Documente Academic
Documente Profesional
Documente Cultură
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1. INTRODUCTION
Theoretical knowledge is the product of practical knowledge. However, the extent that the
knowledge can understand is greatly limited because it doest not come with experience. The
academic knowledge is not well enough to complete with real world. It was a great
opportunity to experience of practical related work to an appraisal of Colgate toothpaste
Company.
1.1. Background
Though we are the student of school of business in under graduate program (Bachelor of
Business Administration)
We have to do innovate our potentiality to develop our skill in various sources such as Report
making, preparing financial statement of different kinds of organization. It is our academic
part to prepare a report on “Factors influencing consumer behavior specially focuses on
Colgate toothpaste” that’s why we prepare it.
1.2. Significance
It enhances our knowledge base. It gives us a broad idea about marketing analysis.
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1.4.2 Specific Objectives:
The broader objective may be broken down into further specific objectives enlisted as
follows:
1.5.5.1. Population: The total set of observation of numerical characteristics under study is
called population. The size of population 50 and the people whose age is 15-30.
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1.5.5.3. Sample frame: There is no well structured sample frame is found.
1.5.5.5. Sample size: Total unit of sample. In this report the sample size is 50.
1.6. Limitations:
As result there some limitations in collecting information and conducting the report. The
limitations are follows:
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Part Two
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Toothpaste has a history that stretches back nearly 4,000 years. Until the mid-nineteenth
century, abrasives used to clean teeth did not resemble modern toothpastes. People were
primarily concerned with cleaning stains from their teeth and used harsh, sometimes toxic
ingredients to meet that goal. Ancient Egyptians used a mixture of green lead, verdigris (the
green crust that forms on certain metals like copper or brass when exposed to salt water or
air), and incense. Ground fish bones were used by the early Chinese.
In the middle Ages, fine sand and pumice were the primary ingredients in teeth-cleaning
formulas used by Arabs. Arabs realized that using such harsh abrasives harmed the enamel of
the teeth. Concurrently, however, Europeans used strong acids to lift stains. In western
cultures, similarly corrosive mixtures were widely used until the twentieth century. Table salt
was also used to clean teeth.
In 1850, Dr. Washington Wentworth Sheffield, a dental surgeon and chemist, invented the
first toothpaste. He was 23 years old and lived in New London, Connecticut. Dr. Sheffield
had been using his invention, which he called Crème Dentifrice, in his private practice. The
positive response of his patients encouraged him to market the paste. He constructed a
laboratory to improve his invention and a small factory to manufacture it.
Modern toothpaste was invented to aid in the removal foreign particles and food substances,
as well as cleans the teeth. When originally marketed to consumers, toothpaste was packaged
in jars. Chalk was commonly used as the abrasive in the early part of the twentieth century.
Sheffield Labs claims it was the first company to put toothpaste in tubes. Washington
Wentworth Sheffield's son, Lucius, studied in Paris, France, in the late nineteenth century.
Lucius noticed the collapsible metal tubes being used for paints. He thought putting the jar-
packaged dentifrice in these tubes would be a good idea. Needless to say, it was adopted for
toothpaste, as well as other pharmaceutical uses. The Colgate-Palmolive Company also
asserts that it sold the first toothpaste in a collapsible tube in 1896. The product was called
Colgate Ribbon Dental Crème. In 1934, in the United States, toothpaste standards were
developed by the American Dental Association's Council on Dental Therapeutics. They rated
products on the following scale: Accepted, Unaccepted, or Provisionally Accepted.
The next big milestone in toothpaste development happened in the mid-twentieth century
(1940-60, depending on source). After studies proving fluoride aided in protection from tooth
decay, many toothpastes were reformulated to include sodium fluoride. Fluoride's
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effectiveness was not universally accepted. Some consumers wanted fluoride-free toothpaste,
as well as artificial sweetener-free toothpaste. The most commonly used artificial sweetener is
saccharin. The amount of saccharin used in toothpaste is minuscule. Companies like Tom's of
Maine responded to this demand by manufacturing both fluoridated and non-fluoridated
toothpastes, and toothpastes without artificial sweetening.
