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1 1.1 INTRODUCTION A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration. Customers are generally categorized into two types: An intermediate customer or trade customer (more informally: "the trade") who is a dealer that purchases goods for re-sale An ultimate customer who does not in turn re-sell the things bought but either passes them to the consumer or actually is the consume Six Sigma doctrine places (active) customers in opposition to two other classes of people: not-customers and non-customers. Whilst customers have actively dealt with a business within a particular recent period that depends from the product sold, not-customers are either past customers who are no longer customers or potential customers who choose to do business with the competition, and non-customers are people who are active in a different market segment entirely. A supermarket's customer is the person buying milk at that supermarket; a not-customer is buying milk from a competing supermarket, whereas a non- customer doesn't buy milk from supermarkets at all but rather has milk delivered to the door. MOUTHWASH Mouthwash or mouth rinse is a chemotherapeutic agent used as an effective home care system by the patient to enhance oral hygiene. Some manufacturers of mouthwash claim that antiseptic and anti-plaque mouth rinse kill the bacterial plaque causing cavities, gingivitis, and bad breath. Anti-cavity mouth rinse uses fluoride to protect against tooth decay.

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1.1 INTRODUCTION

A customer (sometimes known as a client, buyer, or purchaser) is the recipient of

a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or

other valuable consideration. Customers are generally categorized into two types:

An intermediate customer or trade customer (more informally: "the trade") who is a

dealer that purchases goods for re-sale

An ultimate customer who does not in turn re-sell the things bought but either passes

them to the consumer or actually is the consume

Six Sigma doctrine places (active) customers in opposition to two other classes of

people: not-customers and non-customers. Whilst customers have actively dealt with a

business within a particular recent period that depends from the product sold, not-customers

are either past customers who are no longer customers or potential customers who choose to

do business with the competition, and non-customers are people who are active in a different

market segment entirely. A supermarket's customer is the person buying milk at that

supermarket; a not-customer is buying milk from a competing supermarket, whereas a non-

customer doesn't buy milk from supermarkets at all but rather has milk delivered to the door.

MOUTHWASH

Mouthwash or mouth rinse is a chemotherapeutic agent used as an effective home

care system by the patient to enhance oral hygiene. Some manufacturers of mouthwash claim

that antiseptic and anti-plaque mouth rinse kill the bacterial

plaque causing cavities, gingivitis, and bad breath. Anti-cavity mouth rinse uses fluoride to

protect against tooth decay.

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The first known references to mouth rinsing is in Ayurveda and Chinese medicine,

about 2700 BC, for treatment of gingivitis. Later, in theGreek and Roman periods, mouth

rinsing following mechanical cleansing became common among the upper classes,

and Hippocrates recommended a mixture of salt, alum, and vinegar. The Jewish Talmud,

dating back about 1800 years, suggests a cure for gum ailments containing "dough water" and

olive oil.

Common use involves rinsing the mouth with about 20ml of mouthwash two times a

day after brushing. The wash is typically swished or gargled for about half a minute and then

spat out. In some brands, the expectorate is stained, so that one can see the bacteria and

debris. Some may suggest that it is probably advisable to use mouthwash at least an hour

after brushing with toothpaste when the toothpaste contains sodium lauryl sulfate, since

the anionic compounds in the SLS toothpaste can deactivate cationic agents present in the

mouth rinse. However, many would disagree with this hypothesis; in fact, many of the

pop0ular mouthwashes contain sodium lauryl sulfate as an ingredient

Each commercial brand of mouthwash has different ingredients. The active

ingredients are usually alcohol, chlorhexidine gluconate, cetylpyridinium

chloride hexetidine, benzoic acid (acts as a buffer),methyl salicylate, benzalkonium chloride,

methylparaben, hydrogen peroxide, domiphen bromide and sometimes fluoride, enzymes,

and calcium.

They can also include essential oils that have some antibacterial

properties, like phenol eucalyptol or menthol

Ingredients also include water, sweeteners such

as sorbitol, sucralose, sodium saccharin, and xylitol (which doubles as a bacterial inhibitor).

A study suggested that cetylpyridinium chloride could be as effective as chlorhexidine

in mouthwashes. Another study suggested that mouthwashes based on essential oils could be

more effective than traditional mouthwashes.

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Sometimes a significant amount of alcohol (up to 27% vol) is added as a carrier for

the flavor, to provide "bite". Because of the alcohol content, it is possible to fail

a breathalyzer test after rinsing although breath alcohol levels return to normal after 10

minutes. In addition, alcohol is a drying agent and may worsen chronic bad breath. Recently,

the possibility that the alcohol used in mouthrinses acts as a carcinogen was raised, but there

is to date no scientific consensus on the issue. Commercial mouthwashes usually contain a

preservative such as sodium benzoate to preserve freshness once the container has been

opened. Many newer brands are alcohol-free and contain odor-elimination agents such as

oxidizers, as well as odor-preventing agents such as zinc ion to keep future bad breath from

developing.

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SWOT ANALYSIS

STRENGTH WEAKNESS

1. Significantly reduces plaque in hard to

reach areas

2. Provides upto 67% healthier gums

3. Contains fluoride to help prevent cavities

4. Combats odour causing germs in the

mouth, thereby fighting bad breath

effectively

5. Good advertising, brand visibility and

distribution

1.Primarily an urban product,

therefore limited audience

OPPORTUNITY THREAT

1. Mouthwash category as part of oral care is

in early stages and witnessing high growth

rate

2. Combining sales of toothpaste with mouth

wash can boost sales for the products of the

company

1. Niche segment in the oral care industry

which requires high advertising to increase

awareness regarding the product can be

expensive for the company

2. Mouthwash if consumed can cause harm to

liver, hence awareness is essential

1.2 OBJECTIVES

To find out the decision making process of customers while buying mouthwash

(colgate and Listerine).

