Cottle taylor : Expanding the oral care group in india case studyBonny V Pappachan
This is a case study of cottle taylor discussed in a management class. In this case study , all efforts are being made to solve the case study and all the questions are answered. Hope this would be useful to management students.
Cottle taylor : Expanding the oral care group in india case studyBonny V Pappachan
This is a case study of cottle taylor discussed in a management class. In this case study , all efforts are being made to solve the case study and all the questions are answered. Hope this would be useful to management students.
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Unilever in India: Hindustan Lever's Project Shakti - Marketing FMCG to the R...Anurag Kumar
Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
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Cottle Taylor:Expanding the Oral Care Group in India
1. Marketing Portfolio – Case Study
Joana Cleto
Jenny Souto
Nuno Ferreira
Ricardo Marques
Cottle-Taylor: Expanding the Oral
Care Group in India
2. Introduction to Cottle-Taylor Company1
2
3
4
5
Indian Market
Consumer behaviour of Oral Care in India
Cottle’s Strategy in India
Cottle´s Toothbrush Marketing Mix
AGENDA
6 Marketing Plan 2010
7 Recommendations & Proposals
3. INTRODUCTION TO COTTLE- TAYLOR
1815 - 2009
1815
Hand-soap
Philadelphia
2009
200 products
and countries
3 product lines
4 Geographic
divisions; 75
Manufacturing
facilities
$11.5 billion
50% from
emerging
markets
(oral care)
HR PRACTICES
International
local
workforce,
Collaborative
environment
4. Cottle India & Manufacture
Focused exclusively on ORAL CARE
Responsible for develop its own full line oral care products variety of colours and styles
Product Category:
• Toothpaste,
• Toothpowder (a powder-based cleanser typically used without a toothbrush),
• Toothbrushes
Products were sold in more than 450,00 retail outlets, from small bodegas in one-shop
towns to closet-sized urban sidewalk vendors to supermarkets & specialty retailers.
As the market for modern oral care products developed, Cottle planned to introduce
ancillary products, including mouthwash and dental floss.
COTTLE-TAYLOR IN INDIA
5. 2007 - 50% of rural
India did not use a
toothbrush to clean
teeth and few
follow IDAs
recommendations;
Neem twigs,
tobacco, ash.
Indians who lived in
rural areas were 5
times more likely to
refrain modern oral
care products than
urban people.
2004 – IDA
campaign
2005 – Majority
never visited a
dentist
2009 – 50% Indians
not concerned with
dental problems
1 dentist
personnel for
every 10,000
people;
CONSUMER BEHAVIOR OF ORAL CARE
IN INDIA:
Habits and Attitudes
6. World’s largest democracy;
1.16 billion population;
Median age 25;
28 states and 9 territories;
Hindi, primary language and
English as second;
22 officially recognized languages.
GDP was 146 times greater than in 1990.
Yet inconstant prosperity. Just 3 of the 37
states and territories—Maharashtra, Uttar
Pradesh, and Andra Pradesh , accounted
for 30% of India’s total GDP.
Roughly 37% (429 million individuals) lived
below the poverty line, $1.25 per day.
As much as 80% lived on less than
$2 per day.
INDIA’S CURRENT SCENARIO
(2009)
7. Roughly 78% of Indians (905 million) lived in rural towns and villages and 22% (255 million) in urban settings.
However, Indians living in slums was projected to reach 8% of the population (93 million) by 2011.
Rural Villages:
Lack transit, electricity, running water, waste treatment systems and access to basic health care;
High illiteracy rates; Incrising access to information because mobile devices, but still out of reach
for many. Daily or weekly wages = extremely price-sensitive. Lacked access to credit and typically
had limited or no savings.
This group alone accounted for 64% of total Indian expenditures.
Semi-urban and rural areas:
Consumers purchased most household products, including oral care
products, at small, cramped independent grocery stores. Smaller-sized
products at affordable price points.
Urban consumers:
Higher disposable incomes and less price-sensitivity; Shopped at convenience
stores, department stores, supermarkets, and specialty retailers; prices were
higher, but larger product sizes delivered better value.
INDIA’S MARKET 2009
8. 7%
9%
22%
39%
23%
Brushing incidence in India
2007
1 time /
week
2 times /
week
3 times /
week
1 time / day
2 times /
day
8.60%
91.40%
Number of individual
toothbrushes sold in 2009:
747.1million
Replaced
within 3
months
Non
replaced
within 3
months
BRUSHING FREQUENCY AND BRUSH
REPLACEMENT
10. SALES AND COMPETITORS
21%
11%
46%
22%
Market share
2009 Hindia-Daltan
SarIndia
Cottle-Taylor
Low-cost products
imported from
China and Vietnam
Oral Care sector growth rate was from 10%
from 2008 to 2009
11. Low-EndManual
• The Complete
• The
Sensitooth
• The FreshGum
• The Surround
• The Kidsie
Mid-rangeManual
• The
Zagger
• Directionflex
Battery-Operated
• The Swirl
• Swirl Refills
In India, only a small subset of wealthy consumers could afford a battery-operated
toothbrush. With limited discretionary spending, the majority of Indians wanted to
upgrade from home-grown dental remedies to inexpensive modern oral care products.
2009’ market share: 38%
TOOTHBRUSH PRODUCT LINE
12. Cottle-Taylor: Oral Care in India
FACTORS DETERMINING THE DEMAND
OF TOOTHBRUSHES
Affordability
• The disposable income and the income of the consumers.
Oral hygiene Awareness
• Costumer understanding on what are the key differences
between good and poor quality products in the market.