Employees Structure:
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Chairman,, is the chief of Colgate Group of Companies Ltd. One Managing Director
(M. D.) and four other Directors are functioning under him. The four directors are:
Director of Sales & Marketing, Director of Procurement, Director of Finance &
Accounts, and Director of Administration (Human Resources Department). The
organizational hierarchy is:
Chairman
Managing Director
GM GM GM
GM
National Marketing
Sales Manager Assistant Assistant
Assistant
Manager Manager Manager Manager
Distribution
Manager Executi v Executi v Executi v
e e e
Executive Executive Executive
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2. 2 Vision:
2.3. Mission:
Improve the quality of life by bringing essential products within the reach of the
common people. To continuously develop and market high technology products,
which offer value and bring delight to our esteemed customers by creating a
competitive advantage through innovation, cost structure and customer relationships.
Skilled professionals, prudent human resource management and excellent service and
delivery systems will adequately support these initiatives.
2.4. Goal:
Its goal is to--
• Continually set the highest standards of customer satisfaction in our country
• Secure the strongest competitive position in our markets
• Be recognized as an employer of first choice.
A name synonymous with the Indian oral care industry, Colgate, is the undisputed market
leader in toothpastes with over 45% share in the Rs 21 bn (90,000 TPA) oral care segment.
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The company’s parent has a presence in over 200 countries worldwide. In India, Colgate
ranks No.1 in top of the mind recall in many consumer surveys.
Background
Promoted by Colgate-Palmolive USA, the parent operates through its 51%
subsidiary and has a presence in India since last 50 years. The company’s flagship product,
Colgate Dental Cream is the largest selling toothpaste in India, with an estimated market
share of over 30%. The company acquired Hindustan Ciba Geigy (Cibaca) in the year 1994,
which helped it increase its market share. The company also has a significant marketshare in
the toothbrush category. This and shaving brushes accounted for 10% of its FY04 revenues.
The toothpaste segment can be divided into two broad categories: White’s, which accounts
for a dominant share of the Indian oral care market. Gels are estimated to be only about 15%
plus of the market. Colgate is considerably backward integrated. It has captive
manufacturing facilities for flavor and other ingredients, which yield significant cost savings.
It has also set up a world-class facility for manufacture of Di-calcium Phosphate, a key
ingredient in toothpaste.
The Potential
As per our estimates, 12.2% of the total world population lives in rural India.
Currently, only a small portion (about 15%-20%) of region has been tapped. Although,
expansion in rural areas requires huge investments, it is a market that cannot be overlooked
and has huge potential. To put things in perspective, the per capita consumption of toothpaste
in India is only 82 gms, as compared to 262 gms for Thailand, 376 gms for Mexico and 518
gms for USA (Source: Colgate, Equitymaster Research). In India, urban per capita
consumption is 153 gms whereas rural consumption is a mere 38 gms.
Competition
The Company has been facing immense competition from organised as well as unorganised
players. HLL is the closet rival of Colgate with a share of 34% with its Pepsodent and Close-
up (gel where ithas a lion’s share) brands. The latest entrant in the organised sector is LG
that has ventured into the FMCG market and launched premium consumer products across 8
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categories including toothpastes, shampoos, soaps, detergents, etc. Also, there has been
speculation from sometime now that P&G (its worldwide rival) would debut its billion-dollar-
plus toothpaste brand Crest in India. This could intensify competition in the segment.
Concerns
The Company has high reliance on a single category (Oral Care), which accounts for 94% of
its sales and 98% of its profits (FY04). A large part of the company’s product folio consists of
premium products, which do not have a large potential market in India. This is evident as new
launches by the parent in India have been much lower than other markets. In the last couple of
years, the company’s top line has stopped growing and in order to achieve growth,
Colgate cut prices of its products by an average 17% in April 2003 (Source: Company
Annual Report). The company has been able to increase its margins by continuously
cutting advertising expenses, which cannot go below a certain point, owing to its
single product dependence.
