Promotional Aspects of Toothpaste & its Effect on Consumer Buying Behavior

Promotional Aspects of Toothpaste & its Effect on Consumer Buying Behavior

Prepared for Yagika Madan Faculty Store Promotion, FDDI, Noida

By Krishna Kumar PGDRM-01 Centre for Retail Management Footwear Design & Development Institute Noida.

17th Sep 2007

FDDI, PGDRM (06-08)



“Promotional aspect of Toothpaste & its effect on consumer buying behavior” is one of the specific project to be worked on, as such it covers not only the marketing & promotional aspects of toothpaste industry in India but its outstanding effect on consumer perception & buying behavior. I am very thankful to our respectful faculty Ms.Yagika Madan for assigning a project, which is not only distinct but also covering diverse aspects which are affecting the promotional policy of any store or company. Going through this project was one of the wonderful experiences as such it has overall enhanced my knowledge about the relevant area & its diverse aspects. Also throughout this project several outstanding individuals were integrally involved and had given there substantial contribution, for which I am very thankful to them for giving their precious time in completing this major project.

FDDI, PGDRM (06-08)


Table of Contents
Section Title
1. Executive summary 2. Oral Care 3. Indian Oral Care Market 4. Industry Overview 5. Toothpaste Market 6. Segments in the Industry 7. Key Player 8. Top 5 Brands 9. Category Media spends 10. Current Communication 11. SWOT Analysis of Colgate 12. Consumer Products 13. Objective 14. Methodology • Population Definition • The sample plan • The sample size • Development of the survey questionnaire • Collecting the data • The response rate 15. Data Analysis 16. Conclusion & Findings 17. Recommendations 18. Bibliography & references 19. Filled Questionnaire 29-45 46-46 47-47 48-48

Page No.
4-4 5-5 6-8 8-9 9-10 11-12 12-15 15-18 19-19 20-20 21-23 23-26 27-27 27-28

FDDI, PGDRM (06-08)


Executive summary To understand the consumer mindset is one of the most critical things for any marketer. The prime objective of the research was to understand the consumer behavior in respect to toothpaste. It also came out that there is good amount of satisfaction among consumers for their brand that leads towards brand loyalty. which attracts a consumer towards it. In case of toothpaste the promotional offers by companies are mainly Extra Qty. Free gifts (11%). The finding suggests that T. FDDI. So companies need to come up with different new offers that can attract more and more customers. PGDRM (06-08) 5 . The finding supports the research that Colgate is undisputable market leader. At the same time it is also most dynamic in nature. (46%).V commercials are prime source of influence on consumer. behind them is HUL as market challenger. 17% of customers fell they are not getting any kind of offer. About 50% of consumers came in contact of more then one media. Discount and offers are the key element of a brand. The overall impact of advertisements and sales promotion is critical for any brand’s success and failure. There is increasing trend of awareness for oral hygiene. Price offs (26%).

Per capita consumption of toothpaste is only 70 gm compared with 300 gm in Europe and 150 gm in Thailand. Indian Oral Care Market • • • • • • • • Many people in India still clean their teeth with traditional products like Neem twigs. compared with 2 times in the developed world. Average all India per capita consumption of toothpaste is a dismal 82gms. FDDI. while toothpowder accounts for 52% of the market. ash. The penetration level of toothpaste/powder in urban areas is 3X that in the rural areas. Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market.5 times among other consumers. Traditional materials such as neem and tobacco are popular for cleaning in the rural areas. While 60% of toothpaste is sold on the family platform. On the other hand. Frequency of usage for toothpaste is only 1. But in 2001 the market grew by only 4%. Red and Black toothpowder still accounts for 35% of the toothpowder market. In toothpowders.Oral Care The oral care market can be segregated into toothpaste (60%). toothpowder (23%) and toothbrushes (17%). salt. PGDRM (06-08) 6 . Less than 15% of the Indian toothpaste users brush twice a day. red toothpowder accounts for 40% and black toothpowder accounts 8%. tobacco or other herbal ingredients. The rural segment is also driving toothpowder growth. toothpaste demand is mainly being driven by the overall market growth of 8-10%. The toothpaste market grew at a CAGR of 7-8% between 1995-2000. Given the low per capita consumption and penetration rates. around 35% is sold on cosmetic propositions. Colgate and Dabur are the leading players sharing between them 75% of the market. The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases.

