INTRODUCTION

As early as 3000 B.C. Egyptians used toothbrushes fashioned from twigs. In the 20th century a major design ad ance occurred in !"3# with the launch of $r. %est&s 'iracle (uft toothbrush) the first nylon bristle brush. *ntil the late !"+0&s toothbrushes were widely iewed by consumer as a commodity and were primarily purchases on price. (he in ol ement remained low and the companies also treated their toothbrushes as an e,tension) to get their consumers to use their toothpastes. (ypically in the Indian mar-et the percentage of toothbrush users has slowly inched upwards. As it has always been associated by the non.users as a non.essential item more so because of their fierce loyalty to the margosa twigg/$atun0 and the inde, finger. (he mar-et of late has been the entry of se eral foreign players and the mar-eting game has assumed a totally new dimension. Companies are trying to shift to 12*334 strategy of long term returns and the inclination of consumers to shell out a few rupees e,tra to ensure a more wholesome care of their teeth and gum. (his has resulted in rapid growth in alue terms. Added to this is the initiati e of the companies to focus on e,panding the mar-et by bringing the o er 567 non.users in their consumer fold. %ith such ast potential to be e,ploited) the entry of se eral new players with their inno ati e ideas and e,perience in similar de eloping mar-ets) the industry is li-ely to see a lot of action in the immediate future.

. e,e i

OBJECTIVE
(he abo e of the project was manifold. 8irst of all a general idea of the toothbrush industry . its competiti eness) olume and potential was to be adjudged. 9e,t was to go on to analysis of the attitudes of a typical consumer and his:her idea:perception of this low in ol ement category product. (his was to be followed up with the study of Colgate 2lus toothbrush) as a typical product of the company) Colgate 2almoli e and its standing in the mar-et is.;. is other players) especially new entrants. (o amalgamate all abo e to conclude as to what was to be the future:probable course of the toothbrush industry and Colgate 2lus tooth brush in particular.

METHODOLOGY
!. (o get an idea of the industry) I went through all the rele ant literature we could lay my hands upon. (his included A < '&s) Business (oday&s. 2. 8or consumer attitudes) I prepared a =uestionnaire that was circulated among +0 odd people) well spread out across the whole of 'umbai. (he same was done with the retailers to try and see the conformity in findings in some specific attributes. 3. (he =uestionnaire was to structured that an idea of brand image and relati e studying of arious brand could also be elicited. >. (he findings were synthesi?ed) and -eeping in mind the new entrants) their potential and the potential of the mar-et) projections were made and conclusions were drawn.

COMPANY PROFILE
A household name for paste and tooth powder) Colgate 2almoli e /India0 was established on 23rd @eptember !"3+ as a pri ate limited company in Bombay) as a wholly owned subsidiary of Colgate 2almoli e Co. Af *@A Initially it started with trading acti ity and later set up manufacturing operations in !">" at @ewry /Bombay0. (he company became a public limited company on 6th Actober !"+#. In !""0."! the company commissioned

facilities for fatty acid and toilet soap at %aluj /Aurangabad0. (he plants at @ewri and %aluj manufacture oral care products li-e dental creams) tooth powder tooth brushes and personal care products li-e toilet soaps) shampoo) which are mar-eted under arious brand names such as Colgate) 2almoli e) Balo) 2rote, and Charmis. (he company&s distribution networ- co ers !+00 stoc-ists and >)60)000 retailers with ware house facilities in 'umbai) Calcutta) $elhi) Byderabad) 3uc-now and 'adras / and a new addition at 8aridabad0. (he company has its own Cesearch and de elopment facilities and had also been getting the C<$ benefits of the parent company. It has a well established =uality Control $epartment at @ewri < %aluj. 8or >0 years) since inception till !"+#) Colgate was carrying on its business in India with a paid up capital of Cs. !.6 la-h made up of !600 e=uity shares of Cs. !00 each) when it was increases to Cs. !."5 crore) by a bonus issue in the ratio of !30D!. (o comply with the 8ECA regulations) Colgate 2almoli e) *@A diluted

its share holding to >07 in the Indian company) through an offer of sale to the Indian public in Actober !"+#. 8ollowing 8ECA rela,ation) the foreign

shareholding was increased from >07 to 6!7 in @eptember !""3. Colgate 2almoli e /C20 is a global leader in household and personal care products. In !""!) it had sales of E 5.05 billion and a gross profit of E 2.+5 billion) its world wide C<$ e,penditures were E !!> million and media ad ertising e,penditure totalled E >2# million. Colgate 2almoli e&s fi e year plan for !""! to !""6 emphasi?ed new product launches and entry into new Feographic mar-ets) along with impro ed efficiencies in manufacturing and distribution and a continuing focus on core consumer products. In !"2! E 2>3 million was spend to upgrade 26 of Colgate 2almoli e&s "! manufacturing plants) 2+6 new products were introduced world.wideG se eral strategic ac=uisitions /e.g. of the 'ennen men&s toiletries company0 were completed and manufacturing began in China and Eastern Europe. @ince !"#6) gross margins had climbed from 3"7 to >67 while annual olume growth since !"#5 had a eraged 67 International sales Colgate 2almoli e&s strong unit) accounted for 5>7 of sales and 57 of profits in !""!.

