You are on page 1of 101

CONTENTS

CHAPTER No.
1.

TITLE
INTRODUCTION

PAGE. NO
1-25

2.

REVIEW OF LITERATURE

26-42

3.

RESEARCH METHODOLOGY

43-46

4.

DATA ANALYSIS & INTERPRETATION

47-78

5.

FINDINGS, SUGGESTIONS& CONCLUSION

79-82

BIBLIOGRAPHY

ANNEXURE

1

LIST OF TABLES PERCENTAGE ANALYSIS TABLE NO. TITLE ESTIMATING GENDER STATEMENT OF 4.1. RESPONDENTS ESTIMATING AGE GROUP OF THE 4.2 RESPONDENT ESTIMATING MARITAL STATUS OF THE 4.3 RESPONDENTS ESTIMATING EDUCATIONAL 4.4 BACKGROUND OF THE RESPONDENTS ESTIMATING MONTHLY STATEMENT OF 4.5 THE RESPONDENTS ESTIMATING THE MONEY SPENT TO THE 4.6 PRODUCT BY THE RESPONDENTS ESTIMATING THE PREVIOUS USAGES 4.7 MADE BY THE RESPONDENTS ESTIMATING HOW LONG THE 4.8 RESPONDENT IS USING THE PRODUCT ESTIMATING THE BRAND OF COLGATE 4.9 TOOTHPASTE USED BY THE RESPONDENTS PAGE NO.

47

49

51

53

55

57

59

61

63

2

ESTIMATING THE IMPORTANCE OF 4.10 PURCHASE OF THIS PRODUCT BY THE RESPONDENTS ESTIMATING OF THE PURCHASING 4.11 INFLUENCES OF THE COLGATE TOOTHPASTE BY THE RESPONDENT ESTIMATING THE SUITABLE PRODUCT 4.12 PROMOTING FOR PROMOTIONAL ACTIVITIES ESTIMATING THE OFFERS MADE BY 4.13 ANOTHER BRAND OF TOOTHPASTE PURCHASED BY THE RESPONDENTS ESTIMATING THE IMPACT CREATED BY THE 4.14 SALES PROMOTINAL PRODUCTS BY THE RESPONDENTS ESTIMATING THE LEVEL OF SATISFACTION OF BY THE RESPONDENTS ESTIMATING THE SALES PROMOTIONAL 4.16 ACTIVITIES WHICH MAKES THE RESPONDENTS TO BUY THE PARTICULAR PRODUCT 77 73 71 69 67

65

4.15

75

3

LIST OF CHARTS PERCENTAGE ANALYSIS
TABLE NO. TITLE ESTIMATING GENDER STATEMENT OF 4.1. RESPONDENTS ESTIMATING AGE GROUP OF THE 4.2 RESPONDENT ESTIMATING MARITAL STATUS OF THE 4.3 RESPONDENTS ESTIMATING EDUCATIONAL 4.4 BACKGROUND OF THE RESPONDENTS ESTIMATING MONTHLY STATEMENT OF 4.5 THE RESPONDENTS ESTIMATING THE MONEY SPENT TO THE 4.6 PRODUCT BY THE RESPONDENTS ESTIMATING THE PREVIOUS USAGES 4.7 MADE BY THE RESPONDENTS PAGE NO.

47

49

51

53

55

57

59

4

ESTIMATING HOW LONG THE 4.8 RESPONDENT IS USING THE PRODUCT ESTIMATING THE BRAND OF COLGATE 4.9 TOOTHPASTE USED BY THE RESPONDENTS

61

63

ESTIMATING THE IMPORTANCE OF 4.10 PURCHASE OF THIS PRODUCT BY THE RESPONDENTS ESTIMATING OF THE PURCHASING 4.11 INFLUENCES OF THE COLGATE TOOTHPASTE BY THE RESPONDENT ESTIMATING THE SUITABLE PRODUCT 4.12 PROMOTING FOR PROMOTIONAL ACTIVITIES ESTIMATING THE OFFERS MADE BY 4.13 ANOTHER BRAND OF TOOTHPASTE PURCHASED BY THE RESPONDENTS ESTIMATING THE IMPACT CREATED BY THE 4.14 SALES PROMOTINAL PRODUCTS BY THE RESPONDENTS 74 72 69 68

66

5

4.15

ESTIMATING THE LEVEL OF SATISFACTION OF BY THE RESPONDENTS ESTIMATING THE SALES PROMOTIONAL

75

4.16

ACTIVITIES WHICH MAKES THE RESPONDENTS TO BUY THE PARTICULAR PRODUCT

78

CHAPTER I INTRODUCTION
6

MARKETING OVERVIEW Marketing starts with finding out what prospective customers think and what they need. These needs are then fulfilled by the products and services that you sell. The pricing, promotion and distribution of these products and services determine who will be willing and able to buy them. Because marketing is the process of communicating the value of a product or service. Marketing might sometimes be said as the art of selling products, but selling is only a small fraction of marketing. As the term "Marketing" may replace "Advertising" it is the strategy and function of promoting a product. The American Marketing Association defines marketing as "the activity, set of institutions, and processes for creating, communicating,

7

delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. INTRODUCTION TO MARKETING: Every organization works to achieve certain objectives are to be achieved. To achieve the pre-decided objectives a number of activities are to be performed. The activities may include production, marketing, human resource, finance, transportation, service, research, logistics, purchasing, and storage, trading, assembling, distribution and others. These activities are performed and these are related to each other so that the objectives can be fulfilled effectively. Similarly way the marketing activities are performed in some of the company those are interested in marketing the products or services for use of customers. Marketing is one of the important activities of an organization. It is through marketing the products or services of the company are reaching to the customers. WHAT IS MARKETING: The management process through which goods and services move from concept to the customer. DEFINITION OF MARKETING: According to The Chartered Institute of Marketing “Marketing is the management processes that identifying, anticipation and satisfying customer requirements profitably.”1 According to Philip Kotler “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”2
8

MEANING OF CONSUMER: A consumer is a person or group of people who are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household. The concept of a consumer may vary significantly by context. An individual who buys products or services for personal use and not for manufacture or resale.

WHO IS A CONSUMER: Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market.

WHAT IS CONSUMER INTEREST? Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket. UNDERSTANDING CONSUMER ATTITUDES: An attitude in marketing terms is defined as a general evaluation of a product or service formed over time (Solomon, 2008). An attitude satisfies a personal motive-and at the same time, affects the shopping and buying habits of consumers. MEANING OF BEHAVIOUR: Behaviour is the range of actions and mannerisms made by or organisms, systems, or artificial entities in conjunction with their
9

environment, which includes the other systems or organisms around as well as the physical environment. It is the response of the system or organism to various stimuli or inputs whether internal or external, conscious subconscious, and voluntary or involuntary. or

CONSUMER BEHAVIOUR: As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process of purchase. The study of consumer behaviour provides us with reasons why consumers differ from one another in buying using products and services. We receive stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms of either buying or not buying product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. A consumer is an ultimate buyer. However, the term buyer is broader than consumer. There are two categories of buyers, namely, individual consumer and business buyer. An individual consumer buys for personal consumption. But a business buyer stated that an individual consumer buys for personal consumption. But a business buyer buys things for manufacturing other products or for reselling or for use in the running of his enterprise. A buyer or a customer becomes a regular customer when he regularly buys or consumes a product or service. In other words, a customer is one who regularly visits a place of business or patronizes a product or services. “CUSTOMER IS THE KING.” DEFINITIONS OF CONSUMER BEHAVIOUR:
10

The term consumer behaviour is defined as follows: 1. According to J.F ENGELS “The activities and the action of people and organization that purchase and use economic goods and services, including the influence on these activities and actions.”1 2. “We define consumer behaviour as those actions directly involved in obtaining, consuming and disposing of products and services including the decision that proceeds and follow the action.” said by JAMES F. BLACKWELL, ROGER D, MINI AND PAUL KAF2

WHY STUDY CONSUMER BEHAVIOUR? A number of reasons make the study of consumer behaviour relevant for effective marketing management. They are: Consumers preferences are changing and becoming highly diversified. 1. Consumers do not always act or react as the theory would suggest. 2. Consumer research has vividly pointed out that customers dislike using identical products and prefer differentiated products. 3. Meetings of special needs of customer‟s requirement market segmentation. 4. Rapid introduction of new products with technological advancement has made the job of studying consumer behaviour more imperative. 5. Consumer behaviour can be used to sell products that might not sell easily. IMPORTANCE OF CONSUMER BEHAVIOUR:
11

Consumers are the responsible factors for the sales of products and services. So, when a new product is launched in a market, understanding consumer‟s buying behaviour becomes very essential. consumer behavior holds a great important in marketing field because if look over the modern philosophy of marketing in that „CUSTOMER is treated as the KING‟, his needs and wants are being studied for making any product, and above that its always been seen while looking for opportunities for a product development that which product is brought most and what are the factors that result in purchase of a product. We can easily understand its importance if we look around our environment. Consumer behavior is made up of two words consumer and behavior. Consumer is the person who consumes the product, he may or may not be a buyer and behavior means the aggregate of all the responses made by an organism in any situation. MEANING OF PROMOTION: Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. DEFINITION: “Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm‟s customers.”