To identify various factors that affect their process.

To understand various promotional offers offered by the company

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1.3 NEED FOR THE STUDY

In the current scenario there are many number of oral care products in the market among

which mouthwash is a product. Mouthwash is an innovative product which needs a lot of

promotion and high brand value to create a place in the market. .

This report will give the clear understanding of customer preferences and satisfaction

levels towards mouthwash. This study is also gives an insight on promotional offers from

company to push a product and increase sales.

1.4 SCOPE OF STUDY

The scope of study is among the data collected through questionnaires at selling points in

three different phases - Observation, Product Decision Tree (PDT), Exit Interview. This study

will give insight on customers opinion on mouthwash and will provide valuable suggestions

to mouthwash production companies in terms of increasing sales and maintaining customer

relations.

1.5 RESEARCH METHODOLOGY

Sampling Technique:

The technique used in this study is Random sampling.

Sample Unit:

The study of research has been done towards the customers of Ushodaya Super market

since it is having the highest number of sales in Hyderabad city

Sample Size:

A sample size of 45 is collected which includes both PDT and exit questionnaires.

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Source of Data

Primary data:

In this research the primary data was collected by means of structured questionnaire

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2.1 INDUSTRY PROFILE

Market research is any organized effort to gather information about markets or

customers. It is a very important component of business strategy. The term is commonly

interchanged with marketing research; however, expert practitioners may wish to draw a

distinction, in that marketing research is concerned specifically about marketing processes,

while market research is concerned specifically with markets.

Market research is a key factor to get advantage over competitors. Market research

provides important information to identify and analyze the market need, market size and

competition. Market research, which includes social and opinion research, is the systematic

gathering and interpretation of information about individuals or organizations using statistical

and analytical methods and techniques of the applied social sciences to gain insight or

support decision making.

Market research began to be conceptualized and put into formal practice during the

1920s, as an offshoot of the advertising boom of the Golden Age of radio in the United

States. Advertisers began to realize the significance of demographics revealed by sponsorship

of different radio programs.

Market research is for discovering what people want, need, or believe. It can

also involve discovering how they act. Once that research is completed, it can be used to

determine how to market your product. Peter Drucker believed market research to be the

quintessence of marketing.

There are two major types of market research. Primary Research sub-divided

into Quantitative and Qualitative research and Secondary research. For starting up a business,

there are some important things:

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Market information

Through Market information one can know the prices of different commodities in the market,

as well as the supply and demand situation. Information about the markets can be obtained

from different sources, varieties and formats, as well as the sources and varieties that have to

be obtained to make the business work.

Market segmentation

Market segmentation is the division of the market or population into subgroups with similar

motivations. It is widely used for segmenting on geographic

differences, personality differences, demographic differences, technographic differences, use

of product differences, psychographic differences and gender differences. For B2B

segmentation firmographics is commonly used.

Market trends

Market trends are the upward or downward movement of a market, during a period of time.

The market size is more difficult to estimate if one is starting with something completely

new. In this case, you will have to derive the figures from the number of potential customers,

or customer segments. [Ilar 1998]

Besides information about the target market, one also needs information about

one's competitors, customers, products, etc. Lastly, you need to measure marketing

effectiveness. A few techniques are:

Customer analysis

Choice modelling

Competitor analysis

Risk analysis

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Product research

Advertising the research

Marketing mix modelling

Simulated Test Marketing

Top 9 of the market research sector 2009

Rank Company Sales in 2009

(million USD)

Growth

in %

1 Nielsen Company 9,056.0 2.6

2 Kantar Group - TNS, Millward Brown,

BMRB, IMRB International and Ziment

Group

4,692.0 2.5

3 IMS Health Inc. 1,958.6 8.5

4 GfK AG 1,397.3 5.4

5 Ipsos 1,077.0 6.5

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6 Synovate 739.6 9.5

7 IRI 665.0 6.6

8 Westat 425.8 0.8

9 Arbitron 400.0 5.9

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2.2 COMPANY PROFILE:

Nielsen Holdings N.V. is an American global information and measurement company

with headquarters in New York (USA). Nielsen is active in over 100 countries and employs

approximately 35,000 people worldwide. Total revenues were $5.6 billion in 2012

Nielsen is a leading global information and measurement company that enables

companies to understand consumers and consumer behaviour. Nielsen measures and monitors

what consumers watch (programming, advertising) and what consumers buy (categories,

brands, products) on a global and local basis. The company has a presence in approximately

100 countries spread across Africa, Asia, Australia, Europe, Middle East, North America,

South America and Russia.

James M. Kilts is Nielsen's Chairman and David L. Calhoun is Nielsen's Chief

Executive Officer. Prior to joining Nielsen in 2006, Dave Calhoun served as Vice Chairman

of The General Electric Company and President and Chief Executive Officer of GE

Infrastructure, the largest of six GE business units.

While the Nielsen brand is most often associated with television ratings, those TV

ratings services comprise approximately one-quarter of the company's business and revenues.

After substantial work to simplify the company over the last several years, Nielsen today

aligns their business into two divisions: What Consumers Buy and What Consumers Watch.