It looked as if the multinational companies were helpless against challenger brands. these players found new aggressive competition coming their way from regional low priced competitors such as Anchor Healthcare & Ajanta India. HLL’s Aim however could not match the success and was subsequently withdrawn from the market.7 per cent in value. giving market leaders a run for their money. These low priced competitors accounted for more than 80 per cent of the growing ‘discount segment’. At prices similar to the low priced challenger brands it took the battle right into their turf. Brand loyalty is quite high for toothpastes. PGDRM (06-08) 7 . as more and more consumers switch from powders to paste. In the first six months of 2002. and the challenger. As if that was not enough. But this wound down to 2. the market for toothpastes in fact shrank by around 5. in volumes terms it was much higher at 11 per cent. but is extremely low for toothbrushes. but Colgate Cibaca has risen to become the 4th largest paste brand in the country in volume terms after Colgate FDDI. who priced their offerings at over 40% discount. Colgate Cibaca managed to garner whopping 50% of the market share in the discount segment and established Colgate’s supremacy once again. Within a year. But then the big boys struck back. Hindustan Lever. The going was tough for the oral care industry. Colgate revitalized one of its existing brands. grew a robust 10 per cent in value in 2000. Ditto by HLL with Aim.200-crore toothpaste market (the largest oral care segment). Little wonder that teeth were bared between the market leader. Today one can also buy a toothbrush priced at Rs999! The Rs.4 per cent in 2001. The market dynamics changed. as the marketing war between the two FMCG giants for protecting market share got tough. Colgate Palmolive. 2.• • • Penetration of toothpowder in the urban areas has been declining. Cibaca as Colgate-Cibaca. 10 years ago the most expensive toothbrush was priced at Rs4. Today not only has Colgate's flagship brand grown. It was to act as the price flanker brand in the portfolio.

In India. compared to 350g and 300g in Malaysia and Vietnam respectively Toothpaste enjoys a countrywide penetration level of 50%. It is interesting to note that Colgate Cibaca became big without any intensive communication support. which is amongst the lowest in the world. PGDRM (06-08) 8 . The penetration levels of dentifrice in the country have been on an upward trend over the last few years driven by strong improvements in toothpaste penetration. Colgate now aims to move Colgate Cibaca to the next level of growth. Hence the challenge is increase the share of Cibaca without cannibalizing mother brand Colgate. Table 1.Industry Overview India is still a nascent country in dental hygiene. 1. with the majority of the population still not having access to modern dental care but relying on substances like coal ash and neem sticks.Dental Cream. per capita toothpaste consumption stood at 74g in 2005. Having come up this far. It relied more on trade level activities and below the line strategies for its success.1: Toothpaste Penetration All India Penetration Source: NRS 2006 50% Urban 75% Rural 39% FDDI. Pepsodent and Close-Up (in fact Colgate Cibaca is now #2 in some geographies). However the journey for brand Colgate Cibaca has just begun.

2: Toothpaste market in volume (in tonnes) Period Apr-Mar04 Apr-Mar05 Apr-Mar06 Urban+Rural 77320 84501 86562 Urban 53791 59172 59922 Rural 23529 25329 26640 Source: AC Nielsen Market Information Digest India 2006 FDDI. PGDRM (06-08) 9 . 2.) Period Apr-Mar04 Apr-Mar05 Apr-Mar06 Urban+Rural 1897 1950 2009 Urban 1340 1386 1414 Rural 556 565 594 Table 2. The Toothpaste market Oral hygiene continues to be under aggressive competition. with sales increasing by a modest 3% in current value terms in 2006 to Rs. crs. Toothpaste accounted for a whopping 83% of value sales. Table 2.400 crs. oral hygiene in India may receive a fresh lease of life .With the huge consumer base waiting to be tapped and the expected rise in purchasing power as the economy picks up. 2.1: Toothpaste market in value (in Rs.

Zone Wise (in Rs. FDDI. PGDRM (06-08) 10 . • Increased usage Improved per capita consumption through increased usage frequency.) Total market value Town class Apr-Mar06 % wise Metro Class 1 561 40 386 27 Others 467 33 Source: AC Nielsen Market Information Digest India 2006 Long-term growth drivers • Improving penetration Through better distribution and conversion from other modes of oral care.Table 2.4: Value .) North Zone Apr-Mar06 % wise 486 24 East Zone 335 17 West Zone 543 27 South Zone 645 32 Table increase in population will help broaden the user base for oral care.3: Value .Town Wise (in • Population growth An annual 1.

35-45 50 gms. FDDI. 25-30 Rs.7% during 2000 to current levels. 100 gms 150 gms • • • • Rs.922 tons ) Price range 50 gms 100 gms 150 gms • • • • • The Low price point segment: Volume ( 21. This segment offers good value for money and has seen its volume market share increase from 10. Segments in the Industry Price-based categories: segmentation of the toothpaste category On the basis of price. PGDRM (06-08) 11 . The entire category is characterized by intense competition in both the price segments. 14-20 Rs. 12.5-24 Rs.641 tons ) Price range : Rs. the toothpaste market can be broken down into two distinct The Regular segment: Volume ( 64. 25 Prominent brands: Colgate Pepsodent Close-up Meswak Dabur Red Prominent brands: Colgate Cibaca Babool Anchor Ajanta Source: B&K Report 2006– Colgate Pamolive India Low Price Point Segment The Lower Price Point segment accounts for around 25% of total category volumes.3. 8-10 Rs.

