Project Report

A STUDY ON MARKETING STRATEGIES OF COLGATE PALMOLIVE LTD.

Submitted to:

Dr. D.K. Agarwal

Submitted by:
DINESH CHAUHAN VIVEK DHAR [62014] [62066]

FORE SCHOOL OF MANAGEMENT NEW DELHI

Contents

 Introduction 1  Objective 2  Methodology 3  Company Profile 4  Company Strategy 6  Marketing Mix 15  SWOT Analysis 26

 Survey Findings 28  Retailers Survey 34  Conclusion 37  Suggestions 39  Consumer Questionnaire  Retailer Questionnaire  Bibliography

INTRODUCTION
As early as 3000 B.C. Egyptians used toothbrushes fashioned from twigs. In the 20th century a major design advance occurred in 1938 with the launch of Dr. West’s Miracle Tuft toothbrush, the first nylon bristle brush. Until the late 1970’s toothbrushes were widely viewed by consumer as a commodity and were primarily purchases on price. The involvement remained low and the companies also treated their toothbrushes as an extension, to get their consumers to use their toothpastes. Typically in the Indian market the percentage of toothbrush users has slowly inched upwards. As it has always been associated by the non-users as a non-essential item more so because of their fierce loyalty to the margosa twigg(Datun) and the index finger. The market of late has been the entry of several foreign players and the marketing game has assumed a totally new dimension. Companies are trying to shift to “PULL” strategy of long term returns and the inclination of consumers to shell out a few rupees extra to ensure a more wholesome care of their teeth and gum. This has resulted in rapid growth in value terms. Added to this is the initiative of the companies to focus on expanding the market by bringing the over 65% non-users in their consumer fold. With such vast potential to be exploited, the entry of several new players with their innovative ideas and experience in similar developing markets, the industry is likely to see a lot of action in the immediate future.

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OBJECTIVE
The above of the project was manifold.  First of all a general idea of the toothbrush industry - its competitiveness, volume and potential was to be adjudged.  Next was to go on to analysis of the attitudes of a typical consumer and his/her idea/perception of this low involvement category product.  This was to be followed up with the study of Colgate Plus toothbrush, as a typical product of the company, Colgate Palmolive and its standing in the market vis-à-vis other players, especially new entrants.  To amalgamate all above to conclude as to what was to be the future/probable course of the toothbrush industry and Colgate Plus tooth brush in particular.

METHODOLOGY 1. and keeping in mind the new entrants. I prepared a questionnaire that was circulated among 70 odd people. 2. The same was done with the retailers to try and see the conformity in findings in some specific attributes. The findings were synthesized. projections were made and conclusions were drawn. For consumer attitudes. The questionnaire was to structured that an idea of brand image and relative studying of various brand could also be elicited. . Business Today’s. 4. This included A & M’s. 3. their potential and the potential of the market. I went through all the relevant literature we could lay my hands upon. To get an idea of the industry. well spread out across the whole of Delhi.

100 each. shampoo. The company’s distribution network covers 1700 stockists and 4. The company has its own Research and development facilities and had also been getting the R&D benefits of the parent company. It has a well established quality Control Department at Sewri & Waluj. For 40 years. Hyderabad. Palmolive. Colgate Palmolive. USA diluted .50. tooth powder tooth brushes and personal care products like toilet soaps. 1. The company became a public limited company on 5th October 1978. since inception till 1978. 1. Protex and Charmis.5 lakh made up of 1500 equity shares of Rs.COMPANY PROFILE A household name for paste and tooth powder.96 crore. Of USA Initially it started with trading activity and later set up manufacturing operations in 1949 at Sewry (Bombay). Halo.000 retailers with ware house facilities in Mumbai. by a bonus issue in the ratio of 130:1. Calcutta. which are marketed under various brand names such as Colgate. as a wholly owned subsidiary of Colgate Palmolive Co. Lucknow and Madras ( and a new addition at Faridabad). Colgate Palmolive (India) was established on 23rd September 1937 as a private limited company in Bombay. In 1990-91 the company commissioned facilities for fatty acid and toilet soap at Waluj (Aurangabad). Colgate was carrying on its business in India with a paid up capital of Rs. when it was increases to Rs. To comply with the FERA regulations. The plants at Sewri and Waluj manufacture oral care products like dental creams. Delhi.

it had sales of $ 6. 275 new products were introduced world-wide. several strategic acquisitions (e. accounted for 64% of sales and 6% of profits in 1991. . In 1921 $ 243 million was spend to upgrade 25 of Colgate Palmolive’s 91 manufacturing plants. along with improved efficiencies in manufacturing and distribution and a continuing focus on core consumer products. its world wide R&D expenditures were $ 114 million and media advertising expenditure totalled $ 428 million. Colgate Palmolive (CP) is a global leader in household and personal care products.06 billion and a gross profit of $ 2. Following FERA relaxation.g.its share holding to 40% in the Indian company. of the Mennen men’s toiletries company) were completed and manufacturing began in China and Eastern Europe. gross margins had climbed from 39% to 45% while annual volume growth since 1986 had averaged 5% International sales Colgate Palmolive’s strong unit. Colgate Palmolive’s five year plan for 1991 to 1995 emphasized new product launches and entry into new Geographic markets. through an offer of sale to the Indian public in October 1978. the foreign shareholding was increased from 40% to 51% in September 1993. In 1991. Since 1985.76 billion.

