Project Report

A STUDY ON MARKETING STRATEGIES OF COLGATE

PALMOLIVE LTD.

Submitted to:

Dr. D.K. Agarwal

Submitted by:

DINESH CHAUHAN [62014]VIVEK DHAR [62066]

FORE SCHOOL OF MANAGEMENTNEW 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.

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. To get an idea of the industry, I went through all the relevant literature we

could lay my hands upon. This included A & M’s, Business Today’s.

2. For consumer attitudes, I prepared a questionnaire that was circulated

among 70 odd people, well spread out across the whole of Delhi. The

same was done with the retailers to try and see the conformity in findings

in some specific attributes.

3. The questionnaire was to structured that an idea of brand image and

relative studying of various brand could also be elicited.

4. The findings were synthesized, and keeping in mind the new entrants,

their potential and the potential of the market, projections were made and

conclusions were drawn.

COMPANY PROFILE

A household name for paste and tooth powder, Colgate Palmolive (India) was

established on 23rd September 1937 as a private limited company in

Bombay, as a wholly owned subsidiary of Colgate Palmolive Co. Of USA

Initially it started with trading activity and later set up manufacturing

operations in 1949 at Sewry (Bombay). The company became a public limited

company on 5th October 1978. In 1990-91 the company commissioned

facilities for fatty acid and toilet soap at Waluj (Aurangabad). The plants at

Sewri and Waluj manufacture oral care products like dental creams, tooth

powder tooth brushes and personal care products like toilet soaps, shampoo,

which are marketed under various brand names such as Colgate, Palmolive,

Halo, Protex and Charmis. The company’s distribution network covers 1700

stockists and 4,50,000 retailers with ware house facilities in Mumbai,

Calcutta, Delhi, Hyderabad, Lucknow and Madras ( and a new addition at

Faridabad). 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,

since inception till 1978, Colgate was carrying on its business in India with a

paid up capital of Rs. 1.5 lakh made up of 1500 equity shares of Rs. 100

each, when it was increases to Rs. 1.96 crore, by a bonus issue in the ratio of

130:1. To comply with the FERA regulations, Colgate Palmolive, USA diluted

its share holding to 40% in the Indian company, through an offer of sale to the

Indian public in October 1978. Following FERA relaxation, the foreign

shareholding was increased from 40% to 51% in September 1993.

Colgate Palmolive (CP) is a global leader in household and personal care

products. In 1991, it had sales of $ 6.06 billion and a gross profit of $ 2.76

billion, its world wide R&D expenditures were $ 114 million and media

advertising expenditure totalled $ 428 million.

Colgate Palmolive’s five year plan for 1991 to 1995 emphasized new product

launches and entry into new Geographic markets, along with improved

efficiencies in manufacturing and distribution and a continuing focus on core

consumer products. In 1921 $ 243 million was spend to upgrade 25 of

Colgate Palmolive’s 91 manufacturing plants, 275 new products were

introduced world-wide; several strategic acquisitions (e.g. of the Mennen

men’s toiletries company) were completed and manufacturing began in China

and Eastern Europe. Since 1985, gross margins had climbed from 39% to

45% while annual volume growth since 1986 had averaged 5% International

sales Colgate Palmolive’s strong unit, accounted for 64% of sales and 6% of

profits in 1991.

COMPANY STRATEGY - ORAL CARE AND

TOOTHBRUSH INDUSTRY IN PARTICULAR

“Volume is the key” says Richard Usuquen, VP Marketing Colgate Palmolive

(India) Ltd. To expand the market in all ranges, CP has an ongoing RURAL

VAN PROGRAMME and SCHOOL PROGRAMME covering 14 million

villages and 80 million consumers, teaching people brush or even clean their

teeth with the fingers. CP’s action centring around finely balancing the urban

market - (59.5%) and rural markets (68% share) . So while the company has

introduced such premium packaging as stand up toothpaste tubes with flip-up

caps in the urban market, it is also selling sachets of Colgate dental cream at

low prices.

This focus on volumes is also evident in the toothbrush market, estimated at

400 million units per annum. C-P is the toothbrush leader in India with an

approximately 60% market share, but since ‘95 it is facing challenges from

HLL which has already garnered 8% market share.