12

Sales promotion offers a direct inducement to act by providing extra worth over and above what is built into the product at its normal price. These temporary inducements are offered usually at a time and place where the buying decision is made. Not only are sales promotions very common in the current competitive market conditions, they are increasing at a fast pace. These promotions are direct inducements. In spite of the directness, sales promotions are fairly complicated and a rich tool of marketing with innumerable creative possibilities limited only by the imagination of promotion planners. Sales promotion is often referred to by the names of „extra purchase value‟ and „below-the-line selling‟.

Which promotional methods are used depends on several factors? Stage in the life cycle - e.g. advertising is important at the launch stage Nature of the product - how much information is required by customers before they buy Competition - what are rivals doing? Marketing budget - how much can the firm afford? Marketing strategy - other elements of the mix (price, product, place etc) Target market - appropriate ways to reach the target market The main methods of promotion are: • Advertising • Public relations & sponsorship
13

• Personal selling • Direct marketing • Sales promotion SALES PROMOTION: Sales promotion is an important component of a small business's overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as "media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality." But this definition does not capture all the elements of modern sales promotion. It can be used to inform, persuade, and remind target customers about the business and its marketing mix.

Some common types of sales promotion include samples, coupons, sweepstakes, contests, in-store displays, trade shows, price-off deals, premiums, and rebates. DEFINITION: Sales promotion has come a long way from the time when it was simply a short term inducement to increase sales. Robinson and Hauri (1995) Promotions are no longer simply short-term initiatives to lift sales; they are increasingly being used to reinforce brand values.2 Gay (1997)
14

THE CLASSIFICATION OF SALES PROMOTION: Sales promotion can operate on three levels: 1. They communicate. They can gain customers attention at the point of purchase by providing additional information that may be the relevant to the purchasing decision. 2. They provide incentives. Sales Promotion offers some form of direct inducement, either immediate or delayed, which changes the perceptual base of the purchasing decision. 3. They advance the purchasing decision. They invite the customer to engage in an immediate transaction.

Tools of Sales Promotion: To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion.

1. CONSUMER PROMOTIONAL TOOLS: a) SAMPLING: This allows the consumer to experience the product or service either free or at a reduces price. It is the primary tool for new-product introductions because it stimulates trial. Sampling is also effective for introducing
15

modified products, for dislodging an entrenched market leader, and for demonstrating the brand superiority. b) PREMIUM AND SPECIALITIES An offer of merchandise, either free or at a reduced price, for responding in some way is called a premium. Many companies also use premiums to encourage consumers to switch brands or to reward customer loyalty. Premium can be classified as: i. In-Pack premiums, which are inserted into the package by the manufactures. ii. On-Pack premiums, which are placed on the outside of the outside of the package at the factory.

c) PRICE REDUCTION: The most common type of consumer sales promotion is the price reduction- a sale. Although sale prices can generate tremendous response, they can also have negative effect on a brand‟s overall pricing strategy. This was understood by Bombay Dyeing as they decided to keep their flagship brand, Vivaldi, away from the normal 15 per cent price reduction that they usually undertake. d) COUPONS: A certificate offered by either manufactures or retailers that grant specified brands. When presented for redemption at the point of purchase. e) MERCHANDISING:
16

Every promotion needs communication support if customers are to know about it. Such merchandising materials include: i. ii. iii. iv. v. Banners. Signs. Windows posters. Shelf strips and tags. Racks.

2. TRADE PROMOTIONAL TOOLS The following are the trade-related tools that the manufacturers follow for promotion: a) TRADE ALLOWANCES: To achieve the authorization objective explained above, often requires slotting allowances. These are fees paid to a retail chain to stock in its warehouses and make it available in its stores.

b) DEALERS LOADERS: To help encourage the retailers to put up a special display or POP display for a promotion. Marketer will sometimes design a display to include an attractive item of value to the retailer. c) TRADE SHOWS: Manufacturers, suppliers and vendors in a particular industry gather to display and review new product developments at trade shows.

ADVANTAGES: 1. Creates differentiation:
17

When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Promotion planning compels you to identify something new or different that offers value to your customers. 2. New content and communication opportunities: One of the easiest ways to create new content for your customers is to create news. Promotions are news. 3. Creates up sell and cross sell opportunities: When you package or bundle products around a theme or solution, you can often generate sales of multiple items rather than a single item. When you focus on creating added value to your regular assortment, you can charge premium prices.

4. Creates word-of-mouth opportunities: If you operate a retail store, your regular customers are almost always in a routine to buy from you. Promotions can often get your regular customers a new reason to be surprised and delighted by your business which gets them to talk about you to their friends. 5. Revenue growth: This is the lifeblood of your business. Sales promotions are a great way to build year-over-year and month-over-month revenue growth. Said by Chinese.
18

DEVELOPING THE SALES PROMOTION SCHEMES: After deciding the objectives and tools of sales promotion, the marketer has to make a few more decisions to ensure effective results. Such aspects are discussed below: 1. Size of incentives: The marketer has to determine how much incentive should be offered. A certain minimum incentive is necessary if the promotion is to succeed. A higher incentive level will produce more sales response but at a diminishing rate. 2. Distribution pattern: The marketer must also decide the mode and medium of distribution of incentives. The cost of distribution should not be more than that of the results that are expected from the promotional efforts.

3. Duration of the Promotion: If the sales promotion period is too short, many prospects will not be able to take advantage, since they may not be repurchasing within that time. But if the promotion period is too long, a scheme will lose some of its effects. 4. Pre- testing: Sales promotion scheme should be pre-tested, if possible. The purpose is to determine whether the schemes are appropriate or not. It is also
19

helpful to test the suitability of the size of the incentive in the context of a particular target group.

Growth of Sales Promotion: Sales promotion has grown substantially in recent years. There are several reasons for this dramatic growth in sales promotion. First, consumers have accepted sales promotion as part of their buying decision criteria. It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand. Second, the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion, which can provide an immediate boost in sales. Product managers also tend to view sales promotion as a way to differentiate their brand from that of competitors in the short term. Third, the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. Redemption rates for coupons or figures on sales volume can be obtained within days. Finally, an increase in the size and power of retailers has also boosted the use of sales promotion. Historically, the manufacturer held the power in the channel of distribution. Mass marketers utilized national advertising to get directly to consumers, creating a demand for the heavily advertised brands that stores could not afford to ignore. Reasons for Increasing Use of Sales Promotion: Sales promotion activities have become increasingly popular among business firms due to the following factors: 1. Trade Pressure:

20

There is now greater pressure on manufacturers to provide support and allowances due to the growth of super markets, chain stores and other forms of retailing. 2. Growing Competition: When one manufacturer adopts aggressive promotional strategy to create a brand image, the sales of other manufacturers are affected. 3. Recession: During a recession, consumers can be persuaded to buy through rebates, bonus offers and other sales promotion activities.

4. Quick Returns: Sales promoting activities are launched quickly and yield faster results. These activities also motivate the over burdened and lethargic sales force. Therefore, there is widespread use of sales promotion schemes.

Limitations of Sales Promotion: Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. After a consumer uses a coupon for the initial purchase of a product, the product must then take over and convince them to become repeat buyers. 1. Message Miscommunication:
21

As with most sales promotions, either the distributor or the business offering the product are not profiting as much as previously. It is a calculated risk, but one that needs to be planned and handled carefully to be truly effective. Sales promotions are usually advertised to inform customers of the special offer. If there is a discrepancy between what's published and the real offer, than it will be viewed negatively by the public. 2. Price Sensitivity: Promotions in sales are a disadvantage when they are offered too regularly. The key to making them successful is offering them irregularly, catching the customer off guard and unprepared. If they are provided too regularly then they create price sensitivity among customers. Dryden outlines price sensitivity as intentional waiting by customers to purchase items only when they are promoted in a sale, rather than buying them at the regular retail price. Profits decrease.