COMPANY STRATEGY - ORAL CARE AND TOOTHBRUSH INDUSTRY IN PARTICULAR

1Holume is the -ey4 says Cichard *su=uen) H2 'ar-eting Colgate 2almoli e /India0 3td. (o e,pand the mar-et in all ranges) C2 has an ongoing C*CA3 HA9 2CAFCA''E and @CBAA3 2CAFCA''E co ering !> million illages and #0 million consumers) teaching people brush or e en clean their teeth with the fingers. C2&s action centring around finely balancing the urban mar-et . /6".670 and rural mar-ets /5#7 share0 . @o while the company has introduced such premium pac-aging as stand up toothpaste tubes with flip.up caps in the urban mar-et) it is also selling sachets of Colgate dental cream at low prices. (his focus on olumes is also e ident in the toothbrush mar-et) estimated at >00 million units per annum. C.2 is the toothbrush leader in India with an appro,imately 507 mar-et share) but since I"6 it is facing challenges from B33 which has already garnered #7 mar-et share. *su=uen says 1(he penetration of brushes in India is ery low) so more than mar-et share) it is important to grow the mar-et4. (o that end C2 has acti ely introduced line e,tensions across all three segments . economy) middle and premium since last year. At the entry le el it has adopted the slee e pac-aging) with no indi idual cases. (he focus is on dri ing olumes through

the price.sensiti e segment. (he mid.price mar-et has been the introduction of the BIFB J3EE9 range) while the upper end has seen the ?ig . ?ag and $ouble . Action launches. 8or the economy segment) a price focus has been adopted. An offer are fi e toothbrushes each from the C2 and Cibacca stables to rural consumers) at prices low enough to generate trial. 8or the urban mar-et) the focus is on maintaining no elty alue by introducing new ariants and added features. 1%hate er is new) people buy. @o the idea is to accelerate choice through a ariety of product features4. C2&s perception of the Indian mar-et is of one where people welcome change but clamour for high end products at cheaply prices. (he answer to this conundrum as per the company&s strategy is to 1..... Aptimise cost and formulation and the proceses and come up with efficient manufacturing to answer this 1. C2&s strategy is to pour in a lot of in estment in the Indian mar-et in terms of capital e,penditure and

organi?ational support and each out to the deepest interiors.

SEGMENTATION
(he toothbrush industry can be regarded as a component of the Aral Care industry which broadly comprises tooth paste) mouth wash and floss) besides

tooth brushes and a large unorgani?ed naturally a ailable cleaning mediums i?. Inde, 8inger) 9eem twigs etc. But Colgate 2lus need not to bothered about latter as it operates in a different category. (he tooth brush industry can be segmented in the basis of social class < income group /$emographic @egmentation 0) price /2roduct segmentation0) benefit /beha ioural segmentation0) the last being the most important.

DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE

@egment Category Brands 2romise) Cibaca Characteristic 3oo-ing for low price

3ow income rural Economy class 'iddle consumer *pper income consumers *pper class urban @uper sophisticate 2remium middle 2remium urban income @tandard

Colgate

Classic

Halue for money

group semi urban

2epsodent popular

Colgate

2lus) Bigh =uality cleaning efficiency

Classic) Ajay) Coyal

Aral B) A=uafresh) *ni=ue) Kordan) Close *p dentists

attribute)

recommendation (he last two categories merge) since Colgate 2lus is intelligently positioned in between the two to maintain a high =uality in age as well as encourage switches from standard category to up grade

PSYCHOGRAPHICS
8

Hariations in 2roduct

Ka??y loo-s) (ransparent handle 8lashy colours @uperior 2ac-ing

@impleton loo-s) 'odest pac-aging) @olid colours

'i, of the two D transparent handle but not ery flash pac-aging.

*rban sophisticate

Chooses with care) sports it as a status symbol while interacting in group tra els

Abhors

Abhors

@emi urban 9on Chalant *ser

Aspires for it) but finds it difficult to affordG tries it seldom

Hery often goes for this as it ser es is purpose without much e,penditure

@ome times this

Cural *ser

$oes not ha e of

Is the only option

Fenerally can&t afford this either

access:can&t thin- $atun

(ooth brushes brands

Aral B) Kordan) A=ua fresh etc.

2romise) 8orhans Cibaca) Ajanta) etc. Ajay etc.

(he o erall response reflects a gradual mo e 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 /e,cept the rural user who are a small minority of the 'ar-et0 to try out the ones that are places at a higher price on account of their trendy loo-s and o erall appeal of style and splendor.

BENEFIT SEGMENTATION
*ser Characteristic In alid oral health In ol ed consumer (herapeutic Brushers 2roduct $ifferentiater @earch functionally superior with attributes. Ad ertising appeal 2ut hardsell dentist recommendation or opinion Buying beha iour informed off oral *nin ol ed Aral

health Consumer Bealth Consumer Cosmetic Brushers @earch product 9on.chalant Brushers for Hiews products

that as same 3ac- of interest

product effecti ely many deli ers cosmetic benefits by Influenced

by Celati ely unaware of ads

2refers promotion)

hammering on a can at most be *@2 influenced price by offs)

pac-age deals

Buys for himself) Buys and uses Buys for family.) will go to a for himself. %ill will pic- up any

specialised store

not go beyond a brand a ailable. large shop)

