Documente Academic
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On
COSTOMER SATISFACTION TOWARDS THE COLGATE
Session-2014-2015
Academic guide:
Submitted to:
Assistant professor
MBA (HOD)
AITM VARANASI
AITM VARANASI
Submitted by:
Devi Dayal Vishwakarma
nd
MBA 2DECLARATION
year
I Devi dayal vishwakarma hereby declare that the research report entitled
COSTOMER SATISFACTION TOWARDS THE COLGATE Submitted in partial
fulfillment of the requirement for the Award of the degree of MBA. It is the
original work of mine and not submitted for the award of any degree or
similar title or prize.
PREFACE
The report research is based on customer satisfaction towards Colgate toothpastes.
We carried quite in one of the concern of Colgate thought me. The research report consists of
description of the concept of Advisor recruitment. In this research report we also apply research
methodology, the interpretation & analysis of the questionnaire gives the final result & conclusion.
ACKNOWLEDGEMENT
This research report of mine has imprints of all those who formally or informally helped me to
developed it. My hearties thanks to all of them.
I hereby express my heartiest gratitude to my research report guide, Mr. Mr.Rajendra Tiwari,
assistant prof., for giving me an opportunity to complete my project report under his supportive
guidance. I am very grateful to him for his valuable suggestion and for sharing with me his past
experience related to the project.
I am also very thankful to our Director of Ashoka institute of technology and management
pahariya Varanasi, Prof. P.S. dubey for his generous cooperation and guidance without
which it would not have been possible for me to complete my work.
I also thankfull to all my faculty members, all my friends and the people who are directly or
indirectly related to project and helped me out for completing my work successfully.
CONTENTS
INTRODUCTION ...02
COMPANY PROFILE.05
COMPETITOR................................60
SWOT ANALYSIS...65
COMPARATIVE STUDY....68
OBJECTIVE OF STUDY.77
RESEARH METHODOLOGY..79
QUALITATIVE ANALYSIS.82
SUGGETION..95
CONCLUSION...98
LIMITATION..........................100
QUESTIONNAIRE.102
BIBLIOGRAPHY...10
INTRODUCTION
WILLIAM COLGATE
1783-1857
As early as 3000 B.C. Egyptians used toothpastes fashioned from twigs. In the 20th
century a major design advance occurred in 1938 with the launch of Dr. Wests Miracle
Tuft toothbrush, the first nylon bristle brush. Until the late 1970s toothpastes were
widely viewed by consumer as a commodity and were primarily purchases on price. The
involvement remained low and the companies also treated their toothpastes as an
extension, to get their consumers to use their toothpastes. Typically in the Indian market
the percentage of toothpastes users has slowly inched upwards. As it has always been
associated by the non-users as a non-essential item more so because of their fierce loyalty
to the margosa twigg (Datun) and the index finger. The market of late has been the entry
i . exe
of several foreign players and the marketing game has assumed a totally new dimension.
Companies are trying to shift to PULL strategy of long term returns and the inclination
of consumers to shell out a few rupees extra to ensure a more wholesome care of their
teeth and gum. This has resulted in rapid growth in value terms. Added to this is the
initiative of the companies to focus on expanding the market by bringing the over 65%
non-users in their consumer fold. With such vast potential to be exploited, the entry of
several new players with their innovative ideas and experience in similar developing
markets, the industry is likely to see a lot of action in the immediate future.
In India, it operates under the name as Colgate-Palmolive (India) limited and its
head office is at Mumbai.
Colgate Palmolive is a $10.6 billion global company serving people in more than 200
countries and territories with consumer products that make lives healthier and more
enjoyable.
COMPANY PROFILE
Company name
Date of Establishment
23-09-1937
Revenue
Market Cap
Corporate Address
Management Details
Business Operation
Background
Financials
Company Secretary
Niket Ghate
Headquarter in Mumbai.
Colgate consistently won India no 1 brand of the year award from last three
Years.
Serviced by company field force, more than 1800 stockiest & super stockiest
& their field force.
Colgate is the brand that people trust, for complete oral care protection for themselves
and ones they love.
A household name for paste and tooth powder, Colgate Palmolive (India) was established
on 23rd September 1937 as a private limited company in Bombay, as a wholly owned
subsidiary of Colgate Palmolive Co. Of USA Initially it started with trading activity and
later set up manufacturing operations in 1949 at Sewry (Bombay). The company became
a public limited company on 5th October 1978. In 1990-91 the company commissioned
facilities for fatty acid and toilet soap at Waluj (Aurangabad). The plants at Sewri and
Waluj manufacture oral care products like dental creams, tooth powder tooth brushes and
personal care products like toilet soaps, shampoo, which is marketed under various brand
names such as Colgate, Palmolive, Halo, Protex and Charmis.
The companys
distribution network covers 1700 stockiest and 4, 50,000 retailers with ware house
facilities in Mumbai, Calcutta, Delhi, Hyderabad, Lucknow and Madras (and a new
addition at Faridabad). The company has its own Research and development facilities
and had also been getting the R&D benefits of the parent company. It has a well
established quality Control Department at Sewri & Waluj. For 40 years, since inception
till 1978, Colgate was carrying on its business in India with a paid up capital of Rs. 1.5
lakh made up of 1500 equity shares of Rs. 100 each, when it was increases to Rs. 1.96
crore, by a bonus issue in the ratio of 130:1. To comply with the FERA regulations,
Colgate Palmolive, USA diluted its share holding to 40% in the Indian company, through
an offer of sale to the Indian public in October 1978. Following FERA relaxation, the
foreign shareholding was increased from 40% to 51% in September 1993.
Colgate Palmolive (CP) is a global leader in household and personal care products. In
1991, it had sales of $ 6.06 billion and a gross profit of $ 2.76 billion, its world wide
R&D expenditures were $ 114 million and media advertising expenditure totaled $ 428
million.