Usuquen says “The penetration of brushes in India is very low, so more than

market share, it is important to grow the market”. To that end CP has actively

introduced line extensions across all three segments - economy, middle and

premium since last year. At the entry level it has adopted the sleeve

packaging, with no individual cases. The focus is on driving volumes through

the price-sensitive segment. The mid-price market has been the introduction

of the HIGH KLEEN range, while the upper end has seen the zig - zag and

Double - Action launches.

For the economy segment, a price focus has been adopted. On offer are five

toothbrushes each from the CP and Cibacca stables to rural consumers, at

prices low enough to generate trial. For the urban market, the focus is on

maintaining novelty value by introducing new variants and added features.

“Whatever is new, people buy. So the idea is to accelerate choice through a

variety of product features”.

CP’s perception of the Indian market is of one where people welcome change

but clamour for high end products at cheaply prices. The answer to this

conundrum as per the company’s strategy is to

“..... Optimise cost and formulation and the proceses and come up with

efficient manufacturing to answer this “. 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.

SEGMENTATION

The toothbrush industry can be regarded as a component of the Oral Care

industry which broadly comprises tooth paste, mouth wash and floss, besides

tooth brushes and a large unorganized naturally available cleaning mediums

viz. Index Finger, Neem twigs etc. But Colgate Plus need not to bothered

about latter as it operates in a different category.

The tooth brush industry can be segmented in the basis of social class &

income group (Demographic Segmentation ), price (Product segmentation),

benefit (behavioural segmentation), the last being the most important.

DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE

Segment Category Brands Characteristic

Low income rural

class

Economy Promise, Cibaca Looking for low price

Middle income

group semi urban

consumer

Standard Colgate Classic

Pepsodent popular

Value for money

Upper middle

income urban

consumers

Premium Colgate Plus,

Classic, Ajay, Royal

High quality cleaning

efficiency

Upper class urban

sophisticate

Super

Premium

Oral B, Aquafresh,

Jordan, Close Up

Unique, attribute,

dentists

recommendation

The last two categories merge, 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

Variations in

Product

Jazzy looks,

Transparent

handle Flashy

colours Superior

Packing

Simpleton looks,

Modest

packaging, Solid

colours

Mix of the two :

transparent

handle but not

very flash

packaging.

Urban

sophisticate

Chooses with

care, sports it as

a status symbol

while interacting

in group travels

Abhors Abhors

Semi urban Non

Chalant User

Aspires for it, but

finds it difficult to

afford; tries it

seldom

Very often goes

for this as it

serves is purpose

without much

expenditure

Some times this

Rural User Does not have

access/can’t think

of

Is the only option

Datun

Generally can’t

afford this either

Tooth brushes

brands

Oral B, Jordan,

Aqua fresh etc.

Promise, Forhans

etc.

Cibaca, Ajanta,

Ajay etc.

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, 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.

BENEFIT SEGMENTATION

User

Characteristic

Invalid oral health

consumer

Therapeutic

Brushers

Involved oral

health Consumer

Cosmetic

Brushers

Uninvolved Oral

Health Consumer

Non-chalant

Brushers

Product

Differentiater

Search

functionally

superior product

with many

attributes.

Search for

product that

effectively

delivers cosmetic

benefits

Views products

as same Lack of

interest

Advertising

appeal

Put off by

hardsell Prefers

dentist

recommendation

or informed

opinion

Influenced by

promotion,

hammering on a

USP

Relatively

unaware of ads

can at most be

influenced by

price offs,

package deals

Buying behaviour Buys for himself,

will go to a

specialised store

Buys and uses

for himself. Will

not go beyond a

large shop,

Buys for family.,

will pick up any

brand available.

supermarket

Regularity of

usage

Brushes after

every meal

Brushes mostly

once, sometimes

twice

At most once a

day

Brand loyalty High Low Nil

Price (Willing to

pay)

>20 15-20 <12/0q

Major Brands Jordan, Oral - b

Indicator

Colgate Plus,

Pepsodent

Perfect

Colgate, Classic,

Cibaca, promise

TARGETING

Colgate plus has been intelligently targeted at the upper middle class,

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.