Regional brands typically take on well-known. the challengers identify regions where the opponent is under performing. The smaller brands have also started delivering on the quality front. PGDRM (06-08) 12 . Key Players The toothpaste segment is largely a two player industry.2: Company Share (Volume) Colgate Palmolive Apr-Mar06 48.2% Table 4. 4.8% HLL Dabur 27% 9. Colgate Palmolive & HLL accounting for 80% of the entire market Table 4. These include regional brands and private labels.1% Source: AC Nielsen Market Information Digest India 2006 FDDI. established brands by pursuing a flanking strategy which can be of two types – geographical or need-based.Threats from smaller brands in the low priced segment Small and regional brands from the low priced segment are expected to perform well because they are often close to the market. respond faster to changes and are willing to learn from mistakes.1: Company Share (Value) Colgate Palmolive Apr-Mar06 47.3% HLL Dabur 30% 7. Industry analysts believe that the new threat will come from smaller players who have embraced a different kind of business model with a different value proposition. The other flanking strategy is to serve unfulfilled market needs. In a geographical attack.

5 times the second largest player.1: Colgate – the dominance continues Colgate has been present in the domestic oral care market for the last 70 years and its oral care brands enjoy strong brand equity in the market. Currently. The company has traditionally been the leader in the domestic oral care market. Colgate Gel & revitalized Colgate Cibaca Top (in the low price segment). PGDRM (06-08) 13 . it occupies a dominant position in the toothpaste segment with a 48% market share in the domestic market. 1. Colgate Active Salt – Which capitalises on the traditional use of salt for oral care 2. Colgate Active Salt 7. Colgate Total 3. Colgate Advanced Whitening 6.4. Colgate MaxFresh Gel – An innovative gel-based toothpaste with cooling crystals Current Brand portfolio: Toothpaste 1. Its relative market share is 1. Colgate Advanced Whitening –Which contains microcrystals that polish ones teeth. restores and maintains their whiteness. Colgate Fresh Energy Gel FDDI. Colgate Herbal 4. Faced with tough competition from HLL during early 2000. Colgate made a slew of successful new launches to protect its market share namely Colgate Herbal. It launched 3 new innovative variants during the course of FY06. Colgate Kids Toothpaste 5. 3. The company today has two main brands in the toothpaste segment – Colgate and Colgate Cibaca. Colgate acquired Cibaca in 1994 from Ciba Geigy. Colgate Dental Cream 2. The company has continuously relied on innovations to stay ahead of the competition.

Colgate Cibaca Strong distribution The company has backed its products with a very strong distribution network. 4.2: HLL – the challenger In the late 1980s. Colgate Max Fresh 9. The company's distribution network covers 940 direct accounts and 3. Close-Up helped HLL become the second largest paste brand. However as the novelty of gel toothpastes wore off.8 million retail outlets. whereas Pepsodent is firmly entrenched on the family health platform with variants catering to oral health. PGDRM (06-08) 14 .8. Close Up addresses the youth with new benefits and value-driven propositions. Tremendous brand equity Over the years. The company is tying up with initiatives like E-Choupal and Disha to further strengthen its distribution network. FDDI. It has been voted the “The Most Trusted Brand” in the country for 3 consecutive years in the AC Nielsen Brand Equity Survey. posing a stiff challenge to Colgate. Colgate is the 2 nd most widely distributed product in the country. HLL renewed focus on its other brand Pepsodent to help it protect its turf. Colgate has been able to develop strong brand equity. Its gel toothpaste. Its attempt at offering a low priced brand Aim was not completed and the brand was subsequently pulled back after launching it in early 2000 Both Close Up and Pepsodent have a combined market share of 30% The current brands offer distinct propositions. Hindustan Lever used the novelty element in gel toothpaste to make steady inroads into Colgate's dominance in the oral care market.

Its anti-bacterial ingredient has been boosted to offer superior germ fighting efficacy. 5.1 Colgate Dental Cream Colgate Dental Cream is the most widely distributed oral care brand in India has a market share of 34% in value terms. These improvements come in addition to its calcium and minerals formula that helps repair weak spots on teeth and locks in additional calcium and essential minerals to make teeth stronger than ever before.2% market share with the acquisition of Balsara's oral care brands: Babool. Top 5 Brands 5. PGDRM (06-08) 15 .Table 4.2: Current Brand portfolio: HLL Close Up Pepsodent Close-up Active Gel (red) with Pepsodent Gumcare Vitamin Fluoride System Pepsodent 2 in 1 Close-up Lemon Mint Pepsodent Complete 10 Close-up Milk Calcium Pepsodent Whitening 4. Promise and Meswak in addition to its own brand Dabur Red (targeted to capture consumers shifting from toothpowder to toothpaste). FDDI.3: Dabur – Growth through acquisition Dabur has managed to grab a 7. It was revitalized in 2003 with an improved germ fighting formulation.

