Cottle Taylor Case Analysis

976 WordsJul 7, 20144 Pages
Key Issues If Brinda Patel should accept Michel Lang’s market plan of 30% growth for toothbrush unit in 2010 and drop her own plan of 20% growth. Recommendations Brinda Patel should stay within plan of 20% growth with a focus on low- and mid-range manuals that she initially proposed to Lang. Analysis/ Logic Rationale of not choosing Lang’s plan is based on calculations of expected sales and projected income. Comparison of two projection plans of unit sales for 2010 (Exhibit 1) shows that Lang’s market plan will result in 444,18 millions units, that exceeds Patel’s projection on 32,03 millions units. Along with planned increase of prices by 20% on every item due to inflation in India, Lang’s projected revenue will exceed Patel’s…show more content…
As a result, Indians wanted to upgrade from home-grown dental remedies to inexpensive modern oral products. Also, Joint Cottle/IDA’s health campaigns had good effect on rural consumers: those exposed to them were twice as likely to adopt toothbrushing within a year than those who had not been exposed. Despite all these positive trends, there were still several problems to consider. First, rural consumers were very price-sensitive, they lacked access to credit, lived on inconsistent daily/weekly wages, and had limited or no savings. Second, consumers in rural areas were five times more likely to refrain from using modern oral care products than their urban counterparts because many of them didn’t associate dental problems with improper oral care, but instead attributed them to eating habits or genetics. Research showed that 50% of rural population didn’t use a toothbrush to clean teeth, but instead they used traditional nature products like Neem twigs or charcoal. Third, distribution system was weak. Many distributors handled multiple manufacturers and product lines and did not always understand the key selling points of Cottle’s toothbrushes. Also, distributors didn’t always speak the local dialect and can’t stock excess inventory. Conclusion Brinda Patel’s plan must be approved as it based on local research, not on success of other country with distinctive culture. As long as 50% of rural population didn’t

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