but since ‘95 it is facing challenges from HLL which has already garnered 8% market share.(59. CP’s action centring around finely balancing the urban market .economy.COMPANY STRATEGY . so more than market share. VP Marketing Colgate Palmolive (India) Ltd. teaching people brush or even clean their teeth with the fingers.ORAL CARE AND TOOTHBRUSH INDUSTRY IN PARTICULAR “Volume is the key” says Richard Usuquen. To that end CP has actively introduced line extensions across all three segments . Usuquen says “The penetration of brushes in India is very low. The focus is on driving volumes through . This focus on volumes is also evident in the toothbrush market. it is also selling sachets of Colgate dental cream at low prices. CP has an ongoing RURAL VAN PROGRAMME and SCHOOL PROGRAMME covering 14 million villages and 80 million consumers.5%) and rural markets (68% share) . it is important to grow the market”. To expand the market in all ranges. C-P is the toothbrush leader in India with an approximately 60% market share. At the entry level it has adopted the sleeve packaging. middle and premium since last year. So while the company has introduced such premium packaging as stand up toothpaste tubes with flip-up caps in the urban market. with no individual cases. estimated at 400 million units per annum.

. Optimise cost and formulation and the proceses and come up with efficient manufacturing to answer this “.. So the idea is to accelerate choice through a variety of product features”. SEGMENTATION The toothbrush industry can be regarded as a component of the Oral Care industry which broadly comprises tooth paste. people buy. For the urban market. at prices low enough to generate trial. The answer to this conundrum as per the company’s strategy is to “.zag and Double . For the economy segment. the focus is on maintaining novelty value by introducing new variants and added features..Action launches. The mid-price market has been the introduction of the HIGH KLEEN range. “Whatever is new. besides . CP’s strategy is to pour in a lot of investment in the Indian market in terms of capital expenditure and organizational support and each out to the deepest interiors. a price focus has been adopted. CP’s perception of the Indian market is of one where people welcome change but clamour for high end products at cheaply prices.the price-sensitive segment. On offer are five toothbrushes each from the CP and Cibacca stables to rural consumers. mouth wash and floss.. while the upper end has seen the zig .

Index Finger. Unique. Aquafresh. Close Up dentists attribute. High quality cleaning efficiency Classic.tooth brushes and a large unorganized naturally available cleaning mediums viz. benefit (behavioural segmentation). Ajay. recommendation The last two categories merge. Neem twigs etc. price (Product segmentation). Cibaca Characteristic Looking for low price Low income rural Economy class Middle consumer Upper income consumers Upper class urban Super sophisticate Premium middle Premium urban income Standard Colgate Classic Value for money group semi urban Pepsodent popular Colgate Plus. The tooth brush industry can be segmented in the basis of social class & income group (Demographic Segmentation ). But Colgate Plus need not to bothered about latter as it operates in a different category. Jordan. Royal Oral B. DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE Segment Category Brands Promise. the last being the most important. since Colgate Plus is intelligently positioned in between the two to maintain a high quality in age as well as encourage switches from standard category to up grade PSYCHOGRAPHICS .

Jordan. Transparent handle Flashy colours Superior Packing Simpleton looks. thus being successful in luring all customers (except the rural user who are a small minority of the Market) to try out the ones that are places at a higher price on account of their trendy looks and overall appeal of style and splendor. . Modest packaging. The overall response reflects a gradual move in the direction of the premium to super premium segment as it is once in three months/four months purchase. Aqua fresh etc.Variations in Product Jazzy looks. but finds it difficult to afford. Solid colours Mix of the two : transparent handle but not very flash packaging. Ajanta. Ajay etc. tries it seldom Very often goes for this as it serves is purpose without much expenditure Some times this Rural User Does not have of Is the only option Generally can’t afford this either access/can’t think Datun Tooth brushes brands Oral B. Urban sophisticate Chooses with care. Promise. etc. Forhans Cibaca. sports it as a status symbol while interacting in group travels Abhors Abhors Semi urban Non Chalant User Aspires for it.

Advertising appeal Put hardsell dentist recommendation or opinion Buying behaviour informed off oral Uninvolved Oral health Consumer Health Consumer Cosmetic Brushers Search product Non-chalant Brushers for Views products that as same Lack of interest product effectively many delivers cosmetic benefits by Influenced by Relatively unaware of ads Prefers promotion. package deals Buys for himself. Will will pick up any specialised store not go beyond a brand available. supermarket Regularity of Brushes after Brushes mostly At most once a . large shop.BENEFIT SEGMENTATION User Characteristic Invalid oral health Involved consumer Therapeutic Brushers Product Differentiater Search functionally superior with attributes. Buys and uses Buys for family. hammering on a can at most be USP influenced price by offs. will go to a for himself..

