Cottle Taylor Case

442 Words2 Pages
Problem Statement: How to increase the sales revenue of the Cottle India’s toothbrushes. And which type of brush to be focused in order to increase the overall profitability. Analysis: Cottle India is doing well in India as it sales has grown year on year (18.5% increase 2008-09). It enjoys a market share of 38 % as of 2009. Also the oral care industry is growing (47% increase 2004-2009) due to increase in disposable income and influence of the western culture. Cottle has enjoyed the first mover advantage in the toothbrush market as it has competitive advantage in the manufacturing of the advanced technology toothbrushes without relying on the imported process. It enjoys a market share of 46% with only two competitors. Also Indians considered Cottle an authority in oral care and held their products in high regard because Cottle partnered frequently with IDA. Cottle, while focusing on the toothbrush market, introduced low and mid range products, being first to secure the market initially by creating brand awareness. Cottle has 3 types of Toothbrushes 1. Low end 2. Medium end 3. Battery operated The target segments for these types are 1. Low end : Rural and semi urban consumers who do not use toothbrushes 2. Medium end: Semi urban and urban consumers who currently use low end toothbrush 3. Battery Operated: Very Few price-insensitive urban consumers Cottle should focus on the sale of low end model to the huge rural and semi urban population where about 500 million consumers do not use toothbrush at all. Also the profit margin is more or less same as that of the medium and battery operated toothbrushes (47% low end, 45 % medium, and 50 % battery operated). Factors determining the demand of Toothbrushes are 1. Awareness of health care 2. Amount of Disposable Income 3. Brand Awareness of Firm 4. Competition in Industry

More about Cottle Taylor Case

Open Document