Cottle-Taylor

Therefore, master projections ordain be more(prenominal) beneficial. Also, Mr. Lang had predicted his estimates based on the success in Thailand, but the demographics of Thailand and India argon very different. More than 80% of the individuals live on less than $2 per day. So, we recomm depot that we should follow our cowcatcher projection of 20% building block gross revenue increment. Regards, Assistant Executives Cottle India Case compend Summary Situation analysis Mr.Lang has asked Brinda Patel to reconsider her projections of 20% for harvest in toothbrush gross gross revenue in India. Lang proposes that a 3% extend in the advertisement budget will lead to a 30% increase in sales. This assumption is based on prior experience and entertain they received in the Thailand Market. But demographics of India is very different from that of Thailand. Problem argumentation What is the feasibility of achieving a 25% to 30% emersion in toothbrush business of Cottle India in 201 0?Options Brinda Patel should cave in her original merchandise computer programme of 20% projection Brinda Patel should revise her marketing be after to pass 30% sales growth Criteria Total revenue Profit from trading operations Accuracy of assumptions military rank of Options From the analysis and projections, it is seen that though revenue would increase in evising the marketing plan and investing in advertising, the profit earned by the telephoner with the original plan of 20% is still more than the revised market plan of 30%.Recommendation After evaluating the options, it is recommended that Brinda Patel sticks to her original marketing plan of 20% unit sales growth in the toothbrush market. Action plan She should present the original marketing plan to Lang She should convince Lang ab protrude the different economic conditions in India as compared to Thailand. Table of Contents Situational Analysis Cottle Taylor company manufactures more than 200 harvests under terna ry consumer- roduct categories personal care, home care, oral care. It is a global company and operates in four geographic regions viz. Europe, Latin America, North America and Greater Asia and Africa.In the year 2009, they generated $5. 7 billion out of the tote up revenue of $1 1. 5 billion from emerging. In India, they are present only in the oral care business and the operations are controlled by Cottle India. India was a massive market with above 1 billion batch and was also the largest democracy in the world. In 2009, India had nearly 37% people animated below the poverty line and more or less 80% lived on less than $2 per day. Majority of the Indian universe resided in the rural regions, where the wages were varying, so the consumers in the rural regions were fond to prices.The company is trying to focus on both the rural as well as the urban market in India and has hence three products in different price ranges. They are low-end, mid-range and battery operated types. A lso, the people living in the rural areas are not well aware of the product toothbrushes. Around 50% of the rural population use chewy twigs from neem tree to clean their teeth and maintain dental hygiene. Cottle India realized the have to educate the people in rural areas regarding ental hygiene and hence the company partnered with Indian Dental Association (IDA) in 2004, to inform and educate people nearly oral health issues.In 2008, Brinda Patel took over as the marketing coach of oral care operations. In 2009, Cottle India had market share of 38% in total oral care. Brinda had a marketing plan which would bring about a 20% increase in sales but her theater director has advised her that the company could higher sales growth by investing more in advertisements. Brinda Patels manager Michael Lang had increased unit sales growth by 25% in Thailand by investing around 3% of sales to advertisement. Langss suggestion of opting the same strategy as that in Thailand will not suffice the purpose in India because of the huge demographic residue between the 2 countries.Problem Statement What is the feasibility of achieving a 25% to 30% growth in toothbrush business of Cottle India in 2010? Options Brinda patel basically has two options with her. One was to go with her own option to stick to the original marketing plan and increase her sales by 20% or some other option is to go by Langes target of 20-25% owtn in unit sales in the tlnancial year by change magnitude the budget ot advertising. Criteria for Evaluation monetary analysis is one of the main criteria to evaluate the options present in the situation.In the accepted scenario revenue generation and increasing the profit are the main things to be taken into account. Since there are two criteria for evaluating the criteria we start with is the profit increasing option. Evaluation of options Option 1 Brinda Patel should revise her marketing plan to achieve 30% unit sales growth Lang projected a growth rate of the toothbrush sales by 16% for low end range, by 120% for mid-range and by 25% for the high end range. The total revenue is calculated using these fgures (see stage 1). The total revenue estimated by Lang is $11705 million.Comparing it with the Patels estimation the revenue is high. With Langs projection the Revenue increases by 67. 6%. On the other hand evaluating it in terms of profit there is an increase in profit from $12. 6 million to $17. 58 million (see exhibit 2). But Lang is assuming what worked in Thailand will work in India as well. His prediction is on the basis of the market result of Thailand and the demographics of the two countries are quite different. We see, from exhibit 1, that the mid-range toothbrushes are priced at $0. 98 and from Exhibit 3, it is seat be seen that pproximately 42. % population live below $1. 37 per day and 40. 7% live below $2. 74 per day. Thus, for a country with about 83. 4 % population below $2 per day, Lang had projected to increase in sales by 120 %. It is quite improbable for a consumer to buy a toothbrush worth $0. 98 when his disposable income is less than $2 per day.