What Consumers Buy

Nielsen's Buy division (approx. two-thirds of global revenues) primarily helps

packaged goods companies and retailers (and Wall Street analysts) understand what

consumers are buying in terms of categories, brands and products. For example, it is Nielsen's

data that measures how much Diet Coke vs. Diet Pepsi is sold in stores, or how much Crest

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versus Colgate toothpaste is sold. They accomplish this by purchasing and analyzing huge

amounts of retail data that measures what is being sold in the store, and they combine it with

household panel data that captures everything that is brought into the home. They also can

provide insights into how changes in product offerings, pricing or marketing would change

sales. Major clients include The Coca-Cola Company, Nestle S.A., The Procter

& Gamble Company, Unilever Group and Walmart.

What Consumers Watch

Nielsen's Watch division (approx. one-third of global revenues) primarily measures

what consumers are watching on all of the screens in their life: TV, computer, mobile/smart

phones, tablets, etc. The company measures consumption of programming and advertising

across all distribution points. Nielsen's ratings are used by advertisers and networks to shape

the buying and selling of advertising. Major clients include CBS, NBC Universal, News

Corporation and The Walt Disney Company

Arthur C. Nielsen and the invention of "Market Share"

Arthur C. Nielsen founded the AC Nielsen Company in 1923 with the idea of selling

engineering performance surveys. It was the first company to offer market research. The

company expanded its business in 1932 by creating a retail index that tracked the flow of

food and drug purchases. This was the first retail measurement of its kind and for the first

time allowed a company to determine its “share” of the market—the origination of the

concept of "market share" Arthur C. Nielsen is credited with coining this business term.

Radio and Television

In 1936, Arthur C. Nielsen acquired the Audi meter, which measured

which radio stations a radio had been tuned to during the day. After tinkering with the device

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for a few years, the company created a national radio rating service in 1942. The company

collected information on which stations were tuned to in 1,000 homes. Then, this survey data

was sold to manufacturers who were interested in the popularity of programs and

demographic information about listeners for advertising purposes. This was the birth of

audience measurement that would become the most well-known part of Nielsen’s business

when applied to television. Today, these are commonly referred to as “Nielsen ratings”.

The company began measuring television audiences in 1950, at a time when the

medium was just getting off the ground. Just as with radio, a sampling of homes across the

U.S. was used to develop ratings. This information was collected on a device that was

attached to a television that recorded what was being watched. In 1953, the company began

sending out diaries to a smaller sample of homes (“Nielsen families”) within the survey to

have them record what they had watched. This data was put together with information from

the devices. This combination of data allowed the company to statistically estimate the

number of Americans watching TV and the demographic breakdown of viewers.[4]

This

became an important tool for advertisers and networks.

In the 1980s, the company launched a new measurement device known as the “people

meter”. The device resembles a remote control with buttons for each individual family

member and extras for guests. Viewers push a button to signify when they are in the room

and push it again when they leave, even if the TV is still on. This form of measurement was

intended to provide a more accurate picture of who was watching and when.[6]

In July 2008, Nielsen released the first in a series of quarterly reports, detailing video

and TV usage across the ‘three screens’ – Television, Internet and Mobile devices. The

A2/M2 Three Screen Report also includes trends in time shifted viewing behaviour and its

relationship to online video viewing, a demographic breakdown of mobile video viewers and

DVR penetration.

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Mergers, Acquisitions, Strategic Alliances and Divestitures

The company was acquired by the Dun & Bradstreet Company in 1984. D&B, as it is

known today, broke Nielsen into two separate companies in 1996. These were Nielsen Media

Research, which was responsible for TV ratings, and AC Nielsen, which was responsible for

consumer shopping trends and box-office data.

The Dutch publishing

company VNU (Verenigde Nederlandse Uitgeverijen) acquired Nielsen Media Research in

1999. It later recombined the two halves of the business when it acquired AC Nielsen in

2001. In between, it sold its newspaper properties to Wegener and its consumer magazines

to Sanoma.

In 2004, Nielsen began a joint venture called AGB Nielsen Media Research

with WPP Group's AGB Group, a European competitor which provides similar services.

VNU combined the Nielsen properties with other research and data collection units including

BASES, Claritas, HCI and Spectra. The company's publishing arm also owned several

publications including The Hollywood Reporter and Billboard magazine. VNU began

acquiring companies that added to its measurement capabilities. In 2006, it acquired a

majority stake in Buzzmetrics, a company which measures consumer-generated media online.

Under the new ownership, Nielsen bought the remaining shares of the company in

2007. In the same year, Nielsen acquired Telephia, which measures mobile media,and

Bilesim Medya, a Turkish advertising intelligence firm.

In 2006, VNU was acquired by a group of six private equity firms: the

American Kohlberg Kravis Roberts & Co., Thomas H. Lee Partners, Blackstone

Group, Carlyle Group and Hellman & Friedman, and Dutch equity firm AlpInvest Partners

for £5bn. In the same year, the group hired David L. Calhoun, formerly of General Electric,

as CEO. He renamed VNU as The Nielsen Company in 2007.

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VNU sold its business publications division in 2006 for €320m (£210m) to venture

capital group 3i, which then sold the UK division (VNU Business Publications Ltd)

to Incisive Media.

In 2008, the company acquired IAG Research which measures viewer engagement

with TV commercials. The same year Nielsen made a strategic investment in Neuro Focus, a

California firm applying neuroscience brainwave techniques for consumer research. The firm

was later fully acquired by Nielsen in 2011.

In 2009 and 2010, Nielsen sold its business

magazines; its well-known entertainment properties went to the new company e5 Global

Media.

In 2009, the company acquired The Cambridge Group, which is a management

consulting firm headquartered in Chicago. The Cambridge Group works with CEOs and top

management teams to drive growth. The firm has a distinctive expertise in tapping into latent

and emerging consumer demand, and using these insights to drive product, service and

marketing innovation across consumer-driven businesses.