Sales promotions in Colgate: As such no promotion is done at retail level except the recommendation by the shopkeeper. But for rural market COLGATE uses VAN (van is a mobile promotion station having facilities for screen show, slide show and mike publicity) HISTORY:

22

For more than 200 years, Colgate people and Colgate values have been at the heart of its Success. It is the powerful strategy and sharp focus which drives to their Success today. Colgate-Palmolive Company is an American multinational consumer products company focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). Under its "Hill's" brand, it is also a manufacturer of veterinary products. The company's corporate offices are on Park Avenue in Midtown

Manhattan, New York City. In 1806, William Colgate, a soap and candle maker opened up a starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In 1817, First Colgate advertisement appears in a New York newspaper. In 1820 Colgate establishes a starch factory in Jersey City, New Jersey. William Colgate in 1833 suffered a severe heart attack stopping his business from selling. But after a couple of years of recovery he continued with his business.

In the 1840s, the firm began selling individual cakes of soap in uniform weights. In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son, who did not want to continue the business but thought it would be the right thing to do.
23

In 1864, B.J. Johnson opens a soap factory in Milwaukee, WI, which later becomes the Palmolive Company. In 1866 Colgate introduces perfumed soap and perfumes/essences. In 1872, Peet Brothers Colgate introduced Cashmere Bouquet, a perfumed soap in Kansas City, Kansas where they make Crystal White soap. Cashmere Bouquet, the first milled perfumed toilet soap, is registered as a Colgate trademark. In 1873, the firm introduced its first toothpaste, aromatic toothpaste sold in jars. In 1879, Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the Mennen Company. His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. In 1896, Colgate hired Martin Ittner and under his direction founded one of the first applied research labs. In Milwaukee, Wisconsin, the B.J. Johnson Company was making a soap entirely of palm oil and olive oil, the formula of which was developed by B.J. Johnson in 1898. In 1900 Colgate wins top honors for its fine soaps and perfumes at the World‟s Fair in Paris. In 1906 Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products In 1908 Colgate is incorporated by the five sons of Samuel Colgate. Ribbon opening added to Colgate tube: “We couldn't improve the product so we improved the tube.”
24

In 1911 Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing. In 1912 William Mennen introduces the first American shaving cream tube. In 1914 Colgate establishes its first international subsidiary in Canada. In 1920s Colgate begins establishing operations in Europe, Asia, Latin America and Africa. In 1926 Soap manufacturers Palmolive and Peet merge to become Palmolive-Peet Company. In 1928 Colgate merges with Palmolive-Peet to become ColgatePalmolive-Peet Company. In 1930 On March 13, Colgate is first listed on the New York Stock Exchange. In The soap was popular enough to rename their company after it "Palmolive" Around the start of the 20th century Palmolive, which contained both palm and olive oils, was the world's best-selling soap. Extensive advertising included the radio programs The Palmolive Hour (1927-1931) and Palmolive Beauty Box Theater (1934-1937). In 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. In 1947 Ajax cleanser is launched, establishing powerful now-global brand equity for cleaning products.
25

In 1953 "Peet" was dropped from the title, leaving only "ColgatePalmolive Company", the current name. 1956 Colgate opens corporate headquarters at 300 Park Avenue in New York City. George Henry Lesch was president, CEO, and chairman of the board of Colgate-Palmolive in the 1960s and 1970s, during that time transformed it into a modern company with major restructuring. In 1962Colgate opens research center in Piscataway, NJ. Fabric conditioner is launched in France as Soup line. Today, fabric conditioners are sold in over 54 countries around the world. In 1966 Palmolive dishwashing liquid is introduced and today it is sold in over 35 countries. In 1968 Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities. In 1970 Irish Spring launches in Germany as Irische Frühling and in Europe as Nordic Spring. In 1972, Irish Spring is introduced in North America. In 1972 Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals. In 1975 Caprice hair care launches in Mexico. Today, hair care products are sold in over 70 countries, with variants to suit every type of hair need. In 1976 Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global leader in pet nutrition and veterinary recommendations.

26

In 1983 Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgate tooth brushes are sold annually worldwide. If you lined them up end to end, they would circle the globe 16 times. In 1985 Protex bar soap is introduced, and today offers all-family antibacterial protection in over 56 countries. Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley & Hazel, a leading oral care company, which adds strength in key Asian markets. In 1986 The Chairman's you can make A Difference Program is launched, recognizing innovation and executional excellence by Colgate people. In 1987 Colgate acquires Soft-soap liquid soap business from the Minnetonka Corporation. Today, Colgate is the global leader in liquid hand soap. In 1989 Annual Company sales surpass the $5 billion mark. In 1991Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S. Today, its product portfolio has expanded to include all-purpose cleaners, sprays and wipes. In 1992 Colgate acquires the Mennen Company. Today, Mennen products are sold in over 52 countries. Colgate Total toothpaste introduced. In 1995 Colgate enters Central Europe and Russia, expanding into fastgrowing markets. Colgate acquires Kolynos Oral Care business in Latin America and launches market-leading Sorriso toothpaste. In 1996 Bright Smiles, Bright Futures oral health education program expands to 50 countries, and today reaches over 50 million children annually.
27

In 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. In 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. In 2005, Colgate sold the under-performing brands Fab, Dynamo, Arctic Power, ABC, Cold Power and Fresh Start, as well as the license of the Ajax brand for laundry detergents in the U.S., Canada and Puerto Rico, to Phoenix Brands, LLC as part of their plan to focus on their higher margin oral, personal, and pet care products In 2006, Colgate-Palmolive announced the intended acquisition of Tom's of Maine, a leading maker of natural toothpaste, for US $100 million. Tom's of Maine was founded by Tom Chappell in 1970. 2006 Colgate enters the fast-growing Naturals segment by purchasing Tom‟s of Maine, a leader in that market in the United States. Today, Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India. On October 25, 2012, the company announced it will cut more than 2,310 workers, or 6 percent of its workforce, by the end of 2016 in a push to make the consumer products company more efficient. Educational and community involvement: In 1890, Madison University in New York State was renamed Colgate University in honor of the Colgate family following decades of financial support and involvement.
28

The Colgate-Palmolive Company has sponsored a non-profit track meet open to women of all ages. This event is called the Colgate Women's Games. The Colgate Women's Games is the nation's largest amateur track series open to all girls from elementary school through college. Held at Brooklyn's Pratt Institute, competitors participate in preliminary meets and semi-finals over five weekends throughout January. For more than 20 years, the company supports the Starlight Children Foundation which is a nonprofit organization dedicated to help seriously ill children and their families. The mission is to help children to cope with pain, fear and isolation through entertainment, family activities and education (2012). Major brands of Colgate Toothpaste: Colgate now markets a broadly diversified mix of products in the United States and other countries. Major product areas include household and personal care products, food products, health care and industrial supplies, and sports and leisure time equipment.

1. Colgate Dental Cream 2. Colgate Total 3. Colgate Sensitive 4. Colgate sensitive Pro- relief. 5. Colgate Max Fresh. 6. Colgate Kids Toothpaste.
29

7. Colgate Fresh Energy Gel. 8. Colgate Herbal 9. Colgate Cibaca Family Protection. 10.Colgate Active Salt. 11.Colgate Max White Features of a Colgate toothpaste: 1. Colgate Total contains the anti-microbial ingredient triclosan, which reduces the bacteria that cause gingivitis, cavities and halitosis. 2. Although most Colgate toothpaste brands use sodium fluoride, the Colgate Cavity Protection variety instead contains sodium monofluorophosphate as the active ingredient. 3. Whitening toothpaste that is "Clinically proven to whiten in 14 days". 4. Its whitening ingredient is hydrogen peroxide, which gradually bleaches the teeth. 5. Simply White utilizes two separate chambers that contain a whitening agent and cleaning gel.

OBJECTIVES OF THIS STUDY: Primary Objective: 1. To study the consumer behaviour towards Colgate toothpaste. 2. To know which brand in Colgate will attract the consumer. 3. To find out whether Sales Promotion increases the Sales of products. 4. To know level of satisfaction of Colgate toothpaste.