Cibaca. sometimes day twice Brand loyalty High Low 15-20 Nil <12/0q Price (Willing to >20 pay) Major Brands Jordan. Classic. promise .usage every meal once.b Colgate Indicator Pepsodent Perfect Plus. Oral . Colgate.

and have a good standard of living. it built this segment single handily and obviously has the first mover advantage exemplified by its No. Colgate Plus was the first indigenously manufactured toothbrush in premium segment. big towns. hygienic conscious and keenly discerning about the cleaning efficiency of the toothbrush used. An implicit assumption about the large segment is that it is decently educated. Colgate believed that with rising income & increasing westernisation. At the time of its launch in 1987. . They primarily live in metros. it could upgrade the toothbrush market and consumer could be willing to pay a few rupees more for a quality product.TARGETING Colgate plus has been intelligently targeted at the upper middle class. Company claims. towards the lower end of Premium / super Premium category to not only take advantage of growing consumer affordability but also to provide a pull factor to family user in standard/popular category to upgrade to higher quality Colgate Plus.1 position despite the onslaught of variety of premium brands from abroad. urban areas.

PRICE : By super premium pricing one can give a perception or aura of technical superiority/high quality to a brush Jordan. .DIFFERENTIATION & POSITIONING In the toothbrush market which is heavily cluttered both in terms of brand varieties and corresponding messages and constant hammering of almost similar USP’s it is very difficult to differentiate and position a product as mundane as a tooth brush in the consumers mind to persuade him to become a loyal user. Colgate Plus has a unique diamond shaped head & soft outer bristles. dolled rubber grip. Colgate plus has positioned itself in lower end of super premium category. PACKAGING :Cardboard cartons. In a blister pack. hanger shaped hooks. transparent blisters. Colgate Plus comes in transparent blister pack with a hanger shape hook. Positioning in tooth brush market done at various levels PRODUCT : Design differentiation like angular neck.B. Oral . Close Up Contact have followed this route. convenient head shaper etc. These work only in upper segment. coffin packing (storing when not in use). rigged edges and design of bristles. Or one could take value for money route to target large families and heavy user economy pricing for market penetration especially in rural markets. which is willing to pay a premium for added attributes. packaging makes up to 40% of cost.

As modifications in the form of an entirely new category “diamond head” was introduced.B has its USP as the tooth brush most dentists world wide use & recommend . BRANDING Colgate is a brand having a cult following. It world wide reach and association with dental health has made it a brand associated with a caring attitude. etc.RECOMMENDATION / RELIABILITY : Oral . it was imperative to keep “Colgate” as a part of the name and incorporate something that could justify the increment in price. Colgate is No. additive.One could go for celebrity endorsement in cosmetic segment but its not at all an effective strategy in a low involvement product like toothbrush. it was ideally decided upon a name that promised to deliver something extra. Colgate world . 1 brand in Indian Market the three consecutive surveys by A & M magazine. So. providing quality oral care to masses at an affordable price. while launching the new toothbrush.wide has a image of brand for committed to public oral care and hence its association with a dentists and the ‘ring’ of protection & confidence. . “Plus” was thus added on. Positioning Colgate Plus as a higher quality product in the “Professional” segment was an intelligent move as it prevented cannibalization of its other brands like Colgate Classic.

efficiency of cleaning. thoroughness in cleaning and care of gums. The Generic product is toothbrush. In this case it is Oral care. use or consumption that might satisfy a need or want. The product can be looked at five levels: The Core product is the essential service that the buyer is buying. hard inner bristles and accreditation by the Indian Dental Association as its USP’s. Potential Product refers to set of possible new features that might eventually be added to the product being offered. soft outer bristles.e. Colgate Plus is put across as a complete dental care product. Toothbrush as a product does not . acquisition.MARKETING MIX PRODUCT Product is anything that can be offered to a market for attention. those attributes that seek to distinguish the product from others in its category. The Expected product is a set of attributes that the buyer expects to get. It uses its diamond shaped head. Augmented Product is that what is provided by the seller beyond the expected product attributes i./ in this case being.

the colour changes to indicate when you have brushed enough.offer much scope beyond changes in design and material/ shape of bristles. Some product differentiates in the industry are . Colgate Plus has recently introduced Colgate Plus Zig Zag on the grounds of efficiency in cleaning. Close-Up Confident access. Packs have graduated from cardboard cartons to blister packs to let the consumer pick the colour of his choice.B -blue tuft as indicator which loses colour as bristles harden with use. -a thick handle with a shall head giving better PACKAGING: Packaging provides one with means and scope of differentiating in relatively homogenous product market. Some like Pepsodent Perfect and Colgate Plus. come in hanger shaped hooks on the .the Squiggle between the head and the handle is flexible and stand along structure. Design changes are usually made on grounds of aesthetics. Oral . Pepsodent Popular . handling and efficiency in cleaning. Jordan Magic .