An implicit assumption about the large segment is that it is decently educated,

hygienic conscious and keenly discerning about the cleaning efficiency of the

toothbrush used. They primarily live in metros, urban areas, big towns, and

have a good standard of living.

At the time of its launch in 1987, Colgate Plus was the first indigenously

manufactured toothbrush in premium segment. Company claims, it built this

segment single handily and obviously has the first mover advantage

exemplified by its No.1 position despite the onslaught of variety of premium

brands from abroad.

Colgate believed that with rising income & increasing westernisation, it could

upgrade the toothbrush market and consumer could be willing to pay a few

rupees more for a quality product.

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.

Positioning in tooth brush market done at various levels

PRODUCT : Design differentiation like angular neck, dolled rubber grip,

rigged edges and design of bristles, convenient head shaper etc.

These work only in upper segment, which is willing to pay a premium for

added attributes. Colgate Plus has a unique diamond shaped head & soft

outer bristles.

PACKAGING :Cardboard cartons, transparent blisters, hanger shaped

hooks, coffin packing (storing when not in use). In a blister pack, packaging

makes up to 40% of cost. Colgate Plus comes in transparent blister pack with

a hanger shape hook.

PRICE : By super premium pricing one can give a perception or aura of

technical superiority/high quality to a brush Jordan, Oral - B, Close Up

Contact have followed this route.

Or one could take value for money route to target large families and heavy

user economy pricing for market penetration especially in rural markets.

Colgate plus has positioned itself in lower end of super premium category.

RECOMMENDATION / RELIABILITY : Oral - B has its USP as the tooth

brush most dentists world wide use & recommend - One could go for celebrity

endorsement in cosmetic segment but its not at all an effective strategy in a

low involvement product like toothbrush.

Colgate world - wide has a image of brand for committed to public oral care

and hence its association with a dentists and the ‘ring’ of protection &

confidence.

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.

BRANDINGColgate 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,

providing quality oral care to masses at an affordable price.

Colgate is No. 1 brand in Indian Market the three consecutive surveys by A &

M magazine. So, while launching the new toothbrush, it was imperative to

keep “Colgate” as a part of the name and incorporate something that could

justify the increment in price. As modifications in the form of an entirely new

category “diamond head” was introduced, it was ideally decided upon a name

that promised to deliver something extra, additive, etc. “Plus” was thus added

on.

MARKETING MIX

PRODUCT

Product is anything that can be offered to a market for attention, acquisition,

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. In this

case it is Oral care.

The Generic product is toothbrush.

The Expected product is a set of attributes that the buyer expects to get./ in

this case being, efficiency of cleaning, thoroughness in cleaning and care of

gums.

Augmented Product is that what is provided by the seller beyond the

expected product attributes i.e. those attributes that seek to distinguish the

product from others in its category. Colgate Plus is put across as a complete

dental care product. It uses its diamond shaped head, soft outer bristles, hard

inner bristles and accreditation by the Indian 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. Toothbrush as a product does not

offer much scope beyond changes in design and material/ shape of bristles.

Design changes are usually made on grounds of aesthetics, handling and

efficiency in cleaning. Colgate Plus has recently introduced Colgate Plus Zig

Zag on the grounds of efficiency in cleaning.

Some product differentiates in the industry are ;

Pepsodent Popular - the Squiggle between the head and the handle is

flexible and stand along structure.

Jordan Magic - the colour changes to indicate when you have brushed

enough.

Close-Up Confident -a thick handle with a shall head giving better

access.

Oral - B -blue tuft as indicator which loses colour as bristles

harden with use.

PACKAGING:

Packaging provides one with means and scope of differentiating in relatively

homogenous product market. Packs have graduated from cardboard cartons

to blister packs to let the consumer pick the colour of his choice. Some like

Pepsodent Perfect and Colgate Plus, come in hanger shaped hooks on the

blister packs because most small sized retail outlets lack the shelf space

required to dangle peg-racks.

The pricing depends a lot on the packaging and advertising. In a blister pack,.