Colgate Palmolives five year plan for 1991 to 1995 emphasized new product launches
and entry into new Geographic markets, along with improved efficiencies in
manufacturing and distribution and a continuing focus on core consumer products. In
1921 $ 243 million was spend to upgrade 25 of Colgate Palmolives 91 manufacturing
plants, 275 new products were introduced world-wide; several strategic acquisitions (e.g.
of the Mennen mens toiletries company) were completed and manufacturing began in
China and Eastern Europe. Since 1985, gross margins had climbed from 39% to 45%
while annual volume growth since 1986 had averaged 5% International sales Colgate
Palmolives strong unit, accounted for 64% of sales and 6% of profits in 1991.
COMPANY HISTORY
1806 - William Colgate starts a starch, soap and candle business on Dutch Street
in New York City.
1857 - Upon the death of founder William Colgate, the company is reorganized as
Colgate & Company under the management of Samuel Colgate, his son.
1906 - Colgate & Company celebrates its 100th anniversary. Product line includes
over 800 different products.
1930 - On March 13, Colgate is first listed on the New York Stock Exchange.
1939 - Dr. Mark L. Morris develops a pet food to help save a guide dog named
Buddy from kidney disease. This breakthrough leads to the first Hill's Prescription
Diet product.
1956 - Colgate opens corporate headquarters at 300 Park Avenue in New York
City.
1968 - Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
1972 - Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral
Pharmaceuticals.
1995 - Colgate enters Central Europe and Russia, expanding into fast-growing
markets.
1997 - Colgate Total toothpaste is introduced in the U.S. and quickly becomes the
market leader. Only Colgate Total, with its 12-hour protection, fights a complete
range of oral health problems.
2004 - Colgate acquires the GABA oral care business in Europe, with its strength
in the important European pharmacy channel and its ties with the dental
community.
Today
Today, with sales surpassing $15 billion, Colgate focuses on four core businesses: Oral
Care, Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in over
200 countries and territories worldwide.
CPs perception of the Indian market is of one where people welcome change but
clamour for high end products at cheaply prices. The answer to this conundrum as per the
companys strategy is to
..... Optimize cost and formulation and the processes and come up with efficient
manufacturing to answer this . CPs strategy is to pour in a lot of investment in the
Indian market in terms of capital expenditure and organizational support and each out to
the deepest interiors.
SEGMENTATION
The toothpastes industry can be regarded as a component of the Oral Care industry which
broadly comprises tooth paste, mouth wash and floss, besides toothpastes and a large
unorganized naturally available cleaning mediums viz. Index Finger, Neem twigs etc.
But Colgate Plus need not to bothered about latter as it operates in a different category.
The toothpaste industry can be segmented in the basis of social class & income group
(Demographic Segmentation), price (Product segmentation), benefit (behavioral
segmentation), the last being the most important.
Category
Brands
Characteristic
Economy
Promise, Cibaca
Middle
income
group Standard
Colgate
Classic
Pepsodent popular
Upper
middle
income Premium
urban consumers
Upper
class
Ajay, Royal
urban Super
sophisticate
Premium
Oral
B,
efficiency
Aquafresh, Unique,
Jordan, Close Up
attribute,
dentists
recommendation
The last two categories merge, since Colgate Plus is intelligently positioned in between
the two to maintain a high quality in age as well as encourage switches from standard
category to up grade
PSYCHOGRAPHICS
Variations in
Simpleton looks,
Product
Modest packaging,
Superior Packing
Solid colours
Urban sophisticate
Abhors
Abhors
it as a status symbol
while interacting in
group travels
Semi urban Non
Chalant User
this as it serves is
seldom
purpose without
much expenditure
Rural User
access/cant think of
Datun
this either
Tooth brushes
Promise, Forhans
brands
fresh etc.
etc.
etc.
The overall response reflects a gradual move in the direction of the premium to super
premium segment as it is once in three months/four months purchase, thus being
successful in luring all customers (except the rural user who are a small minority of the
Market) to try out the ones that are places at a higher price on account of their trendy
looks and overall appeal of style and splendor.
BENEFIT SEGMENTATION
User Characteristic
Oral
Consumer
Non-chalant
Product
Brushers
Search functionally superior Search for product Views products as
Differentiater
that
effectively same
delivers
Advertising appeal
by Relatively
Buying behaviour
of
cosmetic interest
benefits
Put off by hard sell Prefers Influenced
informed opinion
Lack
hammering
unaware
a influenced by price
USP
offs, package deals
Buys for himself, will go to a Buys and uses for Buys for family.,
specialised store
Regularity of usage
supermarket
Brushes
mostly At most once a day
once,
Brand loyalty
High
Price (Willing to >20
twice
Low
15-20
pay)
Major Brands
Colgate
sometimes
Nil
<12/0q
Plus, Colgate,
Pepsodent Perfect
Classic,
Cibaca, promise
TARGETING
Colgate plus has been intelligently targeted at the upper middle class, towards the lower
end of Premium / super Premium category to not only take advantage of growing
consumer affordability but also to provide a pull factor to family user in standard/popular
category to upgrade to higher quality Colgate Plus.
An implicit assumption about the large segment is that it is decently educated, hygienic
conscious and keenly discerning about the cleaning efficiency of the toothbrush used.
They primarily live in metros, urban areas, big towns, and have a good standard of living.
At the time of its launch in 1987, Colgate Plus was the first indigenously manufactured
toothbrush in premium segment. Company claims, it built this segment single handily and
obviously has the first mover advantage exemplified by its No.1 position despite the
onslaught of variety of premium brands from abroad.
Colgate believed that with rising income & increasing westernization, it could upgrade
the toothbrush market and consumer could be willing to pay a few rupees more for a
quality product.
RECOMMENDATION / RELIABILITY: Oral - B has its USP as the tooth brush most
dentists world wide use & recommend - One could go for celebrity endorsement in
cosmetic segment but its not at all an effective strategy in a low involvement product like
toothbrush.
Colgate world - wide has a image of brand for committed to public oral care and hence its
association with a dentists and the ring of protection & confidence.
Positioning Colgate Plus as a higher quality product in the Professional segment was
an intelligent move as it prevented cannibalization of its other brands like Colgate
Classic.
BRANDING
Colgate is a brand having a cult following. It world wide reach and association with
dental health has made it a brand associated with a caring attitude, providing quality oral
care to masses at an affordable price.