Cleans even Slimmed & raised rubber hardest ridges handle Colgate Plus Diamond Reaches Unique Because your Feel the you Blue to fades the way band The brand Feature Benefit Reason Tagline half most dentists use to down tapered difference head on reach places .. The pricing depends a lot on the packaging and advertising.blister packs because most small sized retail outlets lack the shelf space required to dangle peg-racks. Major Operators in the Premium Toothbrush “Segment Product/Man ufacturer Oral Indicator (Gillette) B Indicator Bristles Tells when change toothbrush Reach (Johnson Johnson’s) Angled neck. where the brush can be kept back after use. The product makes up 60% of the cost. they end up with a double layer of packing. While these ‘hygiene packs’ do prevent the toothbrush from accumulating dust. packaging the rest. inflates the packaging cost. In a blister pack. A coffin pack. the outer one indicating mandatory product details.

outer hard bristles Soft inner crevices diamond smile was and of the mouth. dotted Prevents gum Flexes as you For irrigation brush gentle to dental care absorb extra pressure rubber grip . comfort efficacy and to (narrow front) in a lifetime Aquafresh Flex (SmithKline Beecham) Pressure sensitive squiggle neck. shaped head meant to last inner gentle gums.(Colgate Palmolive) Head.

So the markets has to make extra efforts to ensure easy availability of this low involvement product. Colgate Palmolive had to design a distribution strategy which would best attain following channel objectives. Channel decisions have important implications for other elements in marketing mix. no Consumer would be willing to walk more than 2 km to procure a tooth brush and would accept. The decisions regarding distribution channels are a very crucial part of the marketing of Fast Moving Consumer Goods (FMCGs) more so because of tooth brush being a low price product with negligible brand loyalty. any toothbrush thrust upon him by the shopkeeper.) . without much hesitation. place and possession gaps that separate goods from those who want them. which is no easy task in a country of the size & diversity as that of India.PLACE A marketing channel performs the work of moving goods from producers to consumers. ◊ ◊ Achievement of greatest possible coverage of the target market Ensuring that the consumer can easily procure the toothbrush (Under no conditions stock out can be allowed. It overcomes the time.

in 1985. was introduced in India in 1987 and was among the very few players in the premium segment. In view of the above.S. However. without caring too much about price. where there is hardly any individual who can call himself “brand loyal’ and most of them happy with whatever toothbrush they can lay their hands on. Colgate Plus has been very selective about its campaign and has moved between mediums very slowly. too much marketing effort in one direction or some particular defined directions without immediate appraisal does not make sense. Advertising Campaign Colgate Plus launched in the U. because of the callous attitude with which consumers purchase a tooth brush. In a low investment category. more so because of the low turnover to promotional expenses. PROMOTION The discussion of marketing mix elements cannot be complete without analyzing the promotional strategy of the company. a marketing effort to ensure an optimum push and pull combination and an impact presence in the consumers mental frame is a must. It simply does not make sense to spend 20% extra on promotion to gain 0. “Colgate” .2% extra market share.◊ Maintaining mutually beneficial relationship with the retailers since tooth brush is basically push marketed.

brand name was capitalized upon with the diamond shaped head being shown as the ‘hero’ in oral care and all set to take on the toothbrush market. The focus gradually shifted to soft outer bristles and hard inner bristled to ensure a caring approach to gums and meticulous cleaning. The account is currently handled hooked/dispenser packing to its retailers. As competition intensified it shifted its focus on softness and comfortable feeling with efficiency in cleaning plaque. They were targeted to the family as a whole. . small posters and agencies. . POP : The company provided danglers. no large scale endorsement by event or personality was sought for and Colgate Palmolive continued to target the family as it kept on doing with its toothpaste. Because your smile was meant to last a lifetime”. However in the face of intense competition. The advertisements were screened on Doordarshan and in leading magazines. The tagline used was “ . Throughout its advertising strategy planning Colgate Palmolive relied nonprofessionals by :”Redifussion”. Sales Promotion 1. There was parallel thrust on Dentist Accreditation which successfully translated into Colgate Plus beginning to appear on dentist prescriptions. very much like the strategy for other Colgate products. These were particularly splashed across retail outlets during the discount periods with “Red & .

