Cottle Taylor Case
Autor: zep23 • October 3, 2016 • Coursework • 1,367 Words (6 Pages) • 1,017 Views
Factors that determine demand for toothbrushes / how can it be increased
Economic Situation
Changes in economic policy in 1991 led to foreign investment in India. This resulted to GDP growing to 146 times that of 1990. Hence convenience products should be more in demand. 30% of GDP is from the top 4 states, thus areas with maximum GDP growth can be targeted to drive demand
Awareness Studies & Dentist Collaboration
A 2007 study revealed that 50% of Indians were not concerned with preventing or curing dental problems specially in rural ares, yet Rural students twice as likely to adopt toothbrushing after exposure to campaigns . Hence there is a gap in the market due to awareness.
More such awareness campaigns should be conducted along with the IDA
Collaboration with dentists can drive up demand for high margin toothbrush systems, Eg. battery operated
Accessibility of Toothbrushes
Better distribution networks will result in better accessibility of toothbrushes.
In 2009, Cottle’s products were sold in 450,000 retail outlets. Patel did not see value in focusing on small seed distributors. However, better network in such areas can drive up demand
Frequency of Use
More frequent use, will drive up repurchase. Awareness campaigns with IDA & focused advertising on benefits of brushing will help drive demand.
Advertising / Promotions
Should be focused on low-end products for rural areas & medium to high end [battery operated] products for urban areas
Competition
Demand can be determined by accessing the competitors / substitutes. Cottle has Hinda Dalto [21% market share] , SarIndia [11% market share] , low - priced products from China & Vietnam [22% market share]. Availability of products at different price points that target different consumers can drive up demand. Low-end products for rural areas & medium to high end [battery operated] products for urban areas
Price
Availibty of product, that is, toothbrushes at a particular price point can affect demand
2. How is Cottle doing in India? Has Cottle enjoyed a first-mover advantage?
Cottle in india
Cottle Emerging Market Strategy :-
— Enter with basic models and competitive prices to establish brand awareness
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