Cottle-Taylor case analysis
Cottle – Taloy : expanding the oral group in India
Background
Cottle Taylor was founded as a start hyup company in 1815. By 2009 they boast a product selection of over 200 oral care, personal, care, and home care products. In 2009 roughly 50% of the company revenue ($5.7 Billion) came from emerging markets. In 2009 Sales have grown 80% annually, net income 12% and earnings per share 14%.
India Operations
Cottle Taylor conducts its India operations through a subsidiary of the company called Cotte India. The India operations are solely focused on oral care, which includes toothpaste, tooth powder and dental floss. Throughout India they have a distribution network that sells in more than 450,000 retail outlets.
India Demographics
India is the world’s largest democracy with an area of 1.2 million square miles. In 2009 the population was 1.16 billion people with a median age of 25 and an annual growth rate of 1.4%. Population control campaigns have successfully slowed down the growth rate 17% in the following years. There are 28 states and 19 territories with citizens who speak primarily Hindi as well as English as a second language. In 2009 India’s GDP was 146 times greater than in 1990 but there is a clustered distribution of wealth with 4 states accounting for 30% of the total GDP. 37% of the population is impoverished and over 80% lived on less then $2 per day.
Indian Oral Care
Traditionally Indians have had very limited exposure to proper oral care. A typical Indian will chew twigs from the Neem tree which they call “Natures drugstore” In 2004 the Indian dental association launched campaigns to educate Indians about oral health care issues. Oral care grew 10% from 2008 to 2009.
Quality of Life/Shopping Habits
Basic health care is very limited with high illiteracy rates. A recent increase in mobile technology in India has revolutionized the country and has connected millions of people to the globe. Indians are extremely price sensitive due to the limited
Background
Cottle Taylor was founded as a start hyup company in 1815. By 2009 they boast a product selection of over 200 oral care, personal, care, and home care products. In 2009 roughly 50% of the company revenue ($5.7 Billion) came from emerging markets. In 2009 Sales have grown 80% annually, net income 12% and earnings per share 14%.
India Operations
Cottle Taylor conducts its India operations through a subsidiary of the company called Cotte India. The India operations are solely focused on oral care, which includes toothpaste, tooth powder and dental floss. Throughout India they have a distribution network that sells in more than 450,000 retail outlets.
India Demographics
India is the world’s largest democracy with an area of 1.2 million square miles. In 2009 the population was 1.16 billion people with a median age of 25 and an annual growth rate of 1.4%. Population control campaigns have successfully slowed down the growth rate 17% in the following years. There are 28 states and 19 territories with citizens who speak primarily Hindi as well as English as a second language. In 2009 India’s GDP was 146 times greater than in 1990 but there is a clustered distribution of wealth with 4 states accounting for 30% of the total GDP. 37% of the population is impoverished and over 80% lived on less then $2 per day.
Indian Oral Care
Traditionally Indians have had very limited exposure to proper oral care. A typical Indian will chew twigs from the Neem tree which they call “Natures drugstore” In 2004 the Indian dental association launched campaigns to educate Indians about oral health care issues. Oral care grew 10% from 2008 to 2009.
Quality of Life/Shopping Habits
Basic health care is very limited with high illiteracy rates. A recent increase in mobile technology in India has revolutionized the country and has connected millions of people to the globe. Indians are extremely price sensitive due to the limited