STRENGTHS
Strong financial performance Focus on innovation and new product launches
Colgate business planning initiative
WEAKNESSES
Product recalls Highly leveraged
OPPORTUNITIES
Emerging markets growth Deploying advance technologies Growing Hispanic population in
the US Specialty pet nutrition growth
THREATS
Competitive landscape from other CPGs Private label growth Increasing commodity prices
Falling consumer confidence in the US
01. Cultural Factor 02. Social Factor, 03. Personal Factor, 04. Psychological Factor,
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01. Cultural Factor:-
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social
Class
** Culture:-
*** Culture has a great influence on the behavior of a consumer. Because people
learn from the society. If the culture of a country can not suggest to use toothpaste or
Colgate is a good quality toothpaste then people will not buy this.
Sub Culture:-
*** If the experiences of the group says that Colgate is a bad toothpaste then people
will not buy this product..
Social Class:-
*** If the social class of people is low or much high then people do not buy Colgate
toothpaste.
A consumer's behavior also is influenced by social factors, such as the (i) Groups (ii)
Family (iii) Roles and status
** Groups:-
***Sometimes groups make the choices of an individual.
Family:-
*** In context of Bangladesh if the head of family choice Pepsodent rather than
Colgate, so the family can not use other paste. So we can say that family has a
influence on the consumer behavior.
It includes
i. Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life style,
(v) Personality and self concept.
Occupation:-
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*** A doctor is always conscious about their health where a student has not same
consciousness. And also the choice and buying capacity of a product is depends on
their occupation. It varies according to their jobs category
Economic situation:-
*** A person's economic situation will affect product choice
Life Style:-
*** Life Style is a person's Pattern of living, understanding these forces involves
measuring consumer's major AIO dimensions. i.e. activities (Work, hobbies,
shopping, support etc) interest (Food, fashion, family recreation) and opinions (about
themselves, Business, Products)
· Motivation:-
o Company must take some motivated activities to persuade the customer. Ex-
Advertising, give some free etc.
· Perception:-
o The process by which people select, Organize, and interpret information to form a
meaningful picture of the world. The company must try to create the positive
perception on the mind of individual.
· Learning:-
o Perception filters a thing and then take decision it should be taken or not. It means
perception fiter the knowledge and give the shape of learning.
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PART THREE
01. Cultural Factor 02. Social Factor, 03. Personal Factor, 04. Psychological Factor,
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Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social
Class
** Culture:-
*** The set of basic values perceptions, wants, and behaviors learned by a member of
society from family and other important institutions. Culture is the most basic cause
of a person's wants and behavior. Every group or society has a culture, and cultural
influences on buying behavior may vary greatly from country to country.
Sub Culture:-
*** A group of people with shared value systems based on common life experiences
and situations.
Each culture contains smaller sub cultures a group of people with shared value system
based on common life experiences and situations. Sub culture includes nationalities,
religions, racial group and geographic regions. Many sub culture make up important
market segments and marketers often design products.
Social Class:-
*** Almost every society has some form of social structure; social classes are
society's relatively permanent and ordered divisions whose members share similar
values, interests and behavior.
A consumer's behavior also is influenced by social factors, such as the (i) Groups (ii)
Family (iii) Roles and status
** Groups:-
*** Two or more people who interact to accomplish individual or mutual goals.
A person's behaviors are influenced by many small groups. Groups that have a direct
influence and to which a person belongs are called membership groups.
Some are primary groups includes family, friends, neighbors and coworkers. Some
are secondary groups, which are more formal and have less regular interaction. These
include organizations like religious groups, professional association and trade unions.
Family:-
*** Family members can strongly influence buyer behavior. The family is the most
important consumer buying organization society and it has been researched
extensively. Marketers are interested in the roles, and influence of the husband, wife
and children on the purchase of different products and services.
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03. Personal Factors:-
It includes
ii. Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life style,
(v) Personality and self concept.
Occupation:-
*** A person's occupation affects the goods and services bought. Blue collar workers
tend to buy more rugged work clothes, whereas white-collar workers buy more
business suits. A Co. can even specialize in making products needed by a given
occupational group. Thus, computer software companies will design different
products for brand managers, accountants, engineers, lawyers, and doctors.
Economic situation:-
*** A person's economic situation will affect product choice
Life Style:-
*** Life Style is a person's Pattern of living, understanding these forces involves
measuring consumer's major AIO dimensions.
i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family
recreation) and opinions (about themselves, Business, Products)
· Motivation:-
o Motive (drive) a need that is sufficiently pressing to direct the person to seek
satisfaction of the need
· Perception:-
o The process by which people select, Organize, and interpret information to form a
meaningful picture of the world.
