CHAPTER 1

INTRODUCTON

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 INTRODUCTION

Colgate Palmolive India ltd. is a well-known FMCG company with a large

product mix. Oral care is one of the most prominent segments of Colgate Palmolive.
Colgate is rank 1st in Oral care. Its market share is also more than 52% in toothpaste
segment. Colgate had been ranked as India’s #1 Most Trusted Brand across all
categories for four consecutive years from 2003 to 2007. Recently company
introduced a brand Colgate Sensitive in market and want to increase its market share
as like their other brands in market. For this purpose, company outsource this project
to Market Source. Market Source is a SMO (Sales and Marketing Outsourcing)
company and which is a part of the Allegis Group Company.

1.1 SELECTION OF TOPIC:

Topic selection is one of the most important aspects of any project. It decides the
course of action to be followed, the topic selected should be such that it helps in
understanding the market concepts clearly, as per the topic given by the company
itself.
The topic selected “Market Penetration of Colgate Sensitive in Nanded City
& its Competitive Analysis” covers all things related to market coverage and also the
factors on which this brand should dominate the market. Market penetration is the
proportion of a potential market who actually buy product in Nanded city and to study
factors to be consider by Chemists while suggesting a particular competitive brand
through OTC. For this project I had covers some chemists from Nanded city and
provide them the detailed information about this brand and also collect their response
to this brand in market along with its competitive brands.

Market penetration is a key issue in assessing the growth prospects for an

industry. It is usually fairly straightforward to assess the potential market for a
product: the number of sales it could make if everyone who could reasonably buy it
did. What proportion of those people actually become paying customers of an industry
is another matter?

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 Market penetration is an important concept in business planning and
development. When you think in terms of market penetration you are figuring out the
type and number of customer you need in order to meet your revenue projections.
Your market penetration strategy must also consider the types of businesses in terms
of your geographic location.

INDIAN ORAL CARE SCENARIO:

In India, oral care market offers huge potential as penetration and

per capita consumption of oral care products is very low. However, rising per
capita income and increasing awareness is driving demand of oral care
products. Consumers have started switching to value-added toothpastes like gels,
mouth washes, and teeth whitening products. In rural areas, consumers are
switching from toothpowders to toothpastes. A key industry trend is the move
towards natural products comprising of herbs, vitamins and minerals.

A serious challenge for the industry is the low dentist-population ratio, with
just one dentist for 10,000 people in urban areas and about 0.25 million
people in rural areas. There is an urgent need of more dental health
practitioners with relevant qualifications and training.

Government has taken various initiatives like dental health camps to

promote good oral care. Manufacturers have used advertising campaigns to
promote higher consumption of toothpastes and toothbrushes.

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CURRENT ORAL CARE MARKET:

Colgate and HUL together account for over two-thirds of the organized
toothpaste market. In toothpowder market, Colgate, HUL and Dabur are the major
players.

Competition is tightening between local and global players in the Rs 4500 crore
branded oral care sector. Even as Hindustan Unilever Ltd (HUL) is drawing up
‘strategic plans’ to drive the performances of its oral care brands in 2009, Dabur India
Ltd is expanding its ‘manufacturing capacity and distribution network’ to pump up
volumes. Colgate-Palmolive India is sharpening its focus on ‘consumer promotions
and brand building’.

“Indian oral care majors are pumping in a breath of freshness in marketing

strategies. Despite the economic recession, this sector is expected to clock in 20%
growth in 2009". Currently, Colgate-Palmolive leads the pack with a 52% volume
market share and HUL’s share stands at 28% by value.

Colgate–Palmolive reported its net sales for the quarter ended June 30, 2010 at
Rs 468 crore, an increase of 15% over the same period of the previous year. “During
the quarter ended June 30, 2010, the company continued to support its brand and
equity building activities with advertising and sales promotion expenditure at Rs. 58.3
crore.” With diverse marketing strategies, dental care majors are now fighting tooth
and nail to gain market share in the overcrowded category.

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The Colgate Pro-Relief has been given its global rollout, as the
company targets the market for sensitive teeth.
First unveiled at the 150th Annual Session of the American Dental
Association in Honolulu, Hawaii, the formula is claimed to be a breakthrough in the
treatment of sensitive teeth as it incorporates the company’s patented Pro-Argin
technology.

The technology has been developed using an amino acid, arginine, and an
insoluble calcium compound, calcium carbonate, to seal open dentin tubules and help
block stimuli of pain receptors within teeth.

Arginine is one of the 20 most common amino acids and plays an important
part in cell division as well as the healing of wounds, giving it important restorative
properties. Colgate says that is the first time it has been used in this type of dental
treatment.

Technology works by binding to dentin surface

The company says that the technology works by binding to the negatively
charged dentin surface and helps attract a calcium-rich layer into the dentin tubules to
effectively plug and seal them. This effectively provides an occlusion to the dentin
tubules, which Colgate says remains intact, even under acid attack, and helps to
provide a barrier that gives pain relief after just several treatments.

“This Pro-Argin Technology will make dentin hypersensitivity a patient

complaint that can be easily addressed and managed as part of an overall treatment
plan,” said Dr. Mark Wolff, chair of the Department of Cariology and Comprehensive
Care, New York University College of Dentistry.

5
COMPANY PROFILE

1.1 MARKET SOURCE

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 Market Source is an SMO (Sales and Marketing Outsourcing) company and part of
the Allegis Group Company whose core competency lies in identifying and engaging
the best talent. Being part of this prestigious $5 billion human-capital services and
solutions organization opens the door to extensive resources that are backed by 30
years' experience with Fortune 500 companies, the increasingly important mid-market
sector, over 75,000 employees and a talent force of 6,000 people.

When they say "Face to face. Eye to eye." They believe that captures there spirit
and passion for building valuable relationships, one customer at a time.

Market Source provides the unique skill and expertise to integrate brand-centric
marketing and sales programs in the automotive, consumer electronics, information
technology, FMCG and telecom vertical industries and relevant routes to market
including Retail and B2B.

Market Source's leadership team is comprised of an extremely talented and

diverse group of executives. What makes their team so unique is their ability to
deliver performance and value in a variety of ways. While each of their executives
possess unique backgrounds and expertise, they all share insight and experience to
design sales and marketing programs that meet or exceed the stated ROI metrics, not
to mention the passion, intuition and skills necessary to identify and develop top
performing managers.