The product makes up 60% of the cost, packaging the rest. A coffin pack,

where the brush can be kept back after use, inflates the packaging cost.

While these ‘hygiene packs’ do prevent the toothbrush from accumulating

dust, they end up with a double layer of packing, the outer one indicating

mandatory product details.

Major Operators in the Premium Toothbrush “Segment

Product/

Manufacturer

Feature Benefit Reason Tagline

Oral B

Indicator

(Gillette)

Indicator

Bristles

Tells you

when to

change the

toothbrush

Blue band

fades half

way

The brand

most dentists

use

Reach

(Johnson &

Johnson’s)

Angled neck,

raised rubber

ridges on

handle

Cleans even

hardest to

reach places

Slimmed

down tapered

head

Feel the

difference

Colgate Plus Diamond Reaches Unique Because your

(Colgate

Palmolive)

Head, Soft

outer and

hard inner

bristles

inner crevices

of the mouth,

gentle to

gums,

comfort and

efficacy

diamond

shaped head

(narrow in

front)

smile was

meant to last

a lifetime

Aquafresh

Flex

(SmithKline

Beecham)

Pressure

sensitive

squiggle

neck, dotted

rubber grip

Prevents gum

irrigation

Flexes as you

brush to

absorb extra

pressure

For gentle

dental care

PLACE

A marketing channel performs the work of moving goods from producers to

consumers. It overcomes the time, place and possession gaps that separate

goods from those who want them.

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, no

Consumer would be willing to walk more than 2 km to procure a tooth brush

and would accept, without much hesitation, any toothbrush thrust upon him by

the shopkeeper. So the markets has to make extra efforts to ensure easy

availability of this low involvement product, which is no easy task in a country

of the size & diversity as that of India.

Channel decisions have important implications for other elements in

marketing mix.

Colgate Palmolive had to design a distribution strategy which would best

attain following channel objectives.

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.)

Maintaining mutually beneficial relationship with the retailers since tooth

brush is basically push marketed.

PROMOTION

The discussion of marketing mix elements cannot be complete without

analyzing the promotional strategy of the company. In a low investment

category, 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, without caring too much about price, a marketing effort to ensure

an optimum push and pull combination and an impact presence in the

consumers mental frame is a must. However, because of the callous attitude

with which consumers purchase a tooth brush, too much marketing effort in

one direction or some particular defined directions without immediate

appraisal does not make sense, more so because of the low turnover to

promotional expenses. It simply does not make sense to spend 20% extra on

promotion to gain 0.2% extra market share. In view of the above. Colgate

Plus has been very selective about its campaign and has moved between

mediums very slowly.

Advertising Campaign

Colgate Plus launched in the U.S. in 1985, was introduced in India in 1987

and was among the very few players in the premium segment. “Colgate”

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.

As competition intensified it shifted its focus on softness and comfortable

feeling with efficiency in cleaning plaque. The advertisements were screened

on Doordarshan and in leading magazines. They were targeted to the family

as a whole, very much like the strategy for other Colgate products. The focus

gradually shifted to soft outer bristles and hard inner bristled to ensure a

caring approach to gums and meticulous cleaning. The tagline used was

“ . . . Because your smile was meant to last a lifetime”.

There was parallel thrust on Dentist Accreditation which successfully

translated into Colgate Plus beginning to appear on dentist prescriptions.

However in the face of intense competition, 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.

Throughout its advertising strategy planning Colgate Palmolive relied

nonprofessionals agencies. The account is currently handled

by :”Redifussion”.

Sales Promotion

1. POP : The company provided danglers, small posters and

hooked/dispenser packing to its retailers. These were particularly

splashed across retail outlets during the discount periods with “Red &

Yellow” colour combinations to ensure high rate of impulse purchases.

However, besides the discount offers, no other POP display means made

much of an impact in terms of increase in sales.

2. 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. 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.

3. Keeps India smiling - Ad campaign : In a break from its earlier attitude of

only ascribing to its oral care image. Colgate joined the list of companies

basing their campaigns on the 50 years of independence. 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”. The small snippet was

followed up with Colgate being flashed in the form of a smiling face,

emphasizing both its attachment with the growth and development of the

Nation and its contribution in keeping India smiling for the last 50 years

thus striking both an intellectual and emotional chord. The snippets were

strategically screened in key media slots.