supermar-et Cegularity of Brushes after Brushes mostly At most once a

10

usage

e ery meal

once) sometimes day twice

Brand loyalty

Bigh

3ow !6.20

9il M!2:0=

2rice /%illing to L20 pay0 'ajor Brands

Kordan) Aral . b Colgate Indicator 2epsodent 2erfect

2lus) Colgate) Classic) Cibaca) promise

11

TARGETING
Colgate plus has been intelligently targeted at the upper middle class) towards the lower end of 2remium : super 2remium category to not only ta-e ad antage of growing consumer affordability but also to pro ide a pull factor to family user in standard:popular category to upgrade to higher =uality Colgate 2lus. An implicit assumption about the large segment is that it is decently educated) hygienic conscious and -eenly discerning about the cleaning efficiency of the toothbrush used. (hey primarily li e in metros) urban areas) big towns) and ha e a good standard of li ing. At the time of its launch in !"#+) Colgate 2lus was the first indigenously manufactured toothbrush in premium segment. Company claims) it built this segment single handily and ob iously has the first mo er ad antage e,emplified by its 9o.! position despite the onslaught of ariety of premium brands from abroad. Colgate belie ed that with rising income < increasing westernisation) it could upgrade the toothbrush mar-et and consumer could be willing to pay a few rupees more for a =uality product.

12

DIFFERENTIATION & POSITIONING

In the toothbrush mar-et which is hea ily cluttered both in terms of brand arieties and corresponding messages and constant hammering of almost similar *@2&s it is ery difficult to differentiate and position a product as mundane as a tooth brush in the consumers mind to persuade him to become a loyal user. Positioning in tooth !"sh #$!%&t 'on& $t ($!io"s )&(&)s 2CA$*C( D $esign differentiation li-e angular nec-) dolled rubber grip)

rigged edges and design of bristles) con enient head shaper etc. (hese wor- only in upper segment) which is willing to pay a premium for added attributes. Colgate 2lus has a uni=ue diamond shaped head < soft outer bristles. 2ACJAFI9F DCardboard cartons) transparent blisters) hanger shaped

hoo-s) coffin pac-ing /storing when not in use0. In a blister pac-) pac-aging ma-es up to >07 of cost. Colgate 2lus comes in transparent blister pac- with a hanger shape hoo-. 2CICE D By super premium pricing one can gi e a perception or aura of technical superiority:high =uality to a brush Kordan) Aral . B) Close *p Contact ha e followed this route. Ar one could ta-e alue for money route to target large families and hea y user economy pricing for mar-et penetration especially in rural mar-ets. Colgate plus has positioned itself in lower end of super premium category.

13

CECA''E9$A(IA9 : CE3IABI3I(N D Aral . B has its *@2 as the tooth brush most dentists world wide use < recommend . Ane could go for celebrity endorsement in cosmetic segment but its not at all an effecti e strategy in a low in ol ement product li-e 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. 2ositioning Colgate 2lus as a higher =uality product in the Professional segment was an intelligent mo e as it pre ented cannibali?ation of its other brands li-e Colgate Classic.

BRANDING
Colgate is a brand ha ing a cult following. It world wide reach and association with dental health has made it a brand associated with a caring attitude) pro iding =uality oral care to masses at an affordable price. Colgate is 9o. ! brand in Indian 'ar-et the three consecuti e sur eys by A < ' maga?ine. @o) while launching the new toothbrush) it was imperati e to -eep 1Colgate4 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 1diamond head4 was introduced) it was ideally decided upon a name that promised to deli er something e,tra) additi e) etc. 12lus4 was thus added on.

14

MAR*ETING MI+
PRODUCT
2roduct is anything that can be offered to a mar-et for attention) ac=uisition) use or consumption that might satisfy a need or want. (he product can be loo-ed at fi e le elsD (he Core product is the essential ser ice that the buyer is buying. In this case it is Aral care. (he Generic product is toothbrush. (he Expected product is a set of attributes that the buyer e,pects to get.: in this case being) efficiency of cleaning) thoroughness in cleaning and care of gums. Augmented Product is that what is pro ided by the seller beyond the e,pected product attributes i.e. those attributes that see- to distinguish the product from others in its category. Colgate 2lus 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 $ental Association as its *@2&s. Potential Product refers to set of possible new features that might e entually be added to the product being offered. (oothbrush as a product does not

15

offer much scope beyond changes in design and material: shape of bristles. $esign changes are usually made on grounds of aesthetics) handling and efficiency in cleaning. Colgate 2lus has recently introduced Colgate 2lus Oig Oag on the grounds of efficiency in cleaning.

So#& ,!o'"-t 'i..&!&nti$t&s in th& in'"st!/ $!& 0

2epsodent 2opular . the @=uiggle between the head and the handle is fle,ible and stand along structure. Kordan 'agic . the colour changes to indicate when you ha e brushed enough. Close.*p Confident access. Aral . B .blue tuft as indicator which loses colour as bristles harden with use. .a thic- handle with a shall head gi ing better

PAC*AGING1
2ac-aging pro ides one with means and scope of differentiating in relati ely homogenous product mar-et. 2ac-s ha e graduated from cardboard cartons to blister pac-s to let the consumer pic- the colour of his choice. @ome li-e 2epsodent 2erfect and Colgate 2lus) come in hanger shaped hoo-s on the

16

blister pac-s because most small si?ed retail outlets lac- the shelf space re=uired to dangle peg.rac-s. (he pricing depends a lot on the pac-aging and ad ertising. In a blister pac-). (he product ma-es up 507 of the cost) pac-aging the rest. A coffin pac-) where the brush can be -ept bac- after use) inflates the pac-aging cost. %hile these Ihygiene pac-s& do pre ent the toothbrush from accumulating dust) they end up with a double layer of pac-ing) the outer one indicating mandatory product details.