They recognize that their people are their greatest assets and that is something that
drives their corporate culture. So when you walk in their halls you undoubtedly feel
the respect, integrity and dedication they have for one another, their clients and their
company.

High Performance Culture:

They believe that for properly representing any brand, we need to embody
everything it stands for, from its functional and emotional benefits to its personality
and positioning in the marketplace.

Company’s high-performance, relationship-based culture is at the core of who they

are. As a leading integrated sales and marketing firm, they pride themselves on their
unparalleled ability to provide the talent and expertise necessary to maximize one’s

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sales and deliver a positive ROI. If that weren't enough, another powerful by product
of their culture is personal commitment. Because their sales teams possess higher
levels of commitment, they have the ability to promise you superior program design,
management and the results you require.

Their values as an organization aren't just a set of words plastered on a sign in their
lobby, but rather they are part of their DNA and constantly guide their behaviours
and actions. Because of this, they have employee satisfaction, loyalty and
commitment scores that rank in the top 10 percent of companies included in a national
normative database.

What they believe:

WITH EVERY SALE, MORE THAN MONEY CHANGES HANDS:

They believe that every customer interaction can and should be of greater quality-of
higher performance-than simply making a sale. They know their job is to increase
sales and advance what your brand represents. Continuously tailoring specific
approaches to meet the needs of your industry, distribution channels, and customer
segments is what they do best.

MAINTAINING A BRAND'S PRESENCE THROUGHOUT THE ENTIRE

PURCHASE CYCLE:

Given today's hyper-competitive marketplace, there is no margin for error and

definitely no tolerance for unbranded interactions. Therefore, it is essential that each
and every stage - from awareness to consideration to investigation to actual purchase -
must be optimized by infusing the brand's positioning and essence. So when the time
comes for you to drive revenue, why settle for anything less than the knowledge and
passion of an integrated sales and marketing organization committed to your success?

CORE VALUES:

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 Their high-performance, relationship-based culture is grounded in core values such
as trust, integrity, honesty, respect and personal responsibility.

Integrated Sales & Marketing Service:

At the core, they integrated sales and marketing offering is unlike any other. Built
as a dynamic model that connects sales, marketing and marketplace analytics, their
integrated approach service is designed to deliver meaningful results.

This offering is consultative in nature and has been designed as a real-time

responsive system that is flexible and continuously adjusts the elements of the
program toward the goal of greater cost effectiveness and specific ROI metrics,
including sales improvement.

Market analytics &

Field Research

Client needs

(ROI Metrics)

Marketing Sales

Services Services

Fig 1: Core values of MarketSource

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 MarketSource provides the unique skills and expertise to integrate brand-centric
sales and marketing programs in the Automotive, Consumer Electronics, IT
(Computer Hardware & Software) and Telecommunications vertical industries and
relevant routes to market including Retail and B2B. There deep experience in these
verticals and routes to market, along with their knowledge of channel nuances, allows
them to help you design highly effective sales and marketing programs.

Fig 2: Routes of marketing

PROVIDING THE DUAL EXPERTISE OF ROUTE-TO-MARKET AND

VERTICAL INDUSTRY EXPERTISE:

They approach the marketplace from both a route-to-market and vertical

industry perspective and, therefore, can offer their clients the unique advantage of
their multi-faceted experience. Market Source was founded on the platform of
providing a consultative approach and superior service in the route-to-market arena.

There newly enhanced vertical market expertise provides the ability to

overlay specific industry knowledge to their already powerful route-to-market
offerings. While clients benefit when their services overlap, they certainly offer great
value and benefit to clients seeking assistance with their route-to-market strategies
and programs.

SERVICE LIST
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Sales Services

o Sales Channel Development

o Sales Coverage Modelling
o Field Sales Teams
o Inside Sales
o Customer Sales Centres
o Channel Management and Partner Acquisition
o Sales Process Support
o Managed Staffing
 Sales Rep and Call Centres
 Event Marketing
 Retail

Marketing Services

o Brand Strategy
o Integrated Marketing Communications Program Development & Delivery
o Product Launches
o Channel Marketing Planning & Delivery
o Lead Generation/Business Development Centres
o Field Marketing
o Experiential Program Design and Implementation
 Events and Promotion Services
 Product Training and Marketing Initiatives
 Demo Day Services
 Relationship Development and Brand Advocacy Services
o Training
o Merchandising
o POP/POS Program Development & Delivery

Market Analytics, Research & Insight

o Brand Health Measures

o Consumer Field Research
o Sales Channel Research

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 o Real-Time Sales Analysis
 Effectiveness Surveys
 Integrated Programs Analysis
 Instant New Product Launch Metrics
o Retail Operations Audits
o Return Analysis and Reduction Programs

Career Centre:

 Market Source celebrates ambition and wholeheartedly believes in giving

people the opportunity to achieve their dreams. Right now, they are
experiencing exponential growth, and their team is the reason of their success.
 As a leading provider of sales and marketing services in North America, they
are hired by some of the world's most formidable companies to provide sales
and marketing best practices.
 The company is designed to give you the opportunity to be a part of a
progressive organization and to experience professional growth. So, if you are
passionate and committed to sales and marketing, Market Source is the ideal
place to advance your learning, knowledge and real-world experience across a
diverse range of industries and Fortune 500 companies.
 Market Source is committed to attracting, developing and retaining a diverse
workforce of people who share their core values of integrity, respect, honesty
and an understanding that personal relationships are central to who we are as a
company. This is proven by their employee satisfaction scores, which rank
among the highest in the country. They are always looking for people who
would appreciate a relationship-based culture and a high-performance work
environment. They are searching for those who are willing to embrace change,
demand results and embark upon new adventures. Integrity, intelligence, high
energy, perseverance, strong communication skills and leadership abilities are
all qualities they seek in prospective team members.
 If you join their team they will give you the tools you need to be a key
contributor within their company and to achieve your most precious personal
goals. In addition, you would be empowered to manage your own career path.

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 Even more important, they offer competitive compensation, bonuses, rewards
and benefits.
 If you have an interest in joining a winning team, they would love to hear from
you
.

