Factors Affecting The Demand For Toothbrushes

1234 Words Aug 3rd, 2014 5 Pages
To assess the factors affecting the demand for toothbrushes in India, a situation analysis has been performed using the 5Cs framework:
Context: In 2009, India was the world’s largest democracy; with a population of 1.16billion growing at 1.4% per annum, the country suffered from a huge disparity in income with the majority of Indian population (78%) living in rural areas, and as many as 80% living under $2 per day. The 78% who lived in rural areas accounted for c. 64% of total expenditures in India. Around 50% of the Indian population did not have sufficient awareness of dental healthcare, and did not associate dental problems with improper care but rather to eating habits or genetics; most of these Indians were using natural remedies as chewing twigs from the Neem tree. Among the remaining population who used modern dental healthcare or a toothbrush, 77% brushed their teeth less than twice a day (recommended usage), and out of the 747.1million brushes sold every year, only 8.6% replaced their brush every 3 months. Cottle-Taylor (CT) enjoyed a large market share in India and focused on toothbrushes. Given the peculiarities of the market, CT decided to focus on toothbrushes where it enjoys larger gross margins by virtue of its existing manufacturing infrastructure that has been built over the years.
Customers: Given the composition of the Indian population described earlier, the customers are typically price sensitive with not much disposable income. The majority of…
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