cottle taylor

COTTLE TAYLOR

EXPANDING THE ORAL GROUP IN INDIA

PRESENTERS

Abdul Wadood

Roma Qadeer

Muhammad Tahir

Bassam 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 BY

MUHAMMAD TAHIR

RECOMMENDATIONS

• Designing product mix:

Product

Category

Patel’s

Projection

Thailand

in 2007

Unit Sales

(m)

Lang’s

Projection

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

operated0.46% 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 2.51

Total 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 11.9

Total 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 0.17

Total 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

% 2009 Patel 2010 (E)

2010 expected

LANG

Gross Revenue 100 70.1 100.9508 117.59

Less: Trade

Discounts 10 7.01 10.09508 11.759

NetRevenues 90 63.09 90.85572 105.831

Less:

Variable

Manufacturing, s

elling costs 46 32.246 46.4273 54.0914

Gross Margin 44 30.844 44.418352 51.7396

Less:

Advertising 9 6.309 9.085572 Ad(12%)14.1108

Consumer

promotions 3 2.103 3.028524 3.5277

Selling,admin

costs 14 9.814 14.13312 16.4626

Profit from

Operations 18 12.618 18.171444 17.6385