Colgate is No. 1 brand in Indian Market the three consecutive surveys by A & M
magazine. So, while launching the new toothbrush, it was imperative to keep Colgate
as a part of the name and incorporate something that could justify the increment in price.
As modifications in the form of an entirely new category diamond head was
introduced, it was ideally decided upon a name that promised to deliver something extra,
additive, etc. Plus was thus added on.
MARKETING MIX
PRODUCT
Product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a need or want.
The product can be looked at five levels:
The Core product is the essential service that the buyer is buying. In this case it is Oral
care.
The Generic product is too pastes.
The Expected product is a set of attributes that the buyer expects to get./ in this case
being, efficiency of cleaning, thoroughness in cleaning and care of gums.
Augmented Product is that what is provided by the seller beyond the expected product
attributes i.e. those attributes that seek to distinguish the product from others in its
category. Colgate Plus is put across as a complete dental care product. It uses its diamond
shaped head, soft outer bristles, hard inner bristles and accreditation by the Indian Dental
Association as its USPs.
Potential Product refers to set of possible new features that might eventually be added to
the product being offered. Toothbrush as a product does not offer much scope beyond
changes in design and material/ shape of bristles. Design changes are usually made on
grounds of aesthetics, handling and efficiency in cleaning. Colgate Plus has recently
introduced Colgate plus Zig Zag on the grounds of efficiency in cleaning.
with
use.
PACKAGING:
Packaging provides one with means and scope of differentiating in relatively
homogenous product market. Packs have graduated from cardboard cartons to blister
packs to let the consumer pick the color of his choice. Some like Pepsodent Perfect and
Colgate Plus come in hanger shaped hooks on the blister packs because most small sized
retail outlets lack the shelf space required to dangle peg-racks.
The pricing depends a lot on the packaging and advertising. In a blister pack,. The
product makes up 60% of the cost, packaging the rest. A coffin pack, where the brush can
be kept back after use, inflates the packaging cost. While these hygiene packs do
prevent the toothbrush from accumulating dust, they end up with a double layer of
packing, the outer one indicating mandatory product details.
Feature
Benefit
Reason
Tagline
product/Manuf
acturer
Oral
B Indicator
band The
brand
Indicator
Bristles
most
dentists
(Gillette)
Reach
Angled
toothbrush
use
neck, Cleans
even Slimmed down Feel
the
(Johnson
& raised
Johnsons)
Colgate
rubber hardest
ridges
to tapered head
difference
on reach places
handle
Plus Diamond
(Colgate
Head,
Palmolive)
to
comfort
gums, (narrow
Because
your
smile
was
and front)
Aquafresh
Pressure
efficacy
Prevents gum Flexes as you For
Flex
sensitive
irrigation
(SmithKline
squiggle neck,
Beecham)
dotted
grip
rubber
gentle
PRICING
Generally the most important of all the PS in a developing country like India where
semi-urban and rural population constitutes, a massive portion of the total market, has to
be decided upon after contemplating on all the aspects related to the market and the
product itself.
For a product like toothbrush, the major cost is that of packaging (about 40% of total), the
rest being spread over the bristles, the nickel silver wire holding the tufts in place and on
the body of the brush.
The prices of toothbrushes have taken a quantum leap. The costliest toothbrush in 1986
was Rs. 4/- which is today in the range of Rs. 25/-. Thus we have seem a major jump in
value sales vis--vis volume sales.
Colgate Plus when it was launched in 1987, was introduced as a champion product to
become the hero of the toothbrush market meant to keep your smile forever. It
promised to deliver more than the rest and was priced accordingly and soon became a
major player in the market. At that time it was playing against Jordan and Royal, both
of which were being imported. Gradually as the market expanded, with the several new
players coming in, Colgate Plus continued to be the top most brand of the players till Oral
- B, Aquafresh, Forhans Galaxy came in . So right now Colgate Plus priced at Rs. 18/- is
behind Close Up Confident (Rs. 19.75/-), oral- B (Rs. 20/-) Forhans Galaxy (Rs. 22/-)
and Aquafresh (Rs. 25/-). As such it is at the bottom level of the Super Premium segment
along with Johnsons Reach (Rs. 18/-) Jordan (Rs. 19/-), Forhans Zest (Rs. 18/-) trying to
deliver more value for money.
While the present strategy keeps Colgate Plus (all three-sensitive, adult and zig-zag) at a
penetrative pricing as regards to Oral-B, Aquafresh Flex and Forhans Galaxy, it gets and
advantage of superior oral care image vis--vis the other brands in the same price brand.
The strategy can be said to be working well as Colgate Plus, as of today is the market
leader both in terms of volume and value share.
PLACE
A marketing channel performs the work of moving goods from producers to consumers.
It overcomes the time, place and possession gaps that separate goods from those who
want them.
The decisions regarding distribution channels are a very crucial part of the marketing of
Fast Moving Consumer Goods (FMCGs) more so because of tooth brush being a low
price product with negligible brand loyalty, no Consumer would be willing to walk more
than 2 km to procure a tooth brush and would accept, without much hesitation, any
toothbrush thrust upon him by the shopkeeper. So the markets has to make extra efforts
to ensure easy availability of this low involvement product, which is no easy task in a
country of the size & diversity as that of India.
Channel decisions have important implications for other elements in marketing mix.
Colgate Palmolive had to design a distribution strategy which would best attain following
channel objectives.
Ensuring that the consumer can easily procure the toothbrush (Under no conditions
stock out can be allowed.)
Maintaining mutually beneficial relationship with the retailers since tooth brush is
basically push marketed.
PROMOTION
The discussion of marketing mix elements cannot be complete without analyzing the
promotional strategy of the company. In a low investment category, where there is hardly
any individual who can call himself brand loyal and most of them happy with whatever
toothbrush they can lay their hands on, without caring too much about price, a marketing
effort to ensure an optimum push and pull combination and an impact presence in the
consumers mental frame is a must. However, because of the callous attitude with which
consumers purchase a tooth brush, too much marketing effort in one direction or some
particular defined directions without immediate appraisal does not make sense, more so
because of the low turnover to promotional expenses. It simply does not make sense to
spend 20% extra on promotion to gain 0.2% extra market share. In view of the above
Colgate Plus has been very selective about its campaign and has moved between
mediums very slowly.