Keeps India smiling . This aims at achieving a three pronged strategy of • • • Increasing dental care consciousness to create a good brand recall of Colgate oral care products to increase the company’s image as a socially responsible entity.Yellow” colour combinations to ensure high rate of impulse purchases. 2. They launched a “Vande Mataram” series of campaigns with people from all walk of life coming and sharing their experiences on how the times have changed for the better following it up with “Vande Mataram”. However. Colgate joined the list of companies basing their campaigns on the 50 years of independence. 3. The small snippet was followed up with Colgate being flashed in the form of a smiling face. Health Mela : Colgate Palmolive organizes a ‘Young India Dental Health melas in select cities where free check ups and free sample distributions of toothpaste and toothbrushes are done.Ad campaign : In a break from its earlier attitude of only ascribing to its oral care image. no other POP display means made much of an impact in terms of increase in sales. emphasizing both its attachment with the growth and development of the Nation and its contribution in keeping India smiling for the last 50 years . besides the discount offers.

Though not all of the above specifically emphasized the promotion of Colgate Plus toothbrushes.thus re-emphasizing their positioning as a family products. The snippets were strategically screened in key media slots. . they are conclusive image building exercises for the company as a whole and aimed at highlighting its supremacy and commitment to the ‘oral care sector’. Colgate associated itself with TV serials based on social and family themes e.. Sponsorships : Though Colgate oral care products have not been has often witnessed to promote any large scale events.g. As such it automatically translated into an image building exercise for the toothbrush category as well. Colgate Plus was distributed free with the September : issue of the filmfare magazines. Humlog and Buniyaad . 4.thus striking both an intellectual and emotional chord.

Colgate Plus when it was launched in 1987. both of which were being imported.75/-). Forhans Galaxy came in . Aquafresh. Colgate Plus continued to be the top most brand of the players till Oral . the major cost is that of packaging (about 40% of total). the rest being spread over the bristles. 4/. was introduced as a champion product to become the ‘hero’ of the toothbrush market meant to ‘keep your smile forever’.PRICING Generally the most important of all the P’S in a developing country like India where semi-urban and rural population constitutes. The costliest toothbrush in 1986 was Rs. It promised to deliver more than the rest and was priced accordingly and soon became a major player in the market. Gradually as the market expanded.B. oral. Thus we have seem a major jump in value sales vis-à-vis volume sales. has to be decided upon after contemplating on all the aspects related to the market and the product itself. The prices of toothbrushes have taken a quantum leap. 19. 25/-. 18/. At that time it was playing against ‘Jordan’ and ‘Royal’. 20/-) Forhans . For a product like toothbrush. a massive portion of the total market.which is today in the range of Rs.is behind Close Up Confident (Rs.B (Rs. the nickel silver wire holding the tufts in place and on the body of the brush. So right now Colgate Plus priced at Rs. with the several new players coming in.

25/-). . As such it is at the bottom level of the Super Premium segment along with Johnson’s Reach (Rs.Galaxy (Rs. Forhans Zest (Rs. 22/-) and Aquafresh (Rs. it gets and advantage of superior oral care image vis-à-vis the other brands in the same price brand. Aquafresh Flex and Forhans Galaxy. adult and zig-zag) at a penetrative pricing as regards to Oral-B. 18/-) Jordan (Rs. as of today is the market leader both in terms of volume and value share. The strategy can be said to be working well as Colgate Plus. 19/-). While the present strategy keeps Colgate Plus (all three-sensitive. 18/-) trying to deliver more value for money.

Colgate continues to be the number one brand in consumer perception as per A& M survey of the last four years. Colgate products are perceived as a champion of the oral-card industry. Market growth of more than 25% in value terms. 5. 6. and better presence in the consumers mental faculties. AQUA-FRESH etc. WEAKNESSES 1.SWOT ANALYSIS STRENGTHS 1. Has not been able to penetrate the rural segment in volume terms. 3. Advantage of better penetration. Image of a ‘company committed to complete dental care of the whole family’. 3. 4. 2. Lacks the universal appeal and accreditation of world wide players like ORAL-B. 2. 4. Massive retailer network and strong supply base. Market growth of 10% in volume terms. No regular system of feedback or appraisal of the sale status of is toothbrush. OPPORTUNITIES .

JORDAN.1. 3. . 4. 2. With the average semi-urban/urban consumer ready to shell out this extra bucks it pays to go n for technological innovations and addition of utilities to this low involvement product which has to so far been centered only around cleaning of teeth. ORAL-B. etc are trying to take the course of the market to different dimensions. Low Involvement category and poor brand loyalty . Doing a ‘NIRMA’ to the toothbrush market is something Colgate is quite capable of . Any ‘PUSH’ can be easily and quickly affected n account of its widespread presence. 2. Investment into R&D and the sales campaign so as to effect a strong long term pull can transform the nature of the market completely as not one has acted in this direction so far. THREATS 1. Foreign brands like AQUA-FRESH.susceptible to sudden large scale switching in a very short span of time. 3. given the base and vision that the company commands. The low margins being offered might go against the prospects of Colgate plus in case some player in the lower segment starts offering high margins.

the findings are expected to be asked to the premium and the super premium segment. 2. North Campus. of respondents 2. Sarojini Nagar 3. 5. No. Nature of Survey 4. Get a feedback from the Colgate Plus users. To analyze brushing habits and associated attributes of the general populace. . Areas covered : : 67 Defence Colon. South Avenue. Limitations : As only well to do families/people were accessed. Khan Market. Objective : : Structure Questionnaire 1.SURVEY FINDINGS CONSUMER SURVEY FEATURES 1.