BENEFITS OF COMPANY:

 INCREASED MARKET SHARE, REVENUE AND PROFITS:

• Realize increased margins through lower cost of sales and marketing
• Satisfy ROI metrics
 EFFECTIVE MARKET AND CHANNEL COVERAGE:
• Extend coverage with consultative research and analysis
• Increase sales efforts in previously neglected or underserved markets
• Manage your channels more efficiently and effectively
 IMPROVED FOCUS
• Augment existing internal sales and marketing programs
• Open up internal resources to focus on your core competencies
 BOOST MARKET AND OPERATIONAL INTELLIGENCE
• Gain customer and competitive intelligence
• Access operational feedback on a regular basis
 INCREASE YOUR SPEED TO MARKET
• Leverage product life-cycle dynamics to your advantage
• Ensure you meet or exceed service level agreements
 REDUCE AND CONTROL OPERATIONAL COSTS
• Reduce legacy costs
• Improve productivity by outsourcing administrative sales support
• Improve budget control with fixed-cost programs
• Reduce costs of fully-burdened programs
• Leverage off balance sheet program to provide budget flexibility
 MANAGE RISK
• Reduce risk of inefficiency with flexible and scalable programs
• Increase, decrease, and modify programs without impacting HR or
creating highly visible ramp-down actions

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COMPANY PERFORMANCE:

With over 30 years' experience, they have a vast library of successful case studies
across many different categories. Followings are broad sampling of their programs:

AUTOMOTIVE OUTSIDE DIRECT SALES:

A Detroit-based auto manufacturer turned to Market Source to assist in growing share

and profits for their Extended Warranty product. OEM's and Dealers are focusing
their efforts toward these profit centres to offset declines in margins in other areas of
their businesses.

Program: Extended Warranty business volume and share growth represent significant
incremental profit opportunity to both OEM's and dealerships selling the products.
Market Source worked with the client to design a program where Market Source field
representatives train dealership personnel on product features and benefits and the
most effective means of selling.

Results: Client has experienced share growth ranging from 10-to 56 percentage
points and F&I income PVR of 25 to 50 percent increases.

BUSINESS TO BUSINESS PARTNERSHIPS:

Market Source has been working with a Global Leader in Communications, Systems,
Applications, and Services for many years.

Program: To focus on supporting and selling through a Business Partner Program,

supporting the Top 200 Business Partners. Driving sales through business partners is
paramount to the overall success of this client. Market Source provides the sales and
partner program support for a significant segment of the client's channel.

Results: Since the program inception, the Client and Market Source have seen a
dramatic increase in sales, with over 16 percent growth year after year. Additionally,
Market Source has increased headcount by over 100 percent to provide greater
business partner coverage.

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PRODUCT PROFILE

15
 1.3 COLGATE SENSITIVE TOOTHPASTE:

Colgate Sensitive toothpaste soothes the nerve ends and builds a protective shield
providing both relief from sudden shocks of pain and long term sensitivity
protection with regular use.

Fig 3: Colgate Sensitive Toothpaste

 Fights pain due to sweet/sour/hot/cold foods by desensitising nerves.

 Helps maintain the natural whiteness of your teeth.
 Significant inhibitory effect on the formation of supra-gingival calculus
 Has a pleasant taste.
 You will notice improvement in 2-4 weeks.

If your teeth are still sensitive after a month of consistent use, consult your
dentist.

Ingredients Benefits

Relief from sensitivity by

Potassium Nitrate
desensitising nerves

Copolymer / Pyrophosphate Anti-calculus benefits

Sodium Monoflurophosphate Anti-caries agent

INGRREDIENTS:
Table 1: Ingredients & benefits of Colgate Sensitive

Why should you use Colgate Sensitive Toothpaste?

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 Colgate Sensitive provides you with:
 Fast relief from the pain of sensitive teeth
 Proven protection from sensitivity with regular use
 Fresh breath


What Causes tooth sensitivity?

 Poor oral hygiene. This may allow tartar to build up at the gum line.
 Receding gums that expose the tooth's roots
 Brushing teeth too hard. This wears away the enamel layer
 Frequently eating acidic foods or drinking acidic beverages
 An old filling with a crack or leak
 Untreated cavities.
 Gum surgeries that exposes a tooth’s root.

Price of Colgate Sensitive Products:

Sr.No Product Amount Price(MRP)

. Rs.

1 Colgate sensitive toothpaste 50gm 35

2 Colgate sensitive toothpaste 100gm 62

3 Colgate sensitive toothbrush 1 40

Table 2: Price of Colgate Sensitive Products

COLGATE SENSITIVE TOOTHBRUSH:

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 Colgate sensitive toothbrush is with ultra-soft bristles which best suits for damaged
and sensitive teeth. It prevents farther damage and also provide smooth feel of
brushing.

Ultra-soft bristles help make hypersensitive teeth &gum feel as if they’ve been treated
with real care. Its flexible neck help minimize pressure on gum & the rubber thumb
grip ensures better control.

Fig 4: Colgate Sensitive Toothbrush

COMPETITORS PROFILE:

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 There are so many competitors for Colgate Sensitive like Sensoform,
Thermoseal, Emoform, Sensodent, Senquel, Sensoform, and Sensodyne etc. But
Sensoform, Thermoseal and Emoform are the major competitors of Colgate Sensitive;
since, they are prescribed by the Dentist.

Sensoform is product of Warren pharmaceutical company having largest

share in medicated toothpaste market in Nanded city due to lower price and also as it
is prescribed by Dentist. Second most selling is Thermoseal.

THERMOSEAL:

 Dentinal hypersensitivity is a sharp pain produced in the teeth, in response to

stimuli such as hot, cold, sweet, sour, or contact. It affects the quality of life
and results in extreme discomfort or an inability to eat or drink certain foods.
 RA Thermoseal builds increasing protection against painful sensitivity of teeth
to hot, cold, sweet, sour, or contact.
 Fluoride in RA Thermoseal helps in prevention of dental cavities.

Ingredients:

 Active ingredients:
Potassium nitrate B.P. 5%, Sodium monofluorophosphate U.S.P. 0.7 %
( available fluoride content 917 ppm).
 Inactive ingredients:
Sorbitol, Glycerine, Hydrated silica, Polyethylene glycol, Sodium lauryl
sulphate,Flavour,Cellulose Gum, Titanium dioxide, Sodium saccharin,
Sodium benzoate, Water.

RA Thermoseal does not contain sugar.

