According to the chain rule of action the revenues generated and the increase in demand can

be estimated as a function of population, frequency of brushing/replacement and profit

margin in $ per each unit.
Revenues/Increase in demand = F( Population, Frequency of Brushing/Replacement,
Profit($)/unit )
Graphically representing the chain rule of action for the revenues generated in the toothbrush
segment we can infer that increase in demand/revenues can be achieved by targeting the
parameters in the demand function.

Population Growth: There is a population growth of 16.4 Million every year in India apart
from the 500 million potential toothbrush users spread across rural India. In this context
Cottle should target this segment of rural consumers and penetrate the rural market by
aggressive campaigning so that it can gain advantage over its competitors in the oral care
sector.
Frequency of Brushing/replacement: The regular toothbrush users frequency of replacing
the toothbrush quarterly is very low and Cottle should target this segment through Dental
professionals in the semi urban and urban areas.
Profit margin/Unit : Profit margin in $/unit for the Low range toothbrushes is less compared
to the high end range toothbrushes. To maximise its profit, Cottle should therefore target the
customers in low range toothbrushes segment so that a significant proportion of these
consumers can upgrade themselves to the mid range and high range products.
Increase in
Demand
and
revenues
Frequency of
Brushing
/replacement
Profit/unit i.e. to
focus on the mid
range and high
range products
Population
Growth (16.4
Million Per
year)