4. Sponsorships : Though Colgate oral care products have not been

witnessed to promote any large scale events, Colgate has often

associated itself with TV serials based on social and family themes e.g.,

Humlog and Buniyaad - thus re-emphasizing their positioning as a family

products.

Though not all of the above specifically emphasized the promotion of Colgate

Plus toothbrushes, 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’. 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.

PRICING

Generally the most important of all the P’S in a developing country like India

where semi-urban and rural population constitutes, a massive portion of the

total market, has to be decided upon after contemplating on all the aspects

related to the market and the product itself.

For a product like toothbrush, the major cost is that of packaging (about 40%

of total), the rest being spread over the bristles, the nickel silver wire holding

the tufts in place and on the body of the brush.

The prices of toothbrushes have taken a quantum leap. The costliest

toothbrush in 1986 was Rs. 4/- which is today in the range of Rs. 25/-. Thus

we have seem a major jump in value sales vis-à-vis volume sales.

Colgate Plus when it was launched in 1987, was introduced as a champion

product to become the ‘hero’ of the toothbrush market meant to ‘keep your

smile forever’. It promised to deliver more than the rest and was priced

accordingly and soon became a major player in the market. At that time it was

playing against ‘Jordan’ and ‘Royal’, both of which were being imported.

Gradually as the market expanded, with the several new players coming in,

Colgate Plus continued to be the top most brand of the players till Oral - B,

Aquafresh, Forhans Galaxy came in . So right now Colgate Plus priced at Rs.

18/- is behind Close Up Confident (Rs. 19.75/-), oral- B (Rs. 20/-) Forhans

Galaxy (Rs. 22/-) and Aquafresh (Rs. 25/-). As such it is at the bottom level of

the Super Premium segment along with Johnson’s Reach (Rs. 18/-) Jordan

(Rs. 19/-), Forhans Zest (Rs. 18/-) trying to deliver more value for money.

While the present strategy keeps Colgate Plus (all three-sensitive, adult and

zig-zag) at a penetrative pricing as regards to Oral-B, Aquafresh Flex and

Forhans Galaxy, it gets and advantage of superior oral care image vis-à-vis

the other brands in the same price brand.

The strategy can be said to be working well as Colgate Plus, as of today is

the market leader both in terms of volume and value share.

SWOT ANALYSIS

STRENGTHS

1. Colgate continues to be the number one brand in consumer perception as

per A& M survey of the last four years.

2. Colgate products are perceived as a champion of the oral-card industry.

3. Advantage of better penetration, and better presence in the consumers

mental faculties.

4. Massive retailer network and strong supply base.

5. Image of a ‘company committed to complete dental care of the whole

family’.

6. Market growth of more than 25% in value terms.

WEAKNESSES

1. Lacks the universal appeal and accreditation of world wide players like

ORAL-B, AQUA-FRESH etc.

2. Has not been able to penetrate the rural segment in volume terms.

3. No regular system of feedback or appraisal of the sale status of is

toothbrush.

4. Market growth of 10% in volume terms.

OPPORTUNITIES

1. Any ‘PUSH’ can be easily and quickly affected n account of its widespread

presence.

2. Doing a ‘NIRMA’ to the toothbrush market is something Colgate is quite

capable of , given the base and vision that the company commands.

3. 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.

4. 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.

THREATS

1. Foreign brands like AQUA-FRESH, ORAL-B, JORDAN, etc are trying to

take the course of the market to different dimensions.

2. 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.

3. Low Involvement category and poor brand loyalty - susceptible to sudden

large scale switching in a very short span of time.

SURVEY FINDINGS

CONSUMER SURVEY

FEATURES

1. No. of respondents : 67

2. Areas covered : Defence Colon, Khan Market, South Avenue,

North Campus, Sarojini Nagar

3. Nature of Survey : Structure Questionnaire

4. Objective : 1. To analyze brushing habits and associated

attributes of the general populace.

2. Get a feedback from the Colgate Plus

users.