30

SECONDARY OBJECTIVE: 1. To obtain information regarding the consumer behaviour towards various brands offered by Colgate toothpaste. 2. To know the views of the consumers with the performance of Colgate Toothpaste. 3. To give suitable reaction to enrich the consumer behaviour of Colgate Toothpaste.

SCOPE OF THE STUDY: 1. The research focuses on the several features of the Colgate toothpaste and to know the suggestions of the user which may help the company in further development of the Colgate toothpaste. 2. To know the kind of offers offered by the Colgate toothpaste. 3. To know the sales promotional schemes whether it is increasing or not.

LIMITATIONS: 1. There was a limited span of time for the project work in which the study of „Sales Promotion activities carried out for Colgate toothpaste‟ is to be done. 2. The limitation for the study of the Promotional Activities carried out for Colgate in Chennai region only. 3. The project is restricted only to Colgate toothpaste.

31

4. The Sample Size is only 100 and it is a primary data, there were no chances that the given data may vary from the actual, which can lead to the wrong results. 5. There is no Comparative Study made. 6. Under the study illiterate people are excluded. 7. People were hesitant to disclose the true facts 8. It is a Micro- level project. This study suffers from some limitation, which could be avenues for further research. Though there is limitation, all the exertion has been made to collect the information in order to make this project more accurate and satisfactory to the Time Tested Concepts.

32

CHAPTER II REVIEW OF LITERATURE

REVIEW OF LITERATURE Consumer behaviour: “Consumer behavior has been always of great interest to marketers. The knowledge of consumer behavior helps the marketer to understand how consumers think, feel and select from alternatives like products, brands and
33

the like and how the consumers are influenced by their environment, the reference groups, family, and salespersons and so on. A consumer‟s buying behavior is influenced by cultural, social, personal and psychological factors. Most of these factors are uncontrollable and beyond the hands of marketers but they have to be considered while trying to understand the complex behavior of the consumers. In this study, the researcher emphasizes the importance of lifestyle and its impact on the buyer behavior.” Consumer Personality Factors: “There are two factors mainly influencing the consumers for decision making: Risk aversion and innovativeness. Risk aversion is a measure of how much consumers need to be certain and sure of what they are purchasing Highly risk adverse consumers need to be very certain about what they are buying. Whereas less risk adverse consumers can tolerate some risk and uncertainty in their purchases. The second variable, innovativeness, is global measures which captures the degree to which consumers are willing to take chances and experiment with new ways of doing things The shopping motivation literature is abound with various measures of individual characteristics. (Donthu and Gilliland, 1996). Perception: “Perception is a mental process, whereby an individual selects data or information from the environment, organizes it and then draws significance or meaning from it.” Perceived fit:

34

“Perceived fit is an attitudinal measure of how appropriate a certain channel of distribution is for a specific product . found that consumer‟s perception of the fit between a service or a product and a channel is very influential in determining whether they will consider using that channel for a specific service. In fact, perceived fit was found to be more important than consumer‟s preferences for the distribution method or service.” Morrison and Roberts (1998) Product Class Knowledge: “Product class knowledge is a measure of consumers perceptions of how much they know about a specific class of products (e.g., cars)This type of measure is called subjective knowledge, that is, consumers selfperceptions of knowledge levels. This is often contrasted with objective knowledge, which is what consumers actually know. Brucks (1985) “He proposed that subjective knowledge provides a better

understanding of consumers decision making processes because consumers level of confidence in their search and decision making behavior, independent of their objective knowledge.” Park and Lessing (1981)

Product type: “Past research indicates that consumers purchase and channel decisions might be influenced by the type of product being investigated. In particular, some of the authors state 29 that certain products might be more appropriate
35

for one channel or another, which ultimately influences consumers channel preference and choice.” Cox and Rich 1964 Quality: “It is our aim to provide the best product for the consumer and we believe that if the products have quality the consumer will pay the price.” Packaging: “Packaging establishes a direct link with the consumers at the point of purchase as it can very well change the perceptions they have for a particular brand. A product has to draw the attention of the consumers through an outstanding packaging design. Earlier packaging was considered only a container to put a product in, but today, research in to the right packaging is beginning at the product development stage itself. Deepak Manchandra

Promotion: “The greatest challenge faced by companies today is holding and increasing their market share and value. This is always a strenuous exercise and one of the tools for the same is marketing. There is no specific game rule available for using these marketing tools .
36

Familiarity with a channel: “Consumer‟s familiarity with a channel is a measure of the general experience they have with purchasing products through specific channels. Through frequent use consumers should become accustomed to using the channel, which reduces their apprehension and anxiety in purchasing products through the channel.” Brand Awareness: “According to Rossiter and Prey (1987), brand awareness precedes all other steps in the buying process.” “A brand attitude cannot be performed, unless a consumer is aware of the brand. In memory theory, brand awareness is positioned as a vital first step in building the bundle of associations which are attached to the brand in memory. Family influence: “A family exerts a complex influence on the behaviors of its members. Prior family influence research has focused on intergenerational rather than intergenerational influence in consumer generationalisation. As has been compellingly demonstrated, parents influence children.Yet, consumption domains clearly exist where sibling efforts may also be exerted.” (Moore, Wilkie, and Lutz2002; Moschis1987) Shopping motives: “Shopping motives are defined as consumer‟s wants and needs as they relate to outlets at which to shop. Two groups of motives, functional and nonfunctional, Functional motives are associated with time, place, and possession needs and refer to rational aspects of channel choice. Whereas
37

non- functional motives relate to social and emotional reasons for patronage. The functional motives included: convenience, price comparison, merchandise assortment.” Sheth (1983). Sales Promotion to the sales of the individuals and households, “Who buy the goods and services for personal consumption. Consumers around the world are different in various factors such as age, income, Education level and preferences which may affect the way they avail of goods and services. This Behaviour then impacts how products and services are presented to the different consumer Markets.” Kotler and Armstrong (2001) “There are many components which influence consumer behaviour namely: cultural, social, Personal and psychological . These characteristics cannot be controlled by the companies; therefore, a need to assess these elements in order to create an Effective marketing plan.” (Kotler & Armstrong, 2001)

“In Sales Promotions many people do consume a wide range of produc ts every day, from basic necessities to high valued collectables. Owing to the proliferation of products in the market, such phenomenon is one of the most interesting and hence heavily investigated topics in the marketing field.”
38

Schiff man and Kanuk (2000) “Consumer behaviour is about how people make their decisions on personal or household products with the use of their available resources such as time, money and effort. Further provide a holistic view that defines consumer behaviour as the activities and the processes in which individuals or groups choose, buy, use or dispose the products, services, ideas or experiences.” Gabbott and Hogg (1998) and Blackwell et al. (2006) “The study of consumer behaviour and sales promotion is of utmost importance in a number of aspects. First of all, consumer behaviour can influence the economic health of a nation. Consumers would have their preferences in purchasing products from specific retailers and hence the remaining retailers are selected using the rule o f „survival of the fittest‟. Therefore, consumers‟ decisions can provide a clue for which industry to survive, which companies to succeed, and also which products to excel. Blackwell et al., 2006. “In sales promotion tailor-made products can be made to enhance customer value and thus facilitate repeat purchase.” Gabbott and Hogg, 1998

“The interactions between the people‟s emotions, moods, affection and specific feelings is called consumer behaviour, in other words in environmental events which they exchange ideas and benefits each is called

39

consumer behaviour. Consumer behaviour of people, who purchase products for personal use and not for business purposes.” Peter and Olson, (1993) “ Sales is the prior to 1978 the Indian Toothpaste market was dominated by multinationals. The BAL Sara Group founded way back in 1925 launched Promise toothpaste heavily promoted ingredient. Promise achieved the distinction for of its being clove the oil first

Indian toothpaste brand to be accredited by theBritish Dental HealthFoundati on (BDHF). Currently Balsara's Promise brand and its variants and Babool enjoy a market share of 5 per cent each.” BAL Sara Group (1925) “Sales promotion in “rural India still presents huge opportunity for the company to grow the market. Even today, over 70% of population resides in rural areas. Colgate, therefore, continues to focus on expanding its rural distribution. Thrust of this market expansion programme commenced in FY 2001 under “Operation Jagruti”. This programme is in 2nd phase with massive rural sampling and seeding exercise for Colgate Herbal, targeted at non-users and infrequent users of dentifrices.” (Bureau, 2002) Rural Distribution Expansion Programme

