Cottle Taylor Case Analysis
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 one on $16,88 millions.
However, arrangement of projected plans of unit and revenue growth with costs (Exhibit 2) that Cottler India will have evidences that market plan that Michel Lang suggested will lead to a profit less than Patel’s on $0,47 millions. As long as the primary goal of Cottler Taylor is to offset U.S. losses by boosting emerging markets (India in particular) bottom lines, Brinda Patel’s marketing plan must be approved.
Cottle India had a great potential to succeed in Indian market because awareness of dental health benefits was rising, as well as income. Also, Indians considered Cottle an authority on oral care and held their products in high regard. However, the right choice of target audience was crucial to achieve goals set by Cottle U.S.
Logic of Michel Lang’s Market Plan Despite the fact that financially Lang’s plan to increase mid-range and battery-operated toothbrushes is not favorable in current situation, it has its own positive factors that potentially might leverage Cottle’s sales.
First of all, quite big population of urban areas (22% of Indians) lives in urban settings and it is growing due to migration. Also, for almost 20 years GDP grew almost by 146 times that evidences economic growth.
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 one on $16,88 millions.
However, arrangement of projected plans of unit and revenue growth with costs (Exhibit 2) that Cottler India will have evidences that market plan that Michel Lang suggested will lead to a profit less than Patel’s on $0,47 millions. As long as the primary goal of Cottler Taylor is to offset U.S. losses by boosting emerging markets (India in particular) bottom lines, Brinda Patel’s marketing plan must be approved.
Cottle India had a great potential to succeed in Indian market because awareness of dental health benefits was rising, as well as income. Also, Indians considered Cottle an authority on oral care and held their products in high regard. However, the right choice of target audience was crucial to achieve goals set by Cottle U.S.
Logic of Michel Lang’s Market Plan Despite the fact that financially Lang’s plan to increase mid-range and battery-operated toothbrushes is not favorable in current situation, it has its own positive factors that potentially might leverage Cottle’s sales.
First of all, quite big population of urban areas (22% of Indians) lives in urban settings and it is growing due to migration. Also, for almost 20 years GDP grew almost by 146 times that evidences economic growth.
References: Quelch, J., Zalosh, A. (2012). Cottle-Taylor: Expanding the oral care group in India. Harvard Business School.