M$2o! O,&!$to!s in th& P!&#i"# Tooth !"sh 3S&g#&nt

2roduct:'an ufacturer Aral Indicator /Fillette0 B Indicator Bristles (ells when change toothbrush Ceach /Kohnson Kohnson&s0 Angled nec-) Cleans e en @limmed < raised rubber hardest ridges handle Colgate 2lus $iamond Ceaches *ni=ue Because your
17

8eature

Benefit

Ceason

(agline

you Blue to fades the way

band (he

brand

half most dentists use

8eel

the

to down tapered difference head

on reach places

/Colgate 2almoli e0

Bead) outer hard bristles

@oft inner cre ices diamond

smile

was

and of the mouth) shaped head meant to last inner gentle gums) comfort efficacy and to /narrow front0 in a lifetime

A=uafresh 8le, /@mithJline Beecham0

2ressure sensiti e s=uiggle nec-) dotted

2re ents gum 8le,es as you 8or irrigation brush

gentle

to dental care

absorb e,tra pressure

rubber grip

18

PLACE
A mar-eting channel performs the wor- of mo ing goods from producers to consumers. It o ercomes the time) place and possession gaps that separate goods from those who want them. (he decisions regarding distribution channels are a ery crucial part of the mar-eting of 8ast 'o ing Consumer Foods /8'CFs0 more so because of tooth brush being a low price product with negligible brand loyalty) no Consumer would be willing to wal- more than 2 -m to procure a tooth brush and would accept) without much hesitation) any toothbrush thrust upon him by the shop-eeper. @o the mar-ets has to ma-e e,tra efforts to ensure easy a ailability of this low in ol ement product) which is no easy tas- in a country of the si?e < di ersity as that of India. Channel decisions ha e important implications for other elements in mar-eting mi,. Colgate 2almoli e had to design a distribution strategy which would best attain following channel objecti es. Achie ement of greatest possible co erage of the target mar-et Ensuring that the consumer can easily procure the toothbrush /*nder no conditions stoc- out can be allowed.0

19

'aintaining mutually beneficial relationship with the retailers since tooth brush is basically push mar-eted.

PROMOTION
(he discussion of mar-eting mi, elements cannot be complete without analy?ing the promotional strategy of the company. In a low in estment category) where there is hardly any indi idual who can call himself 1brand loyal& and most of them happy with whate er toothbrush they can lay their hands on) without caring too much about price) a mar-eting effort to ensure an optimum push and pull combination and an impact presence in the consumers mental frame is a must. Bowe er) because of the callous attitude with which consumers purchase a tooth brush) too much mar-eting effort in one direction or some particular defined directions without immediate appraisal does not ma-e sense) more so because of the low turno er to promotional e,penses. It simply does not ma-e sense to spend 207 e,tra on promotion to gain 0.27 e,tra mar-et share. In iew of the abo e. Colgate 2lus has been ery selecti e about its campaign and has mo ed between mediums ery slowly. A'(&!tising C$#,$ign Colgate 2lus launched in the *.@. in !"#6) was introduced in India in !"#+ and was among the ery few players in the premium segment. 1Colgate4

20

brand name was capitali?ed upon

with the diamond shaped head being

shown as the Ihero& in oral care and all set to ta-e on the toothbrush mar-et. As competition intensified it shifted its focus on softness and comfortable feeling with efficiency in cleaning pla=ue. (he ad ertisements were screened on $oordarshan and in leading maga?ines. (hey were targeted to the family as a whole) ery much li-e the strategy for other Colgate products. (he focus gradually shifted to soft outer bristles and hard inner bristled to ensure a caring approach to gums and meticulous cleaning. (he tagline used was 1 . . . Because your smile was meant to last a lifetime4. (here was parallel thrust on $entist Accreditation which successfully translated into Colgate 2lus beginning to appear on dentist prescriptions. Bowe er in the face of intense competition) no large scale endorsement by e ent or personality was sought for and Colgate 2almoli e continued to target the family as it -ept on doing with its toothpaste. (hroughout its ad ertising strategy planning Colgate 2almoli e relied nonprofessionals by D4Cedifussion4. S$)&s P!o#otion !. 2A2 D (he company pro ided danglers) small posters and agencies. (he account is currently handled

hoo-ed:dispenser pac-ing to its retailers. (hese were particularly splashed across retail outlets during the discount periods with 1Ced <

21

Nellow4 colour combinations to ensure high rate of impulse purchases. Bowe er) besides the discount offers) no other 2A2 display means made much of an impact in terms of increase in sales. 2. Bealth 'ela D Colgate 2almoli e organi?es a INoung India $ental Bealth melas in select cities where free chec- ups and free sample distributions of toothpaste and toothbrushes are done. (his aims at achie ing a three pronged strategy of Increasing dental care consciousness to create a good brand recall of Colgate oral care products to increase the company&s image as a socially responsible entity.