VARIOUS OTHER BRANDS’ AND THEIR COMPANIES:

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 Company Brand

IPCA Thermo seal

Thermoseal-RA

Dr.reddy Stolin

Stolin-R

Senquel

Senquel-F

Warren Sensoform

Sensodent-k

Sensodent-KF

J L Morison Emoform

Ciens lab Sensicure

GSK Sensodyne

FDC Triclorogard

Table 3: Competitive brands

COMPITITORS PRODUCT PRISES:

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 PRODUCT NAME PRISE FOR 50gm PRISE FOR 100gm MARGINE IN
%

Thermoseal 27.75 59 20

Thermoseal-RA ---- 59 20

Senquel 31.50 ---- 22

Senquel-F 40 ----

Sensoform 33 56 25

Sensicure-K 39 ----

Sensodent-KF 40 63 20

Sensodent-k 45 60 20

IPCO 31 ---- 12

Hydent-K ---- 63

Kidodent ---- 58

Colgate sensitive 35 62 20

Table 4: Competitive product prises

1.4 NEED FOR THE STUDY:

 Colgate says it is targeting a market that is estimated to affect 57 percent of the

adult population at any given time, making eating or drinking often a painful
experience. Currently the worldwide market for sensitive teeth oral care is
dominated by the Sensodyne brand, which is marketed by British
pharmaceuticals giant GlaxoSmithKline.
 Targeting a worldwide market for sensitive teeth.

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  It is new brand as compare to its competitor brands in market.
 As is somewhat different brand of toothpaste i.e. medicated paste of Colgate
and it come under OTC (over the counter) drug so company not treat this
brand like their earlier brands (Promotional Activity) which come under
FMCG.
 When we talk about the medicated toothpaste and toothbrush on OTC,
following parameters are taken into consideration while dealing with Colgate
Sensitive,
 Demand
 Quality
 Price
 Profit
 Scheme
 Awareness
 Brand name

Based on above parameter, prepared a questionnaires for Chemist to find out

factors to be consider for selecting particular Medicated toothpaste to customer
through OTC. In this way we come to know competitive aspects and also parameter
for Market Penetration of Colgate Sensitive. Also by doing these questionnaires
activity we also did the promotion and seeding activity in though stores where this
brand is not available, new customer is added and the market penetration done.

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 OBJECTIVES AND SCOPE

1.5 OBJECTIVE OF THE STUDY:

Primary objective:

 Market penetration of Colgate Sensitive in Nanded City, means to

enhance sales turnover of Colgate Sensitive in Nanded city. In this my

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 aim is to increase the sales in each medical store and also do the addition
of new store for selling of this brand.

Secondary Objective:
 To determine the market share of different brands of medicated pastes
available in market.
 To provide service to existing customers of Colgate Sensitive by solving
their quarries and informing the facts of Colgate Sensitive.
 To search out new customers for the Colgate Sensitive.
 To identify pros and cons of the brand so that market penetration is easy
and to build better brand having better image in long term market. This
was a fundamental objective of the whole research.
 To study factors consider by customers, while purchasing medicated
toothpaste through OTC.
 To study chemist behaviour of advising Medicated toothpaste.
 To study chemist opinion for this brand of Colgate and also the
competitors brand of this category.

1.6 SCOPE OF STUDY:

 Study will help in creating awareness of the brand on the basis of

questionnaire and market research. It will also help the researcher to know

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 chemists habitat which will add value to Colgate Sensitive to focus on the
large target customer.
 Awareness level of Colgate sensitive is increased through maintaining good
relationship with the customer which will help in long term market.
 It will also help to know the perception of retailer regarding the supply of
Colgate Sensitive.
 Market survey is an important vehicle for collecting the customer’s opinion
and needs. It allows the company to quickly capture the market information;
and depending on their requirement company uses it.
 The study was pertaining to questions like preference for a particular brand
and also questions like, whether the consumer are concerned about quality,
price, availability, taste and brand loyalty which help to determine consumer
behavior and factors for selecting competitive brand, competitive analysis.
 Customer satisfaction is the marketing yardstick. The term satisfaction implies
that one has reached an absolute level of customer acceptance means customer
getting everything he desires, So that the long term brand trust is maintain and
market penetration is maintain.

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 CHAPTER 2

THEROTICAL AND PRACTICAL

ASPECTS

MARKET PENETRATION:

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 Market penetration is one of the four growth strategies of the Product-
Market Growth Matrix defined by Ansoff. Market penetration occurs when a
company enters/penetrates a market with current products. The best way to achieve
this is by gaining competitors' customers (part of their market share). Other ways
include attracting non-users of your product or convincing current clients to use more
of your product/service (by advertising etc).

 Market penetration (existing markets, existing products): Market penetration

occurs when a company enters/penetrates a market with current products. The
best way to achieve this is by gaining competitors' customers (part of their
market share). Other ways include attracting non-users of your product or
convincing current clients to use more of your product/service, with
advertising or other promotions. Market penetration is the least risky way for a
company to grow.
 Product development (existing markets, new products): A firm with a market
for its current products might embark on a strategy of developing other
products catering to the same market (although these new products need not be
new to the market; the point is that the product is new to the company). For
example, McDonald's is always within the fast-food industry, but frequently
markets new burgers. Frequently, when a firm creates new products, it can
gain new customers for these products.
 Market development (new markets, existing products): An established
product in the marketplace can be tweaked or targeted to a different customer
segment, as a strategy to earn more revenue for the firm. For example,
Lucozade was first marketed for sick children and then rebranded to target
athletes. This is a good example of developing a new market for an existing
product.
 Diversification (new markets, new products): Virgin Cola, Virgin
Megastores, Virgin Airlines, Virgin Telecommunications are examples of new
products created by the Virgin Group of UK, to leverage the Virgin brand.
This resulted in the company entering new markets where it had no presence
before.

Most marketing activity revolves around penetration as it is least risky.

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MARKET PENETRATION:

Taking into consideration that the term market penetration is defined as a

strategy of increasing sales of existing products into current markets, the analysis of
the factors with influence over the costs to achieve the significant market penetration
a company is looking for includes:

 The company’s marketing strength

 The possibility of having access to low cost materials as well as to effective
production
 The experience of your company
 The consideration of problems related to the introduction such as lack of
adherence to industry standards, unavailability of materials, poor quality
control, regulatory problems and the inability to properly and sufficiently
explain the benefits of your company’s products or services to the prospect.
 The enterprise infrastructure which comprises its organization, recruiting
policies, employee benefit programs, customer support facilities and logistical
capabilities.
 Distribution effectiveness including history of relations, the extent of channel
utilization, financial stability, reputation, access to prospects and familiarity
with your products or services
 Technological efforts 
 Availability of an adequate operating capital

The strategy of market penetration is considered as the possibility of growing

through achieving higher market participation on the products and the markets the
company currently operates.

