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Cotle Taylor Case

University/College: University of Arkansas System
Date: November 12, 2017
Type of paper: HealthMedical
Words: 1060
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Cotle Taylor Case

Dental problems were not seen as a direct result of bad oral hygiene but due to other factors like bad eating habits and hereditary issues. The IDA and Its partners Including CATTLE organized many free dental check up camps, free product samples and guidelines for proper oral care. But still In the rural areas, people cleaned their teeth with traditional products Like Enemy Twigs, black salt, tobacco, charcoal and ash. Dentists were of the opinion that a life cycle of a individual toothbrushes that were sold in 2009, only 8. 6% of toothbrush users placed their toothbrush within three months.

Till the time people, kept using their old toothbrush demand for new toothbrush cannot be at par with the number of toothbrushes being produced keeping in mind the product life cycle of three months. This acts as a clear deterrent for the demand of toothbrushes. 2) Penetration of dentists: This point can also be a contributor to the lack of awareness amongst people in the rural areas towards importance of oral health care. In 2005, the majority of Indians had never visited dentists and only 2% of them visited them regularly .

Due to factors like immigration of Dentists from India to other foreign countries for better opportunities, India was left with Just one dentist personnel for 10,000 people most of them pocketed in urban areas and concentrating their expertise serving patients with high incomes. Until the time, the rural population visit dentists and are educated about the importance of proper oral health care, the demand for toothbrushes and other products of dental care will not increase substantial especially in the rural area. ) Increase in disposable income: Increase in disposable income of households also serves as a factor that drives the demand of toothbrushes in India. In exhibit 4, we observe that the Indian household disposable income has increased and correspondingly the revenue generated thru’ sale of toothbrushes has also seen a marked improvement of 44. 2% (Exhibit 5). As the disposable income of households increased, people are more ready to invest in proper oral health care methods and this drives the demand of toothbrushes in India. ) Advancement in technology : Technological advancement helps in exposing the rural and semi-urban people in alleging the importance of oral care and effects of their negligence. 5) Competitive market: Number of players in the same product market increase competition among the firms and affect the demand. Demand of toothbrushes can be increased through measures such as: 1) Better awareness amongst people: People should be educated about the importance of having proper oral health care. This can be achieved through Advertising. Promotions.

Oral health camps. 2) Gathering data about consumer need using advance technologies and modifying the product to meet customer demand. ) Relationship building with retail distributors and small-store owners. 4) Using local talent as distributor in local market to avoid communication problem. 5) Helping the retailers and small store owner in inventory management. 6)Following forward integration method to have exclusive wholesaler. 7) Providing credit to distributor to increase market size and ensure availability of product in stores everywhere.

Cattle is one of the largest players in the market of Oral Care Sector in India. The company is doing fairly well in this field. It enjoys a good market share. Cattle Sales venue is increasing every year. In the year 2009 it increased by 18 % and it is expected to rise by 20 % in the coming year 2010 as per the vision of Brand Patella, Director of oral care marketing for the Indian division of Cattle-Taylor In the year 2009, Cattle has a market share of apron. 44 % which is far ahead of any other player in the market.

Its market share has grown continuously over the year. In the year 2008, it has a share of 41. 4 %. It has recorded 6. 2 % growth in the market share in terms of sales revenues. Cattle’s toothbrushes accounted for 46% of total toothbrush units sold in India in 2009 which is a good indicator of Cattle’s hold on the toothbrush market. In terms of revenue, Cattle’s toothbrush product earns 57. 4 % (from Exhibit 5 & 6) of total toothbrush market revenue. Similarly, Toothpaste and Toothpastes earns 42. 13% & 43. 9 % of total revenue in respective market (from exhibit 5 & 6).

Cattle’s share of total oral care market volume is 38 % in the year 2009. Cattle has established itself as a prominent player in oral care market. In a period of 5 years (2004-09), its sale grew by 8 % annually, net income by 12 % and earnings per hare by 14 %. Cattle has created a vast distribution network for its product. Through its widespread channel, not only it serves wholesalers and retailers in urban and semi-urban areas but it also caters to the need of 3, 00,000 small outlets throughout the country.

Its nearest competitor in toothbrush market has a market share of 21 % which is less than half of those shares by Cattle. So, we can say that Cattle has enjoyed first mover advantage and created a strong entry barrier for new entrant and provides a tough competitive market for its competitors. 3. How should Cattle accelerate the development of the toothbrush market in India? A. What are Cattle’s target market segments? Answer:- Cattle target market segments can be classified on the basis of their earning capacity.

The demographics does not play an important role here because the act of Oral Care is expected from all. Based on the earning capacity the three categories are – 1 . People earning more than IIS$ 1000/year can be targeted for Low-End Manual. 2. People earning in the range of US$1000/year – IIS$ 5000/year can be targeted for both Low End Manual and Mid-Range Manual. 3. People raring above IIS$5000/year can be targeted for both the Mid-Range Manual and Battery-operated Brushes and Refills. B. Which of these segments makes the most sense for Cattle to reach?

Answer:- Households above IIS$5000/year makes the most sense as their growth rate has been 91. 07% from 2005-09 and they make 12. 5% of total Indian households. As all of them can afford the complete Low-End Manual and most of them would be willing to try the Gagger and Directionally at 0. 58$ . Given 12. 5% households earn more than IIS$5000 and above which accounts to 64. 13 million households. On average if we assume 4 people in 1 household we get 257 million people. Currently about 54 million units of Gagger and Directionally are sold.

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