5. Close-up was the first gel toothpaste in India. PGDRM (06-08) 16 . which leads to mouth coolness.2 Close-Up Active Gel Launched in 1975. The thrust is on making brushing at night a fun activity for kids. 5.5 Colgate Fresh Energy Gel The Company launched new Colgate Gel Toothpaste in 1991. Colgate Fresh energy contains icy cool gel. and minerals. the second offering from HLL with a market share of 11% was launched in 1993 and was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. Close-up was re launched with a bang. It has a market share of 3%. Current market share stands at 14%. whiter teeth. The brand plans to continue with its initiatives to promote healthy brushing habits. It has since then undergone periodic re launches. And this time it was packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins. 5. Currently the brand is championing night brushing habits amongst kids through its latest TV commercial. In 2004. Mouthwash and Micro whiteners. Pepsodent has always been regarded as a mother's oral health care ally and has been associated with inculcating good dental habits amongst kids. 5.4 Colgate Cibaca Top Colgate Cibaca Top is currently the fourth largest brand with 5. FDDI. Fluoride. Close-up is now the first Gel toothpaste with Fluoride in Indian Market.3 Pepsodent Complete 10 Pepsodent.7% market share. which make teeth stronger. the perfect combination of ingredients for fresher breath and stronger.

by putting the Dabur brand on its pack and signing up Vivek Oberoi as a brand ambassador. outdoor and online media to connect with the youth. both in terms of superior formulation (almost parity to CDC) claims and by the development of an All-round Protection sub brand. Anchor forayed into the FMCG market with the launch of Anchor White Toothpaste. PGDRM (06-08) 17 . In fact this proposition had so strong a consumer-pull that by 2002 it was the number three toothpaste brand. it has also upgraded its bundle ever since the acquisition.The Colgate Fresh Energy Gel advertising campaign launched in 2001 used an innovative catch phrase – “Talk to Me” and used television. This is currently endorsed by Dravid with strong TV support. It significantly upgraded its product bundle. The company continued to build on its highly successful campaign and re-launched it with a new flavour in a transparent tube. Anchor decided to directly compete with Colgate Dental Cream. In 2006.7 Babool Babool originally a Balsara product was acquired by Dabur last year. in 1997. a part of the Anchor Group (makers of Anchor Electrical switches). thereby differentiating itself from the LPP segment.6 Anchor Anchor belongs to Anchor Health and Beauty Care (AHBC). Babool straddles the economy and herbal platforms. Its natural toothpaste contains ayurvedic and medicinal benefits of the Babul tree. which was positioned as India's first British Dental Health Society certified 100 per cent vegetarian toothpaste. Other brands 5. 5. a first for the category in India. FDDI. 'Acacia Arabica'. While Babool still pursues an aggressive promo strategy on all its SKUs.

PGDRM (06-08) 18 .5.10.0% 11. mass-market segment.1: Brand Share (Value) Colgate Brand Share Dental % Cream Apr-Mar06 33. Revitalized formulation for strong teeth and fresh breath Features Colgate logo on the pack and tube • • 5.0% 5. Ajanta rewrote the rules of the game for oral care products.3 % FDDI. Colgate entered a new price band .7 % Colgate Fresh Energy Gel 3. With aggressive pricing as its USP.the economy segment.10 Brand wise Market Share Table 5. 5. Originally priced at one-third of a Colgate or a Pepsodent.9 Colgate Cibaca Top In the year 2000. Salient features of Cibaca Toothpaste • • First economy toothpaste from Colgate Initiative to maintain leadership of the growing low price segment and capitalise on equity of Colgate.8 Ajanta Ajanta toothpaste is an offering from the personal care division of Ajanta Clock Manufacturing Company. the company decided to do a Nirma in the toothpaste Industry.8 % Pepsodent (all Close-up (all Cibaca variants) variants) Top 16. With the launch. It targeted its offering in the low price. Colgate revitalized Cibaca which was relaunched nationally in the economy segment as 'All New Colgate-Cibaca Top.

5 % Source: AC Nielsen Market Information Digest India 2006 Cibaca's steady climb in market share Despite relaunches by Anchor & Babool.0 % Pepsodent Close-up (all Cibaca (all variants) variants) Top 15. crs.0% 8.Table 5.)* AprilMarch '06 Colgate Dental Cream 157 2 Pepsodent 10 107 107 0 Close-Up Active Gel 92 92 0 Colgate Advanced Whitening 67 67 0 Pepsodent Germi Check 65 65 0 Total Spends 159 TV Print *(Unadjusted Media Spends) Source: AC Nielsen Market Information Digest India 2006 FDDI.3 % Anchor 4. PGDRM (06-08) 19 .5% 10.2: Brand Share (Volume) Colgate Brand Share Dental % Cream Apr-Mar06 32.10. Cibaca continues to strengthen its dominance of the Low price point segment in 2006 Source: AC Nielsen Volume Share Category Media Spends (in Rs.

" wala Vitamin fluoride has three fold naya benefits. dishum With Pepsodent on guard parents dishum .Current Communication Brand Colgate Tagline Proposition “Bhartiya dentists ki number Colgate is the expert ( the last one word) on dental care and provides pasand ... Formula Proud to use an Indian brand sirf Bharat ke paas hai.whitens yellow teeth." you with 12 hour protection safeguarding you against 12 common tooth problems “Pepsodent. freshens your breath and makes your teeth strong Pepsodent Close-Up Meswak Babool "Meswak toothpaste." "Subah Babool tumhara . PGDRM (06-08) 20 ." one teeth from germs and keeps them strong FDDI. raat bhar ." no longer have to worry because brushing with Pepsodent at night ensures protection of their children's teeth the whole night through "Vitamin floride system Close-Up." ki to din Babool's natural and sweet peppermint taste adds zest to your life and enables you to face life head-on Anchor ”Naye zamaane ki nayi suraksha Advanced formula that protects .