PRACTICAL ASPECTS:

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There can be three different ways to carry out this strategy of market
penetration:
a) the current customers purchase more of your products and services
b) gaining competitors' customers (part of their market share)
c) attract new potential customers that are not actually consuming your products.

All these ways were used for carrying out this project and my work was as fallows,

 At first, I had collected Chemist Data from Chemist Bhavan from Nanded and
then selected out 150 chemist stores as a sample size on non-probability type
of sampling.
 Visited chemist stores and informed about the Colgate Sensitive product and
its competitive advantage is daily work.
 Requested chemists to fill the questionnaire, for primary data of this project.
 Sold the Colgate Sensitive Paste with Invoice.
 Visited to stockist for discussing the supply chain.
 Contacted regularly to the CDO (City Development Officer) for discussing
work done and get guidance for my project.
 Fill a excel sheet from information collected by daily visits as a part of DSR
(Daily Service Report) which is further used for analysis purpose.

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 CHAPTER 3

RESEARCH METHODOLOGY

Research Design and Methodology:

Research:

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  Research is an art of scientific investigation through search for new facts in
any branch of knowledge. It is a moment from known to unknown.
 Research always starts with a question or a problem.
 Its purpose is to find answers to questions through the application of the
scientific method.
 It is a systematic and intensive study directed towards a more complete
knowledge of the subject studied.
 As marketing does not address itself to basic or fundamental question, it does
not qualify as basic research. On the contrary, it tackles problems, which seem
to have immediate commercial potential. In view of the major consideration,
marketing research should be regarded as applied research.
 We may also say that marketing research is of both types problem solving and
problem oriented.
 Marketing research is as systematic and objectives study of the problems
pertaining to the marketing of the goods and services. It may be emphasized
that it is not restricted to any particular area of marketing, but is applied to all
the phases and aspects.

3.1 Type of research Design:

This project “Market Penetration of Colgate Sensitive in Nanded city & its
competitive analysis” is the case of Descriptive Market Research.

Descriptive & diagnostic Market Research:

The focus of descriptive research is to provide an accurate description for

something that is occurring. For example, which group is buying a particular brand, a
product’s market share within a certain industry, how many competitors a company
faces, etc. This type of research is by far the most popular form of market research. It
is used extensively when the research purpose is to explain, monitor and test
hypotheses, and can also be used to a lesser extent to help make predictions and for
discovery.

Marketers routinely conduct basic descriptive research using informal means.

For instance, the head of marketing of Colgate Company may email a retailer to see

31
 nugeocalytsCDtii
how the products are selling. But informal descriptive research, while widely
undertaken, often fails to meet the tests of research validity and reliability and,
consequently, the information should not be used as an important component in
marketing decisions. Rather, to be useful, descriptive research must be conducted in a
way that adheres to a strict set of research requirements to capture relevant results.
This often means that care must be taken to develop a structured research plan. Under
most circumstances this requires researchers have a good grasp of research methods
including knowledge of data analysis.

RESEARCH PROCESS:

3.2 Data collection technique:

The primary and secondary techniques of data collection were used to collect the
data.

32
a) Primary technique of data collection:

Primary data is that type of data which includes the first hand information which
is being collected from the respondent through observation or direct communication
with the respondent in one form or the other.

Source of Primary data collection:

 Observation.
 Field observation.
 Interview schedule.
 Questionnaire.
 Discussion with some concerned people.
Here the major source used for primary data collection is Questionnaire.

Here in this research the structured questionnaire prepared and chemists were
asked to fill it individually. A structured questionnaire is type of questionnaire, which
includes closed ended questions and is in structured and printed format.

b) Secondary data collection technique:

Secondary data means the data that are already available i.e. they refer to the data
which have already been collected and analyzed by someone else. Secondary data has
been taken from the company booklets, information manual, website etc. this has been
used to know about the organization, market share of the organization, sales policy.

3.3 SAMPLING DESIGN:

Population:

33
 In statistical usage the term population is applied to any finite or infinite
collection of individuals. Population means the aggregate of element from which a
sample is to be drawn, in the case of this project it covers chemists of Nanded for the
survey and it is a Non-Probability Sampling.

Sampling Unit:

It means whom to be surveyed. In this project, samples were taken from

different Chemists form Nanded city which randomly selected from total number of
chemist. Here sampling unit is a Chemist.

Sample size:

During the project 150 numbers of chemists were taken as a sample size.

Sampling Technique:

Random sampling technique has been used to select the sample. A Simple
random sample is a group of subjects chosen from a larger group (population). Each
subject from the population is chosen randomly and entirely by chance, such that each
subject has the same probability of being chosen at any stage during the sampling
process.

Sampling errors:

There were some pharmacies which were Hospital pharmacies and are not deals
with toothpaste segment and were included in sampling.

Source and method of data collection:

Data includes facts and figures, which are required to be collected from chemists
to achiever the objectives of the project which is used to determine the present
position and expectation of customer from this brand.

Questionnaire structure and Type:

 Project questionnaire is fall into structured questionnaire type.

34
  A structured questionnaire is a series of 'closed' questions asked in the order in
which they are laid down.
 There are a number of issues to consider when designing a questionnaire,
including the aims and objectives of the survey. The method of data collection
to be used must suit the nature of the sample and the questions you want to
ask.
 Questions must be personalized for use with a mixture of people and be user-
friendly. When designing the questionnaire, it is important to think about
possible answers and how they may affect the response to other questions. The
method of data processing should also be considered and incorporated into the
design of the questionnaire (for instance, including boxes to tick or question
responses that have been assigned a code).
 Closed Questions: Where the only answers are yes/no/don't know. For
example: 'Are you planning a holiday this year?' It is possible to anticipate the
answer and results can be easily summarised.