In June 2010 Nielsen paired with McKinsey & Company to create the social media

consulting company NM Incite. NM Incite has operations in 13 global markets, including:

US, UK, Germany, Spain, Italy, Australia, New Zealand, China, Japan, India, Brazil, Canada

and Korea.

In August 2011 Nielsen acquired Marketing Analytics, Inc. The acquisition

strengthens Nielsen's marketing ROI and marketing mix capabilities.

In February 2012, Nielsen launched The Demand Institute in collaboration with The

Conference Board. The Demand Institute is a non-profit, non-advocacy organization focused

on helping business and government leaders understand how consumer demand is evolving

and shifting around the world.

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In July 2012, Nielsen acquired the advertising tech company Vizu. The acquisition

was made so that Nielsen can better analyze the effectiveness of online advertisement.

On December 18, 2012, Nielsen announced that it would acquire Arbitron, a company

primarily involved in radio audience measurement, for $1.26 billion dollars.[24]

On June 17, 2013 Nielsen announced that Onex Corp (TSX: OCX) had completed the

acquisition of Nielsen Expositions for $950 million in cash consideration. Nielsen

Expositions operated tradeshows in the United States. The company was renamed Emerald

Expositions Inc. after the transaction.

Becoming a Public Company

Nielsen was a private company from 2006 through 2011. On January 25, 2011 the

company listed itself on the New York Stock Exchange and issued an Initial Public Offering

(IPO) that raised $1.8 billion in the largest private equity-backed U.S. IPO since 2006.[25]

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2.3 PROFILE OF COLGATE

The small soap and candle business that William Colgate began in New York City

early in the 19th century is now, more than 200 years later, a truly global company serving

hundreds of millions of consumers worldwide.

A 200-year history reflects the strength and innovation that Colgate people have used

to constantly transform the Company and identify new opportunities. With global brands sold

in over 200 countries; Colgate, Mennen, Palmolive, Ajax, Softsoap, and Hill’s Pet Nutrition

are among the world's most recognizable household names, trusted and relied upon by

consumers everywhere.

Colgate People, working around the world, share a commitment to three core

corporate values: Caring, Global Teamwork and Continuous Improvement. These values are

reflected not only in the quality of products and the reputation of Company, but also in

dedication to serving the communities where they do business.

As a leading consumer products company they are also deeply committed to

advancing technology which can address changing consumer needs throughout the world. In

fact, its goal is to use technology to create products that will continue to improve the quality

of life for consumers wherever they live.

As a successful business, it is focused on achieving the consistent growth required to

continue our global success and to make us an even stronger company. They believe this is

the best way to benefit consumers, people and shareholders.

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Products

Oral Care

Toothpastes

Toothbrushes

Toothpowder

Whitening Products

Mouthwash

PERSONAL CARE

Body Wash

Liquid Hand Wash

Shave Preps

Skin Care

Hair Care

HOUSEHOLD CARE

Surface Care

DENTIST RECOMMENDED

Gingivitis Treatment

Sensitivity Treatment

Tooth Whitening

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Fluoride Therapy

Mouth Ulcer Treatment

Speciality Cleaning

From a modest start in 1937, when hand-carts were used to distribute Colgate Dental

Cream Toothpaste, Colgate-Palmolive (India) today has one of the widest distribution

networks in India – a logistical marvel that makes Colgate available in almost 4.93 million

retail outlets across the country. The Company has grown to a Rs. 2805 crore plus

organization with an outstanding record of enhancing value for its strong shareholder base.

The company leads the Rs.5200 crore Indian toothpaste market by holding 53.2% of the

market share.

Since 1976, Colgate has worked in close partnership with the Indian Dental

Association (IDA) to spread the message of oral hygiene to children across the country under

its ‘Bright Smiles, Bright Futures’ Schools Dental Education Program. This program has

successfully reached more than 105 million school children covering around 2,34,756

schools across the country since itslaunch. The program focuses on children so that the

message of good oral hygiene is carried home to families and the community at large. In

2004, as an additional effort to create awareness for good oral hygiene ‘Oral Health Month’

(OHM), was introduced. Since its launch, OHM is conducted each year during September /

October, where free dental check ups are conducted by Colgate in partnership with IDA

across the country. Conducted in designated towns and cities to establish and promote the

importance of good oral hygiene, OHM is Colgate’s mass consumer contact program.

The strong relationship and the trust of generations of consumers, trade and the dental

profession built over decades of operations in India has made Colgate a trusted household

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name. In 2009, Colgate-Palmolive (India) was adjudged as the Best Value Creator (Mid C ap

Category) in the 2009 Outlook Money NDTV Profits Awards. In 2003, Colgate was ranked

India’s #1 Most Trusted Brand across all categories by Brand Equity’s Most Trusted Brand

Survey conducted in conjunction with Neilsen – a position it held in succession for four

consecutive years from 2003 to 2007 and has been the only brand in the top

three coveted position in all the 8 surveys conducted since 2001. Prior to this, Colgate was

also rated as the #1 brand by the A&M – MODE Annual Survey for India’s Top Brands for

eight out of nine years during the period1992 to 2001

Awards for Colgate in the year 2013

Best Companies for Multicultural Women

Fortune 500 Companies

World's Most Admired Companies

World’s Most Ethical Companies

Top 50 Companies for Executive Women — The National Association for Female

Executives (NAFE)

2013 Energy Star Partner of the Year — Energy Star

Top 50 Companies for Diversity — Diversity Inc.