Advertising Campaign
Colgate Plus launched in the U.S. in 1985, was introduced in India in 1987 and was
among the very few players in the premium segment.
capitalized upon with the diamond shaped head being shown as the hero in oral care and
all set to take on the toothbrush market. As competition intensified it shifted its focus on
softness and comfortable feeling with efficiency in cleaning plaque. The advertisements
were screened on Doordarshan and in leading magazines. They were targeted to the
family as a whole, very much like the strategy for other Colgate products. The focus
gradually shifted to soft outer bristles and hard inner bristled to ensure a caring approach
to gums and meticulous cleaning. The tagline used was . . . Because your smile was
meant to last a lifetime.
There was parallel thrust on Dentist Accreditation which successfully translated into
Colgate Plus beginning to appear on dentist prescriptions. However in the face of intense
competition, no large scale endorsement by event or personality was sought for and
Colgate Palmolive continued to target the family as it kept on doing with its toothpaste.
Sales Promotion
1. POP : The company provided danglers, small posters and hooked/dispenser packing
to its retailers. These were particularly splashed across retail outlets during the
discount periods with Red & Yellow colour combinations to ensure high rate of
impulse purchases. However, besides the discount offers, no other POP display means
made much of an impact in terms of increase in sales.
2. Health Mela : Colgate Palmolive organizes a Young India Dental Health melas in
select cities where free check ups and free sample distributions of toothpaste and
toothbrushes are done. This aims at achieving a three pronged strategy of
3. Keeps India smiling - Ad campaign : In a break from its earlier attitude of only
ascribing to its oral care image. Colgate joined the list of companies basing their
campaigns on the 50 years of independence. They launched a Vande Mataram
series of campaigns with people from all walk of life coming and sharing their
experiences on how the times have changed for the better following it up with Vande
Mataram. The small snippet was followed up with Colgate being flashed in the form
of a smiling face, emphasizing both its attachment with the growth and development
of the Nation and its contribution in keeping India smiling for the last 50 years thus
striking both an intellectual and emotional chord. The snippets were strategically
screened in key media slots.
4. Sponsorships : Though Colgate oral care products have not been witnessed to
promote any large scale events, Colgate has often associated itself with TV serials
based on social and family themes e.g., Humlog and Buniyaad - thus re-emphasizing
their positioning as a family products.
Though not all of the above specifically emphasized the promotion of Colgate Plus
toothbrushes, they are conclusive image building exercises for the company as a whole
and aimed at highlighting its supremacy and commitment to the oral care sector. As
such it automatically translated into an image building exercise for the toothbrush
category as well.
Colgate Plus was distributed free with the September: issue of the filmfare magazines.
The major player and their market shares in the 90,000 tons
Toothpaste market is given below.
Players
Market Share
Colgate Palmolive
50.90%
HLL
32.90%
Balsara Hygiene
6.50%
Others
9.70%
Source:CPIL
The following shows the percentage of population who use toothpaste, toothpowder and other conventional
methods for oral care.
Mode
Usage(%) of total Population
Toothpaste
47%
Toothpowder
23%
Conventional Methods
30%
Source: A & M
Toothpaste has been primarily perceived as an urban product. Also, it is titled heavily in
favor of large metros this could be due to higher education, purchasing power and
urbanization.
ALL INDIA
47.0%
URBAN
73.0%
RURAL
35.0%
Consumers in the lower end of the market in rural/semi urban areas use toothpowder and
natural products such as neem, tobacco, and black powder for cleaning their teeth. These
products are largely manufactured by unorganized sector. Form a recent survey it has
been found that the upper class consumers in urban areas are looking for specialized
product with cosmetic promises like fresh breath, white teeth and functional benefits of
controlling plaque, preventing cavity etc. Among toothpaste users about 15% of
consumers brush twice a day.
The growth in the Toothpaste market demand can be attributed to a number of factors.
Perhaps the two most important are rising penetration higher intensity of use. Penetration
is driven by purchasing power, reach of media, availability and also price. Growth in
rural areas is driven by conversion of non users. Various initiatives such as distribution of
free samples, low unit price packs in small sizes and conducting oral care education in the
rural areas are being undertaken by leading players.
Paralleling these trends had been dramatic increase in Advertising expenditure and new
value proposition introduced by the players in the market. The cumulative of above
initiatives had been to increase the consumer awareness in rural areas and conversion of
non-users to branded product.
Segmentation
The Toothpaste market in India can also be segmented on the basis of benefits sought
from the product. They are broadly classified into four segments. for sales contribution
from each segment see table.
Protection
The value proposition offered to this segment is protection of teeth & gums from germs,
preventing cavity and controlling plaque. This segment largely comprises of family. The
brands, which are sold under this proposition, are Colgate dental cream, Pepsodent, Aqua
fresh, Forhans,(recently this brand was sold for a sum of around Rs.3.6 Crore to and
undisclosed buyers )
Social Interaction
The sale is on proposition of fresh breath and White teeth. This segment is dominated by
gel toothpaste. Particularly teens and young adults seek these benefits. Gels which are
marketed on parameters of freshness and energy are estimated to have market share of 20
- 35% of the total market. The brand which are very prominent in this segment are Close
up gel, Colgate gel and Anchor gel etc.
Economic
The toothpaste sale is on "Value for Money" proposition for families with low to medium
level of income .The price have significant importance in this segment. Promise, Babool
etc are the toothpastes sold in this segment. Brands like Anchor, Aqua-Fresh, Ajanta and
Babool are capturing volumes on the value for money platform, with equal spending
promotions and better trade margins than the biggies.
Therapeutic
This is a niche segment. The toothpaste is positioned to offer medicinal benefits. They
offer protection from aliments like bleeding of gums, prevention of tooth decay etc. The
brands like Mentadent, Pepsodent-G etc.