3.4 Limitation of the study:

1. Region: The survey was limited for Nanded city only.

2. Selective specialization: Only Medicated paste & brush of Colgate Sensitive
were covered under project survey and the other medicated product of
Colgate( C. Total, Plax).
3. Time constraint: It was very difficult to get the appointment of required
person chosen who the busy person. It took very long time in waiting hence
large number of sample size was not possible.
4. Approach of Chemist: few chemists were not entertaining the Questionnaire,
so it is not possible to get perfect perception of interviewee.
5. Unavailability of authorized person: In most cases authoritative person
means owner of medical store (chemist) was not available during the
interview.

35
 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS & INTERPRITATION:

Product categories available in Medical Store.

Q. 1. Which type of Product Categories available in your store?

36
 Product Categories Availability % Availability
Medicines 150 100
Cosmetics 140 93.33
Toothpaste 138 92
Toothbrush 138 92
Mouthwash 34 22.67
Table 5: Product Categories available in medical store.

Product Categories
100
93.33 92 92
100
90
80
70
60 % Availability
50
40
22.67
30
20
10
0
Medicines Cosmetics Toothpaste Toothbrush Mouthwash

Graph 6: Product Categories available in medical store.

Interpretation:

As per the research it was analyzed that cosmetics category is available in near
about 94% of chemist store in Nanded. Remaining all are Hospital Pharmacy.
Cosmetic category covers the toothpaste and toothbrush 92%. If we deal with another
oral care product Mouthwash the availability is very poor i.e.22.67%.

Availability of Medicated Segment of Oral Care in Medical Store:

Q.2. Do you Stock Medicated Toothpaste & Toothbrush in your store?

Response No. Of Responses Percentage

Yes 138 92
No 12 8
Total 150

37
 Table 6: Availability of medicated segment of oral care

Medicated Segment Of Oral Care

92
100
90
80
70 Percentage
60
50
40
30
8
20
10
0
Yes No

Graph7: Availability of medicated segment of oral care

Interpretation:

Medicated toothpaste & toothbrush are present in 92% of Chemist Store i.e. in
almost all Chemist store, whereas, it is absent in 8% of Chemist Store & that are
basically Hospital Pharmacy & these store’s even not store general oral care product
& cosmetic product.

Awareness of Colgate Sensitive brand:

Q.3 Are you aware of Colgate Sensitive brand?

Response No. Of Responses Percentage

Aware 141 94
Not aware 9 6
Total 150
Table7: Awareness of Colgate Sensitive Brand to Chemist.

38
 Brand Awareness
94
100
90
80
70 Percentage
60
50
40
30 6
20
10
0
Aware Not aware

Graph8: Awareness of Colgate Sensitive Brand to Chemist.

Interpretation:

Almost all Chemists 94% in Nanded are aware about Colgate Sensitive brand
means it is easy to deal with them for the detailing and to convince them. Also from
this analysis it is interpreted that brand awareness is already down the only this
remains is the product penetration. The 6% population which is not aware this brand
is belonging to special Hospital Pharmacy and they are not aware as they are not deal
with the oral care products.

Competitive Analysis of Colgate Sensitive toothpaste:

Q.4. Which medicated toothpaste/s are available in your store?

Brand Name No. of Response Percentage

Colgate Sensitive 66 44
Thermo seal 84 56
Emoform 72 48
Sensoform 117 78
Other 51 34
Table8: Competitive Analysis Medicated Toothpaste

39
 Competitive Analysis
78
80
70 56
60 44 48
50 34
40
30 Percentage
20
10
0
Colgate Thermo seal Emoform Sensoform Other
Sensitive

Graph 9: Competitive Analysis Medicated Toothpast

Interpretation:

Above analysis interprets that,

 In Nanded, Sensoform is the strongest competitor for Colgate Sensitive

toothpaste.
 Other stronger competitors are Thermoseal and Emoform.
 The other all brands are found in few of Medical Store.
 About Colgate Sensitive toothpaste in Nanded, its share is low as compare
with other competitors this due to long brand history of competitor and also
due to high dentist prescription.

Competitive Analysis of Colgate Sensitive Toothbrush:

Q.5. Which Medicated toothbrush/s are available in your store?

Brand Name No. of Response Percentage

Colgate Sensitive 66 44
Colgate 360* 63 42
Oral-B CrossAction 40 26.67
Oral-B 123 96 64
Other 80 53.33
Table 9: Competitive Analysis Toothbrush

40
 Competitive Analysis
64
70
53.33
60
44 42
50
40 26.67
30 Percentage
20
10
0
ve 0* on 3 r
siti 36 cti 12 he
en te A l-B Ot
eS lga ss ra
t ro O
lga Co C
Co l-B
O ra

Graph 10: Competitive Analysis Toothbrush

Interpretation:

Above analysis interprets that, in Nanded city,

 Strongest competitor of Colgate Sensitive toothbrush is Oral-B 123.

 Colgate Sensitive toothbrush is having second most market share in medicated
toothbrush.
 Other two competitor are its own brand Colgate 360* & Oral-B CrossAction.
 In this case all other brand sum is about 53.33% which means there is scope to
increase the market capturing for Colgate Sensitive toothbrush.

Nature of selling:

Q.6 How medicated toothpaste & toothbrush are sold mostly?

Nature of selling No. of Response Percentage

On OTC 63 42
On Prescription 87 58
Total 150
Table 10: Nature of selling

41
 Nature of selling
58
60
42
50
Percentage
40
30
20
10
0
On OTC On Prescription

Graph 11: Nature of selling

Interpretation:

Above analysis interpret as, 42% percent medicated toothpaste is sold as a OTC
(Over the Counter) way i.e. there is scope for promoting & convincing to the Chemist
for advice this brand so that sale increase.

Other fact in this case is 58% of prescription selling is though Dentist so cove
them by appointing Marketing executive so that these prescriptions are about Colgate
Sensitive.

Customer behaviour for Medicated Toothpaste on OTC

Q.7 On which factor/s customer purchase medicated toothpaste by OTC?

Factors No. of Responses Percentage

Price 112 74.67
Scheme 57 38
Brand Name 93 62
Chemist Advice 126 84
Table11: Customer behaviour on OTC

42
 Customer behaviour on OTC
84
90 74.67
80 62
70
60
50 38 Percentage
40
30
20
10
0
Price Scheme Brand Name Chemist Advice

Graph12: Customer behaviour on OTC

Interpretation:

On OTC, customer behaviour for medicated toothpaste is,

 Most number of customers go for Chemist advice (84%).