100 Best Corporate Citizens — Corporate Responsibility Magazine

Top 50 Companies for Latinas to Work For — LatinaStyle

Top 50 Companies for Multicultural Business Opportunities —

DiversityBusiness.com

America's 25 Most Reputable Companies — Forbes

America's 25 Most Reputable Companies — Forbes

For the year 2012

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World's Most Admired Companies — Fortune Magazine

Top 50 Companies for Diversity — Diversity Inc.

Top 50 Companies for Executive Women — The National Association for Female

Executives (NAFE)

100 Best Companies — Working Mother Magazine

Top 2012 Employers: Best Company for Asian Pacific Americans — Asia Society

Diversity Leadership Forum

2012 ENERGY STAR Partner of the Year — Energy Star

100 Best Corporate Citizens — Corporate Responsibility Magazine

Safe-In-Sound Excellence in Hearing and Loss Prevention Award — U.S. National

Institute for Occupational Safety and Health (NIOSH)

The Gartner Top 25 Global Supply Chain — Gartner

Management

Ian M. Cook

Chairman, President and Chief Executive Officer

Mr. Cook joined Colgate in the United Kingdom in 1976 and progressed through a

series of senior marketing and management roles around the world. He became Chief

Operating Officer in 2004, with responsibility for operations in North America, Europe,

Central Europe, Asia and Africa. In 2005, Mr. Cook was promoted to President and Chief

Operating Officer, responsible for all Colgate operations worldwide and was elected

President and Chief Executive Officer in 2007. He was elected director in 2007 and

Chairman, effective January 1, 2009.

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Fabian Garcia

Chief Operating Officer, Global Innovation and Growth, Europe & Hill's Pet Nutrition

Mr. Garcia joined Colgate in 2003 as President, Colgate-Asia Pacific. He was appointed to

his current position in 2010, with expanded responsibility for Hill’s Pet Nutrition in 2012.

Most recently he was EVP, President, Colgate-Latin America & Global Sustainability. Prior

to joining Colgate, Mr. Garcia was Senior Vice President of International Operations at the

Timberland Company.

Franck J. Moison

Chief Operating Officer, Emerging Markets & South Pacific

After joining Colgate in France in 1978, Mr. Moison advanced through marketing and

management positions in Colgate-Europe and at the corporate level. He was appointed to his

current position in 2010, with expanded responsibility for South Pacific in 2012. Most

recently he was President, Global Marketing, Supply Chain & Technology.

Dennis Hickey

Chief Financial Officer

Mr. Hickey became CFO in January 2011, having most recently been Colgate’s Vice

President and Corporate Controller since 1998. Since joining Colgate in 1977, Mr. Hickey

has held key financial positions for the Company’s European and North American business

units, the Corporate Audit unit and a variety of business strategyleadership assignments.

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Andrew D. Hendry

Chief Legal Officer and Secretary

Mr. Hendry joined Colgate in 1991 from Unisys, where he was Vice President and General

Counsel. A graduate of Georgetown University and NYU Law School, Mr. Hendry has also

been a corporate attorney at a New York law firm and at Reynolds Metals Company (now

part of Alcoa, Inc.).

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3.1 LITERATURE REVIEW:

The topic of consumer behaviour is one of the massively studied topics by the

researchers and marketers in the past and still being studied. Researchers show different

reasons as to why consumer behaviour has been the topic of many academics and researchers.

One of the common views is that understanding consumer behaviour has become a factor that

has a direct impact on the overall performance of the businesses (Kotler and Keller, 2012).

Another view suggests that understanding consumer behaviour has become crucial especially

due to fierce competition in retail industry in the UK and worldwide (Lancaster et al, 2002).

This chapter will introduce some other areas of research background of consumer behaviour

addressing the works of researchers and marketers. Moreover, consumer decision making

process, in particular, five stages of consumer decision making process will be discussed in

detail.

It is worth noting that consumer buying behaviour is studied as a part of the marketing

and its main objective it to learn the way how the individuals, groups or organizations

choose, buy use and dispose the goods and the factors such as their previous experience,

taste, price and branding on which the consumers base their purchasing decisions (Kotler and

Keller, 2012).

One of such studies of consumer buying behaviour has been conducted by Acebron et

al (2000). The aim of the study was to analyze the impact of previous experience on buying

behaviour of fresh foods, particularly mussels. In their studies the authors used structural

equation model in order to identify the relationship between the habits and previous

experience on the consumer buying decision. Their findings show that personal habits and

previous experience on of the consumers have a direct impact on the consumers’ purchase

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decision in the example of purchasing fresh mussels. They also found that the image of the

product has a crucial impact on the purchasing decision of the consumer and further

recommended that the product image should continuously be improved in order to encourage

the consumers towards purchasing.

Another study conducted by Variawa (2010) analyzed the influence of packaging on

consumer decision making process for Fast Moving Consumer Goods. The aim of the

research was to analyze the impact of packaging for decision making processes of low-

income consumers in retail shopping. A survey method has been used in order to reach the

research objectives. In a survey conducted in Star Hyper in the town of Canterville 250

respondents participated. The findings of the research indicate that low-income consumers

have more preferences towards premium packaging as this can also be re-used after the

product has been consumed. Although the findings indicate that there is a weak relationship

between the product packaging and brand experience. However, it has been proven by the

findings of the research that low-income consumers have greater brand experience from the

purchase of ‘premium’ products when compared to their experience from purchasing ‘cheap’

brand products.

Lee (2005) carried out study to learn the five stages of consumer decision making

process in the example of China. The researcher focuses on the facts that affect the consumer

decision making process on purchasing imported health food products, in

particular demographic effects such as gender, education, income and marital status. The

author employed questionnaire method in order to reach the objectives of the research.

