International Business: Market Development Strategies for Cottle-Taylor in India

This report discusses the market development strategies for Cottle-Taylor in India, including factors influencing the demand of toothbrush, effectiveness of market entry strategy, targeting the Indian market, evaluation of market development, projected profits, market segmentation, and recommendations.

Running head: INTERNATIONAL BUSINESS
International business
Name of the student
Name of the university
Author note

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Table of Contents
Introduction......................................................................................................................................2
Factors influencing the demand of the toothbrush..........................................................................2
Effectiveness of the market entry strategy.......................................................................................4
Targeting the Indian market.........................................................................................................5
Evaluation of the market development............................................................................................6
Social marketing..........................................................................................................................6
Product development...................................................................................................................7
Projected profits...............................................................................................................................7
Market segmentation.......................................................................................................................8
Identification of the issues...............................................................................................................9
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................12

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Introduction
The current global business scenario is witnessing the increasing trend of economy of the
developing countries more than that of the developed countries. With the initiation of rapid
industrialization funded by low rate of employees and favorable business environment, the
economy of the developing countries is rapidly enhancing (Qaisar and Khawaja 2012).
Moreover, developing countries are having huge population, which offers huge market
opportunities for the foreign business organizations. Cottle-Taylor is a Philadelphia based
consumer goods organization having their operating base in India. However, in the recent times,
they are facing the dilemma regarding the strategies to increase the sales and revenue in India. In
the given case study, various aspects are being discussed regarding their projection of the Indian
subsidiary (Ardichvili et al. 2012). However, they are in the need of effective strategy to cater to
the change in the Indian society along with targeting the untapped customer segments.
This report will discuss about the factors that will determine the sales of the toothbrush in
India along with the factors that contribute in enhancing the sale of toothbrush in India.
Moreover, evaluation of the market development strategies in India will also be done in this
report. Market segmentation for Cottle-Taylor will also be discussed in this report in order to
enable them to effectively cater to the target segment. Projected profit probability will be
discussed in accordance to the discussed strategies. Recommendations will also be provided
according to the identified challenges.

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Factors influencing the demand of the toothbrush
 One of the key and basic factors of increase in the demand of the toothbrush is the growth
of the economy (Sahoo and Dash 2012). This is due to the reason that, with the
enhancement of the economy of India, the per capita income of the customers is
increasing, which made them opt for modern toothbrush rather than just using the
traditional twigs of neem tree.
 Another contributing or influencing factor that is increasing the demand for toothbrush is
the increase of oral hygiene among the common people. This is due to the reason that, in
the developing countries such as India, middle class segment is rapidly increasing, which
makes them aware about the potential issues with the oral hygiene (D’cruz and Aradhya
2013). Accordingly, they are becoming more aware about the oral acre and opting for
toothbrush over the traditional methods.
 As discussed in the given case study, India is witnessing a huge development in their
economy and along with that, more business sectors are opening up for investment. With
having huge population and market opportunities, various business organizations are
being attracted for the Indian market (Smith, 2013). In the oral care sector also, different
global and domestic business organizations have entered in the market and establishing
their brand. Thus, with having different brand and options in the market, customers are
opting for their trusted brands, which in turn are increasing the sales.
 With the increase in the competition in the market, customers are having various options
ranging from low price to higher price products in the oral care market. Thus, customers
are having the options of low priced oral care products such as toothbrush over the
traditional methods (Gupta, Ariyawardana and Johnson 2013). In the current scenario,

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low priced oral care products such as toothbrush is having cost effectiveness over the
traditional methods. This is also motivating the customers to opt for toothbrushes over the
traditional methods.
 As discussed in the case study, there are still small section of the population in India is
visiting dentists on regular basis. However, still the visiting sections comprise of good
number of people (Spencer 2012). This section is being influenced by their dentists over
the use of oral care products. Dentists are more motivating them to use the oral care
products such as toothbrush over the traditional products. This is increasing the sales of
toothbrush in India.
 With the increase in the number of business organizations in the oral care sector,
aggressive marketing campaigns are being initiated by them in order attract more
customers and to stay ahead in the competition (Parente and Strausbaugh-Hutchinson
2014). Thus, with the increase in the marketing and promotional activities of the oral care
manufacturers, market penetration for these products is increasing along with the increase
in the awareness among the customers. Thus, more customers are becoming aware about
the benefits of using toothbrush, which is motivating them to opt for modern oral care
products over the traditional methods.
Effectiveness of the market entry strategy
Cottle initiated the strategy of direct investment in India with having subsidiary. The
business of Cottle is being managed by their Indian subsidiary, Cottle India. This strategy proved
fruitful for them due to the reason that, with the initiation of the direct investment in India, the
brand is being effectively communicated to the potential customers (Raff, Ryan and Stahler
2012). In addition, having the operational facility in India helped them to determine the