 Second most parameter for purchase is price of paste (74.67%).
 Brand name of paste is also a deciding parameter (62%) for selection by OTC,
as per Colgate product concerned brand image of this product is far most
parameter in OTC.
 Scheme is also the factor to consider while purchase of paste (38%).

Chemist Role in OTC:

Q.8 Do you suggest Colgate Sensitive toothpaste on OTC?

Response No. of Responses Percentage

Yes 48 32
NO 102 68
Table12: Chemist suggestion to Colgate Sensitive

43
 Chemist Role in OTC
68
70
60
50
32
40 Percentage
30
20
10
0
Yes NO

Graph13: Chemist suggestion to Colgate Sensitive

Interpretation:

From above graph it shows that, to the 32% of customer Chemist advice
Colgate Sensitive. But for other 68% of customer Chemist advice other medicated
product.

Chemist view about Colgate Sensitive:

Q.9 If No, Why?

Factors No. of Responses Percentage

Lack of Knowledge 23 22.5
Less margin 62 60.8
Higher price 46 45
Less therapeutic effect 17 16.67
Total 102
Table13: Chemist view about Colgate Sensitive

44
 70 60.8
60 45
50
40
22.5
30 16.67
20
Percentage
10
0
ge gin ice ct
led ar pr effe
w r
no ss
m
gh
e tic
fK Le Hi p eu
o a
ck er
La th
ss
Le

Graph14: Chemist view about Colgate Sensitive

Interpretation:

From graph it is interpreted that,

 60.8% Chemists not suggest Colgate Sensitive because of its less margin then
the competitors.
 45% of chemists not suggest this brand due to its high price than its
competitors.
 22.5% of Chemists not suggests this brand due to lack of proper
pharmacological knowledge.
 16.67% of Chemists not suggests this brand due to its less therapeutic effect
on sensitive teeth.

Chemists’ consideration for Medicated toothpaste:

Q.10 Which factor/s you consider for making available medicated toothpaste?

Factors No. of Responses Percentage

High Margin 118 78.33
Better Scheme 93 62
Good Service 72 47.67
Demand 132 88

Table14: Chemists’ consideration for Medicated toothpaste

45
 Chemists’ consideration
88
90 78.33
80
70 62
60 47.67 Percentage
50
40
30
20
10
0
High Margin Better Scheme Good Service Demand

Graph15: Chemists’ consideration for Medicated toothpaste

Interpretation: From graph it is interpreted that,

 Most number of Chemists (88%) considers Demand of medicated toothpaste

for making available in their store.
 78.33% sample population of Chemists considers Higher margin as their
factor for making available in their store.
 62% of chemists are attracted toward better scheme.
 47.67% think good service is factor for making available in their store, it
include the fast supply chain, after sale service and expiry.

Chemists expectations from company:

Q.11 What are your expectations from company?

Factors No. of Responses Percentage

More Advertisement 120 80
Credit Facility 70 46.67
Good supply chain 56 37.33
Dentist call 91 60.67
High Margin 128 85.33

Table15: Chemists expectations from company

46
 Chemists expectations
85.33
80
80 60.67
60 46.67
37.33
40
20 Percentage

0
en
t
ilit
y in all gin
m ac cha stc ar
e
tis tF ly nti M
er di pp De gh
dv Cr
e su Hi
r eA ood
o G
M

Graph16: Chemists expectations from company

Interpretation:
From above chart it is interpreted that,
 85.33% of chemists (most) expect higher margin from company.
 80% of chemists expect more advertisement from company for this product.
 60.67% of chemists expect more no. dentist call by company and convince
them to prescribe this brand.
 46.67% of chemists wants credit facility from company.
 37.33% of chemists expect good supply chain from company so that it make
an image in market and is easily available.
Variants analysis

Q.12 Which variants of Colgate sensitive are sold mostly?

Variants No. of Responses Percentage

50gm 81 54
100gm 69 46

Table16: Variants analysis

47
 Variants analysise

54%

54%
52% Percentage
50%
48% 46%

46%
44%
42%
50gm 100gm

Graph17: Variants analysis

Interpretation:

From graph it shows that, 50gm of Colgate Sensitive are mostly 54% sold, while
100gm of Colgate Sensitive is sold by 46%. 50gm is due to less investment and
100gm is due to long usage of this brand for regular interval.

Purchase order:

Q.13 Purchase order?

Type of product No. Of stores Percentage

Colgate sensitive toothpaste 100gm 56 37.33
Colgate sensitive toothpaste 50gm 84 56
Colgate sensitive toothbrush 84 56

Table17: Purchase order

48
 Purchase ordere
56 56
60
50 37.33
40
30 Percentage
20
10
0
Colgate sensitive Colgate sensitive Colgate sensitive
toothpaste 100gm toothpaste 50gm toothbrush

Graph18: Purchase order

Interpretation:

From graph it is interpreted that,

 37.33% of Chemists purchased Colgate Sensitive toothpaste 100gm.

 56% of Chemists purchased Colgate Sensitive toothpaste 50gm.
 56% of Chemists purchased Colgate Sensitive toothbrush.

That means fast moving variant is 50gm of Colgate Sensitive and also some stores
keep both variant and the store which purchase toothpaste also purchase toothbrush.

49
 CHAPTER 5

FINDINGS AND CONCLUSION

FINDINGS:
By doing data analysis we found that in Nanded,

 Near about all chemist shop store medicated toothpaste & toothbrush & other
oral care product.
 Almost all chemists are aware Colgate Sensitive brand but they are not having
full knowledge about it.
 Competitors having larger share of market then Colgate Sensitive in Nanded
city.
 Strong competitor is Sensoform, second is Tharmoseal, other main competitor
is Emoform for Colgate Sensitive Toothpaste in Nanded city.

50
  In case of toothbrush segment Oral-B 123 is strongest competitor of Colgate
Sensitive toothbrush in Nanded city.
 About purchasing, 42% of customer purchase medicated toothpaste by OTC.
 While purchasing on OTC customer consider mostly Chemist suggestion, then
the price, then brand name and the scheme on the product.
 Mostly chemist does not suggest Colgate Sensitive on OTC.
 Chemist does not suggest Colgate Sensitive on OTC, as they want more profit
from product, then they say’s that Colgate Sensitive having higher price, also
they having less knowledge about Colgate Sensitive, also some chemist say
they observe less therapeutic effect then its competitor over hypersensitivity.
 Chemist while trading medicated toothpaste & toothbrush want high margin
also want better scheme and good service of company, more then all above
chemist wants more & more demand of particular product from customer
 Chemist expect higher margin, more advertisement & promotion and
continuous Dentist call’s so the demand increase through prescription
generation, also they want good supply chain.
 50gm variant of Colgate Sensitive toothpaste is highly demanded in market of
Nanded city then its 100gm variant.
 By doing personal selling I had seeded (added) 84 medical stores and start new
business in these stores.
 Now, all over Nanded Colgate Sensitive is Present in 82% of medical store.