Analysis of five stages of consumer decision making process indicate that impact of family

members on the consumer decision making process of purchasing imported health food

products was significant.

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The author further explains this by the fact Chinese tradition of taking care of young

and old family members have long been developed and marriage is considered to be

extremely important in Chinese tradition. This reflects in the findings of the study that the

purchase of imported health food products made by a person for the people outside the family

is declined significantly by both male and female Chinese after they get married.

Five Stages Model of consumer decision making process has also been studied by a

number of other researchers. Although different researchers offer various tendencies towards

the definitions of five stages, all of them have common views as they describe the stages in

similar ways. One of the common models of consumer decision making process has been

offered by Blackwell et al (2006). According to him, the five stages of consumer decision

making process are followings: problem/need recognition, information search, evaluation of

alternatives, purchase decision made and post-purchase evaluation.

Each stage is then defined by a number of researchers varying slightly but leading to a

common view about what each stage involves. For example, according to Bruner (1993) first

stage, need recognition occurs when an individual recognizes the difference between what

they have and what they want/need to have. This view is alsosupported by Neal and Questel

(2006) stating that need recognition occurs due to several factors and circumstances such as

personal, professional and lifestyle which in turn lead to formation of idea of purchasing.

In the next stage, consumer searches information related to desired product or service

(Schiffman and Kanuk, 2007). Information search process can be internal and external. While

internal search refers to the process where consumers rely on their personal experiences and

believes, external search involves wide search of information which includes addressing the

media and advertising or feedbacks from other people (Rose and Samouel, 2009).

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Once the relevant information about the product or service is obtained the next stage

involves analyzing the alternatives. Kotler and Keller (2005) consider this stage as one of the

important stages as the consumer considers all the types and alternatives taking into account

the factors such as size, quality and also price.

Backhaus et al (2007) suggested that purchase decision is one of the important stages

as this stage refers to occurrence of transaction. In other words, once the consumer

recognized the need, searched for relevant information and considered the alternatives he/she

makes decision whether or not to make the decision. Purchasing decision can further be

divided into planned purchase, partially purchase or impulse purchase as stated by Kacen

(2002) which will be discussed further in detail in the next chapters.

Finally, post-purchase decision involves experience of the consumer about their

purchase. Although the importance of this stage is not highlighted by many authors Neal et al

(2004) argues that this is perhaps one of the most important stages in the consumer decision

making process as it directly affects the consumers’ purchases of the same product or service

from the same supplier in the future.

The most noteworthy writers that serve as academic advocates of The Five Stage

Model of consumer decision making include Tyagi (2004), Kahle and Close (2006)

Blackwell et al. (2006), and others.

It is important to note that The Five Stage Model is not the only model related to

consumer decision-making, and there are also a range of competing models that include

Stimulus-Organism-Response Model of Decision Making developed by Hebb in 1950’s,

Prescriptive Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990), Model of

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Goal Directed Behaviour (Perugini and Bagozzi, 2001) and others. All of these models are

analysed in great detail in Literature Review chapter of this work.

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Table 4.1 Distribution of respondents based on age

Pie chart representing distribution of customers who purchased

mouthwash based on age

Figure:4.1

From the above data is is clear that customers between the age range 26 to 35 are the highest

purchasers of mouthwash.

4%

44%

36%

16%

Age

18 - 25

26 - 35

36 - 45

> 45

S.No Age No. of Respondents %

01 18 - 25 2 4.44

02 26 - 35 20 44.44

03 36 - 45 16 35.55

04 > 45 7 15.55

Total

respondents - 45

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Table 4.2 Distribution of respondents based on their income

S.No Income No. of respondents %

01 1000 - 50,000 10 22.22

02 51,000 - 1,00,000 20 44.44

03 1,01,000 - 1,50,000 10 22.22

04 1,51,000 - 2,00,000 5 11.11

Pie chart representing distribution of customers who purchased

mouthwash based on their income of the entire family

Figure 4.2

From the above data it is clear that customers having the income range between Rs,51,000 to

Rs.1,00,000 are the majority purchasers of mouthwash

22%

45%

22%

11%

Income

1000 - 50,000

51,000 - 1,00,000

1,01,000 - 1,50,000

1,51,000 - 2,00,000

Total

respondents - 45

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Table 4.3 Distribution of respondents based on gender

S.No Gender No. of Respondents %

01 Male 26 57.77

02 Female 19 42.22

Pie chart representing distribution of customers of customers who

purchased mouthwash based on gender

Figure 4.3

It can be inferred from the above data that male customers account to 58% and are the major

users of mouthwash

58%

42%

Gender

Male

Female

Total respondents -

45

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Table 4.4 Distribution of customers based on the product purchased

S.No Name of product No. of respondents %

01 colgate fresh tea 28 62.22

02 colgate fresh mint 1 2.22

03 colgate complete care 4 8.88

04 colgate peppermint 4 8.88

05 colgate sensitive 4 8.88

06 Listernine original 4 8.88

Pie chart representing distribution of data based on the products

purchased in the store

Figure 4.4

It can be inferred from above that Colgate fresh tea has the highest sales when compared to

other brands such as Colgate fresh mint, colgate complete care, colgate peppermint, colgate

sensitive, Listerine original.