· Learning:-
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o Changes in an individuals behavior arising from experience.
The set of controllable tactical marketing tools-product, price, place, and promotion-
that the firm blends to produce the response it wants in the target market.
A. Product:
Product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need.
B. Price:
The amount of money charged for a product or service, or the sum of the values that
consumer exchange for the benefits of having or using the product or service.
Example: Price level changes, Payment terms, and Published prices, Trade discounts.
C. Place:
It includes company activities that make the product available to target consumers.
D. Promotion:
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Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objectives in the target market. The marketing mix consists of everything the firm can
do to influence the demand for its products.
In marketing mix the four Ps represent the sellers' view of the marketing tools
available for influencing buyers. From a buyer's point of view, each marketing tool is
designed to deliver a customer benefit. Thus, while marketers see themselves as
selling products, customers see themselves as buying value of solutions to their
problems. And customers are interested in more than just the price; they are interested
in the total costs of obtaining, using, and disposing of a product. Customers want the
products and services to be as conveniently available as possible. Finally, they want
two way communications. Marketing is all about getting the right product at the right
place at the right time, at the right price, using the right promotion to attract customer
who will purchase products and services.
Marketers would do well to think through the four Cs first and then build four Ps on
that platform. Robert Lauterborn suggested that the sellers' four Ps correspond to the
customers' four Cs.
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Winning companies will be those who can meet customer needs economically and
conveniently and with effective communication. It is important for an establishment
to identify its target market before attempting to blend marketing tools to create a
marketing mix.
3.5 Brand
Product Category
Existing New
Existing Brand
Line extension Extension
Brand
Name
Multibirands
New New Brands
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PART FOUR
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Every toothpaste contains the following ingredients: binders, abrasives, sudsers,
humectants, flavors (unique additives), sweeteners, fluorides, tooth whiteners, a
preservative, and water. Binders thicken toothpastes. They prevent separation of the
solid and liquid components, especially during storage. They also affect the speed and
volume of foam production, the rate of flavor release and product dispersal, the
appearance of the toothpaste ribbon on the toothbrush, and the rinsibility from the
toothbrush. Some binders are karaya gum, bentonite, sodium alginate,
methylcellulose, carrageenan, and magnesium aluminum silicate.
Abrasives scrub the outside of the teeth to get rid of plaque and loosen particles on
teeth. Abrasives also contribute to the degree of opacity of the paste or gel. Abrasives
may affect the paste's consistency, cost, and taste. Some abrasives are more
harsh than others, sometimes resulting in unnecessary damage to the tooth enamel.
The most commonly used abrasives are hydrated silica (softened silica), calcium
carbonate (also known as chalk), and sodium bicarbonate (baking soda). Other
abrasives include dibasic calcium phosphate, calcium sulfate, tricalcium phosphate,
and sodium metaphosphate hydrated alumina. Each abrasive also has slightly different
cleaning properties, and a combination of them might be used in the final product.
Sudsers, also known as foaming agents, are surfactants. They lower the surface
tension of water so that bubbles are formed. Multiple bubbles together make foam.
Sudsers help in removing particles from teeth. Sudsers are usually a combination of
an organic alcohol or a fatty acid with an alkali metal. Common sudsers are sodium
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lauryl sulfate, sodium lauryl sulfoacetate, dioctyl sodium sulfosuccinate, sulfolaurate,
sodium lauryl sarcosinate, sodium stearyl fumarate, and sodium stearyl lactate.
Humectants retain water to maintain the paste in toothpaste. Humectants keep the
solid and liquid phases of toothpaste together. They also can add a coolness and/or
sweetness to the toothpaste; this makes toothpaste feel pleasant in the mouth when
used. Most toothpastes use sorbitol or glycerin as humectants. Propylene glycol can
also be used as a humecant.