“ The price-offs of Sales Promotion, industry sources said, “is exp ected to give a boost to a lack luster market for toothpastes, which has been on a decline the past couple of years. The drop in prices, said retail sources, has
40

begun to have an impact as toothpaste sales saw a surge of 10-12 per cent in the May-July period.” Vinay Kamath, 2003 “Sales Promotion in India‟s big- ticket acquisition of Balsara‟s brands two years ago has begun showing results, with the homegrown Colgate Company‟s Oral care basket growing faster than its well- entrenched MNC rivals Colgate and Hindustan Lever Ltd.” Burea u, 2006 “Sales Promotion Dabur‟s kitty of oral care brands (Babool, Meswak and Lal Paste) have beaten market leader Colgate, followed by Hindustan Lever Ltd‟s (HLL) Pepsodent and Close-Up brands, both by value and volume.” (AC Nielsen 2006) “Sales Promotion study “undertaken by the government -run Associated Chambers of Commerce and Industry indicates that the sales is significant growth potential for marketers of personal care products in rural and semi-rural India.” Simon Pitman, 2007 “Sales Promotion‟s Colgate People, working around the world, share a commitment to our three core corporate values: Caring, Global Teamwork and Continuous Improvement. These values are reflected not only in the quality of our products and the reputation of our Company, but also in our dedication to serving the communities where we do business. “As a leading consumer Products Company we are also deeply committed to advancing technology which can address changing consumer needs throughout the world.
41

Reuben mark, 2008 “The toothpaste market in India has players like Colgate-Palmolive, whose brand Colgate leads the market, Hindustan Lever‟s brands. “The toothpaste market is growing at 8% but it is expected to grow faster on the back of upgrades from toothpowder to toothpaste. The 30%growth of the toothbrush category is another indicator of this trend,” Nikhil Vora, 2006 “The toothpaste market is fiercely competitive but gaps and platforms are always available.” Sunil duggal, 2007 “Sales are increased and spending is also helping Colgate expand its market share. For example, Colgate Total's share of the toothpaste market grew 0.6 percentage point to 14.9%.” Robert Walberg, 2008 Sales promotions include “incentive offering and interest creating activities which are generally short term marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm‟s customers”. Kazmi and Batra Consumer Promotions: “Consumer sales promotions are steered toward the ultimate product users typically individual shoppers in the local market but the same
42

techniques can be used to promote products sold by one business to another, such as computer systems, cleaning supplies, and machinery. PRICE DEALS: “A consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purchase multiple units. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low.” “Buyers may learn about price discounts either at the point of sale or through advertising. At the point of sale, price reductions may be posted on the package, on signs near the product, or in storefront windows. Many types of advertisements can be used to notify consumers of upcoming discounts, including fliers and newspaper and television ads. Price discounts are especially common in the food industry, where local supermarkets run weekly specials. Price discounts may be initiated by the manufacturer, the retailer, or the distributor. “Refunds aim to increase the quantity or frequency of purchase, to encourage customers to "load up" on the product. This strategy dampens competition by temporarily taking consumers out of the market, stimulates the purchase of postponable goods such as major appliances, and Creates on -shelf excitement by encouraging special displays.

43

“Coupons are legal certificates offered by manufacturers and reta ilers. They grant specified savings on selected products when presented for redemption at the point of purchase. CONTESTS/SWEEPSTAKES: “The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random drawing or chance contest that may or may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictions on gambling that many marketers. SPECIAL EVENTS: According to the consulting firm International Events Group (IEG), “businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. In fact, large companies like RJR Nabisco and Anheuser-Busch have special divisions that handle nothing but special events. Special events marketing offer a number of advantages. First, events tend to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high. Second, event sponsorship often builds support among employees who may receive acknowledgment for their participation and within the trade. Finally, compared to producing a series of ads, event management is relatively simple. PREMIUMS:

44

A premium is tangible compensation that is given as,” incentive for performing a particular act usually buying a product. The premium may be given for free, or may be offered to consumers for a significantly reduced price. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. Incentives that are given for free at the time of purchase are called direct premiums. These offers provide instant gratification, plus there is no confusion about returning coupons or box tops, or saving bar codes or proofs of purchase.” Other types of direct premiums include “traffic builders, door openers, and referral premiums. The garden tool is an example of a trafficbuilder premium an incentive to lure a prospective buyer to a store. A dooropener premium is directed to customers at home or to business people in their offices. CONTINUITY PROGRAMS: Continuity programs retain those “brand users over a long time period by offering ongoing motivation or incentives. Continuity programs demand that consumers keep buying the product in order to get the premium in the future. Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers usually received one stamp for every dime spent at a participating store. The stamp company provided redemption centers where the stamps were traded for merchandise. A catalog listing the quantity of stamps required for each item was available at the participating stores.

45

SAMPLING: A sign of a successful marketer is ,”getting the product into the hands of the consumer. Sometimes, particularly when a product is new or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in order for sampling to change people's future purchase decisions, the product must have benefits or features that will be obvious during the trial.” Trade Promotions: “A trade sales promotion is targeted at resellers, wholesalers and retailers who distribute manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers”. In general, trade sales promotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product).

46

POINT-OF-PURCHASE (POP) DISPLAYS: Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a particular brand or group of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and mechanical product dispensers. Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it will generate sales for the retailer. High product visibility is the basic goal of POP displays. In industries such as the grocery field where a shopper spends about three-tenths of a second viewing a product, anything increasing product visibility is valuable. TRADE SHOWS: Thousands of manufacturers display their “wares and take orders at trade shows. In fact, companies spend over $9 billion yearly on these shows. Trade shows provide a major opportunity to write orders for products. They also provide a chance to demonstrate products, disseminate information, answer questions, and be compared directly to competitors”. PUSH MONEY: Similarly, push money (PM) also known as spiffs is “an extra payment given to sales-people for meeting a specified sales goal. For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of model A, and a $20 bonus for each unit of model B, sold between March 1 and September 1. At the end of that period, the salesperson would send evidence of these sales to the manufacturer and receive a check in return.

47

DEAL LOADERS: A deal loader is a “premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of deal loaders are most typical. The first is a buying loader, which is a gift given for making a specified order size. The second is a display loader, which means the display is given to the retailer after the campaign.” TRADE DEALS: Trade deals are “special price concessions superseding, for a limited time, the normal purchasing discounts given to the trade. Trade deals include a group of tactics having a common theme to encourage sellers to specially promote a product”. BUYING ALLOWANCES: A buying allowance is a “bonus paid by a manufacturer to a reseller when a certain amount of product is purchased during a specific time period. The effect of Sales Promotion “will vary depending on the attractiveness of the product, but on the other hand there is a possibility that customers who would by brand acquire it because often attraction.” Alvarez(2005) Sales promotion consists of “those sellers – initiates activities that supplement of both the advertising as well as personal selling and also render them to a more effective persuasive force.” Olujide(2002) “Sales in order to develop a successful “sales promotion strategy gives a clear cut definition about the targeted market which must be added. It is
48

important to note that the character of sales promotion has been changing slightly over time, with the much raising of relationship marketing.” Hellman, (2005) Sales Promotion “is an very important tool of the marketing communication strategy which accounts for more promotional expenditures than advertising in some or the other countries.” Ellen Foxen. R Sales Promotion “is the best achievement of the short –term marketing objectives by schematic means.” Christian Peterson “Sales Promotion is any method of informing persuading or reminding consumers about the marketing mix of product, place and price which have been assembled by the many of the Marketing Managers.” Mc Carthy “Sales Promotion includes the project of information to wholesalers, retailers, customers- actual and potential and not least to the own- salesman.” Harold Whitehead Sales Promotion is which “It consists of an organized effort applied to the selling of the job to secure the greatest effectiveness for advertising and for dealer‟s helping nature.” George Hopkins. It’s my pleasure to welcome you to the world of ColgatePalmolive. The small soap and candle business that William Colgate began
49

in New York City early in the 19th century is now, more than 200 years later, a truly global company serving hundreds of millions of consumers worldwide. Our 200-year history reflects the strength and innovation that Colgate people have used to constantly transform our Company and identify new opportunities. IAN COOK (CHAIRMAN, PRESIDENT AND CEO)

50

CHAPTER III RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
51

RESEARCH: Research and experimental development is formal work undertaken systematically to increase the stock of knowledge, including knowledge of humanity, culture and society, and the use of this stock of knowledge to devise new applications. It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A broad definition of research is given by Martyn Shuttleworth - "In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge. METHODOLOGY: The process use to collect information and data for the purpose of making business decisions. The Methodology may include publication research, interviews, surveys and other research techniques and could include both present and historical information. It is well documented that building and maintaining positive brand equity with one„s consumer base is considered to be critical for long -term survival.