5. Limitations : As only well to do families/people were

accessed, the findings are expected to be

asked to the premium and the super premium

segment.

FINDINGS

RESPONSE MALES (%) FEMALES (%) TOTAL (%)

Ask by brand

name

57.6 70.8 62.8

bought it in

person

73.3 75.0 70.4

eagerness to

spend

Rs. 5-10 29.0 0.0 22.5

Rs. 10-15 41.9 29.2 40.0

Rs. 15-20 25.8 45.8 30.0

> Rs. 20 3.0 25.0 7.5

ASCRIBED TO

No specific

reason

59.4 33.3 50.0

word of mouth 15.6 16.7 19.1

impressed with

advt.

9.3 20.8 11.9

shopkeeper

insisted

15.6 20.8 14.3

dentists advice 6.3 8.3 4.8

REPLACEMENT

FREQUENCY

0-1 MONTHS 23.5 12.5 17.4

1-2 MONTHS 26.5 29.2 28.3

2-3 MONTHS 23.5 29.2 30.4

3-4 MONTHS 23.5 16.7 19.6

> 4 MONTHS 2.9 16.7 4.3

FREQ. OF

BRUSHING

Once (per day) 50.0 28.0 46.7

Twice 44.2 68.0 46.8

after every meal 2.9 4.0 2.2

Not very

particular

2.9 0.0 2.2

pressed with

Advertisement

YES 11.1 22.2 12.9

NO 88.9 78.0 87.1

RELATIVE IMPORTANCE OF ATTRIBUTES

MALES FEMALES TOTAL RANK

PRICE 62.7 57.3 61.2 5

PACKAGING 40.2 49.3 44.6 8

DURABILITY 74.5 74.7 75.4 2

LONG HANDLE 51.9 60.0 57.0 6

FLEXIBLE NECK 52.9 60.0 57.1 6

COMFY. ANGLE 68.6 78.7 73.7 3

SOFT BRISTLES 78.4 86.7 82.9 1

LOOKS 46.1 40.0 44. 9

DIAMOND HEAD 36.3 41.3 38.9 10

GRIP 58.8 68.0 63.4 4

INDICATOR 28.4 41.3 34.3 11

COLGATE PLUS USERS RESPONSE

Males Females Total

v. Good

God Can’t say

v. Good

God Can’t say

v. Good

God Can’t say

Quality 17 73 10 40 60 - 21.5 65.5 13

Access 90 10 - 97.5 - 2.5 95.5 - 4.5

Value/price

42 50 8 60 23 7 51 32 17

Loyalty Yes-3

No-97

Yes-3

No-97

- Yes -3

No -97 -

FURTHER FINDINGS

BRANDS PERCENTAGE

COLGATE PLUS 30.96

CIBACA 14.28

ORAL-B 16.66

CLOSE-UP 9.52

PEPSODENT POPULAR 7.14

JORDAN 9.52

OTHERS 11.90

BRAND RECALL

BRANDS PERCENTAGE

COLGATE PLUS 20.47

PEPSODENT POPULAR 11.02

CIBACA 10.24

ORAL-B 9.54

AQUA-FRESH 7.59

AJANTA 7.09

OTHERS 28.35

Only about 5% of the respondents could not remember which toothbrush

they were presently using which were excluded from the above computing.

RETAILER’S SURVEY

FEATURES

1. No. of Respondents : 20

2. Areas covered : Defence Colony, South Avenue, Khan

Market, North Campus, Sarojini Nagar

3. Nature of survey : Structured Questionnaire

4. Objective : a) To gather the respond to new

entrants vis-à-vis Colgate Plus as

perceived by retailers.

B) Retailers favorite brand(s)

Margins offered

5. Limitations : Given the areas covered, the response

was bound to be asked in favour of the

upper class users.

FINDINGS

A. Availability

Easy : Classic, Aqua-Fresh, Oral-B,

Pepsodent, Colgate Plus

Not Easy : Royal, Forhans, Cibaca, Jordan,

Prudent.