Toothpastes have flavors to make them more palatable. Mint is the most common
flavor used because it imparts a feeling of freshness. This feeling of freshness is the
result of long term conditioning by the toothpaste industry. The American public
associates mint with freshness. There may be a basis for this in fact; mint flavors
contain oils that volatize in the mouth's warm environment. This volatizing action
imparts a cooling sensation in the mouth. The most common toothpaste flavors are
spearmint, peppermint, wintergreen, and cinnamon. Some of the more exotic
toothpaste flavors include bourbon, rye, anise, clove, caraway, coriander, eucalyptus,
nutmeg, and thyme.
Fluorides reduce decay by increasing the strength of teeth. Sodium fluoride is the
most commonly used fluoride. Sodium perborate is used as a tooth whitening
ingredient. Most toothpastes contain the preservative p-hydrozybenzoate. Water is
also used for dilution purposes.
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The Manufacturing Process
• After transporting the raw materials into the factory, the ingredients are both
manually and mechanically weighed. This ensures accuracy in the ingredients'
proportions. Then the ingredients are mixed together. Usually, the glycerin-
water mixture is done first.
• All the ingredients are mixed together in the mixing vat. The temperature and
humidity of vat are watched closely. This is important to ensuring that the mix
comes together correctly. A commonly used vat in the toothpaste industry
mixes a batch that is the equivalent of 10,000 four-ounce (118 ml) tubes.
• Before tubes are filled with toothpaste the tube itself passes under a blower
and a vacuum to ensure cleanliness. Dust and particles are blown out in this
step. The tube is capped, and the opposite end is opened so the filling machine
can load the paste.
• After the ingredients are mixed together, the tubes are filled by the filling
machine. To make sure the tube is aligned correctly, an optical device rotates
the tube. Then the tube is filled by a descending pump. After it is filled, the
end is sealed (or crimped) closed. The tube also gets a code stamped on it
indicating where and when it was manufactured.
• After tubes are filled, they are inserted into open paperboard boxes. Some
companies do this by hand.
• The boxes are cased and shipped to warehouses and stores.
Quality Control
Each batch of ingredients is tested for quality as it is brought into the factory. The
testing lab also checks samples of final product.
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Chart no. 1
1 year
2year
3year
More
We observed among 50 people that how long they have been using it.
From the above pie chart we have seen that 25 people use it below three years long.So we can
say that if it wants to keep up the customers on it’s hand,then it have to take promotional step.
Chart no. 2
Bar Chart
0
Male Female
Sex
Here we see that male 8 out of 12 said disagree, 3 out of 5 said strongly disagree. Another
side female 5 out of 8 said agree, 4 out of 12 said disagree\, 3 out of 4 said strongly agree
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Chart:-3
Here we see that male 9 out of 14 said agree, 1 out of 4 said disagree. 2 out of 1 said strongly
disagree. Another side female 5 out of 14 said agree, 4 out of 5 said disagree, 2 out of 2 said
strongly agree. 1 out of 3 said strongly disagree.
Bar Chart
4
C
n
u
o
t
0
Male Female
Sex
Chart:- 4
Most High Branded
40 consumers were asked to answer,” Which brand do you purchase?” 45% of them answered
Colgate, 23% answered Close up, 15% answered Harbal, 10 % answered Meswake, 5 %
answered Pepsodent and the rest of 2 % answered others. From these responses, it is clear that
Colgate brands have the strongest place in consumers’ mind.
5% 2%
10%
15% 45%
23%
Colgate
Close up Herbal
Meswake Pepsodent Others
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Chart.5
Others 2%
Pepsodent
Meswake
5%
10%
Herbal
15%
Close up 23%
Colgate
45%
Series1
Cultural
Psychologic 16%
al Cultural
36% Social Social
16% Personal
Psychological
Personal
32%
Here, out of 50 respondents 36% says that Psychological, 32% personal, 16%
social and cultural factor is important. So we can easily say that Psychological
factor is the most important factor.
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Chart-7
Culture
36% Culture
Social class
48% Sub-culture
Social class
Sub-culture
16%
Here, out of 50 respondents 48% think that social class is the most influential cultural
factor that influences the consumer greatly.
Chart-8
Groups
20%
Roles & Status
Groups
40%
Family
Roles & Status
Family
40%
Here, out of 50 respondents 40% think that Roles & status and Family are the most
affected social factor that influence the consumer greatly.