3. Jeeps India smiling . Ad campaign D In a brea- from its earlier attitude of only ascribing to its oral care image. Colgate joined the list of companies basing their campaigns on the 60 years of independence. (hey launched a 1Hande 'ataram4 series of campaigns with people from all wal- of life coming and sharing their e,periences on how the times ha e changed for the better following it up with 1Hande 'ataram4. (he small snippet was followed up with Colgate being flashed in the form of a smiling face) emphasi?ing both its attachment with the growth and de elopment of the 9ation and its contribution in -eeping India smiling for the last 60 years

22

thus stri-ing both an intellectual and emotional chord. (he snippets were strategically screened in -ey media slots. >. @ponsorships D (hough Colgate oral care products ha e not been has often

witnessed to promote any large scale e ents) Colgate

associated itself with (H serials based on social and family themes e.g.) Bumlog and Buniyaad . thus re.emphasi?ing their positioning as a family products. (hough not all of the abo e specifically emphasi?ed the promotion of Colgate 2lus toothbrushes) they are conclusi e image building e,ercises for the

company as a whole and aimed at highlighting its supremacy and commitment to the Ioral care sector&. As such it automatically translated into an image building e,ercise for the toothbrush category as well. Colgate 2lus was distributed free with the @eptember D issue of the filmfare maga?ines.

23

PRICING
Fenerally the most important of all the 2&@ in a de eloping country li-e India where semi.urban and rural population constitutes) a massi e portion of the total mar-et) has to be decided upon after contemplating on all the aspects related to the mar-et and the product itself. 8or a product li-e toothbrush) the major cost is that of pac-aging /about >07 of total0) the rest being spread o er the bristles) the nic-el sil er wire holding the tufts in place and on the body of the brush. (he prices of toothbrushes ha e ta-en a =uantum leap. (he costliest toothbrush in !"#5 was Cs. >:. which is today in the range of Cs. 26:.. (hus we ha e seem a major jump in alue sales is.;. is olume sales.

Colgate 2lus when it was launched in !"#+) was introduced as a champion product to become the Ihero& of the toothbrush mar-et meant to I-eep your smile fore er&. It promised to deli er more than the rest and was priced accordingly and soon became a major player in the mar-et. At that time it was playing against IKordan& and ICoyal&) both of which were being imported. Fradually as the mar-et e,panded) with the se eral new players coming in) Colgate 2lus continued to be the top most brand of the players till Aral . B) A=uafresh) 8orhans Fala,y came in . @o right now Colgate 2lus priced at Cs. !#:. is behind Close *p Confident /Cs. !".+6:.0) oral. B /Cs. 20:.0 8orhans

24

Fala,y /Cs. 22:.0 and A=uafresh /Cs. 26:.0. As such it is at the bottom le el of the @uper 2remium segment along with Kohnson&s Ceach /Cs. !#:.0 Kordan /Cs. !":.0) 8orhans Oest /Cs. !#:.0 trying to deli er more alue for money. %hile the present strategy -eeps Colgate 2lus /all three.sensiti e) adult and ?ig.?ag0 at a penetrati e pricing as regards to Aral.B) A=uafresh 8le, and 8orhans Fala,y) it gets and ad antage of superior oral care image is.;. is the other brands in the same price brand. (he strategy can be said to be wor-ing well as Colgate 2lus) as of today is the mar-et leader both in terms of olume and alue share.

25

S4OT ANALYSIS
STRENGTHS !. Colgate continues to be the number one brand in consumer perception as per A< ' sur ey of the last four years. 2. Colgate products are percei ed as a champion of the oral.card industry. 3. Ad antage of better penetration) and better presence in the consumers mental faculties. >. 'assi e retailer networ- and strong supply base. 6. Image of a Icompany committed to complete dental care of the whole family&. 5. 'ar-et growth of more than 267 in alue terms. 4EA*NESSES !. 3ac-s the uni ersal appeal and accreditation of world wide players li-e ACA3.B) AP*A.8CE@B etc. 2. Bas not been able to penetrate the rural segment in olume terms. 3. 9o regular system of feedbac- or appraisal of the sale status of is toothbrush. >. 'ar-et growth of !07 in olume terms. OPPORTUNITIES

26

!. Any I2*@B& can be easily and =uic-ly affected n account of its widespread presence. 2. $oing a I9IC'A& to the toothbrush mar-et is something Colgate is =uite capable of ) gi en the base and ision that the company commands. 3. In estment into C<$ and the sales campaign so as to effect a strong long term pull can transform the nature of the mar-et completely as not one has acted in this direction so far. >. %ith the a erage semi.urban:urban consumer ready to shell out this e,tra buc-s it pays to go n for technological inno ations and addition of utilities to this low in ol ement product which has to so far been centered only around cleaning of teeth. THREATS !. 8oreign brands li-e AP*A.8CE@B) ACA3.B) KAC$A9) etc are trying to ta-e the course of the mar-et to different dimensions. 2. (he low margins being offered might go against the prospects of Colgate plus in case some player in the lower segment starts offering high margins. 3. 3ow In ol ement category and poor brand loyalty . susceptible to sudden large scale switching in a ery short span of time.