0 70.8 TOTAL (%) 62.6 in 73.3 75.FINDINGS RESPONSE Ask by name bought person 80 70 60 50 40 30 20 10 0 Ask by brand name bought it in person it MALES (%) FEMALES (%) 70.4 .8 brand 57.

0 30.8 3. 10-15 Rs.5 50 45 40 35 30 25 20 15 10 5 0 Rs. 5-10 Rs.0 7. 10-15 Rs.eagerness spend Rs. 20 . 20 to 29. 15-20 > Rs. 15-20 > Rs.0 29.8 25.2 45. 5-10 Rs.5 40.0 41.0 0.0 22.9 25.

3 8. shopkeeper insisted dentists advice .8 14.6 20.0 word of mouth impressed advt.ASCRIBED TO No reason specific 59.3 50.3 15.3 6.7 20.8 60 50 40 30 20 10 0 No specific reason word of mouth impressed with advt.6 16.1 11. shopkeeper insisted dentists advice 15.8 19.4 33.9 with 9.3 4.

9 12.2 29.6 4.7 17.3 0-1 MONTHS 2-3 MONTHS 1-2 MONTHS 3-4 MONTHS >4 MONTHS 35 30 25 20 15 10 5 0 .5 2.4 28.REPLACEMENT FREQUENCY 0-1 MONTHS 1-2 MONTHS 2-3 MONTHS 3-4 MONTHS > 4 MONTHS 23.2 16.7 16.5 23.3 30.5 26.4 19.5 23.5 29.

0 44.0 68.2 2.9 28.7 46.0 0.0 4.8 2.2 2.9 70 60 50 40 30 20 10 0 MALE (%) FEMALE (%) TOTAL (%) .2 very 2.FREQ.0 46. BRUSHING OF Once (per day) Twice after every meal Not particular 50.

pressed with Advertisement YES NO 11.9 87.2 78.1 90 80 70 60 50 40 30 20 10 0 YES NO MALE FEMALE TOTAL .9 22.0 12.1 88.

3 68.6 75.7 40.3 74.7 40.9 52.9 68.3 49.0 60.9 63.0 57.5 51.3 58. 38.2 74.9 44.7 86.4 57.3 RANK 5 8 2 6 6 3 1 9 10 4 11 .0 78.2 44.0 41.RELATIVE IMPORTANCE OF ATTRIBUTES MALES PRICE PACKAGING DURABILITY LONG HANDLE FLEXIBLE NECK COMFY.7 82.7 60. ANGLE SOFT BRISTLES LOOKS DIAMOND HEAD GRIP INDICATOR 62.8 28.0 41.4 FEMALES 57.4 46.6 78.1 36.4 34.3 TOTAL 61.1 73.

RANK TOTAL FEMALES MALES 0 20 40 60 80 100 .

5 60 Yes3 God Can’t say 2.5 32 No -97 100 90 80 70 60 50 40 30 20 10 0 Quality Access Value/price Loyalty .5 95. Goo d Quality Access Value/pri ce Loyalty 17 90 42 Yes3 God Can’t say 10 8 Females v.5 7 - Total v.5 51 Yes -3 God Can’t say 13 4. Goo d 40 97.5 17 - 73 10 50 No97 60 23 No97 65.COLGATE PLUS USERS RESPONSE Males v. Goo d 21.

66 9.52 11.28 16.96 14.90 CLOSE-UP BRANDS JORDAN 35 30 25 20 15 10 5 0 CIBACA .52 7.14 9.FURTHER FINDINGS BRANDS COLGATE PLUS CIBACA ORAL-B CLOSE-UP PEPSODENT POPULAR JORDAN OTHERS PERCENTAGE 30.

35 30 25 20 15 10 5 0 BRANDS COLGATE PLUS PEPSODENT POPULAR CIBACA ORAL-B AQUA-FRESH Only about 5% of the respondents could not remember which toothbrush they were presently using which were excluded from the above computing.BRAND RECALL BRANDS COLGATE PLUS PEPSODENT POPULAR CIBACA ORAL-B AQUA-FRESH AJANTA OTHERS PERCENTAGE 20.59 7.24 9. AJANTA .54 7.02 10.09 28.47 11.