B. Sales

High : Colgate Plus, Cibaca, Classic,

Pepsodent, Oral-B

Satisfactory : Close-up, Ajanta, Ajay, Jordan, Aqua-

Fresh

C. Profit Margins

Highest : Classic, Royal

High : Jordan

Medium : Oral-B, Aqua-Fresh, Reach, Cibaca

Low : Colgate Plus, Pepsodent, Close-up

* Highest Margin : 35-40% Lowest Margin - 10-15%

N.B. Colgate Plus features in the lowest level of margin and yet commands

the highest market share. The low margin was however denied by the Sales

Office of Colgate-Palmolive at Delhi, who claimed to offer equal to that of the

industry standards.

Colgate Plus was not backed up by any appraisal system whatsoever.

Supply is kept regular on weekly basis.

D. Retailer’s Perception Of Preferences

BY BRAND NAME 36.5%

CHEAP BRUSH 9.3%

SPECIFY PRICE RANGE 15.9%

EXPENSIVE 21.5%

TRY NEW ONESE 16.8

E. Retails insisted on “Pushing” Classic as it was moderately priced and yet

offered a very good margin.

* The “D” above was also substantiated by our consumer survey.

CONCLUSION

The present day brushing habits of the Indian society as a whole leaves a lot

to be desired - 41 toothbrushes are sold for every 100 persons per year! Total

units sold add u to a little over 400 million, growing at the rate of 10% p.a in

volume terms and 25% in value terms (difference explained by the shift to

upper end of the market). This implies not much inroad has been made into

the rural and semi-urban market. Non-users constitute about 65% of total

population.

While the global brands try to create new markets and add new dimensions,

there is much greater latent demand.

Out of their stable of marketing strategies, advertising till now had been low

priority for the players (this was confirmed in our survey as 88.9% of

respondents don’t recall the ads). 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, POP displays, tied sales and

generous trade margins still hold the key to increasing off take of

toothbrushes.

No one has made a serious attempt in the virgin territory of 65% non-users

(CP’s Rural Van Programme is a recent drive). The thought of doing a Nirma

to the toothbrush market has escaped everyone.

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). Companies could rethink their strategy of increasing

differentiability by packaging and instead invest in product development for

the same.

SUGGESTIONS

Some possible product improvisations

Attached straight tongue cleaner cased in the toothbrush handle.

Cartoons character printed on the handle to attract kids.

Padding on the handle end to massage the gums.

Casing the toothbrush (for kids) in a toy form.

Neck with adjustable handle.

Get a certificate by the Indian Dental Association (IDA) for the toothbrush,

like the Colgate Calciguard Toothpaste.

Segregate the toothbrush types for different age groups, e.g.,

Children - Thicker handle for better grip, bright colours and cartoons printed

on the handle.

Young People of Teenager - more trendy colours and designs, like stripes or

polka dotted, more vibrant colours.

Adults - Simple designs and sober and decent colours.

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.

As the target segment is the premium segment therefore, premium pricing

of the product is necessary.

Price the product at Rs. 251 -* or at Rs. 301- and not at Rs. 361 or Rs.

221- because the shopkeepers face a problem in returning small changes

of Rs. 31 or Rs. 31- and Rs. 11 so they sometimes avoid the product as

confessed by the shopkeeper.

Add value to the product by giving tips on taking good oral care, in the

back side of the package or a free pamphlet with the purchase of a brush,

like brushing twice a day, flossing, polishing, regular dental check-up by

your dentist, this shows a caring and concerned attitude by the company.

With the purchase of a toothbrush, 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. This kind of scheme can be implemented by the company

once in two three months.

However, 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.

CONSUMER QUESTIONNAIRE

1. AGE : ¹ 15-30 Years ¹ 30-40 Years ¹ 40-50 years

¹ Above 50 years

2. SEX : ¹ Male ¹ Female

3. OCCUPATION :

¹ Govt. Service ¹ Self-employed ¹ Corporate Executive

¹ Student ¹ Others (specify __________________)

4. MARITAL STATUS : ¹ Single ¹ Married with children

¹ Married without children

5. AVERAGE MONTHLY INCOME/ALLOWANCE

¹ <Rs. 3000 ¹ Rs. 3000-6000 ¹ Rs. 6000-10000

¹ Rs. 10000 - 20000 ¹ > Rs. 20000

6. Which toothbrush do you generally use?

7. Name any other five toothbrushes that you can recall

1 2 3 4 5

8. Who purchases your toothbrush?

¹ Myself ¹ A family member ¹ A Subordinate

9. Do you ask for a toothbrush by name? ¹ Yes ¹ No

10.How much are you ready to spend on a toothbrush?