995 1.2% 809 Net profit after tax(loss) 518 FDDI. The company's parent has a presence in over 200 countries worldwide. a key ingredient in toothpaste.474 9. which helped it increase its market share. PGDRM (06-08) 21 .1% 968 8.170 7.544 8. Colgate ranks No.2% 698 13.231 10. Colgate is considerably backward integrated.609 9.464 22% 9.928 -6% 1. the parent operates through its 51% subsidiary and has a presence in India since last 50 years.304 1.1 in top of the mind recall in many consumer surveys.080 20% 7.801 10.8% 15. This and shaving brushes accounted for 10% of its FY04 revenues. It has also set up a world-class facility for manufacture of Di-calcium Phosphate. The journey over the years? (Rs m) Sales Other Income Expenditure EBDIT OPM % FY00 FY01 FY02 FY03 FY04 CAGR 9mFY05 10.SWOT analysis of Market Leader Colgate Pamolive India Ltd. with an estimated market share of over 30%.2% 625 310 358 299 7% 10. Gels are estimated to be only about 15% plus of the market.242 217 5. The company's flagship product. Colgate: A SWOT analysis A name synonymous with the Indian oral care industry. The company acquired Hindustan Ciba Geigy (Cibaca) in the year 1994.392 -4% 228. The toothpaste segment can be divided into two broad categories: White's.247 17. In India.896 11.6% ~ 887 1. Background Promoted by Colgate-Palmolive USA. is the undisputed market leader in toothpastes with over 45% share in the Rs 21 bn (90.769 11.065 1. The company also has a significant marketshare in the toothbrush category. It has captive manufacturing facilities for flavor and other ingredients.9 295 665 6. which yield significant cost savings. Colgate Dental Cream is the largest selling toothpaste in India. Colgate. which accounts for a dominant share of the Indian oral care market.000 TPA) oral care segment.

376 gms for Mexico and 518 gms for USA (Source: Colgate. bottomline has grown at a good 20% rate in the same period. The company has been able to curtail its expenditure. To put things in perspective. In India. HLL is the closet rival of Colgate with a share of 34% with its Pepsodent and Close-up (gel where it has a lion's share) brands. Also. Competition The company has been facing immense competition from organised as well as unorganised players. as compared to 262 gms for Thailand. The key reason for a significant improvement in operating margins over the years is the reduction of advertising expenditure (see chart). The potential As per our estimates. Operating margins have been increasing YoY and in 9mFY05 touched a peak of 17%. PGDRM (06-08) 22 . the per capita consumption of toothpaste in India is only 82 gms. there has been speculation from sometime now that P&G (its worldwide rival) would debut its billion-dollar-plus toothpaste brand Crest in India. soaps.2% of the total world population lives in rural India. FDDI. Most of this has been lost to HLL and smaller players like Dabur and Anchor. 12. detergents. Currently. which went down by 6% during the period under consideration. we infer that although topline has shown a degrowth of 4% on a compounded basis over the 5 year period. Equitymaster Research). etc. shampoos. The latest entrant in the organised sector is LG that has ventured into the FMCG market and launched premium consumer products across 8 categories including toothpastes. it is a market that cannot be overlooked and has huge potential. expansion in rural areas requires huge investments. urban per capita consumption is 153 gms whereas rural consumption is a mere 38 gms. This could intensify competition in the segment. The company has lost significant market share in toothpaste that had peaked at 65% in FY95.From the above table. only a small portion (about 15%-20%) of region has been tapped. as compared to 45% plus today. Although.

which do not have a large potential market in India. HUL had launched Pepsodent in the same range but colgate feels secure. Hindustan Lever has been able to introduce new products. Close-up is also in the market for a long time – full two decades – and has captured a 13% share of market. the company's topline has stopped growing and in order to achieve growth. Colgate leads with a 54% share of the market. Colgate Palmolive’s net profit rose marginally by 3% in the first half of 1997-98 over that of the corresponding period of the preceding year. Colgate launched its Colgate Gel in 1989 and has a market share of 10%. It has done well with its Optima and Halo shampoo brands and has entered the household surface care products segments with the dishpaste Axion. The company has been able to increase its margins by continuously cutting advertising expenses. owing to its single product dependence. A large part of the company's product folio consists of premium products.Toothpaste The two market leaders in the dental care products are Colgate and Hindustan Lever. Net sales advanced by 11% expanding from Rs 4583 million to Rs 5081 mn (against a total of Rs 9045 mn in 199697). which accounts for 94% of its sales and 98% of its profits (FY04). The increases were not so increasing as the company is accustomed to a much better performance. This is evident as new launches by the parent in India have been much lower than other markets. FDDI. Hindustan lever’s Close-up is trying hard to penetrate the market deeper. It was also so because these results did not reflect higher spending on promotion which impinged on profits.Concerns The Company has high reliance on a single category (Oral Care). It is a climb down from 75% level enjoyed by it a decade ago. Colgate produces also Pamolive range of toilet soaps and intends to go into the product in bigway. Colgate cut prices of its products by an average 17% in April 2003 (Source: Company Annual Report). Consumer Products Oral Care . In the last couple of years. which cannot go below a certain point. PGDRM (06-08) 23 .