Classic. Oral-B. Cibaca. Prudent. . B) Retailers favorite brand(s) Margins offered 5. South Avenue. Availability Easy : Classic. Aqua-Fresh. Colgate Plus Not Easy : Royal. Limitations : Given the areas covered. Forhans. of Respondents 2. Cibaca.RETAILER’S SURVEY FEATURES 1. the response was bound to be asked in favour of the upper class users. Nature of survey 4. Pepsodent. FINDINGS A. Objective : : Structured Questionnaire a) To gather the respond to new entrants vis-à-vis Colgate Plus as perceived by retailers. Khan Market. Sales High : Colgate Plus. Sarojini Nagar 3. No. B. North Campus. Areas covered : : 20 Defence Colony. Jordan.

AquaFresh C. who claimed to offer equal to that of the industry standards. . Profit Margins Highest High Medium Low * Highest Margin : 35-40% : : : : Classic. Ajanta. Ajay. Colgate Plus features in the lowest level of margin and yet commands the highest market share. Oral-B Satisfactory : Close-up.B. • • Colgate Plus was not backed up by any appraisal system whatsoever.10-15% N. The low margin was however denied by the Sales Office of Colgate-Palmolive at Delhi.Pepsodent. Jordan. Close-up Lowest Margin . Supply is kept regular on weekly basis. Royal Jordan Oral-B. Cibaca Colgate Plus. Pepsodent. Reach. Aqua-Fresh.

9% 21.5% 9. Retailer’s Perception Of Preferences BY BRAND NAME CHEAP BRUSH SPECIFY PRICE RANGE EXPENSIVE TRY NEW ONESE 36.3% 15.8 E.5% 16.D. * The “D” above was also substantiated by our consumer survey. . Retails insisted on “Pushing” Classic as it was moderately priced and yet offered a very good margin.

This implies not much inroad has been made into the rural and semi-urban market. . While the global brands try to create new markets and add new dimensions. Non-users constitute about 65% of total population.9% of respondents don’t recall the ads). Out of their stable of marketing strategies. growing at the rate of 10% p. tied sales and generous trade margins still hold the key to increasing off take of toothbrushes.CONCLUSION The present day brushing habits of the Indian society as a whole leaves a lot to be desired .a in volume terms and 25% in value terms (difference explained by the shift to upper end of the market).41 toothbrushes are sold for every 100 persons per year! Total units sold add u to a little over 400 million. The thought of doing a Nirma to the toothbrush market has escaped everyone. POP displays. advertising till now had been low priority for the players (this was confirmed in our survey as 88. there is much greater latent demand. This indicates companies find it formidable to change the low involvement level psyche of consumers and the route of aggressive sales promotion by way of price offs. No one has made a serious attempt in the virgin territory of 65% non-users (CP’s Rural Van Programme is a recent drive).

Companies could rethink their strategy of increasing differentiability by packaging and instead invest in product development for the same.Despite packaging constituting a substantial (upto 40%) of the cost of a toothbrush it has found to have influenced the purchasing decisions of the buyers. . In our survey consumers corroborated to this effect (refer to the survey findings).

Padding on the handle end to massage the gums. e. Young People of Teenager .. . Cartoons character printed on the handle to attract kids. like the Colgate Calciguard Toothpaste. Casing the toothbrush (for kids) in a toy form. like stripes or polka dotted. ⇒ Get a certificate by the Indian Dental Association (IDA) for the toothbrush.SUGGESTIONS Some possible product improvisations • • • • • Attached straight tongue cleaner cased in the toothbrush handle. more vibrant colours.g. Children . ⇒ Segregate the toothbrush types for different age groups.more trendy colours and designs.Simple designs and sober and decent colours. Adults . Neck with adjustable handle. bright colours and cartoons printed on the handle.Thicker handle for better grip.

flossing. premium pricing of the product is necessary.and not at Rs.and Rs. polishing. 31. this shows a caring and concerned attitude by the company. give a free coupons which is to be filled in by the consumer and can be used by him or her for getting a free dental check-up as when and where specified in the advertisement in the newspaper. . like brushing twice a day. ⇒ Add value to the product by giving tips on taking good oral care. 251 -* or at Rs.For the new entrant ⇒ Introduce the product with the offer of one free toothbrush with the purchase of a brush which will help in blocking and prepointing the purchase of the buyer.because the shopkeepers face a problem in returning small changes of Rs. 31 or Rs. 361 or Rs. ⇒ With the purchase of a toothbrush. in the back side of the package or a free pamphlet with the purchase of a brush. 221. 11 so they sometimes avoid the product as confessed by the shopkeeper. ⇒ Price the product at Rs. 301. regular dental check-up by your dentist. This kind of scheme can be implemented by the company once in two three months. ⇒ As the target segment is the premium segment therefore.

. these suggestions can be used by the big players in the market or the new entrant. who has to be a big player because a large investment is needed for such heavy sales promotion and also an attempt should be made to convert this low involvement product into a high involvement as it is concerned with personal card and hygiene and a product of daily use.However.