65%
Social Interaction
35%
Therapeutics
5%
Source: Indiainfoline.com
Product
Toothpaste is formulated to provide varied value propositions like protection from bad
breath, cavity, and plaque etc. Toothpaste is marketed as squeeze tubes manufactured
using HDPE, LLDPE and PP polymers. Over the years, the technological advancement
has changed the role of packaging in Toothpaste industry from a carrier
and protector to that of a marketing tool, performing a vital role in brand communication
and on shelf differentiation.
All the players in the market offer toothpaste in various sizes designed for varied purpose
like traveling, family, use etc.
The performance characteristics of toothpaste include white teeth .fresh breath, plaque
control, cavity prevention. For the brands switchers, the size and prices of toothpaste
were important attributes. In a recent study it has been found that 80% of the families
share the same toothpaste for all the members of the family. The packaging size and
prices vary for different brands. widely. Annexure a gives the SKUs and prices
Demand
With a population of 1.02 billion and population growth rate of 1-2%, India provides a
huge potential market for toothpaste. Estimate for the rate of future growth of toothpaste
vary but all observers agree that growth penetration, and the intensity of usage.
The toothpaste market has recorded an 8% CAGR in the last five Years. Demand for
toothpaste in urban area has been growing at 2-3% p.a. whereas in rural areas it is about
12-14%. Amongst various segments, protection & economy segment is growing at 5-6%
p.a.
Whereas the social interaction segment is growing at a fast pace of 10-12%p.a.
Competition
Profiles of some leading competitors in the toothpaste industry are given below.
market share was considerably hit in the early 90s and so to salvage its position Colgate
took over ciba Geigys, Cibaca brand (4%share) oral care business .but Colgates market
share continued to fall and currently stands at around 50.6% from a high of 65% in 1995.
In its successful drive the new Social interaction segment and this segment recorded
strong growth with Closeup maintaining leadership and Colgate gel at no 2 position.
Colgate managed to gain a 2% market share in FY00 after considerable advertising but its
bottom line got hilt in the process and it reverted back to its lower ad spend regime. But
still Colgate continues to be the numero-uno in this sector and its brand Colgate was
adjusted as Indias #1 brand across all categories in seven out of the last eight years by
A&M Magazines annual survey of Indias top brands.
CPILs focus in urban markets is primarily on conversion of non-users, encouragement of
the habit of brushing twice a day and meeting the evolving needs of consumers by
providing a variety of differently formulated toothpaste offering unique benefits. Its
traditional strategy of targeting non users in rural India and converting them into
consumers of toothpaste has been one of Colgates strong points. The company has novel
ways to enhance awareness of oral hygiene in the interior areas of the country. The
campaign will include wall paintings, rural van operations, puppet shows. Colgate spends
Rs. 4 crore every year to preach the value of using branded oral care products to villagers,
using 72 vans, covering 7800 villages per anum.
Using a 30 minute film as its communication vehicle, the company distributes for free an
average of 7 million toothbrushes every year to initiate toothpaste usages.
In toothpowder, the company maintained a rural thurst to bring non-users into the
consumption bracket and Colgate has also launches toothpaste and toothpowder in
sachets with a free toothbrush thrown into offer an entry pricing point for the low
spending customer.
This thrust has brought Colgate dental cream a distribution reach of 46 percent in rural
markets versus close ups 20 percent and pepsodents 12 percent. Trouble is, it is losing a
larger proportion of consumers at the upper end than it is adding at the entry-level. Thus,
Colgates rural market share has fallen from 70.30 % in 95 to 68.50% in 99.Colgate
launched fresh stripe gel nationally in May 1998 with its alternating red and white stripes
with red gel containing actirinse fort fresh breathe and white stripes containing actiwhilte
to lend sparkle to teeth. Colgate Palmolive India then decided to withdraw four sub
brands of its toothpaste, Colgate double protection calciguard. Fresh mint and fresh
stripes due to poor market share and introduce new variants. The company had invested
Rs 20-25 crore in these four brands Colgate dental cream and Colgate herbal.
PRODUCTS OF COLGATE
Based on their positioning the products can be classified into the following segments.
Toothpowder segments
Economy segments
Natural segments
Colgate herbal
Colgate gel
Colgate total
Colgate sensation
whitening
respective categories, and a1 m n strong direct retail reach. The leading business
magazine, Forbes Global has placed Hindustan
lever limited at the top among the best consumer household products companies world
wide for the current year.
The oral care segment contribution about 4%to its revenues buts its bottom line has been
hit due to the heavy adverting costs and sales promotions.
In 1987, Hindustan lever was a minor player who had launched with 5%market share
represents mainly by close up.
HLLs other brand signal had a negligible share and was later withdrawn with a
65%share. HLL has been a small player in the oral care sector untill1987when it
repositioned close up as a gel and mouthwash targeted at the youth. After 87 HLL has
been consistently gaining market and in oral care segment, HLL has emerged as a strong
no 2 player with 32.9 % market share.
HLL has about 100 manufacturing facilities all over India and also has manufacturing
arrangement with third parties. HLL has strong presence in all the segments with
Pepsodent G being prominent in therapeutic segment .some other strong brands are close
up super fresh close up oxy fresh, Pepsodent etc.
PRODUCTS OF HLL
In 1993, HLL launched Pepsodent in direct competition to Colgates flagship product
Colgate dental cream. But Pepsodent could achieve only 4-5% market share. In 1995
pepsodents proposition was changed to Germicheck protection (an extended protection
from germs), which received tremendous success. In August 97, HLL added an anti-
bacterial agent triclosan to its Pepsodent brand. In re-launched the new Pepsodent on the
Germicheck platform with claims of 102% superiority to any other ordinary toothpaste,
based on the 0.2% content of triclosan in its toothpaste brand. Triclosan is a proven antibacterial agent, which was also used by Colgate in its costller Colgate total brand. The
aggressive marketing of new Pepsodent against Colgate dental cream led to a marketing
war between the two. Colgate questioned the claim of pepsodents superiority and the
matter was referred to MRTP commission to determine the validity of HLLs claim.
Colgates CDC witnessed a rapid decline in market share (by over 5-6% points) during
this period Pepsodent on the other hand has gained strength and currently has a market
share of 15%.