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requirement of the domestic requirement effectively. They were being able to change their
business strategies according to the change in the business scenario in the Indian market.
Another key advantage from having operational and manufacturing facility in India gained by
them is reduction in the price and cost of the products. This is due to the reason that, India is
having low rate of employees and other resources, which helped them to reduce their cost of
production and eventually they were being able to offer their products in more affordable price
(Cooke, Saini and Wang 2014). Thus, with the help of their affordable products, Cottle has been
able to acquire more than 38 percent in the Indian market.
Thus, from the above discussion, it can be concluded that, the market entry strategy of
Cottle is effective and successful. This is due to the reason that, having their manufacturing
facility in India helped them to offer products, which are personalized according to the need and
requirement of the Indian customers. One of the key products being offered by them is the
toothpowder. Toothpowder is an alternative for toothpaste being widely used in the Indian
scenario. Cottle do not have tooth powder in their global product portfolio. However, through
their Indian subsidiary, they are offering tooth powder in the Indian market. Thus, it helped them
to target the Indian customers effectively. This type of customization strategy for a specific
market is only being possible for having their manufacturing facility in India (Hollensen 2015).
Targeting the Indian market
Cottle have initiated some effective strategies after entering in the Indian market in order
to attract more customers along with establishing their brand in the market. One of the key
strategies being initiated by them is offering the low priced and widely used products in the
initial stage (Jobber and Shipley 2012). As discussed in the case study, they have opted for the
basic and affordable products due to the reason that, Indian market was not matured enough for

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the oral care sector at the time, Cottle entered. Thus, offering the low priced products helped
them to attract more customers and provide them cost effective oral care modes compared to the
traditional ways.
Another strategy being initiated by them is to align their corporate social responsibility
policies with the enhancement of the brand awareness among the potential customers. It is being
discussed in the report that, Cottle have partnered with Indian Dental Association (IDA) in order
to create awareness among the potential customers and to reach out to more number of areas
(Crane, Matten and Spence 2013). This strategy helped them in two ways. One of the advantages
being gained by them is the social reputation and brand recall among the potential customers.
Aligning with the Indian Dental Association helped them to create favorable image about the
brand among the potential customers. It enhanced the brand recall of the customers regarding
Cottle. Another advantage being gained by them is meeting the corporate social responsibility in
the Indian market.
Evaluation of the market development
Social marketing
The market development strategies being initiated by Cottle proved successful for them
due to the reason that currently, they are one of the most reliable and established brands in the
oral care sector in the Indian market (Lefebvre 2012). One of the market development strategies
being initiated by them is aligning the social responsibilities with the marketing objectives. This
is due to the reason that, as discussed earlier, Cottle entered in the Indian market at very early
stage of the oral care sector in India. At that time, the customers were not aware about the
importance of the oral hygiene and the economy was also not favorable enough to support that.

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Thus, the primary objective of Cottle was to increase the awareness among the customers
regarding the importance of the oral care. Accordingly, they have partnered with Indian Dental
Association in order to reach out to rural areas and more number of people. The objective of the
partnership with Indian Dental Association is aware the people about the importance of oral care
and brushing the teeth (Servaes and Tamayo 2013). This partnership helped them to connect with
the people effectively and make them aware about the importance of the oral care. Thus, with the
help of these strategies, it became easier for Cottle to market their products in the Indian market.
Product development
Another strategy being implemented by them is the product development. This is due to
the reason that, product development is one of the effective methods to increase the existing
market share (Crawley, Cameron and Selva 2015). As discussed in the case study, with the
enhancement of the economy in the Indian market, per capita income of the customers and oral
care awareness of them, Cottle introduce various new products in the market. This helped them
to effectively cater to the change in the taste and preference pattern of the customers.
Accordingly, in the following years, Cottle has introduced mouth wash and other variants of
tooth paste and toothbrush. This helped them to cover more customers with the increase in the
market share in the Indian market.
Projected profits
From the implementation of the above strategies of Cottle, they have gained good market
share in the Indian context along with enhancement of the goodwill and brand value. However,
the average existing market share is decreasing in India and they are intending various strategies
in order to regain the lost market share along with increasing the existing market share by

