (hard bristle product) for the rural customer accustomed
to neem twigs
• Increased spending on radio and billboard percentages and concentrating on the
low range products instead of mid-range
• Focusing on seed-distributors and providing them means of working capital by
forming of co-operatives with the help of the sarpanch or village head
• Focus on the key selling points and communication to be done in local dialects
to the retailer by hiring more local seed distributors
 How is Cottle doing in India? Has Cottle
enjoyed a first-mover advantage?
• Only 2 competitors
• Operations focuses only on oral care
• Products available in over 450000 retail outlets from small shops to supermarkets and
speciality retailets
• Total market share of 38% for oral products
• Total market share of 46% for toothbrushes units
• Consumers view Cottle as an authority and perceive their products as high end products
• Above points suggest that Cottle enjoyed a first mover advantage
How should Cottle accelerate the development
of the toothbrush market in India?
• Increased spending on radio and billboard for rural customers on low range products. The
IDA campaigns should focus on the prime earner of the household (especially women)
• Introduction of a new (hard bristle product) for the rural customer accustomed to neem twigs
• Mid range products for semi-urban areas
• Tie up with dentists to promote high end battery operated products to urban customers
• Hire seed distributors who know local dialect and communicate the key selling points
effectively
• Employee compensation according to regional performance
 What are Cottle target market segments?
• Targeted everyone on the basis of income: Segmentation by household disposable income
• Segmentation based on Brushing frequency- mostly targeted 1times/day, 2times/day and 3times/week
customers
• Targeted both men and women

• Which market makes more sense:

- The market of 500 to 1000/day for low end products and 5000-10000/day for mid range products. 5000-
1000/day segment is increasing as seen from Exhibit 4 by approximately 91%
- Increased awareness in the 1 times/week and 2 times/week customers will help increase sales of low end
products
 Should Cottle spend advertising dollars promoting battery-operated
toothbrushes? Why?

• Should invest only upto a certain limit

• Shifting consumer trends suggest that the customer might adopt to battery
operated toothbrushes
• Increase in disposable income and migration to urban areas to would in
some way fuel the demand
• But the contribution of low and mid range products cannot be ignored and
the dollars should be spent proportionately
 Unique Selling Proposition
• The Surround: Long Lasting Mouth-Freshness with complete protection
• Target market : 3 times/week and 500-1000/day customers
• Multi-height and multi-functional power bristles, Tongue cleaner, Unique
flexible design enables cleaning of gums and cheeks without extra effort,
comfortable grip, durable and long lasting
• Get total protection for oral hygiene and long lasting mouth-freshness
only from “THE SURROUND”
THANK YOU