Launched in 1993, Pepsodent is positioned on oral health platform of check germs even
hours after brushing. It was the first toothpaste with a unique antibacterial agent to be
launched to address the consumer need of checking germs even hours after brushing.
Pepsodent 2in1 is a unique combination of paste and gel in one toothpaste .it provide long
lasting protection from germs as well as long lasting fresh breath through is cool mint.
Technology.
In April2002,Pepsodent G was relaunched as Pepsodent G gum care toothpaste .with
attractive golden stripes, this gum protecting variant is now available in contemporary
new packaging, clearly outlining the benefits it offers..Pepsodent G gum care is an
internationally renowned specialist brand in the HLL oral care portfolio known for its
enhanced protection against gum problems. It is targeted at all health conscious adults
who either suffer from or seek reliable protection against gum problems and bleeding.
Pepsodent in India is also available as a toothpowder with proven antibacterial agents. It
gives protection against germs and is excellent cleaning due to effective abrasive system
for strong teeth and healthy gums.
Pepsodent has conducted various programmers across the country to promote oral care
and hygiene amongst its customers and the community. Pepsodent Jadui Chikitsa is one
such initiative to increase awareness of oral hygiene in rural areas. A poster on brushing
technique, which was translated into local languages, was printed on tin plate as a lasting
impression of Pepsodent Jadui Chikitsa for the rural areas. A poster on proper brushing
technique, which was translated into languages, was printed on tin plate as a lasting
impression of Pepsodent jadui chikitsa for the rural areas.
Close-up, the youth brand, was the first gel toothpaste to be launched in India in1975 and
has remained the category leader ever since. The brand arose out of a universal need for
confidence in asocial situation, starting with fresh breath.
Close-up was relaunched in1988 with the proposition of gel and mouthwash. The new
look close-up was positioned as the toothpaste ,enhancing social interaction ,offering
value propositions like good breath ,white teeth etc and was backed by an extremely
successful advertising campaign. Close up market share rose consistently thereafter from
5% (1987) to 22%.
In 2002 close up was relaunched in two variant- close up tingly red and close up
eucalyptus waves. This toothpaste with their superior formulation provides superior
cleaning, enhanced flavor and a freshness that extends from nose to throat. The
communication for close up focuses on the base line, Jee Ke Dekho Yaar, which
encourages young people to go out and get a life.
The new flavours are in line with HLLs endeavour to continuously innovate and offer
new advance products to the consumers these flavours have been special designed to win
over competition consumers.
Recently close-up whitening, the tooth-whitening variant, was introduced with a unique
self check device called shade-card. This helps consumers identify how yellow
their teeth really are also to track the improvement in teeth colour as use the paste. The
toothpaste helps teeth get whiter in 4 weeks of regular use. This tooth-whitening segment
is having total market share of 6%of the total toothpaste market.
Dabur India ltd is the fourth largest FMCG Company in India with interests in healthcare,
personal care and food products. building on a legacy of quality and experience for over
100years, today Dabur has a turnover of Rs.1232 crore with powerful brands like Dabur
Amla,Vatika ,Hajmola &Real.
Dabur is an important player in oral care segment with revenue of Rs.1000.3 crore and
net income of 77.6 crore .the oral care contribution about 12% to the revenue of Dabur in
99. in 1970 ,Dabur expanded its personal care portfolio by adding oral care products.
Dabur Lal Dant manjan was relaunched and its captured the Indian rural market. Sales in
1999 recovered a sharp 19%yoy decline in volumes, which are marketed aggressively by
MNC players.dabur had bought the Bianca brand in1997.Dabur boasts of a transnational
distribution network serving 1.3 million retail outlets and product availability in 50
countries around the globe. The quality of Dabur products has been its greatest strength
throughout and to support this Dabur research foundation (DRF), an independent
company is setup to spearhead Daburs multi-faceted research
PRODUCTS OF DABUR
Dabur Red Toothpaste
Dabur red toothpaste is positioned as toothpaste, which has lavang (clove) that helps
prevent toothache, pudina, which helps prevent bad breath, and tomar, which kills
harmful germs. It is therefore the first ever toothpaste which keeps all your dental
problems away, thereby providing you strong teeth.
Balsara Hygiene Products limited founded in 1925, operated as a family owned and
controlled private enterprise till 1980. The business was transferred to Balsara Hygiene
Products Ltd. in July 80. The company has a domestic annual sales turnover of Rs 1.31
bn and income of Rs 8mn. It also has a rapidly growing international sales turnover of Rs
350 mn. The Balsara group is professionally managed, with manufacturing, sales,
distribution and administrative operations located throughout India and internationally.
The company has a national sales and distribution network of 600,000 retail outlets.
Balsara derives 60% of the sales from its oral care products. In the international market,
Balsara supplies a wide range of personal and household care products to 40 countries
around the world. The companys flagship brand, Promise toothpaste, is marketed in 29
countries.
The Balsara group has a toothpaste manufacturing capacity of 38,000 tons pa, the largest
in India. It is one of the lowest cost producers of toothpaste and manufactures a wide
range of toothpaste
formulations such as natural, herbal. Fluoride, baking soda, tartar control, and gel and for
sensitive teeth. High volumes and low input costs due to in house availability of product
ingredients and package materials from companies with in Balsara group, allow Balsara
to provide quality product at extremely competitive rates. Balsara groups have presence
in economy and protection segment. The prominent brands are Babool, promise etc. By
introducing promise , Balsara hygiene quickly garnered 12% market share. Promise and
Babool together had a market share of about 15% till 1987.
PRODUCTS OF BALSARA HYGIENE:
Promise toothpaste
Promise toothpaste is unique toothpaste containing natural and time-tested clove oil. The
scientifically proven antiseptic and bactericidal properties of clove oil help keep teeth
strong and gums healthy. Promise toothpaste was awarded le monde world selection gold
medals in London and Amsterdam for superiority in product quality.
Recently. Promise became the worlds first and only toothpaste to receive international
accreditation from the British dental health foundation (BDHF).
Promise Gel
Promise gel comes packed with all the natural and time tested goodness of clone,
traditionally known for its beneficial oral care properties and trusted by dentists the
world over. The products natural antiseptic and germ killing properties protect teeth and
gums from harmful bacteria promise gels sweet and spicy flavours provides wake-up
freshness right through the day.