The company is planning also to launch new products mainly in toothpaste segmentand this will give it volume growth. The company has. 1970s and good part of the 1980s with its Binaca toothpastes. Jordan’s Regular and Magic Wonder Tip have in a short span of time captured a significant chunk of tooth brushes market (17% by value and 20% by volume). carved a niche for itself in the toot brushes market having garnered a share of 31% by volume. the company launched another toothpaste brand. Hindustan Ciba Geigy had created a sir in the toothpaste market in 1960s. Now Balsara is part of Dabur India Ltd. It plans to double its turn over by the year 2000. Promise exclusively targeted at kids. the company has carved a share of tenth of the market. With abnormal price rise experienced by th company for raw materials. In 1996 .. ahead of 30% share by Colgate pamolive. This enabled the company to garner a significant share in the market dominated by MNCs. By a concentrated media effort at highlighting the ethnic virtues of Babool. The brand name was taken off and transferred to Reckitt & Colman. Among the Indian brands. the company launched Colgate Fresh strip toothpaste. The company introduced Cibaca Gel in 1993-94 but not much activity is noticeable as far as toothpaste business goes. FDDI. the toothpaste business did not remain profitable. During 1992-93. Promise of Balsara has also remain active in the nearly Rs 900 mn market for tooth brushes. PGDRM (06-08) 24 . nevertheless.Colgate and Hindustan Unilever. Balsara Hygiene Products with its Babool toothpaste launched in 1987-88 was a forerunner in Indainising the product-base with herbal inputs. Daburs are also trying their best to promote the brand.

8 6.70 11.00 19.9 13 15 10.5 22 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Year FDDI.90 9.40 7.00 17.10 10.00 Demand : Past & Future 45 40 35 30 25 20 15 10 5 0 40 Demand in Rs bn 5.50 13.00 6.5 9.50 22.1 17 19.80 6. PGDRM (06-08) 2006-07 25 .711.4 7 6.00 15.00 40.Demand: Past & Future Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2006-07 Rs bn 5.

FDDI.9% 12.1% 13. PGDRM (06-08) 26 .Market Segmentation Segment By Brands Colgate : Dental Gel Cibaca Close-up Pepsodent Promise Babool By Region North East West South By Rural-Urban Split Rural Urban Share (%) 46 10 03 18 09 9.7% Source.NCAER research Consumer Products 2006.5 0.5 25 21 21 33 40 60 Market Growth Rates 1990-91 – 1996-97 1996-97 – 2001-02 2001-02 – 2006-07 12.

3. This study is basically exploratory analysis type. which was collected..Objective of the study The main objectives of the study are: 1. Exploratory research The idea gets deeper insight into sales promotion scenario in toilet soap market and to get perceptions of consumers. To access market share of different brand. 4.e. In order to address above-mentioned objectives (I) study of secondary sources was carried out from NCAER (II) structured questionnaire was designed to seek consumer responses. i. To assess current consumer sales promotion schemes in toothpaste market. To find brand loyalty among Consumers. PGDRM (06-08) 27 . Research design Research design is purely and simply the framework plans for study that guides the collection and analysis of data. There are three major types of research design. A popular research methodology has to be adopted for a study. To study consumer perceptions regarding various schemes in this category and responses toward them. Methodology There are different methodologies in a research study. 2. FDDI. Descriptive research Analyzed the data. descriptive research design and experimental research design. exploratory research design.

which are: . Secondary data was collected from NCAER as well as from FCB-ULKA website. The study was done among consumers who are using toothpaste and conducted personal interview for collecting the required information. PGDRM (06-08) 28 .Customers-200 (Both male & female) Time: 15 August-15 September2007 Collection of data: -The data was collected from primary & secondary sources. who are purchasing & using toilet soaps Sampling Sample unit Consumers using Toothpaste Sample plan The selection of the samples is done following the two sampling techniques. from different economical & demographical background.Convenience sampling Sample Location: NCR Sample size: .Target population The target population for the study of “Promotional aspects of toothpaste & its effect on Consumer buying behavior” is .Simple random sampling .Consumers. A survey was conducted through structured questionnaire. FDDI.

Data Analysis Demographics of Sample Gender G e n d e r o f S a m p le F e m a le 47 M a le 53 M a le F e m a le In total sample size of 197. PGDRM (06-08) 29 . So sample has a balanced contribution of male and female respondents. there was 104 male (53%) and 93 female (47%). FDDI.

30-40 years 11 (6%). 30-40 22 40-80 Age of Sample 11% 6% 15% 0-20 20-30 30-40 40-80 68% Due to time and manpower constraint the sample collection was done at college campus and surrounding area.Age Age of the Sample 160 140 120 100 80 60 40 20 0 No. So most of the respondents lie in the age bracket of 20-30 yrs 134 (68%). FDDI. 134 30 11 0-20 20-30 Age in Yrs. and above 40 years 22 (11%). further up to 20 years 30 (15%). PGDRM (06-08) 30 .