CONCLUSION:
It is concluded that,

 Now Colgate Sensitive brand is available in 82% of Chemists stores in

Nanded city, this is done by doing the detailing and sharing information
during questionnaire filling.
 Colgate Sensitive is now available with those chemists who were not engaged
in selling this paste (Seeding of Colgate Sensitive).
 We found that medicated pastes are mostly sold through OTC. That means
selling of medicated paste is largely depend on chemist.

51
  We found some parameters on which the competitor runs their product in this
market. Some of them are chemist margin, price, dentists’ calls and also
schemes.
 By this project, company consider all these factors for improvement which
will be used for market penetration of this brand.

From project we can conclude that, in Nanded city Colgate Sensitive is penetrated up
to some extent but still there is further scope for improvement of its market share.

52
 CHAPTER 6

SUGGESTIONS AND
RECOMMENDATIONS

SUGGETIONS:

By observing the findings from data analysis of Nanded city, I want to suggest,

 Company should increase Profit margin to the Chemist as 42% of selling is

done through OTC.
 As this product having high price then its competitor so reduce it to the
competitor’s price, it helps in market penetration of product.
 Company also make sure the chemist should have proper knowledge of
Colgate Sensitive.

53
 Chemist wants better scheme so provide some schemes. For enhancing sales
volume company provide schemes on higher purchase.
 Do promotion through Dentist, which will generate more prescription and
ultimately demand will increases.
 Company should observe & improve supply chain. For this appoint a sales
executive in each district.
 For consumer awareness there should be more emphasis on advertisements
though different media.

54
 CHAPTER 7

BIBLOGRAPHY

BIBLIOGRAPHY:

Reference Books:

1. Marketing Management, Global Perspective Indian Context by V.S.

Ramaswamy, S. Namakumari. Fourth edition, Macmillan Publishers India ltd.

2. “Marketing Management” 12th edition by Philip Kotler.

3. “Research Methodology” by C.R.Kothari

55
Web Pages:

 http://www.google.co.in/url?
q=http://en.wikipedia.org/wiki/Personal_selling&sa=X&ei=Zml7TIf7EsuHcZvc8IQ
G&ved=0CAYQpAMoAA&usg=AFQjCNG2NCIT5dPucjk1i_4fPMq6EgGx9A
 http://www.google.co.in/url?
q=http://www.quintcareers.com/jobseeker_marketing_glossary.html&sa=X&ei=
Zml7TIf7EsuHcZvc8IQG&ved=0CAcQpAMoAQ&usg=AFQjCNEHv8TuLBsFAbSQhs
MgIdnUn71ySg
 http://www.google.co.in/url?q=http://articles.bplans.com/business-term-
glossary/business-terms-
p&sa=X&ei=Zml7TIf7EsuHcZvc8IQG&ved=0CAgQpAMoAg&usg=AFQjCNFgS8P50l
656gKoyZce-dgitu8baA
 http://www.google.co.in/url?
q=http://www.glencoe.com/sec/busadmin/marketing/dp/ad_serv/gloss.shtml&
sa=X&ei=Zml7TIf7EsuHcZvc8IQG&ved=0CAkQpAMoAw&usg=AFQjCNGLD9OeIRF
4tSiu2TuCpgpJXjL8dQ
 http://www.google.co.in/url?q=http://www.enotes.com/business-finance-
encyclopedia/promotion&sa=X&ei=Zml7TIf7EsuHcZvc8IQG&ved=0CAoQpAMoB
A&usg=AFQjCNG_jc33fIY9bnuxcryJsfuI06Ospw
 http://www.google.co.in/url?
q=http://tutor2u.net/business/marketing/glossary_p.htm&sa=X&ei=Zml7TIf7Es
uHcZvc8IQG&ved=0CAsQpAMoBQ&usg=AFQjCNEZClNRDDwasW4BGTU_CocY4
mCnhw
 http://salesforcemanagement.blogspot.com/2009/01/personal-selling-
objectives.html

56
 CHAPTER 8

ANNEXURE

MS Detailing Activity: Call Sheet

Name of Store:

Address:

57
Mobile No.:

Stamp:

(Tick appropriate options)

1. Which type of Product categories available in your store?

a) Medicines

b) Cosmetics

c) Toothpaste

d) Toothbrush

e) Mouthwash
2. Do you stock medicated toothpaste & toothbrush in your store?
a) Yes
b) No

3. Are you aware of Colgate Sensitive brand?

a) Yes

b) No

4. Which medicated toothpaste/s are available in your store?

a) Colgate Sensitive

b) Thermo seal

c) Emoform
d) Sensoform
e) Other

5. Which toothbrush/s are available in your store?

a) Col Sensitive

b) Oral-B Crosspower

c) Col 360*

58
 d) Oral-B123

e) Other

6. How medicated toothpaste & toothbrush are sold mostly?

a) On OTC

b) On Prescription

7. On which factor/s customer purchase medicated toothpaste by OTC?

a) Price

b) Scheme

c) Brand name

d) Your advice

8. Do you suggest Colgate Sensitive toothpaste on OTC?

a) Yes

b) No

9. If No, Why?

a) Lack of knowledge

b) Less margin

c) Higher price

d) Less therapeutic effect

10. Which factor/s you consider for making available medicated toothpaste in
your Store?

a) High Margin

b) Better Scheme

59
 c) Good Service

d) Demand

11. What are your expectations from company?

a) More Advertisement
b) Credit facility
c) Good Supply Chain
d) Dentist call
e) High Margin

12. Which variants of Colgate sensitive are sold mostly?

a) 50 gm
b) 100 gm

13. Purchase order details:

Sr. No. Type of product Quantity

1 Colgate sensitive toothpaste 100gm
2 Colgate sensitive toothpaste 50gm
3 Colgate sensitive toothbrush

** Thanks for your valuable time and Feedback**

60