27

SURVEY FINDINGS

CONSUMER SURVEY
FEATURES !. 9o. of respondents 2. Areas co ered D D 5+ $efence Colon) Jhan 'ar-et) @outh A enue) 9orth Campus) @arojini 9agar 3. 9ature of @ur ey >. Abjecti e D D @tructure Puestionnaire !. (o analy?e brushing habits and associated attributes of the general populace. 2. Fet a feedbac- from the Colgate 2lus users. 6. 3imitations D As only well to do families:people were accessed) the findings are e,pected to be as-ed to the premium and the super premium segment.

28

FINDINGS RESPONSE As- by name bought person @8 ?8 >8 =8 <8 ;8 :8 98 8 As% / !$n' n$#& o"ght it in ,&!son it MALES 567 FEMALES 567 +0.# TOTAL 567 52.#

brand 6+.5

in +3.3

+6.0

+0.>

29

eagerness spend Cs. 6.!0 Cs. !0.!6 Cs. !6.20 L Cs. 20

to

2".0 >!." 26.# 3.0

0.0 2".2 >6.# 26.0

22.6 >0.0 30.0 +.6

=8 <= <8 ;= ;8 := :8 9= 98 = 8

RsA =-98

RsA 98-9=

RsA 9=-:8

B RsA :8

30

A@CCIBE$ (A 9o reason specific 6".> 33.3 60.0

word of mouth impressed ad t. shop-eeper insisted dentists ad ice

!6.5

!5.+ 20.#

!".! !!."

with ".3

!6.5

20.#

!>.3

5.3

#.3

>.#

>8 =8 <8 ;8 :8 98 8
No s,&-i.i!&$son Co!' o. #o"th i#,!&ss&' Cith $'(tA sho,%&&,&! insist&' '&ntists $'(i-&

31

CE23ACE'E9( 8CEP*E9CN 0.! 'A9(B@ !.2 'A9(B@ 2.3 'A9(B@ 3.> 'A9(B@ L > 'A9(B@ 23.6 25.6 23.6 23.6 2." !2.6 2".2 2".2 !5.+ !5.+ !+.> 2#.3 30.> !".5 >.3

8-9 MONTHS

:-; MONTHS

9-: MONTHS

;-< MONTHS

B< MONTHS

;= ;8 := :8 9= 98 = 8

32

8CEP. BC*@BI9F

A8

Ance /per day0 (wice after e ery meal 9ot particular

60.0 >>.2 2."

2#.0 5#.0 >.0 0.0

>5.+ >5.# 2.2 2.2

ery 2."

?8 >8 =8 <8 ;8 :8 98 8 MALE 567 FEMALE 567 TOTAL 567

33

pressed with Ad ertisement NE@ 9A !!.! ##." 22.2 +#.0 !2." #+.!

D8 @8 ?8 >8 =8 <8 ;8 :8 98 8

YES NO

MALE

FEMALE

TOTAL

34

RELATIVE IMPORTANCE OF ATTRIBUTES 'A3E@ 2CICE 2ACJAFI9F $*CABI3I(N 3A9F BA9$3E 83EQIB3E 9ECJ CA'8N. A9F3E @A8( BCI@(3E@ 3AAJ@ $IA'A9$ BEA$ FCI2 I9$ICA(AC 52.+ >0.2 +>.6 6!." 62." 5#.5 +#.> >5.! 35.3 6#.# 2#.> 8E'A3E@ 6+.3 >".3 +>.+ 50.0 50.0 +#.+ #5.+ >0.0 >!.3 5#.0 >!.3 (A(A3 5!.2 >>.5 +6.> 6+.0 6+.! +3.+ #2." >>. 3#." 53.> 3>.3 CA9J 6 # 2 5 5 3 ! " !0 > !!

35

RAN*

TOTAL

FEMALES

MALES

:8

<8

>8

@8

988

36

COLGATE PLUS USERS RESPONSE

M$)&s . Foo d Puality Access Halue:pri ce 3oyalty !+ "0 >2 Nes. 3 Fod Can&t say !0 . #

F&#$)&s . Foo d >0 "+.6 50 Nes. 3 Fod Can&t say . 2.6 + .

Tot$) . Foo d 2!.6 "6.6 6! Nes .3 Fod Can&t say !3 >.6 !+ .

+3 !0 60 9o. "+

50 . 23 9o. "+

56.6 . 32 9o ."+

988 D8 @8 ?8 >8 =8 <8 ;8 :8 98 8 E"$)it/ A--&ss V$)"&F,!i-& Lo/$)t/

37

FURTHER FINDINGS BCA9$@ CA3FA(E 23*@ CIBACA ACA3.B C3A@E.*2 2E2@A$E9( 2A2*3AC KAC$A9 A(BEC@ 2ECCE9(AFE 30."5 !>.2# !5.55 ".62 +.!> ".62 !!."0

CLOSE-UP

BRANDS

JORDAN
38

;= ;8 := :8 9= 98 = 8 CIBACA

BRAND RECALL BCA9$@ CA3FA(E 23*@ 2E2@A$E9( 2A2*3AC CIBACA ACA3.B AP*A.8CE@B AKA9(A A(BEC@ 2ECCE9(AFE 20.>+ !!.02 !0.2> ".6> +.6" +.0" 2#.36

;8 := :8 9= 98 = 8

BRANDS COLGATE PLUS PEPSODENT POPULAR CIBACA ORAL-B AEUA-FRESH

Anly about 67 of the respondents could not remember which toothbrush they were presently using which were e,cluded from the abo e computing.