Frequency of use
• The amount of times a consumer brushes his teeth
Distribution and accessibility
• The ease with which product is accessible contributes to
demands as well.
14. 3 Key messages to advertise:
COTTLE-TAYLOR’S PROMOTION
• Persuade consumers to brush for the 1st time
1)
• Increase the incident of brushing
2)
• Persuade consumers to upgrade to mid-range or premium
products.
3)
Advertisement budget was equally split through
the 3 messages until 2009
Target Market for media advertising: Men and
women (Age 20-35) - Both rural and urban
Campaign weighted to mind-range products and
encourages consumer to trade up.
15. COTTLE-TAYLOR’S PLACE &
DISTRIBUTION
• Urban Locations:
• Focus on High Volume Retail Outlets
• Largest Supermarket Chains
Largest
Distributors
(Mid and premium
toothbrush)
• Semi-urban Areas:
• Served Wholesalers & Retailers
Medium-Sized
Distributors
(mid and low-end
toothbrush)
• Rural Locations:
• 300,000 Outlets in small villages
• Village bodega
Small-Sized
Distributors
(Low-end toothbrush)
Future distributors: Dentist - in Thailand effective way to introduce new product
Indian dentist good strategy to distribute premium products: battery-operated
toothbrush
16. ISSUES – FOR MARKETING PLAN
Facts:
Widespread practice of chew twigs from Neem Tree
50% of Indians were not concerned with dental problems
Rural people are 5x more reluctant to use modern oral care than Urban
counterparts
80% of population lives on less than $2 per day.
Purchase Accuracy:
8,6% of toothbrush users replaced their tooth brush within three months
4/5 toothbrushers used the same brush well beyond three months
17. ISSUES – FOR MARKETING PLAN
Distribution difficulties:
Distributors didn’t always understood the key selling points of cootle’s
toothbrushes;
Difficulty in communicating in rural locations - don’t speak local dialect;
Regional holidays & culture practises often complicated distributor staffing &
retail deliveries.
Rural Retailer uncertainity :
Inventory planning - because sales are influence by customer daily or weekly
incomes ;
Wages of Day labourers have high fluctuations due to job availability and weather.
18. Which of the three messages would better resonate
with urban and rural areas?
See an outline each message’s target audience and
thoughts on short-term and long term benefits of
each
How to design the effect of product mix for higher
revenue?
Which projection would meet a higher revenue?
How to distribute advertising dollars?
DEVELOP A MARKETING PLAN
19. MARKETING PLAN – Problems
Introduction to the situation:
Develop a revised data driven marketing plan: Lang VS Patel
Pressure from headquarter: Declining of US revenues, need for emerging markets to offset
for domestic losses.
Lang: VP Marketing for Asia/Africa
(approve Mkt Plans )
• Need higher unit sales than what Patel
proposed
• Believes: increasing advertising and
promotional spending beyond 12%
would accelerate market
development, as it did in Thailand in
2007
• 3 key Message: Eliminate even
distribution of advertising budget
• Goal: Achieve more than Patel
projection Growth of 25%-30% of
Toothbrush unit sales
Patel: Director of Oral-Care Mkt of
Cottle-India
• First sales forecast conservative
• Doubts: on duplicating Thailand.
Because despite of economic
growth, more than three-quarters
lived on less than $2/day.
• 3 key Message: Even distribution of
advertising budget
• Goal: Growth of 20% of Toothbrush
unit sales
23. Message 1: Persuade consumers to brush for the first time
Message 2: increase the incident of brushing
Message 3:Persuade consumers to upgrade to mid-range or premium
products.
Urban, semi-urban:
Message 1 - 10%
Message 2 - 40%
Message 3 - 50%
Uneven distribution of messages:
Rural:
Message 1 - 60,0%
Message 2 - 37,3%
Message 3 - 2,7%
RECOMMENDATION for
Advertising Marketing Plan
24. ATL MARKETING STRATEGY
Above the Line Marketing Strategy: Promotional activities carried
out through mass media, such as television, radio, out-of-
home, magazines, cinema and newspaper for above the line
promotional activities.
Cottle’s ATL Strategy:
Advertise through bill-boards in the streets
Advertise aggressively on mid-range toothbrush.
Link it to CSR activity to educate society on brushing twice and
market the product.
25. BTL Marketing Strategy
Below the Line Marketing Strategy: Non-media communication
or advertising, and has become increasingly important in the
communications mix of many companies.
It is efficient and cost-effective for targeting a limited and
specific group.
Cottle’s BTL Strategy:
Updating “Anganwadi” workers in villages about the oral
hygiene and providing the free samples to people who come
oral health problems.
Free health check – ups in towns schools and colleges and
provide them with samples.
26. Selling toothbrushes: More focus on Message 1 and 3 - Message 2 would be
implicit.
Message 1 “Brush for the 1st time” – Targeting young people and their parents.
• School plays “The demand for the golden brush”. Playing the kids, the parents
and the doctor.
• In the end of the play kids would get a voucher saying: “10% discount on a kids
toothbrush or a familiar toothpast or a electric toothbrush.
• Promote through radios: ads like the Nutribalance adds “I had a gum problem
but since I started to brush everyday I don’t have a problem anymore!”
Message 2 “Brush more often” – Distributors and Dentists would talk about it
• Promote through flyers, radio and TV.
Message 3 “Upgrade the brush” – Focus on TV adds and Dentists.
• Ads with “son brushing for the first time and father brushing with electric brush.
In the end with the dentist recommending it.“
• Promote through radios: like the Nutribalence adds.
PROPOSAL for
Advertising Marketing Plan