62%

2%

9%

9%

9% 9%

Products

colgate fresh tea

colgate fresh mint

colgate complete care

colgate peppermint

colgate sensitive

listerine original

total respondents - 45

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Table 4.5 Number of customers influenced by promotional schemes

(Bundled offer 1+1)

S.No Response No. of Respondents %

01 Influenced 28 62.22

02 Not influenced 17 37.77

Pie chart representing number of customers who purchased the product

because of promotional offer

Figure 4.5

From the data it is clear that 62% of customers are influenced by the promotional offers

offered by the company

62%

38%

Influenced by promotions

influenced

Not inluenced

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Table 4.6 Distribution of customers based on the size of the product

S.No Quantity No. of Customers %

01 40 ml 32 71.11

02 250ml 13 28.88

Pie chart representing data of customers who purchased based on size of

packs

Figure 4.6

From the data it is clear that 71% of customers preferred low sized packs (40ml )

71%

29%

Sales based on quantity

40ml

250ml

Total customers - 45

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Table 4.7 Number of customers who purchased the product before and

after Doctor recommended

S.No Response No. of Respondents %

01 After doctor

recommended

22 48.88

02 Before doctor

recommended

23 51.11

Pie chart representing the number of customers who purchased

mouthwash after recommended by a Dentist

Figure 4.7

From the data it can be inferred that 51% customers use mouthwash even before

recommended by a doctor

49% 51%

Doctor recommended

after doctor recommended

before doctor recommended

Total customers - 45

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Table 4.8 Distribution of customers who are loyal to one particular brand

S.No Response No. of Respondents %

01 Particular about a

brand

29 64.44

02 Not particular about a

brand

16 35.55

Pie chart representing the number of customers who are particular about

one brand ( Brand conscious )

Figure 4.8

It can be inferred that 64% of customers are particular about one particular brand and use it

regularly and are not ready to switch to another brand

64%

36%

Brand conscious

Particular about a brand

Not particular about any brand

Total customers - 45

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Table 4.9 Distribution of customers who are happy with availability of

stock in the store

S.No Response No. of Respondents %

01 yes 36 80

02 no 9 20

Pie chart representing the data of customers who are satisfied with the

availability of stock in the store

Figure 4.9

From that data it can be understood that 80% of customers are happy with the availability of stock in

the store

80%

20%

Stock availability

Stock is available

Stock not available

Total customers - 45

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Table 4.10 Distribution of brands which move faster in the store from

customer point of view

S.No Brand name No. of responses %

01 Colgate 41 91.11

01 Listerine 4 8.88

Pie chart representing the distribution of brands which move fast in the

store according to customers who visited the store

Figure 4.10

From the above data it is clear that 91% of customers agree that colgate is the most preferred

brand and hence it the fast moving brand in the store

91%

9%

Brand movement

Colgate

Listerine

Total customer - 45

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Table 4.11 Number of customers who follow and get influenced by

advertisements while purchasing the product

S.No Response No. of Respondents %

01 Influenced 23 51.11

02 Not influenced 22 48.88

Pie chart representing the distribution of customers who are aware of

advertisements about mouthwash

Figure 4.11

From the above data it is clear that 51% of customers notice advertisements in Televisions,

Newspapers

51% 49%

Advertising awareness

Aware

Not aware

Total customers - 45

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Table 4.12 Number of customers who make their purchase decision based

on price

S.No Response No. of Respondents %

01 price conscious 33 73.33

02 not price conscious 12 26.66

Pie chart representing the distribution of customers who make their choice

on the basis of price of the product

Figure 4.12

From the above data it can be inferred that 73% of customers are conscious about price while making

a purchase decision

73%

27%

Influenced by price

Price conscious

not price conscious

Total customers - 45

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Table 4.13 Data representing Top of Mind choices preferred by customers regarding

oral care brand

S.No Brand name No. of customers %

01 Colgate 32 71.11

02 Liserine 13 28.88

Pie chart representing choices preferred by customers in Top of mind survey

Figure 4.13

It can be inferred from the above data that 71% of customers answered colgate as the first

brand that comes into their mind when they think of oral care product

71%

29%

Top of mind

Colgate

Listerine

Total customers-45

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Table 4.14 Data representing average number of people involved in the decision making

process while purchasing mouthwash

S.No Number of

customers in the

group

Average number of

customers involved

in PDT

%

01 5 3 60%

02 2 2 100%

03 1 1 100%

Pie chart representing the average number of customers who involve in the decision

making process among the group of people who visited the store

Figure 4.14

From the above data it can be inferred that if two people visit the store then the decision

making process involves both i.e. 100%

50%

33%

17%

Process Decision tree

group ( 5 )-3

Group (2 )-2

Group ( 1 )-1

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5.1 FINDINGS

Customers between the age range 26 to 35 are the highest purchasers of mouthwash.

Customers having the income range between Rs,51,000 to Rs.1,00,000 are the

highest purchasers of mouthwash

Male customers account to 58% of total customers and are the major users of

mouthwash

Colgate fresh tea has the highest sales when compared to other brands such as Colgate

fresh mint, colgate complete care, colgate peppermint, colgate sensitive, Listerine

original.

62% of customers are influenced by the promotional offers offered by the company

62% of customers are influenced by the promotional offers offered by the company

51% customers use mouthwash even before recommended by a doctor

64% of customers are particular about one particular brand and use it regularly and

are not ready to switch to another brand

80% of customers are happy with the availability of stock in the store

91% of customers agree that colgate is the most preferred brand and hence it the fast

moving brand in the store

51% of customers notice advertisements in Televisions, Newspapers

73% of customers were conscious about price while making a purchase decision

71% of customers answered Colgate as the first brand that comes into their mind

when they think of oral care product

The decision making process involved a minimum of 60% of the people in the group

who visited the store

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5.2 LIMITATIONS

The study was confined only to the customers of Ushodaya Super market

The time period of the study was limited to only 11 days.