RESEARCH DESIGN:
52

Research design is the plan, structure and strategy if investigation conceived so as to obtain answers to research questions and to control variances. A research design is the specification of method and procedures for acquiring the information needed to structure or reduce the problems. AREA OF STUDY: I have covered only Chennai city for the filling of questionnaires of which it consists of 20 questions and the topic is Consumer Behaviour towards Sales Promotion on Colgate Toothpaste. SAMPLE: The sample is the collection of elements or objects that process the information sought by the researcher and about which inference are to be made. It includes population who are of any age. SAMPLE DESIGN: Sample design refers to the means by which one selects the primary units for data collection and analysis appropriate for a specific research question. SAMPLE SIZE: The sample size which is chosen is 100. It denotes the number of elements to be included in the study.

53

METHODS OF DATA COLLECTION: 1. PRIMARY SOURCES: A primary source is an original object or document -- the raw material or first-hand information. Primary sources include historical and legal documents, eyewitness accounts, results of experiments, statistical data, pieces of creative writing, and art objects. Some of the two Primary Sources are:  Questionnaires: The questionnaire is made for the customer feedback for new products such as new Colgate toothpaste.  Observation: The observation was used to find out the various promotional activities carried out by Colgate. 2. SECONDARY SOURCES: A secondary source is something written about a primary source. Secondary sources include comments on, interpretations of, or discussions about the original material. One can think of secondary sources as secondhand information.  GUIDELINE REPORT: Reporting guidelines are statements that provide advice on how to report research methods and findings. Usually in the form of a checklist, flow diagram or explicit text, they specify a minimum set of items required for a clear and transparent account of what was done and what was found in a research study, reflecting in particular issues that might introduce bias into the research.  LITERATURE REVIEW:
54

A literature review is a text written by someone to consider the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work. Also, a literature review can be interpreted as a review of an abstract accomplishment.  REFERENCE BOOKS: I have referred many books and Websites for this Research Methodology. TOOLS USED FOR ANALYSIS: 1. PERCENTAGE ANALYSIS. Percentage method refers to a specified kind which is used in making comparison independence is entered and results are identified. FORMULA : PERCENTAGE = NUMBER OF RESPONDENTS x 100 Total no of respondents

55

CHAPTER IV DATA ANALYSIS & INTERPRETATION

56

TABLE: 4.1 ESTIMATING GENDER STATEMENT OF RESPONDENTS NO. OF SEX MALE FEMALE TOTAL RESPONDENTS 49 51 100 % OF RESPONDENTS 49 51 100

CHART4.1

ESTIMATING GENDER STATEMENT OF RESPONDENTS
SEX MALE FEMALE TOTAL

100

100

51

51

49 0 1 2

49 0 3 4 5

57

INTREPRETATION: The above table shows respondent on the basis of gender. In that 49% are Male respondents and 51% are Female.

58

TABLE 4.2 ESTIMATING AGE GROUP OF THE RESPONDENT NO. OF THE AGE 10-20 21-30 31-40 41& ABOVE TOTAL 24 100 24 100 RESPONDENTS 30 26 20 % OF THE RESPONDENTS 30 26 20

CHART 4.2 ESTIMATING AGE GROUP OF THE RESPONDENT
AGE 10--20 100 21-30 31-40 41& ABOVE 100 TOTAL

30 26 24 20 0 1 2 3 4

26 20 30 24 0 5 6 7

59

INTERPRETATION: The above table representing the age factor of respondent from which 47% of the respondents are below 20 years of age group, 25% of the respondents are between 20-30 years, 15% of the respondents of the age group are 31-40, 12% of the respondents of the age group are 40 & above.

60

TABLE 4.3 ESTIMATING MARITAL STATUS OF THE RESPONDENTS MARITAL STATUS SINGLE MARRIED TOTAL NO. OF THE RESPONDENTS
70 30 100

% OF THE RESPONDENTS
70 30 100

CHART 4.3 ESTIMATING MARITAL STATUS OF THE RESPONDENTS
MARITAL STATUS SINGLE MARRIED TOTAL

100

100

30

30

70 0 3

70 0 6

1

2

4

5

7

8

INTERPRETATION: The above table shows the marital status of the Male respondents is 70% and the female respondents are 30%.

61

TABLE 4.4 ESTIMATING EDUCATIONAL BACKGROUND OF THE RESPONDENTS EDUCATIONAL STATUS SCHOOL COLLEGE PROFESSIONAL OTHERS TOTAL NO. OF. RESPONDENTS 18 40 29 13 100 % OF THE RESPONDENTS 18 40 29 13 100

CHART 4.4 ESTIMATING EDUCATIONAL BACKGROUND OF THE RESPONDENTS
OTHERS PROFFESSIONAL COLLEGE SCHOOL

4

3 13 2 18 1

29

40

62

INTERPRETATION: The above table shows the educational status of the respondents. Majority of the respondents are 40% are from College. 19% are from professionals and 13% are from others.

63

TABLE 4.5 ESTIMATING MONTHLY STATEMENT OF THE RESPONDENTS INCOME GROUP <5000 5001-10000 10001-15000 >15001 TOTAL NO. OF RESPONDENTS 12 31 22 35 100 % OF THE RESPONDENTS 12 31 22 35 100

CHART 4.5 ESTIMATING MONTHLY STATEMENT OF THE RESPONDENTS

NO. OF RESPONDENTS
INCOME GROUP <5000 5001-10000 10001-15000 >15001 TOTAL

64

INTERPRETATION: The above table shows the Income Group of the respondents. It tells that 42% of the respondents are having monthly income is in between Rs.1,000 - 15,000. 35% of the respondents are having monthly income are above Rs. 15,000. 21% of the respondents are having monthly income of Rs. 5,001- 10,000 and the least 12% of the respondents are below Rs. 5,000.

65

TABLE 4.6 ESTIMATING THE MONEY SPENT TO THE PRODUCT BY THE RESPONDENTS MONEY SPENT Rs. 5-10 Rs.11-20 Rs. 21-30 Rs. 31-40 RS. 40 & Above TOTAL 46 100 46 100 NO. OF RESPONDENTS 4 15 19 16 % OF RESPONDENTS 4 15 19 16

CHART 4.6 ESTIMATING THE MONEY SPENT TO THE PRODUCT BY THE RESPONDENTS
Series1 Series2 Series3 Series4 Series5

100% 100

46% 46 4% 0 MONEY SPENT 4 0 Rs. 5-10 19% 19 16% 16 15% 15 0 0 0 0 Rs.11-20 Rs. 21-30 Rs. 31-40 RS. 40 & Above

0 TOTAL

66

INTERPRETATION: This table signifies that 46% of the respondents are spending to buy the product for 40 & above, 19% of the respondents are spending for Rs. 21-30, 16% of the respondents are spending for Rs. 31-40, 15% of the respondents are spending for Rs. 11-20, 4% of respondents are spending for Rs.5-10.

67

TABLE4.7 ESTIMATING THE PREVIOUS USAGES MADE BY THE RESPONDENTS PREVIOUS PURCHASE YES NO TOTAL NO. OF THE RESPONDENTS 83 17 100 % OF THE RESPONDENTS 83 17 100

CHART 4.7 ESTIMATING THE PREVIOUS PURCHASES MADE BY THE RESPONDENTS
PREVIOUS PURCHASE YES NO TOTAL

100 100

17 83 0 1 2 3 4

0 5

83 6 7

68

INTERPRETATION: This table shows the previous usage of the product. It reveals that 83% are saying yes and 17% are saying No to the previous made by the respondents.