AJANTA

39

RETAILERGS SURVEY
FEATURES !. 9o. of Cespondents 2. Areas co ered D D 20 $efence Colony) @outh A enue) Jhan 'ar-et) 9orth Campus) @arojini 9agar 3. 9ature of sur ey >. Abjecti e D D @tructured Puestionnaire a0 (o gather the respond to new entrants is.;. is Colgate 2lus as percei ed by retailers. B0 Cetailers fa orite brand/s0 'argins offered 6. 3imitations D Fi en the areas co ered) the response was bound to be as-ed in fa our of the upper class users. FINDINGS AA A($i)$ i)it/ Easy D Classic) A=ua.8resh) Aral.B)

2epsodent) Colgate 2lus 9ot Easy D Coyal) 2rudent. BA S$)&s Bigh D Colgate 2lus) Cibaca) Classic) 8orhans) Cibaca) Kordan)

40

2epsodent) Aral.B @atisfactory D Close.up) Ajanta) Ajay) Kordan) A=ua. 8resh CA P!o.it M$!gins Bighest Bigh 'edium 3ow H High&st M$!gin 1 ;=-<86 D D D D Classic) Coyal Kordan Aral.B) A=ua.8resh) Ceach) Cibaca Colgate 2lus) 2epsodent) Close.up LoC&st M$!gin - 98-9=6

9.B. Colgate 2lus features in the lowest le el of margin and yet commands the highest mar-et share. (he low margin was howe er denied by the @ales Affice of Colgate.2almoli e at 'umbai) who claimed to offer e=ual to that of the industry standards. Colgate 2lus was not bac-ed up by any appraisal system whatsoe er. @upply is -ept regular on wee-ly basis.

41

DA R&t$i)&!Gs P&!-&,tion O. P!&.&!&n-&s BN BCA9$ 9A'E CBEA2 BC*@B @2ECI8N 2CICE CA9FE EQ2E9@IHE (CN 9E% A9E@E 35.67 ".37 !6."7 2!.67 !5.#

E. Cetails insisted on 12ushing4 Classic as it was moderately priced and yet offered a ery good margin. R (he 1$4 abo e was also substantiated by our consumer sur ey.

42

CONCLUSION
(he present day brushing habits of the Indian society as a whole lea es a lot to be desired . >! toothbrushes are sold for e ery !00 persons per yearS (otal units sold add u to a little o er >00 million) growing at the rate of !07 p.a in olume terms and 267 in alue terms /difference e,plained by the shift to upper end of the mar-et0. (his implies not much inroad has been made into the rural and semi.urban mar-et. 9on.users constitute about 567 of total population. %hile the global brands try to create new mar-ets and add new dimensions) there is much greater latent demand. Aut of their stable of mar-eting strategies) ad ertising till now had been low priority for the players /this was confirmed in our sur ey as ##."7 of respondents don&t recall the ads0. (his indicates companies find it formidable to change the low in ol ement le el psyche of consumers and the route of aggressi e sales promotion by way of price offs) 2A2 displays) tied sales and generous trade margins still hold the -ey to increasing off ta-e of toothbrushes. 9o one has made a serious attempt in the irgin territory of 567 non.users /C2&s Cural Han 2rogramme is a recent dri e0. (he thought of doing a 9irma to the toothbrush mar-et has escaped e eryone.

43

$espite pac-aging constituting a substantial /upto >070 of the cost of a toothbrush it has found to ha e influenced the purchasing decisions of the buyers. In our sur ey consumers corroborated to this effect /refer to the sur ey findings0. Companies could rethin- their strategy of increasing differentiability by pac-aging and instead in est in product de elopment for the same.

44

SUGGESTIONS
So#& ,ossi )& ,!o'"-t i#,!o(is$tions Attached straight tongue cleaner cased in the toothbrush handle. Cartoons character printed on the handle to attract -ids. 2adding on the handle end to massage the gums. Casing the toothbrush /for -ids0 in a toy form. 9ec- with adjustable handle.

Fet a certificate by the Indian $ental Association /I$A0 for the toothbrush) li-e the Colgate Calciguard (oothpaste. @egregate the toothbrush types for different age groups) e.g.) Chi)'!&n . (hic-er handle for better grip) bright colours and cartoons printed on the handle. Yo"ng P&o,)& o. T&&n$g&! . more trendy colours and designs) li-e stripes or pol-a dotted) more ibrant colours. A'")ts . @imple designs and sober and decent colours.

45

Fo! th& n&C &nt!$nt Introduce the product with the offer of one free toothbrush with the purchase of a brush which will help in bloc-ing and prepointing the purchase of the buyer. As the target segment is the premium segment therefore) premium pricing of the product is necessary. 2rice the product at Cs. 26! .R or at Cs. 30!. and not at Cs. 35! or Cs. 22!. because the shop-eepers face a problem in returning small changes of Cs. 3! or Cs. 3!. and Cs. !! so they sometimes a oid the product as confessed by the shop-eeper. Add alue to the product by gi ing tips on ta-ing good oral care) in the bac- side of the pac-age or a free pamphlet with the purchase of a brush) li-e brushing twice a day) flossing) polishing) regular dental chec-.up by your dentist) this shows a caring and concerned attitude by the company. %ith the purchase of a toothbrush) gi e a free coupons which is to be filled in by the consumer and can be used by him or her for getting a free dental chec-.up as when and where specified in the ad ertisement in the

newspaper. (his -ind of scheme can be implemented by the company once in two three months.