23% are Post Graduate or above.Education Background Education Background 120 N of respondents o. again 23% are Intermediate and only 2% are 10th pass. 100 80 60 40 20 0 10th 12th Graduation PG& Above Qualification 4 44 44 96 Qualification 2% 23% 23% 10th 12th Graduation PG & Above 52% The most of the respondents are quite educated as pie chart is showing 52% are Graduate. FDDI. PGDRM (06-08) 31 .

FDDI. Service Self Employed Executive Student Others 86% As already mentioned that sample collection was mainly one at college campus so most of the respondents 86% are students. further breakup is visible in Pie chart. PGDRM (06-08) 32 .Occupation Occupation 180 160 140 120 100 80 60 40 20 0 Se rv ic e 160 N umber 2 S el fE m pl oy ed 6 E xe cu tiv e 12 O th er s 8 S tu de nt G ov t. Occupation Occupation 4% 1% 3% 6% Govt.

of Respondents 40 30 20 10 0 Rs 0-1 Rs 1-2 Rs 2-3 Rs in Lakh Rs 3-4 Rs 4 & Above 28 22 44 34 32 Annual Income 20% 18% Rs 0-1 Rs 1-2 14% Rs 2-3 Rs 3-4 Rs 4 & Above 27% 21% As it is very much well known that people are quite reluctant to tell their family income so the figure above is not exact but the representative. FDDI.Annual Family Income Annual Family Income 50 No. There was lot of respondents who did not fill this question. PGDRM (06-08) 33 .

PGDRM (06-08) 34 . of Respondents 150 100 50 0 Toothpaste Toothpowder Datun/Stick Others Modes 174 16 5 2 Mode of Cleaning 1% 3% 8% Toothpaste Toothpowder Datun/Stick Others 88% The finding says about 88% population in urban areas use toothpaste as mode of clean the teeth in contrast to rural areas where things are quite different. There still people rely on several other mediums. Here pie chart is showing that 8% people are using tooth powder. 3% sticks and 1% other medium such as tobacco. FDDI.Mode of Cleaning the Tooth Mode of Cleaning the Tooth 200 No.

But it is clear that Colgate is undisputed leader but HUL is not far behind with its two major brands Close-up & Pepsodent.Brands People Use Brand Preference No. FDDI. Total & other variants. Colgate includes all its sub brands like Gel. of Respondents 100 80 60 40 20 0 wa k Da bu rR ed o G lis te r Em of or m Se ne qe l-f e up Ne em od en ga t t Cl os eCo l es Vi cc 94 24 29 7 4 2 4 3 5 2 Pe ps M Brands Colgate Close-up 4% 17% 54% 14% 1% 2% 2%2% 3% 1% Pepsodent Meswak Dabur-Red Neem Vicco Glister Emoform Senquel-F Brand wise market is quite fragmented. PGDRM (06-08) 35 . the reasons are first there good amount of small and big player in the market at the same time presence of hell number brands of from a single company.

PGDRM (06-08) 36 . 39% once and 2% thrice.Frequency of Cleaning Teeth Frequency of Cleaning 120 No. of Respondents 100 80 60 40 20 0 Once Twice Frequency Thrice 4 68 Series1 102 Frequency of Cleaning 2% 39% Once Twice Thrice 59% With the awareness campaign and people’s health conscious generation the importance of oral hygiene is increasing among the population that is visible with about 59% brushes their tooth twice daily. FDDI.

PGDRM (06-08) 37 . 30% purchase from superstore and 5% from medical store. of Respondents 120 100 80 60 40 20 0 Neighbourhood Shop Medical Store Store Super Store 10 54 118 Place to shop 30% Neighbourhood Shop Medical Store Super store 5% 65% 65% of people still rely to their local kirana shops for toothpaste. The 30% is showing growing craze of organized retailing in India.Place to Shop Toothpaste Place to Shop Toothpaste 140 No. FDDI.

Average Consumption of Toothpaste Monthly Consumption 120 No. FDDI. in 38% families more then 200 gms. More then 200 8 96 68 Consumption Pattern 9% 38% 50-100 gms 100-200 gms More then 200 gms 53% India has a very less per capita toothpaste consumption. the research is supporting that also as in 53% families the approximate consumption is 100-200 gms. and in 9% families even less then 100 gms. PGDRM (06-08) 38 . of Toothpaste 100 80 60 40 20 0 50-100 100-200 Weight in gms.