69

TABLE 4.8 ESTIMATING HOW LONG THE RESPONDENT IS USING THE PRODUCT NO. OF THE MONTHS 1 MONTH 2-3 MONTHS 4-6 MONTHS 1 YEAR ABOVE 1 YEAR TOTAL 54 100 54 100 6 19 6 19 10 10 RESPONDENTS 11 % OF THE RESPONDENTS 11

70

CHART 4.8 ESTIMATING HOW LONG THE RESPONDENT IS USING THE PRODUCT

Series1

Series2

Series3

Series4

Series5

Series6

TOTAL ABOVE 1 YEAR 1 YEAR 4-6 MONTHS 2-3 MONTHS 1 MONTH 19 19 66 10 10 11 11 54

100 54

100

MONTHS 0

INTERPRETATION: This table shows that on the basis of how long this product is being used by the respondents.54% of the respondents are belonging to the category above 1Year; followed 19% are belong to the 1Year, followed by 11% of the respondents are belong to the category of 1 Month, and least percentage of 10% are belonging to the category which lies between 4-6 months.

71

TABLE 4.9 ESTIMATING THE BRAND OF COLGATE TOOTHPASTE USED BY THE RESPONDENTS NO. OF THE BRAND COLGATE DENTAL CREAM COLGATE KIDS COLGATE HERBAL COLGATE CIBACA COLGATE ACTIVE TOTAL 28 5 10 5 52 100 28 5 10 5 52 100 RESPONDENTS % OF THE RESPONDENTS

CHART 4.9 ESTIMATING THE BRAND OF COLGATE TOOTHPASTE USED BY THE RESPONDENTS
120 100 80 60 40 20 0 1 2 3 4 5 6 7 COLGATE DENTAL CREAM COLGATE HERBAL COLGATE ACTIVE COLGATE KIDS COLGATE CIBACA TOTAL

72

INTERPRETATION: This table shows that the brand of Colgate toothpaste of which the respondents are using. It reveals that 52% of the respondents are using the Colgate Active, followed by 28% of the respondents are using Colgate Dental Cream, followed by 10% of the respondents are using Colgate Herbal, and the least percentage of 5% are belonging to the categories of Colgate Kids and Colgate Cibaca.

73

TABLE 4.10

ESTIMATING THE IMPORTANCE OF PURCHASE OF THIS PRODUCT BY THE RESPONDENTS NOT IMPORT ANT SOMEW HAT IMPORT ANT IMPORT ANT TOT AL

IMPORTAN CE OF PURCHASE

% Of Respondents
IN STORE ADVERTISEMEN T

40

30

30

100

ADVERTISEM ENTS SEEN OUTSIDE SHOPS MEMORIES OF THE TOOTHPASTE PURCHASE INFORMATION ON PACKAGING FAMILY OR FRIENDS PROFESSIONAL ADVICE

20

20

60

100

10

50

40

100

50 19 10

15 21 25

35 70 65

100 100 100

74

TABLE 4.10

ESTIMATING THE IMPORTANCE OF PURCHASE OF THIS PRODUCT BY THE RESPONDENTS

NOT IMPORTANT
IN STORE ADVERTISEMENT

ADVERTISEMENTS SEEN OUTSIDE SHOPS MEMORIES OF THE TOOTHPASTE PURCHASE INFORMATION ON PACKAGING FAMILY OR FRIENDS

INTERPRETATION: This above table clearly says that the calculated percentage value of importance of purchase. In that 40% of the respondents say that In Store Advertisements not Important but 59% are Somewhat Important and 29% are Important.

75

TABLE 4.11

ESTIMATING OF THE PURCHASING INFLUENCES OF THE COLGATE TOOTHPASTE BY THE RESPONDENTS

PURCHASING INFLUENCE PRICE WHITENS TEETH FAMILIAR BRAND REGULAR TYPE GET INSTEAD OF PASTE PACKAGING FOR SENSITIVE TEETH FRESHENS TOTAL

NO. OF RESPONDENTS 5 20 24 11

% OF THE RESPONDENTS 5 20 24 11

5 5

5 5

11 19 100

11 19 100

76

CHART 4.11

ESTIMATING OF THE PURCHASING INFLUENCES OF THE COLGATE TOOTHPASTE BY THE RESPONDENTS

100 90 80 70 60 50 40 30 20 10 0

INTERPRETATION: This above table reveals that influences the decision of family member of the respondent‟s purchase of Colgate Toothpaste. In that 24% of the respondents are purchasing due to Familiar Brand, 20% of the respondents are purchasing due to which Whitens Teeth, 19% of the respondents are purchasing due to Freshening of the teeth, 11% of the respondents say the purchasing of the product due to regular type and 5% of the respondents believes that they purchase due to the price, getting instead of paste and packaging.

77

TABLE 4.12 ESTIMATING THE SUITABLE PRODUCT PROMOTING FOR PROMOTIONAL ACTIVITIES SUITABLE PRODUCT RADIO TELEVISION NEWSPAPER OTHERS TOTAL NO. OF RESPONDENTS 5 72 12 11 100 % OF RESPONDENTS 5 72 12 11 100

CHART 4.12 ESTIMATING THE MEDUIM OF PRODUCT PURCHASED BY THE COLGATE TOOTHPASTE
EFFECTIVE MEDUIM NEWSPAPER 120 100 80 60 40 20 0 -20 0 1 2 12 11 5 0 3 4 5 11 72 5 0 6 12 100 7 100 72 RADIO OTHERS TELEVISION TOTAL

78

INTERPRETATION: This table reveals that which is suitable medium for promoting the promotional schemes. 72% of the respondents say it is due to Television, 12% of the respondents believe it due to Newspaper, 11% of the respondents‟ lies on others and 5% of the respondents are for Advertisement.

79

TABLE 4.13

ESTIMATING THE OFFERS MADE BY ANOTHER BRAND OF TOOTHPASTE PURCHASED BY THE RESPONDENTS

PROMOTIONAL SCHEMES BUY ONE GET ONE FREE PRICE REDUCTION LOYALTY POINTS ADDITIONAL OFFERS NONE OF THE OFFERS TOTAL

NO. OF RESPONDENTS

% OF RESPONDENTS

5

5%

57

57%

30

30%

3

3%

5 100

5% 100%

80

CHART 4.13

ESTIMATING THE OFFERS MADE BY ANOTHER BRAND OF TOOTHPASTE PURCHASD BY THE RESPONDENTS

OFFERS BY ANOTHER BRAND
BUY ONE GET ONE FREE LOYALTY POINTS NONE OF THE OFFERS 7 6 5 4 3 2 1 PRICE REDUCTION ADDITIONAL OFFERS

5%

57%

30%

3%

5%

5

57

30

3 5

INTERPRETATION: This table reveals that what kind of offers of the products purchase of another brand of the Toothpaste. 35% of the respondents do purchase this product due to Buy One Get One Free, 26% of the respondents do purchase this product of None of the Offers, 17% of the respondents says they buy this particular product due to Price Reduction, 13% of the respondents believes for Loyalty Points and 9% of the respondents reveals Additional Offers.

81

TABLE 4.14 ESTIMATING THE IMPACT CREATED BY THE SALES PROMOTINAL PRODUCTS BY THE RESPONDENTS

NO. OF IMPACT SWITCHING OVER ANOTHER BRAND INCREASE IN BUYING BEHAVIOUR NO CHANGE IN BUYING BEHAVIOUR TOTAL 33 100 52 23 RESPONDENTS

% OF RESPONDENTS

23

52

33 100

82

CHART 4.14

ESTIMATING THE IMPACT CREATED BY THE SALES PROMOTINAL PRODUCTS BY THE RESPONDENTS

60 40 20 0 1 2 3 4 5

6

7

8

IMPACT INCREASE IN BUYING BEHAVIOUR

SWITCHING OVER ANOTHER BRAND NO CHANGE IN BUYING BEHAVIOUR

INTERPRETATION: This table reveals that what type of impact does the sales promotional schemes on the products which create on the respondents. 52% of the respondents reveals that Increasing of the buying behaviour when the time of sales promotional offer. 33% of the respondents reveals that no change in buying behaviour and 23% of the respondents which makes the buying behaviour when the time of sales promotional offer.

83

TABLE 4.15 ESTIMATING THE LEVEL OF SATISFACTION OF BY THE RESPONDENTS SATISFACTION LEVEL HIGHLY SATISFIED SATISFIED DISSATISFIED TOTAL 18 72 10 100 18% 72% 10% 100% NO. OF RESPONDENTS % OF RESPONDENTS

CHART 4.15 ESTIMATING THE LEVEL OF SATISFACTION OF BY THE RESPONDENTS
100 80 60 40 20 0 1 2 3 4 5 SATISFIED 6

SATISFACTION LEVEL DISSATISFIED

HIGHLY SATISFIED TOTAL

84

INTERPRETATION: This table says that the level of satisfaction of the service provided by the respondents. 72% of the respondents are satisfied to the level of satisfaction, 18% of the respondents are highly satisfied to the level of satisfaction and 10% of the respondents are dissatisfied to the level of satisfaction.

