Cottle-Taylor
Cottle-Taylor: Expanding the Oral Care Group in India
MEMORANDUM To: Brinda Patel, Director of Oral-Care Marketing
From: Kunal Gulati and Gunjan Sharma, Assistant executives
Date: October 31, 2009
Subject: Report on feasibility of 25-30% growth in the toothbrush market
Ms. Patel,
We have attached our projection report.
As per our analysis, Mr. Lang’s idea of increasing advertising budget by 3% of sales will increase the unit sales by nearly 30% that will lead to $17.63m of profit from operations whereas, according to original marketing plan would fetch $18.2m profit from operations .Therefore, original projections will be more beneficial.
Also, Mr. Lang had predicted his estimates based on the success in Thailand, but the demographics of Thailand and India are very different. More than 80% of the individuals live on less than $2 per day.
So, we recommend that we should follow our original projection of 20% unit sales increase.
Regards,
Assistant Executives
Cottle India Case Analysis Summary
Situation analysis:
Mr. Lang has asked Brinda Patel to reconsider her projections of 20% for growth in toothbrush sales in India. Lang proposes that a 3% increase in the advertisement budget will lead to a 30% increase in sales. This assumption is based on prior experience and support they received in the Thailand Market. But demographics of India is very different from that of Thailand.
Problem Statement: What is the feasibility of achieving a 25% to 30% growth in toothbrush business of Cottle India in 2010?
Options:
Brinda Patel should present her original marketing plan of 20% projection
Brinda Patel should revise her marketing plan to achieve 30% sales growth
Criteria:
Total revenue
Profit from operations
Accuracy of assumptions
Evaluation of Options:
From the analysis and projections, it is seen that though revenue would increase in revising the marketing plan and investing in advertising, the profit earned by the company with the
MEMORANDUM To: Brinda Patel, Director of Oral-Care Marketing
From: Kunal Gulati and Gunjan Sharma, Assistant executives
Date: October 31, 2009
Subject: Report on feasibility of 25-30% growth in the toothbrush market
Ms. Patel,
We have attached our projection report.
As per our analysis, Mr. Lang’s idea of increasing advertising budget by 3% of sales will increase the unit sales by nearly 30% that will lead to $17.63m of profit from operations whereas, according to original marketing plan would fetch $18.2m profit from operations .Therefore, original projections will be more beneficial.
Also, Mr. Lang had predicted his estimates based on the success in Thailand, but the demographics of Thailand and India are very different. More than 80% of the individuals live on less than $2 per day.
So, we recommend that we should follow our original projection of 20% unit sales increase.
Regards,
Assistant Executives
Cottle India Case Analysis Summary
Situation analysis:
Mr. Lang has asked Brinda Patel to reconsider her projections of 20% for growth in toothbrush sales in India. Lang proposes that a 3% increase in the advertisement budget will lead to a 30% increase in sales. This assumption is based on prior experience and support they received in the Thailand Market. But demographics of India is very different from that of Thailand.
Problem Statement: What is the feasibility of achieving a 25% to 30% growth in toothbrush business of Cottle India in 2010?
Options:
Brinda Patel should present her original marketing plan of 20% projection
Brinda Patel should revise her marketing plan to achieve 30% sales growth
Criteria:
Total revenue
Profit from operations
Accuracy of assumptions
Evaluation of Options:
From the analysis and projections, it is seen that though revenue would increase in revising the marketing plan and investing in advertising, the profit earned by the company with the