Cottle-Taylor: Company and Market Analysis

Cottle-Taylor Case Discussion
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Cottle-Taylor Case Discussion
Question 1
The firm-specific advantages of Cottle-Taylor include huge budgets for advertising and marketing activities, possession of a wide range of products, quality and reliable distribution channels, a robust manufacturing plant specifically for its toothbrushes, solid sales strategies, and strategic partnerships (Quelch & Zalosh, 2011). Cottle leveraged its firm-specific advantages in India in many ways. For example, the huge budgets for advertising and marketing, globally and in India, ensured that Cottle was able to advertise its products effectively across multiple channels such as television, print advertisements in newspapers, billboards and outdoor display, and radio. Due to its strategic partnership with Indian Dental Association (IDA), Cottle was able to undertake research projects and hold dental health outreach campaigns, which in turn helped the firm establish itself and reinforce its awareness. Cottle’s quality and reliable distribution channels ensured its products reached even the remotest parts of India in turn boosting sales and enhancing brand presence. That it had a robust manufacturing plant specifically for toothbrushes gave it an edge in the toothbrush market of the oral care industry. In this regard, the firm could freely adjust its product mix to meet demand without relying on the expensive import process, which was a big advantage to them. A healthy product line for toothbrushes ensures that everyone in society regardless of annual income can afford a quality toothbrush.
Question 2
The toothbrush market in India is definitely an attractive market for Cottle-Taylor. This is due to several reasons including the availability of a large market (a population of over 1 billion), presence of few competitors in the space, availability of a wide range of products suited for every kind of customer, the rise in awareness of dental health benefits, and formulation of policies that accelerate the uptake of dental services such as instituting dental insurance.
The proportion of disposable income for households in India was used to establish the market segments. The high-income segment that comprised individuals with an annual income of above $25000 had the least growth rate (Quelch & Zalosh, 2011). The medium-income segment comprised individuals with an income range of $5000-$25000 and this segment had the highest growth and provided for a bigger target market size. The low-income segment comprised individuals with income belo...