Promise just for kids
Promise just for kids is sparkling gel toothpaste for children available in two exciting
flavours- Tooty-Fruity and fruit & mint. This toothpaste is specially formulated to
protect tender tooth enamel, making it suitable for use by children. Promise just for kids
toothpaste has been awarded accreditation by the British dental health foundation
(BDHF).
Meswak toothpaste is scientifically formulated from pure extract of the Meswak plant,
salvadore persica- the famous; toothbrush tree used for centuries. The astringent and
bactericidal properties of Meswak help reduce tooth decay fight plaque and prevent gum
disease.
Babool
Babool toothpaste is natural toothpaste containing the ayurvedic and medicinal benefits
of the Babool tree, Acacia Arabica the Babool herbal extract in super Babool toothpaste
helps prevent swelling & bleeding of gums ,keeping healthy and teeth strong.
OTHER PLAYERS
Shri Niranjan Ayurved Bhavan Limited a rural tooth powder marketing outfit based at
Tumsar, Maharashtra, launched herbal toothpaste Niranjan .The paste claims to be
wholly vegetarian. Price at Rs 32 for 200gms, Rs 19 for 100gms and Rs 11 for 50gms.
This product is segmented to strict vegetarian in the country (an estimated 1/5 of the total
population). Aimed garnering 15% of this population, company will be having 30 million
people as primary target audience.
Company used calcium rich pipal as a substitute for bone ash, which gives the paste its
consistency and uses its abrasive power to clean teeth.
Delhi based ralson visionary formulation, which has a moderate presence in homeo based
products-the most famous being arnica shampoo has launched dental clean toothpaste
with 100 gm for Rs.22 and 50 gm for Rs 12. It was the only lemon flavored toothpaste in
homeopathic market. Earlier cibaca launched lemon flavored toothpaste but failed in the
market place. Dental cleaner contains antiseptic homeopathic formulations which treat
dental ailments such as bleeding gums, bad breath and toothaches. The other players in
this segment are lordent from lord homeopharmacy and homeo dent from sharda bioron.
Up till now, the best way to build a mainstream brand is to advertise on television, where
mainstream consumers account for roughly half audience. But companies that want to
avoid the high cost of national advertising can find other ways to insert their brands into
consumers physical world. As a gardening supplier, this company must appeal to highincome pessimists. Yet every article includes a shopping list, an 800 number (free calling
system available in USA) and the web site address where consumers can buy the plants
and tools they see. Start-ups may not like the prospect of investing in non-Internet
marketing channels, but this is what it will take to win mainstream consumers.
The Internet makes consumer industries far more competitive and dynamic than
they were in the past. In this harsh environment, the companies that intend to thrive in
the long run must build a defendable strategic position. In other word, the companies
need to build an advantage that other companies do not have in the marketplace. Cutting
prices by 50 per cent and running Super Bowl advertisements create huge short-term
growth, but it does nothing to secure the future of the company. Having a hot IPO or a
high stock price may help, but it wont suffice. The companies that ultimately will win
the battle for Internet consumers see now that profitable growth can not go on forever and
simply being a dotcom does not constitute a strategic advantage.
As the Internet matures, companies must learn to compete in world of Dynamic Trade,
where the apparent supply to consumers rises and companies must heed the signals of
current demand, what companies want now?
industries more efficient and on the whole less profitable than they were in the past.
They must build a unique value. One way to do this is to build a brand based on
consumer experiences. A projected image, even one that has millions of dollars in
marketing budget behind it, will not stand up unless the every day experience of the
consumers on the internet reinforce the brand. Companies that ignore this truth will find
that they are not just wasting half
OBJECTIVE OF RESEARCH
General idea of the toothpaste industry - its competitiveness, volume and potential
was to be adjudged.
To go on to analysis of the attitudes of a typical consumer and his/her idea/perception
of this low involvement category product.
This was to be followed up with the study of Colgate toothpaste, as a typical product
of the company, Colgate Palmolive and its standing in the other market players,
especially new entrants.
fact that it is carried over mostly by mass media shows that it is likely to reach many
people at some time or the other. As a matter of fact, the success of the companys
product development as well as other marketing activities is closely tied up with the
success of its advertising programs.
DATA ANALYSIS
Profile of respondent:
The general profile of respondents in terms of age, sex, marital status, education and
income are given as follows:
Age & Sex of the respondents:
There are 53% male and 47% female, among which the research has been
conducted. Out of these respondents 20% respondents belong to the rural areas, 30%
respondents are age group of above 30 years, 40% belong to the age group of 26 30
years, 20% respondents belong to the age group of 21-25 years and 10% belongs to the
age group of 16 20 years.
There is a great impact of electronic media over the age and sex and slightly differ
in number, it is because of exposure to the media.
Male
Female
No. of respondents
16-20
10
21-25
13
20
26-30
18
22
40
Above 30
16
14
30
Total
53
47
100
Table 2
Marital status
No. of respondents
Married
65
Unmarried
35
Total
100
Table 3
Education Level
No. of respondents
Intermediate
12
Graduate
47
Post Graduate
41
Total
100
Table 4
Profession
No. of respondents
Background
Govt.services
42
Business
12
House wife
27
Student
19
Total
100
Table 5
Income Level
No. of respondents
9001 &above
55
6001 to 9000
28
3001 to 6000
12
below 3000
Total
100
consume Anchor, and 5% respondents consume other brands like Babool, Neem etc. This
is the mix-up response from both rural and urban areas.
This indicates that the premium brands having high exposure through various electronic
media are used very frequently.