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Chart-9
Most influential
Age personal factor
4%
Occupation
8%
Economic
Age
situation
8% Occupation
Economic situation
Personality Life style
60% 20% Life style
Personality
Here, out of 50 respondents 60% think that personality is the most influential personal
factor that influences the consumer greatly.
Chart-10
Here, out of 50 respondents 36% think that social class is the most influential
psychological factor that influences the consumer greatly.
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PART FIVE
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Major Findings:
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PART SIX
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Conclusion:
As per our estimates, 12.2% of the total world population lives in rural India.
Currently, only a small portion (about 15%-20%) of region has been tapped. Although,
expansion in rural areas requires huge investments, it is a market that cannot be overlooked
and has huge potential. To put things in perspective, the per capita consumption of toothpaste
in India is only 82 gms, as compared to 262 gms for Thailand, 376 gms for Mexico and 518
gms for USA (Source: Colgate, Equitymaster Research). In India, urban per capita
consumption is 153 gms whereas rural consumption is a mere 38 gms.
Bangladesh is the host country of Colgate toothpaste so it have to give attention on its
promotional activities. We analyze that marketing mix of Colgate toothpaste it is included our
course.
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PARTSEVEN
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Recommendation:
A few things that can be done to make the retailing more efficient, applied into comes to sales
incentives systems it can be beneficial:
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• For advertisement perform with social work more and more
PARTEIGHT
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Bibliography
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PARTNINE
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Annexure
Raw Tables:
Table-3
Table-4
1 Colgate 18 45%
2 Close up 9 23%
3 Herbal 6 15%
4 Meswake 4 10%
5 Pepsodent 2 5%
6 Others 1 2%
40 100%
Total
Table-5
1 Colgate 18 45%
2 Close up 9 23%
3 Herbal 6 15%
4 Meswake 4 10%
5 Pepsodent 2 5%
6 Others 1 2%
40 100%
Total
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Table-6
Factors f cf
Cultural 8 8
Social 8 16
Personal 16 32
Psychological 18 50
Table-7
Cultural Factors f cf
Culture 18 18
Sub-culture 8 26
Social class 24 50
Table-8
Factors Percentage f cf
Groups 20 10 10
Family 40 20 30
Roles & Status 40 20 50
Table-9
Factors f cf
Age 2 2
Occupation 4 6
Economic situation 4 10
Life style 10 20
Personality 30 50
Table-10
Factors f cf
Motivation 8 8
Perception 18 26
Learning 10 36
Beliefs & attitude 14 50
Questionnaire
[Dear responded,
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We are the student of Bangladesh University of Business and Technology (BUBT).
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14. Do you want any change in Colgate Toothpaste?
a) Yes b) No
15. If yes, then would you expect to change?
a) Pack size b) Pack deigns c) Taste d) Price
16. Are you satisfied about Colgate Toothpaste?
a) Delight b) Satisfied c) Average d) Dissatisfied
17. Which media attracts you most for Colgate Toothpaste?
a) TV b) Magazine c) Radio d) Billboard
18. Do you remember about Colgate Toothpaste?
a) Yes b) No
19. Which one is the most important factor that influences the behavior most?
a) Cultural, b) Social, c) Psychological, d) Personal
20. Which cultural factor affects most to the consumer to buy toothpaste?
a) Culture, b) Sub-culture, c) Social class.
21. Which social factor affects most to the consumer to buy toothpaste?
a) Groups, b) Family, c) Roles & Status
22. Which personal factor affects most to the consumer to buy toothpaste?
a) Age, b) Occupation, c) Economic situation, d) Life style, e) Personality
23. Which psychological factor affects most to the consumer to buy toothpaste?
a) Motivation, b) Perception, c) Learning, d) Beliefs and attitude
24. Do you like Colgate Toothpaste advertisement? If yes/No, then why?
…………………………………………………………………………………………
…… Any suggest
About Respondent:
Name:………………………………………… Sex: a) Male b) Female
Age: a) 14 - 25b) 25- 45 d) Above 45
Education: a) SSC b) HSC c) Graduation d) Post-Graduation
Working status: a) Student. b) House wife c) Business man d) Service holder
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