Cottle-Taylor: Expanding the Oral Care group in India
Cottle Taylor in India 1. It is known as Cottle India 2. Cottle has partnered with IDA for frequent studies & dental health outreach programs. As a result, Indians considered Cottle a big name for oral care and their products were trusted and regarded with respect in India. 3. Cottle’s share of total oral care market volume in 2009 was 38%. 4. Indian and Chinese market were stormed by low priced specialty products( such as herbal and Ayurveda paste), so to remain competitive Cottle had to decrease prices and thus its margin on toothbrushes and toothpastes dropped from 31% to 25% since 2004. 5. Its main competitors are Hinda-Dalta and SarIndia. 6. It has wide distribution network of approx. 450,000 retail outlets which includes small shops, road side vendors, medium and large stores and supermarkets. 7. Cottle toothbrush accounted for 46% of total toothbrush units sold in India in 2009.
Current Scenario in India 1. More than 75% of Indians live on $2 a day 2. Indian market includes urban, semi-urban and rural areas 3. As per 2007 study, 50% of Indians are not concerned with preventing and curing dental problems.
Brushing Frequency and Replacement
Marketing strategy used till 2009 1. Cottle’s oral care division spent 9% of gross toothbrush sales in 2009 on toothbrush related advertising. 2. 3% was spent on promotions and merchandising 3. 10% was off for invoice allowances for trade deals 4. 50% of budget was spent on television 5. 30% of budget was spent on print ads in newspaper 6. 15% on billboards and outdoor displays 7. 5% on radio
3 key messages Lang wants Patel to advertise: (i) Persuading customers to brush for 1st time (ii) Increasing incidence of brushing