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acquiring new customers (Gschwandtner and Cuaresma 2013). However, in the case study, it is
being discussed that, the Indian subsidiary of Cottle is expecting 20 percent increase in the
business, while the senior management is targeting to achieve the market growth between 25
percent and 30 percent. It is being discussed in the case that, the total population of India stands
at 1.16 billion as of 2009. However, out of this, more than 37 percent of the population is living
under the poverty line. Thus, remaining 63 percent of the population can be considered as the
potential customers. In addition, it is also been projected that more than 50 percent of the total
population is still not using toothbrush. However, with all these barriers, the volume of sales of
toothbrush in India stands at 747.1 million.
Total population 1.16 billion
(Less) 37 % of total
Potential customers 429200000
20% of Potential customers 85840000
Min. per unit cost 20
Total 1716800000
The above data shows the projected profit for Cottle. 37 percent of the total population is
being deducted for representing the below poverty line segment. In addition, it is being assumed
that, only 20 percent can be targeted out of total potential customers. It is also assumed that the
minimum per unit cost of the toothbrush of Cottle will be Rs. 20. Thus, if Cottle sale their lowest
priced product to only 20 percent of the potential customers then the amount will be Rs.
171680000. Thus, the projected profit will be huge and favorable for Cottle India.

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Market segmentation
In order to determine the market segment of Cottle India, Segmentation, targeting and
Positioning model (STP) will be used. According to this model, the first aspect is the
segmentation of the customers for Cottle. In terms of geographical segmentation, the target
segment location will be Tier I, II and III cities (Wedel and Kamakura 2012). This is due to the
reason that, Tier I cities in India is already saturated with major portion of the people are aware
about the oral care. On the other hand the market in Tier II and III cities are still untapped and it
will be segmented. In terms of demographic segmentation, customers across all age groups will
be targeted due to the reason that, oral care is important for people across all age groups. In terms
of income level, customers across various income groups will be segmented due to the reason
that, both the premium and mass market should be targeted.
The next aspect is the targeting the segmented customer segments. In order to do so, the
product variants should be durable and long lasting to meet the preference of the customers from
rural areas (Riefler, Diamantopoulos and Siguaw 2012). Moreover, the products should be
designed according to various age groups. Oral care products for children should be designed
according to their preferences. Both the higher end products with more specification along with
basic mass market model will be introduced in order to target various income segments.
The last aspect is positioning. The products of Cottle should be positioned as reliable,
safe and productive. This is due to the reason that, for the basic oral care products, reliability
mostly matters compared to variants, brand and price. Moreover, the products of Cottle will be
positioned as affordable yet reliable in the market (Hassan and Craft 2012). This will help them
cover more customer segments.

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Identification of the issues
 One of the key issues being identified is the increase in the competition in the market.
With the increase in competition, the market share of Cottle will get reduced.
 India is having population of diverse social and cultural backgrounds. Thus, their
requirements are also diverse in nature. It will be difficult for Cottle to cater to the
diverse requirement of the customers with similar products.
 Still there is more 50 percent .of the total population who are not aware about the oral
hygiene. Thus, it will be difficult for Cottle to tap to this sector.
Recommendations
 Diversity in the product portfolio should be increased in order to offer various products to
the customers. It will also help Cottle to reduce the impact of competition by having
different variants in the market.
 Cottle should drive more social marketing in the rural areas in order to increase the
awareness of the customers regarding the oral care. It will help them to convert the
unaware customers in to potential customers.
 Should have sub brands in order to cater to different customers segments. This will help
them to target different customer segments effectively through separate brands.
Conclusion
Thus from the above discussion it can be concluded that, Cottle is having a good market
opportunities in India due to their huge population. This report discussed about the market
development strategies and market entry strategies of Cottle in India. Moreover, the projected
profits are also been discussed in this report, which shows the favorable future of Cottle India.

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Various issues that may be faced by them are also being identified and accordingly, various
recommendations are being provided, which will help to overcome the issues.

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