Customers refused to answer to all the questions in the questionnaire.

There is no way to find out if the respondent answered truly

5.3 CONCLUSION

Brand name: Colgate has a very strong brand image in the market when compared to

Listerine

Appearance and packing: Colgate and Listerine have attractive appearance and

packing such as low sizes

Top of Mind survey: Colgate is the first brand that comes into respondent`s mind

when we ask about oral care product

Expensive brand: Listerine is considered to be the expensive brand than other

brands.

Awareness: Most of the customers visiting the store are unaware of mouthwash,

hence a lot of emphasis is required in this area

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5.4 SUGGESTIONS

To advertise and position the concept of mouthwash more effectively by the following

methods

Advertisements

Newspapers

Promoter at the selling point

To increase the low sized stock in the store as they are the highest selling products in

the store

To increase variety in the category of mouthwashes

To make sure the mouthwash is placed in such a way that it is visible to the customers

passing by the rack

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6.1 PRODUCT DECISION TREE - QUESTIONNAIRE

1.Name of the respondent:……………………… 2. Telephone No: ………………………………………

3.Date of interview: ………………………………… Time Begin:

Time end:

4.Gender: MALE

FEMALE

5.Age:

6.Can you please tell details of the mouthwash (s) you bought? Brand:

flavour: No. of units in pack : 1 2 3

Pack Size (Wt.):

Grams

Price(Rs.): Pack Type: Cardboard Box Plastic Pouch Plastic Tube Others:

Brand:

flavour: No. of units in pack : 1 2 3

Pack Size (Wt.):

Grams

Price(Rs.): Pack Type: Cardboard Box Plastic Pouch Plastic Tube Others:

7.If the mouthwash you bought was not available can you please take a look at the shelf and tell me which product would have been your second choice? Brand:

flavour: No. of units in pack : 1 2 3

Pack Size (Wt.):

Grams

Price(Rs.): Pack Type: Cardboard Box Plastic Pouch Plastic Tube Others

8.Brand: flavour: No. of units in pack : 1 2 3

Pack Size (Wt.):

Grams

Price(Rs.): Pack Type: Cardboard Box Plastic Pouch Plastic Tube Others

9.Brand: flavour: No. of units in pack : 1 2 3

Pack Size (Wt.):

Grams

Price(Rs.): Pack Type: Cardboard Box Plastic Pouch Plastic Tube Others

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10.What criteria are the most important to you when choosing mouthwash? Please Rate using the

following scale.

1= Totally Unimportant 2= Unimportant 3= Neutral 4= Important 5=VeryImportant

1. Mouthwash gives you whiter teeth 1 2 3 4 5

2. Mouthwash freshens your breath 1 2 3 4 5

3. Flouride Content of Mouthwash 1 2 3 4 5

4. Usable for Sensitive teeth 1 2 3 4 5

5. Taste 1 2 3 4 5

6. Dental Association Approved 1 2 3 4 5

7. Low Price 1 2 3 4 5

8. Attractive Packaging 1 2 3 4 5

9. Coupons given in store 1 2 3 4 5

10. Mouthwash is Available everywhere 1 2 3 4 5

11.How often do you use mouthwash?

Once a Day Twice a Day Three times a day More than three times

12.How often do you purchase mouthwash?

weekly once monthly once yearly once

13.Who Purchases the mouthwash you use?

Yourself Spouse Parents Other

14.Do Commercial campaigns such as adverts on TV influence your choice of mouthwash?

Yes No

15.Have you ever been influenced by friends or family on your choice of mouthwash?

Yes No

16.What range does your monthly Income fall into? Below Rs.5000 5001-10000 10001-20000 Above Rs.20000

17.What is your level of Education?

Primary High School Graduate Post Graduate Other

18.What is your Occupation?

Student Employed Pensioner Housewife Other

If Employed Please Specify type of Employment.............................................

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EXIT INTERVIEW - Questionnaire

SCREENER QUESTIONS

1. Name

2. Phone number

3. Does anyone of your family members work in any of the following fields

FMCG/Clothing/ Retail

Market research survey company

None of the above

MAIN QUESTIONNAIRE

4. Age

15 - 20

21 - 25

26 - 30

31 - 35

36 - 40

41 - 45

46 - 50

>50

5. Address

6. Highest qualification

10/inter

some college but not graduate

graduate/professional

post graduate (technical )

post graduate (professional )

Doctoral

7. Occupation

Executives/chairman

businessmen/industrialists (1 member)

businessmen/industrialists(1-10 members)

businessmen/industrialists( >10 members)

supervisor

self employed professional

clerical

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shop owner

petty trader

skilled worker

8. Who is the chief wage earner in your family

9. What is the range of income in your house

1000 - 20,000

21,000 - 40,000

41,000 - 60,000

61,000 - 80,000

81,000 - 1,00,000

1,01,000 - 1,20,000

1,21,000 - 1,40,000

1,41,000 - 1,60,000

1,61,000 - 1,80,000

2,00,000 and above

9. Did you buy any of the products - toothpaste, toothbrush, mouthwash

Mouthwash

10. Which brand of mouthwash did you buy?

11. Where did you pick this brand

category shelf

Special display

12. When we say mouthwash what brands come into your mind?

12. How frequently do you buy mouthwash

once in 2 months

monthly

fortnight

weekly

13. Why do you come to this store?

Convenient to shop

near to home

ambience is good

variety of product

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wide range of premium products

good promotional offers

customer service is good

14. Did you notice any kind of promotional posters in the store

yes

no