46

Bowe er) these suggestions can be used by the big players in the mar-et or the new entrant) who has to be a big player because a large in estment is needed for such hea y sales promotion and also an attempt should be made to con ert this low in ol ement product into a high in ol ement as it is concerned with personal card and hygiene and a product of daily use.

47

CONSUMER EUESTIONNAIRE
1. AFE D !6.30 Nears 2. @EQ D 'ale 30.>0 Nears >0.60 years

Abo e 60 years 8emale

3. ACC*2A(IA9 D Fo t. @er ice @elf.employed Corporate E,ecuti e

@tudent Athers /specify TTTTTTTTTTTTTTTTTT0 4. 'ACI(A3 @(A(*@ D @ingle 'arried with children

'arried without children 5. AHECAFE 'A9(B3N I9CA'E:A33A%A9CE MCs. 3000 Cs. 3000.5000 L Cs. 20000 Cs. 5000.!0000

Cs. !0000 . 20000

5. %hich toothbrush do you generally useU +. 9ame any other fi e toothbrushes that you can recall ! 2 3 > 6

8. %ho purchases your toothbrushU 'yself A family member A @ubordinate Nes 9o

9. $o you as- for a toothbrush by nameU

48

10. Bow much are you ready to spend on a toothbrushU Cs. 6.!0 Cs. !0.!6 Cs. !6.20 L Cs. 20

11. %hat prompted you to purchase your current toothbrushU $entist&s ad ice Impressed with the ad ertisement @hop-eeper ga e it to me A well.wisher recommended it to me Kust bought it no specific reason. 12. Bow often do you replace your toothbrushU 0.! month L > months 13. Bow often do you brush your teeth a dayU Ance (wice After e ery meal 9ot particular !.2 months 2.3 months 3.> months

49

!>. %hat according to you are the relati e importances of the followingU

H. Imp 2CICE 2ACJAFI9F $*CABI3I(N 83EQIB3E 9ECJ CA'8AC(AB3E A9F3E @A8(9E@@ A8 BCI@(3E@ 3AAJ@ /(CA9@2ACE9( BA9$3E E(C.0 $IA'A9$ BEA$ FCI2 I9$ICA(AC

Imp.

9ot so Imp.

$oesn&t matter

!6. Bas any toothbrush ad /seen on (H:in a maga?ine0 made an impact on youU NE@ ACA3.B AP*A 8CE@B CANA3 CA3FA(E 23*@ 9A I8 NE@) (BE9 %BN

50

!5. Jindly answer the following in case you ha e used Colgate 2lus:A=ua 8resh toothbrushesD AP*A 8CE@B P*A3I(N RH. FAA$ R FAA$ R 'A$ECA(E R 9A FAA$ AHAI3ABI3I(N R EA@N R 9A( @A EA@N R $I88IC*3( I8 I( %AC(B (BE 2CICE I8 (BE BCA9$ I@ 9A( AHAI3AB3E) (BE9 I R NE@ R9A R CA9&( @AN R %I33 %AI( R %I33 9A( %AI( CA3FA(E 23*@ R H. FAA$ R FAA$ R 'A$ECA(E R 9A FAA$ R EA@N R 9A( @A EA@N R $I88IC*3( R NE@ R 9A

RCA9&( @AN R %I33 %AI( R %I33 9A( %AI(

THAN* YOU FOR SPARING YOUR VALUABLE TIMEII

51

RETAILER EUESTIONNAIRE
!. 3ocation of the store D 2. @elling toothbrushes since 3. Brands stoc-ed Colgate 2lus Kordan 2epsodent Ajanta Cibaca @upreme A=ua 8resh Aral.B 2romise Classic Coyal Ajay

>. %hich are the top three toothbrushes in terms of e,ist salesU !. 2. 3. >.

5. In case not co ered abo e. %hat is the status ofD !. A=uafresh Food 2ic-ing up 2ic-ing up 'oderate 'oderate 2oor 2oor

2. Colgate 2lus Food

5. Bow do consumers as- for a tooth brushU /Can- them0 /a0 As- by brand name /c0 @pecify a price range /e0 Jeep trying newer ones 7. %hich of these two companies ma-e it a point toD /a0 Fet a regular feedbac/b0 As- for a cheap brush /d0 Fo for an e,pensi e brush

52

A=uafresh Colgate 2lus

Nes Nes

9o 9o

/b0 'aintain regular supply A=uafresh Colgate 2lus Nes Nes 9o 9o

#. Can- your profit margin for the following brandsD !. Cibaca @upreme 3. Aral.B 6. Classic +. 2epsodent ". %hat is your 2. Colgate 2lus >. A=ua 8resh 5. Ajanta #. Kordan a0 Bighest 'argin b0 3owest 'argin !0. If the consumer does not as- for a specific toothbrush then which one would you offer himU %hyU

53

BIBLIOGRAPHY
!. Business (oday 3ibrary 2. A<' Issues of Kune I06) Kune I06) April I2005 3. CII 3ibrary >. 8ACE 3ibrary 6. Jotler 2hilip /2rinciples of 'ar-eting0 5. Jotler) 2hilip /'ar-eting 'anagement0.

54

. e,e i