¹ Rs. 5-10¹ Rs. 10-15 ¹ Rs. 15-20 ¹ > Rs. 20

11.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.

12.How often do you replace your toothbrush?

¹0-1 month ¹ 1-2 months ¹ 2-3 months ¹ 3-4 months

¹ > 4 months

13.How often do you brush your teeth a day?

¹ Once ¹ Twice ¹ After every meal ¹ Not particular

14. What according to you are the relative importances of the following?

V. Imp Imp. Not so Imp.

Doesn’t matter

PRICE

PACKAGING

DURABILITY

FLEXIBLE NECK

COMFORTABLE ANGLE

SOFTNESS OF BRISTLES

LOOKS (TRANSPARENT HANDLE ETC.)

DIAMOND HEAD

GRIP

INDICATOR

15. Has any toothbrush ad (seen on TV/in a magazine) made an impact on

you?

YES NO IF YES, THEN WHY

ORAL-B

AQUA FRESH

ROYAL

COLGATE PLUS

16. Kindly answer the following in case you have used Colgate Plus/Aqua

Fresh toothbrushes:

AQUA FRESH COLGATE PLUS

QUALITY *V. GOOD * GOOD

* MODERATE

* NO GOOD

* V. GOOD * GOOD

* MODERATE

* NO GOOD

AVAILABILITY * EASY * NOT SO EASY

* DIFFICULT

* EASY * NOT SO

EASY * DIFFICULT

IF IT WORTH THE

PRICE

* YES *NO

* CAN’T SAY

* YES * NO

*CAN’T SAY

IF THE BRAND IS NOT

AVAILABLE, THEN I

* WILL WAIT

* WILL NOT WAIT

* WILL WAIT

* WILL NOT WAIT

THANK YOU FOR SPARING YOUR VALUABLE TIME!!

RETAILER QUESTIONNAIRE

1. Location of the store :

2. Selling toothbrushes since

3. Brands stocked

¹ Colgate Plus ¹ Cibaca Supreme ¹ Aqua Fresh

¹ Jordan ¹ Oral-B ¹ Royal

¹ Pepsodent ¹ Promise ¹ Ajay

¹ Ajanta ¹ Classic

4. Which are the top three toothbrushes in terms of exist sales?

1. 2. 3. 4.

5. In case not covered above. What is the status of:

1. Aquafresh ¹ Good ¹ Picking up Moderate ¹ Poor

2. Colgate Plus ¹ Good ¹ Picking up Moderate ¹ Poor

6. How do consumers ask for a tooth brush? (Rank them)

(a) Ask by brand name (b) Ask for a cheap brush

(c) Specify a price range (d) Go for an expensive brush

(e) Keep trying newer ones

7. Which of these two companies make it a point to:

(a) Get a regular feedback

Aquafresh ¹ Yes ¹ No

Colgate Plus ¹ Yes ¹ No

(b) Maintain regular supply

Aquafresh ¹ Yes ¹ No

Colgate Plus ¹ Yes ¹ No

8. Rank your profit margin for the following brands:

1. Cibaca Supreme 2. Colgate Plus

3. Oral-B 4. Aqua Fresh

5. Classic 6. Ajanta

7. Pepsodent 8. Jordan

9. What is your 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?

BIBLIOGRAPHY

1. Business Today Library

2. A&M Issues of June ‘05, June ‘05, April ‘2006

3. CII Library

4. FORE Library

5. Kotler Philip (Principles of Marketing)

6. Kotler, Philip (Marketing Management).

ACKNOWLEDGEMENT

I would like to express my sincere thanks to Prof. N.S.

Uppal for entrusting me with a challenging project and

along with it, his help and encouragement has been

exemplary.

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.