85

TABLE 1.16 ESTIMATING THE SALES PROMOTIONAL ACTIVITIES WHICH MAKES THE RESPONDENTS TO BUY THE PARTICULAR PRODUCT

Highl Importance of purchase Highly Satisfied satisfied Moderat e Dissatisfie d y dis satisfi ed Tot al

% OF RESPONDENTS

AVAILABILITY

28

21

19

17

15

100

QUALITY

20 19 20 27 15 21 23

20 23 25 16 23 19 20

20 15 15 19 20 15 19

10 16 20 15 25 28 17

30 27 20 23 17 17 21

100 100 100 100 100 100 100

QUANTITY PRICE BRAND IMAGE OFFER DISCOUNT MEDICINAL VALUE

86

CHART1.16

ESTIMATING THE SALES PROMOTIONAL ACTIVITIES WHICH MAKES THE RESPONDENTS TO BUY THE PARTICULAR PRODUCT

AVAILABILITY

QUALITY QUANTITY PRICE BRAND IMAGE OFFER DISCOUNT MEDICINAL VALUE

INTERPRETATION: This table shows that the sales promotional activities which make the respondents to buy the particular product. 28% of the respondents say availability of the product, 23% of the respondents are satisfied with the quantity of the product, 20% of the respondents are moderate with the quality, 19% of the respondents are dissatisfied with the medicinal value and 17% of the respondents are highly dissatisfied with the brand image.

87

CHAPTER V FINDINGS, SUGGESTIONS & CONCLUSION
88

FINDINGS  This analysis shows that the majority of the respondents are spending more than Rs.40 to buy the product that is they buy the product with maximum quantity.  The customer will also buy the product based on previous purchase experience.  The analysis shows a close significance between the period of purchasing. Most of the respondents are using the product Above 1 year.  The analysis reveals that the close significant relationship between the period of purchasing of the respondents and the opinions about the purchasing of brand. Most of the respondents are using Colgate Dental Cream.  The analysis shows the close significant between the period of purchasing of the respondents and the terms of importance when purchasing Colgate Toothpaste. Most of the respondents reveal that In Store Advertisements are Somewhat Important Advertisements seen outside shops are important.  Advertisement is the most effective media for the product in the market which will cover majority of the viewer-ship. The second place shows the Public Relations is the most effective medium for the product in the market.
89

 Buy One Get One Free is the most kind of offers to the respondents‟ likely purchase another brand of toothpaste.  This analysis shows that close significant relationship between the period of purchasing of the respondents and the type of impact of the Sales Promotional schemes of products is that mostly reveals that increasing of the buying behaviour when the time of Sales Promotional offers.

 There exists a close significant relationship between the period of purchasing of the respondents and the level of satisfaction of the product.  A close significant relationship between the period of purchasing and recommend others to make the purchase of Colgate Toothpaste in Sales Promotional activities and the most of the respondents are agreeing to it.  Respondents are the people how they view the Sales Promotion activities of the Colgate Toothpaste. Most of the respondents are highly satisfied due to the good quality.

90

SUGGESTIONS
 Sales Promotion schemes are always attracts more consumers towards particular brand simultaneously; it gives the better idea about the factors which Consumers look most in the product before they make final decision.  Sales Promotion plays a major role to influences the buying decision of the Consumer. So the marketer can concentrates more on Sales Promotion.  Respondents are not much aware of all the schemes of Sales Promotion of which it increases in the buying behaviour of consumers. So the marketers try to increases and also try to improve the Sales Promotion awareness among the Consumers.

91

CONCLUSION:
As the study shows that the use of Sales Promotion has increased in marketing field. Almost all the companies offering similar schemes like Buy One Get One Free and Price Reductions. As a result now marketers have to find out some innovative ways of Sales Promotion to differentiate from Competitors. Currently Advertisements and Public Relations are the most effective medium for the product. There are various tools and techniques are used for promoting the products in marketing. Sales Promotional tools are not only used in order to directly generate sales, but also increase the sales of the products.

92

ANNEXURE

93

BIBLOGRAPHY

94

REFERENCE: WEBSITES:
www.wikipedia.org www.slideshare.com http://www.scribd.com/doc/ http://www.ukdissertations.com http://www.allprojectreports.com http://www.businessdictionary.com/definition/ http://arabianjbmr.com http://innovindia.blogspot.in http://www.ifrnd.org http://faculty.insead.edu/index_v1.htm

95

BOOKS:
Kathiresan Dr. radha, Marketing, edition 2000 Dr. L. Natarajan, Marketing Rajan Nair, Sanjith R. Nair, Marketing Management Philip kotler, Marketing Management Joel R. Evans, Barry Berman, Marketing Management J. Jayasankar, Marketing P. Saravanavel and S. Sumathi, Advertising and Salesmanship

96

Dear Sir/ Madam, I am Divya Chandra .Y Pursuing M.Com II Year in “Bhaktavatsalam Memorial College for Women Korattur, Chennai-600080”, doing my project on “Consumer Behaviour towards Sales Promotion on Colgate Toothpaste- A study in selected areas in Chennai.” So kindly spare your valuable time in responding to the questionnaire which would help me to conduct my project in time. QUESTIONNAIRE 1. PERSONAL INFORMATION: a. Name b. Sex c. Age Group : : :  Male  10-20  31-40 d. Marital status e. Educational Status Others Occupational f. Income Group : : : :  <5000  >15001 2. How much money have you spent to buy the product?  Rs. 5-10  Rs.11-20  Rs.21-30  Rs.31-40  Rs. 40 & Above  5001-10000  10001-15000  Single

 Female  21-30  41 and Above  Married
 College 

School

Professional 

3. Have you ever used previously Colgate Toothpaste?  Yes  No

4. How long you are using the product?  1 Month  2-3 Months  4-6 Months  1 Year  Above 1 Year

5. Is this the same brand of products used by your family?  Yes  No
97

6. How many times do you brush your teeth in a day?  Once  Twice  Thrice

7. Which brand of Colgate Toothpaste do you use?  Colgate Dental Cream  Colgate Kids  Colgate Cibaca  Colgate Active

 Colgate Herbal

8. Please rate the following sources of information in terms of importance when purchasing Colgate Toothpaste?

Particulars

Not Important Somewhat Important Important

In Store Advertisements

Advertisements seen outside of shops Memories of the toothpaste purchase Information on Packaging

Family or Friends

Professional advice i.e., Dentist or Doctor

98

9. When purchasing Colgate Toothpaste which influences your decision?  Type   Get instead of Paste Freshens Packaging  For Sensitive Teeth Price  Whitens Teeth  Familiar Brand  Regular

10. Which is the most effective medium for the product?   Advertisement Personal Selling  Public Relations  Internet  Publicity

11. Which medium do you feel it is suitable for promoting the various promotional schemes?  Radio  Television  Newspaper  Others

12. What kind of offers would you most likely make you purchase another brand of toothpaste?  Buy One Get One Free Price Reduction  Loyalty Points  Additional

Offers  None of the Offers

13. Do you plan to purchase this product even in future?  Yes  No  Maybe

14. What type of impact does the sales promotional schemes on products creates on you?    Makes you switch over to particular brand Increase the buying behaviour when the time of sales promotional offer. No change in buying behaviour.

99

15. If you get an attractive promotional offer. That is other than your choice. Will you switch over to?  Yes  No

16. Is it really the Sales Promotional offer which increases the buying behaviour of Consumers?  Yes  No

17. Will you have any positive reaction to Sales Promotion?   Yes Always  No  Sometimes  Often

18. Intimate your level of satisfaction of the service provided?  High Satisfied  Satisfied  Dissatisfied

19. Will you recommend others to make the purchase of Colgate Toothpaste in Sales Promotional activities?  Yes  No

20. What are the Sales Promotional activities which made you to buy the particular product?

Particulars

Highly Satisfied

Satisfied

Moderate

Dissatisfied

Highly Dissatisfied

Availability Quality Quantity Price Brand Image Offer
100

Discount Medicinal value

101