Cottle Taylor Case

• Cottle-Taylor Overview:

       🚀50% of revenues ($5.7 billion) from emerging markets (Latin America, Africa and Asia)

       🚀Growth strategy:  Increase global sales of higher-margin products and expand map

       🚀Between 2004 and 2009, Cottle’s Sales grew by 8%/year, net income by 12%, and E/S 14%

• India Overview

       🚀Population of 1.16 billion people; growing at 1.4% per year; Median age 25

       🚀Low Income: 47.3% of population has disposable income of less than $500/year

       🚀8% have no toilet or access to clean drinking water.

       🚀78% live in rural towns and villages and account for 64% of expenditures, extremely price         sensitive, buy fr independent grocers.

• Cottle in India oral care market:

       🚀Sales Revenue: $400.2 million oral care; $70.1 million from toothbrushes

       🚀Unit Market Share of the Oral Care products in India was 38%;  

       🚀Unit Market Share of Cottle toothbrushes was 46% at 344.2 million

       🚀Gross Margin on toothbrushes was 44%

       🚀Growth strategy:  Enter with basic models, establish brand awareness, introduce more

                                           profitable, advanced products.

       🚀Products Line: Low-End are 87%, Mid-Range 12.5% and Battery-Operated .5% of unit sales.

                🚀Currently spending 12% of sales on advertising and consumer promotions

• Competitior    

       🚀Cottle’s Unit Market Share in toothbrush market is 46%

       🚀Hinda-Daltan-21% ;SarIndia-11%;Low-cost-22%

       🚀Alternatives – Neem twigs, black salt, tobacco, charcoal, or ash – more than 50%

Conclusion:

Patel’s 2010 plan Wins: ✌️higher profit.