Table 6
Toothpaste
brands
No. of respondents
Pepsodent
30
Close-Up
15
Colgate
32
Cibaca
04
Anchor
03
Miswak
05
Other
11
Total
100
Table 7
Time Duration
No. Of respondents
24
76
Total
100
Table 8
Present Brand
No. of respondents
Colgate
48
Pepsodent
28
Close-up
14
Others
10
Total
100
Table 9
Earlier Brand
No. Of respondents
Taste
32
Price
06
Advertisement
30
Promotional Schemes
07
Others
25
Total
100
No. of respondents
Herbal ingredients
20
56
Reputed brand
17
Other
07
Total
100
Table 11
No. of respondents
Shopkeeper
05
Television
79
Newspaper
12
Relatives
04
Total
100
Table 12
Effectiveness of advertisement
No. of respondents
Yes
62
No
38
Total
100
Table 13
Effectiveness of advertisement
No. of respondents
Televisions
79
Internet
News papers
Radio
15
Cinema
Total
100
Table 14
Responses
of
the
respondents
regarding
effectiveness
Effectiveness of advertisement
No. of respondents
Very Much
76
of
Average
24
Total
100
Table 15
Responses
No. of respondents
Yes
69
No
31
Total
100
Factors Appealed:
Those who have impact on brand preference because of advertisement are
appealed to toothpaste brands like punch-line, simplicity, advertisement appeal, and
herbal ingredients. These appealed are known to consumer through electronic media.
Star appeal is an important segment of this appeal This again reflects the importance and
effectiveness of electronic media.
Advertisement Recall:
In response to the question regarding the recall of advertisement electronic media,
the respondents gave their responses. In some cases, respondents faced difficulty in
recalling the media as it was long time that they had been using the present brand of
toothpaste. Out of total respondents 76% respondents can recall the advertisement of
toothpaste brand but 24% respondents cant recall any advertisement of any toothpaste
brand.
This result indicate that the advertisement which are exposed frequently before
the consumer and are interesting they could easily recall, however less exposed
advertisement cant easily recalled. Maximum recalling of the advertisement is in the
urban areas as
compare to rural areas. Important point is that the advertisement of star appeal are easily
recalled because of this, the interesting advertisement are easily recalled.
Table 16
Responses
No. of respondents
Yes
76
No
24
Total
100
The
advertisements which are passed before the consumer, the respondents are using those
brands.
Out of 76% respondents, 36% respondents are consuming the Colgate brand of
toothpaste, 29% respondents are consuming Pepsodent brand of toothpaste while 11%
respondents are consuming other brand of toothpaste
Table 17
Toothpaste Brand
No. of respondents
Colgate
36
Pepsodent
29
Close-up
11
Total
76
Table 18
Responses
No. of respondents
Television
90
Radio
06
Cinema
04
Total
100
Table 19
Habits
No. of respondents
44
LIMITATION
OF
THE STUDY
The present study was confined to Varanasi city and its adjoining areas. The findings
of this study may not applicable to other areas.
2.
The limitations and biasness of sampling techniques used in this study may influence
the findings of this study.
3.
Due to limitation of time and resources, all the possible factors influencing media
effectiveness could not be considered.
4.
The study of electronic media effectiveness may not hold well over a period of time
due to various improvements in the present electronic media.
CONCLUSION
CONCLUSION
The main purpose of this study was to identify the first source of information of
toothpaste brand, to know the media awareness and media behavior of the people, to study the
media habit of the people to measure the effectiveness of various electronic Media. We can
summarize and concluded the study by the following manner.
The brands which are much exposed before the people through various electronic media
are used at large. Some brands like Pepsodent and Colgate are frequently exposed with good
illustration, are very much used. This clearly shows the effectiveness of electronic media.
Whatever information the consumer gets from advertisement which appears on various
electronic media, he takes the decision on the basis of those informations.
So, whatever
informations will be exposed on the electronic media, they will definitely helpful in changing
the attitudes of the consumer at large extent.
Urban respondents were more exposed to advertisement and had favorable response
towards advertisement appearing through various electronic media than the rural respondent.
Television and newspaper were important source of information in the urban areas.
Shopkeepers and relatives are other first source of information, so they are also considered as
integral part of the media. Now a days television is much popular in rural areas as well as urban
areas, thats why maximum companies are taking help from television in exposure of their
brands. Radio and cinema were also first source of information for a very few people.
After collecting information 88% respondents came across the advertisement about that
brand. Out of 88% respondents maximum number of the respondents was exposed with the
television followed by the radio and cinema. So, television is the best media exposure and was
very effective to the consumer point of view.
Consumer responded that advertisement which appears on television were very much
effective and such type of respondents are 62% and rest 38% respondent in average affectivity.
And this affectivity leads to a consumer for impact on brand preference, because of this reason
the brand is preferred. Punch-line, simplicity and contents make the advertisement effective.
When the advertisement is exposed on electronic media, these factors are highly considered to
create effectiveness.
BIBLIOGRAPHY
BIBLIOGRAPHY
Books:
Research Methodology
C. R. Kothari
Advertising
D. R. Singh,
R. M. Upadhaya,
R. K. Tandon,
Journal
ANNEXURE
(A) QUESTIONNAIRE
Name
:..
Sex
Male / Female
Address
:
..
Marital Status
Age Group
:
:
Married / Unmarried
16 20 yrs.
21 25 yrs.
26 30 yrs.
Above 30 yrs.
Education Level :
Primary
Matriculation
Intermediate
Graduate
Post Graduate
Other (Specify)
Profession
Student
Govt. Service
Business
House Wife
Income Group
Below 3000
3001 6000
6001 9000
9001 & Above
(I)
(II)
(III)
Pepsodent
Close Up
Colgate
Anchor
Neem
Miswak
Babool
Cibaca
Others
(IV)
Taste
Price
(V)
(VI)
(VII/A)
Advertisement
Promotional Schemes
Other (Specify)
Other(Specify)
Friend
Shopkeepers
Television
Newspaper
Relatives
Other(Specify)
(B)
Yes
No
Television
Internet
Radio
Cinema
(VIII)
Very Much
Average
Below
Average
(B)
Yes
No
(X/A)
Can you recall any advertisement about any another toothpaste brand of electronic
media?
(B)
Yes
No
(c)
Television
Internet
Radio
Cinema
(XI)
(XII/A)
Go to cinema regularly
Can you recall any advertisement about any toothpaste brand, which you find
more interesting?
(B)
Yes
No
(C)
Television
Internet
Radio
Cinema
Pepsodent
Close Up
Colgate
Anchor
Neem
Miswak
Babool
Cibaca
Others