10% from about two years. of respondents 100 80 60 40 20 0 6 months 1 year Time 2 years More then 2 yrs 22 22 16 104 Association with Brand 13% 13% 6 months 1 year 2 years 64% 10% More then 2 years Major chunk of population 64% is associated with associated with same brand from more then two years. It shows that a good amount of population is brand loyal in terms of toothpaste. FDDI. PGDRM (06-08) 39 .Duration for Using Duration of Using 120 No. 13% each from 6 months and 1 year.

esponses 136 14 12 16 4 10 12 R ad io 8 5% 2% 7% 6% 7% How a consumer came to know about a particular brand it is very much important for marketers.V Advertisements are the major source of information for customers. because with the help of this they can reach to their market in better way. P rin tA ds H oa rd in S gs to re D is pl ay R oa d Sh ow s S al es Fr m ie an nd s/ Fa m ily Source 6% 4% T.V Ads Print Ads Hoardings Store Display Road Shows 63% Salesman Friends/Family Radio FDDI. rest contributes marginally to the brand awareness. V A ds N of R o. PGDRM (06-08) 40 . About 50% of consumers came in contact of more then one media. It is clear from the finding the T.Source of Information Sorce of Information 160 140 120 100 80 60 40 20 0 T.

Attributes to opt a Brand Attributes to Choose a Brand 9% 4% 3% 6% 3% 27% Packaging Fight against Tooth Decay Freshness Whitening Herbal Ingredients 21% 27% Advertisment Price Taste When it comes to why a customer opts for a brand. PGDRM (06-08) 41 . FDDI. lot of customer prefer for more then one attribute. But three core attribute on which the whole toothpaste market is standing are• • • Whitening-21% Freshness-27% Fight against tooth decay-27% Interestingly 9% customers feel taste also as a choice criterion. which attributes attract him most? The opinion is divided into lot of factors.

The numbers of unsatisfied customers are marginally less 1%. PGDRM (06-08) 42 .Satisfaction Level for Brand S a tis fa c tio n le v e l 1% 1% 13 19 H ig hly S a tis fie d M o d e ra te s a tis fie d Least 66 U ns a tis fie d The prime aspect that will decide brand loyalty is the satisfaction level of a customer. Here 66% population is satisfied with their existing brand. FDDI.

FDDI. 11% No offers 46% Discount and offers are the key element of a brand. 17% of customers fell they are not getting any kind of offer. which attracts a consumer towards it. In case of toothpaste the promotional offers by companies are mainly Extra Qty. (46%).Discounts & Offers with Brand Discount & Offers 17% 26% Price off Free Gifts Extra Qty. Price offs (26%). Free gifts (11%). PGDRM (06-08) 43 .

Here finding shows that companies are successful in this as 85% of consumer recommend the brand to others. PGDRM (06-08) 44 .Recommendation Recommendation 15% Yes No 85% Word of mouth promotion has a deciding impact on consumers. FDDI.

The additional Attributes/Offers people want in their brand The response was not too much positive. Few suggestions I got are• • • • More offers More freshness Herbal ingredients Good packaging etc. 26% people are susceptible to brand switching as they are not convinced.K or nothing. Only 2% are not comfortable with the brand they are using. Most of the people felt every thing is O.Continuation With same Brand Brand loyalty 26% Yes 2% 72% No Cant' Say The consumers thinking regarding will they will be continue with the same brand in near future the response is in favor of companies as 72% people are ready to continue with their existing brand. PGDRM (06-08) 45 . FDDI.

Conclusion The over all conclusion derived from this study is that the toothpaste industry enjoys a very good & strong position in Indian market. As such in this study it is found that although consumers are not satisfied & not having proper knowledge about various promotional schemes of their toothpaste. want to continue & recommend the same brand to others too. PGDRM (06-08) 46 . but when comes the oral hygiene use of toothpaste is advisable by doctors also. Mid quality toothpaste has major market share in urban areas. Basically as per the research it is found that the major section of the youth population uses one or the other toothpaste in which freshness. protection against tooth decay and whitening is major attributes for him. FDDI. This over all study reveals the fact that it is the functionality in terms of efficiency & effectiveness of the product which overall affects the consumer purchase decision-making brand promotion. Rural people can survive without it. Glister etc also penetrating the market. Senequel-F etc are also attracting customers. advertisements celebrity endorsement only can not attract a consumer. but still they are satisfied. as such toothpaste is one of most demanded & necessary goods of day to day use without which urban Indians will find it really difficult to clean their tooth. The major aspect of consumer buying behavior in terms of promotional benefits which came into being after this research is that if the consumers are satisfied with the quality & other major aspects of the respective commodity. Every section of the society whether it is middle. Some medicinal toothpaste Like Emoform. So the marketer should use more effective tools to communicate the same to its target customers apart from attracting for additional benefits & offers. At the same time herbal paste as well as brand sold through direct marketing like RCM. upper middle or higher segment uses toothpaste especially in urban areas. some small benefits or schemes are not going to distract them with their Brand loyalty.

As India has one of the least per capita Toothpaste consumption companies has to work on this. FDDI. Companies should analyze their strategy. PGDRM (06-08) 47 .Recommendation The emerging youth population is an opportunity for marketers. as 17% of population is not aware about the promotion and offers. They should also work upon their promotional offers. The all players if come under one umbrella and promote the functional benefits of toothpaste to consumers as well as that we should clean our tooth at least twice. as lots of customers were not satisfied with the additional benefits.

com www.Bibliography www. PGDRM (06-08) 48 Consumer products: Report. NCAER 2006. www.

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