CAN Cottle SM GroupA12
Decision Issue 1
What factors determine the demand for toothbrushes? How can demand be increased?
Analysis
Since most of the people in India used traditional methods like Neem twigs, ash, charcoal, black salt etc. hence Oral Care industry is not fully penetrated. Over 50% of the Indians did not consider oral care to be a major concern. Therefore it is beneficial to increase the awareness and make people aware of the health hazards of the improper oral care.
Toothbrushes were mainly used by people in the urban and semi-urban settings which had higher disposable incomes and the availability of the oral care products was also abundant. In the rural areas, less awareness and access to basic healthcare services was a major problem. These and many other factors were responsible for the demand consideration of the toothbrushes in India.
Recommendations
Factors that determine the demand for toothbrushes are as follows:
Increasing per capita income
Rising awareness and oral health care benefits
Changing habits of consumers
Distribution and accessibility
Analysis
From the case it can be seen that the company had significant market share in the toothbrush business in India (46%). Also it is seen that most of the revenues came from the urban and semi-urban areas where the distribution networks were extensive and proper awareness was there.
The product line of the company is also extensive. But the majority of the untapped market lied in the rural sector which had not yet been penetrated. Thus it would be advisable to look into the sector by focusing mainly on the product mx of the company. It can be done so by using low-end products to maximum along with the high-end products.
The focus should be on producing and promoting low-end products to tap into the rural market while maintaining the high-end market in the urban areas. Along with this a proper use of negative reinforcement would be beneficial in this case where campaigns can be set up for the sector to make
What factors determine the demand for toothbrushes? How can demand be increased?
Analysis
Since most of the people in India used traditional methods like Neem twigs, ash, charcoal, black salt etc. hence Oral Care industry is not fully penetrated. Over 50% of the Indians did not consider oral care to be a major concern. Therefore it is beneficial to increase the awareness and make people aware of the health hazards of the improper oral care.
Toothbrushes were mainly used by people in the urban and semi-urban settings which had higher disposable incomes and the availability of the oral care products was also abundant. In the rural areas, less awareness and access to basic healthcare services was a major problem. These and many other factors were responsible for the demand consideration of the toothbrushes in India.
Recommendations
Factors that determine the demand for toothbrushes are as follows:
Increasing per capita income
Rising awareness and oral health care benefits
Changing habits of consumers
Distribution and accessibility
Analysis
From the case it can be seen that the company had significant market share in the toothbrush business in India (46%). Also it is seen that most of the revenues came from the urban and semi-urban areas where the distribution networks were extensive and proper awareness was there.
The product line of the company is also extensive. But the majority of the untapped market lied in the rural sector which had not yet been penetrated. Thus it would be advisable to look into the sector by focusing mainly on the product mx of the company. It can be done so by using low-end products to maximum along with the high-end products.
The focus should be on producing and promoting low-end products to tap into the rural market while maintaining the high-end market in the urban areas. Along with this a proper use of negative reinforcement would be beneficial in this case where campaigns can be set up for the sector to make