20000 6. 10000 . Name any other five toothbrushes that you can recall 1 8. 3000 ¹ Rs. Which toothbrush do you generally use? 7.CONSUMER QUESTIONNAIRE 1. SEX : ¹ Male 3. 3000-6000 ¹ Rs. Do you ask for a toothbrush by name? . 2 3 4 5 Who purchases your toothbrush? ¹ Myself ¹ A family member ¹ A Subordinate ¹ Yes ¹ No 9. AVERAGE MONTHLY INCOME/ALLOWANCE ¹ <Rs. 6000-10000 ¹ Rs. MARITAL STATUS : ¹ Single ¹ Married with children ¹ Married without children 5. Service ¹ Self-employed ¹ Corporate Executive ¹ Student ¹ Others (specify __________________) 4. OCCUPATION : ¹ Govt.20000 ¹ > Rs. AGE : ¹ 15-30 Years ¹ ¹ 30-40 Years ¹ 40-50 years Above 50 years ¹ Female 2.

How often do you brush your teeth a day? ¹ Once ¹ Twice ¹ After every meal ¹ Not particular . How often do you replace your toothbrush? ¹0-1 month ¹ > 4 months ¹ 1-2 months ¹ 2-3 months ¹ 3-4 months 13. 12. 20 11. How much are you ready to spend on a toothbrush? ¹ Rs. 10-15 ¹ Rs. 15-20 ¹ > Rs. What prompted you to purchase your current toothbrush? ¹ Dentist’s advice ¹ Impressed with the advertisement ¹ Shopkeeper gave it to me ¹ A well-wisher recommended it to me ¹ Just bought it no specific reason.10. 5-10¹ Rs.

What according to you are the relative importances of the following? V. THEN WHY . Doesn’t matter 15. Not so Imp. Has any toothbrush ad (seen on TV/in a magazine) made an impact on you? YES ORAL-B AQUA FRESH ROYAL COLGATE PLUS NO IF YES.14.) DIAMOND HEAD GRIP INDICATOR Imp. Imp PRICE PACKAGING DURABILITY FLEXIBLE NECK COMFORTABLE ANGLE SOFTNESS OF BRISTLES LOOKS (TRANSPARENT HANDLE ETC.

Kindly answer the following in case you have used Colgate Plus/Aqua Fresh toothbrushes: AQUA FRESH QUALITY *V.16. GOOD * GOOD * MODERATE * NO GOOD * EASY * NOT SO EASY * DIFFICULT * YES * NO *CAN’T SAY * WILL WAIT * WILL NOT WAIT THANK YOU FOR SPARING YOUR VALUABLE TIME!! . THEN I * YES *NO * CAN’T SAY * WILL WAIT * WILL NOT WAIT COLGATE PLUS * V. GOOD * GOOD * MODERATE * NO GOOD AVAILABILITY * EASY * NOT SO EASY * DIFFICULT IF IT WORTH THE PRICE IF THE BRAND IS NOT AVAILABLE.

Selling toothbrushes since 3. 2.RETAILER QUESTIONNAIRE 1. What is the status of: 1. Location of the store : 2. Which are the top three toothbrushes in terms of exist sales? 1. 4. Brands stocked ¹ Colgate Plus ¹ Jordan ¹ Pepsodent ¹ Ajanta ¹ Cibaca Supreme ¹ Aqua Fresh ¹ Oral-B ¹ Promise ¹ Classic ¹ Royal ¹ Ajay 4. 5. 3. In case not covered above. Colgate Plus ¹ Good 6. How do consumers ask for a tooth brush? (Rank them) (a) Ask by brand name (c) Specify a price range (e) Keep trying newer ones 7. (b) Ask for a cheap brush (d) Go for an expensive brush Which of these two companies make it a point to: (a) Get a regular feedback . Aquafresh ¹ Good ¹ Picking up ¹ Picking up Moderate Moderate ¹ Poor ¹ Poor 2.

Classic 7. Colgate Plus 4. What is your 2. Jordan a) Highest Margin b) Lowest Margin 10. If the consumer does not ask for a specific toothbrush then which one would you offer him? Why? . Aqua Fresh 6. Pepsodent 9.Aquafresh Colgate Plus ¹ Yes ¹ Yes ¹ No ¹ No (b) Maintain regular supply Aquafresh Colgate Plus ¹ Yes ¹ Yes ¹ No ¹ No 8. Oral-B 5. Ajanta 8. Cibaca Supreme 3. Rank your profit margin for the following brands: 1.

April ‘2006 3. Kotler Philip (Principles of Marketing) 6. June ‘05. A&M Issues of June ‘05. Philip (Marketing Management).BIBLIOGRAPHY 1. FORE Library 5. Business Today Library 2. CII Library 4. Kotler. .

N. his help and encouragement has been exemplary. i .ACKNOWLEDGEMENT I would like to express my sincere thanks to Prof.e e x . Uppal for entrusting me with a challenging project and along with it.S. I wish to place my sincere gratitude to the officials of concerned organization and libraries who in spite of their busy schedule always spared their time whenever needed.

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