A project report on consumer buying behaviour towards

toothpaste users

In the kolkata
Project Report submitted in partial fulfilment of the requirement for the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under

MAULANA ABUL KALAM AZAD UNIVERSITY OF TECHNOLOGY, WEST BENGAL

By

Hari Om Mishra

REGISTRATION: 161502010011 OF 2016-2017

ROLL NUMBER: 15005016019

Under the guidance of

Mr. Soumyajit Das

Assistant Professor

BBA

NOPANY INSTITUTE OF MANAGEMENT STUDIES

2D NANDO MULICK LANE

KOLKATA - 700006

1|Page
 CERTIFICATE OF COMPLETION

It is certified that the project entitled" A project report on

consumer buying behaviour towards toothpaste users IN
KOLKATA" submitted to NOPANY INSTITUTE OF MANAGEMENT STUDIES,
KOLKATA in partial fulfilment of the requirement for BACHELOR IN

BUSINESS ADMINISTRATION (VI Semester) course has been carried out by

"Hari Om Mishra" under my supervision.

It is further certified that is a record of original work done for the academic
requirement and not for any other purpose.

Mr. Soumyajit Das

Assistant Professor

Department Of Management

NIMS, Kolkata

2|Page
 DECLARATION

I, HARI OM MISHRA undersigned hereby declare that the

project report entitled: “A project report on consumer buying
behaviour towards toothpaste users IN KOLKATA”. Written
and submitted by us is submitted to Mr. Soumyajit Das is our original
work. The empirical findings in this report are based on the data
collected by myself. While preparing the report I have not copied from
any report.

Hari Om Mishra

3|Page
 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of cut throat competition project is likely a bridge between
theoretical and practical working, willingly I have prepared this particular project.

First of all I would like to thank the supreme power, the almighty God who is obviously the
one who has always directed me to work on the right path of my life. With his grace this
project could become a reality

Any accomplishment requires the effort of many people and this work is not different. Firstly,
I would like to extend my sincere thanks to Mr. Soumyajit Das (Lecturer, BBA, and
Marketing Management) for his able guidance, regular counselling, keen interest and
constant encouragement, without this the project would not have a successful end. I am
highly thankful to him for his helpful attitude, regular coaching and inspiration.

I sincerely thank to all the faculty members and the staff associated for their support
given to me time to time. Also, I would like to thank to all my friends and family members for
their support given to me time to time. I don’t have words to express my thanks, but still my
heart is full of gratitude for the favours received by me from the every person.

4|Page
 PREFACE
Marketing has to go beyond the various influences on buyers and develops an
understanding of how consumers actually make their buying decisions. We are
exposed to marketing in almost everything we do; we see marketing in the
advertisement that fills our newspapers. But marketing is not that simple as it
appears to be. The mission of present day marketing is not 'telling and selling', but,
satisfying customer 'needs' and 'Customer delight'. Customer is the fulcrum around
which all marketing activities revolve.

To start any business the success entirely depends on the marketing research
done about the particular and the consumer attitude towards the product.
Marketing research plays a vital role in a business to make it success. In this era
where time is very big factor for everyone. Every person wants to save his every
second to utilize it to achieve more and more goals, and with less time, people want
the better facilities and in short time.

When the travelling is the factor, people choose that how best, they can travel, what
facilities they can get and how much time and money they can save.

In the marketing point of view, the behaviour of the consumers effects deeply on the
concerned organization. So that why, I am here to analyzing and study the consumer
behaviour towards the Toothpaste.

5|Page
 INDEX
SERIAL NO NAME PAGE NO

1 Abstract 7

2 8
Introduction and Objective of research

3 23
Strategic analysis of colgate,
pepsodent and Patanjali (Company
Profile)
4 41
RESEARCH METHODOLOGY

5 43
Survey Results , Analysis, and Finding

6 SUGGESTIONS AND CONCLUSION 53

7 Review of Literature 55

8 Future Scope 59

9 Bibliography & Annexure 60

6|Page
 Abstract

The report entitled “A project report on consumer buying

behaviour towards toothpaste users IN KOLKATA” deals with the
study of different toothpaste brand in the Kolkata market. This research will also
explain how situational influences may affect the consumer buying decision process.
Understand the psychological influences that may affect the consumer buying
decision process.

7|Page
 INTRODUCTION

Ever wonder where toothpaste and mouthwash came from? Have you ever thought about what
people used for toothpaste before the invention of Crest, Colgate or Aquafresh? (brand name
toothpastes).

Back in the Days of Buddha....

The activity of keeping the mouth clean dates all the way back to the religious figure Buddha. It has
been recorded that he would use a "tooth stick" from the God Sakka as part of his personal hygiene
regimen.

In 23 - 79 AD the practice of oral hygiene included:

 Drinking goats milk for sweet breath

 Ashes from burnt mice heads, rabbits heads, wolves heads, ox heels and goats feet were
thought to benefit the gums.
 Picking the bones out of wolves excrement and wearing them (maybe in the form of a
necklace?) was considered to be a form of protection against toothaches.
 Washing your teeth with the blood from a tortoise three times a year was a sure bet against
toothaches as well.
 Mouthwashes were known to consist of pure white wine, or (get ready for this one) old
urine kept especially for this purpose.

The 18th Century

The earliest record of an actual toothpaste was in 1780 and included scrubbing the teeth with a
formula containing burnt bread. (A common North American breakfast)

Other toothpastes around this time called for:

 1 1/2 oz. dragons blood

 1 1/2 oz. cinnamon
 1 oz. burnt alum

Beat the above ingredients together and use every second day.

The 19th Century

 In the 19th century, charcoal became very popular for teeth cleaning purposes.

8|Page
  Most toothpastes at this time were in the form of a powder.
 The purpose of the tooth powder was not only to clean the teeth, but to give fresh breath.
 The succulent strawberry (still available today) was considered to be a "natural" solution for
preventing tartar and giving fresh breath.
 In 1855, the Farmers Almanac included this recipe for an appropriate toothpaste:
1 oz. myrrh (fine powder)
2 spoonfuls of your best honey (This does not refer to your significant other!!)
A pinch of green sage

The 20th Century

 Liquid cleansers (mouth rinses) and pastes became more popular, often containing
chlorophyll to give a fresh green color.
 Bleeding gums became a concern as well as aching teeth.
 In 1915 leaves from certain trees in South East Asia (Eucalyptus) were beginning to be used
in mouthwash formulas.

So....what's in the toothpaste of the 90s?

 sodium monofluorophosphate (not to be confused with MSG)

 color
 flavoring
 fluoride
 foaming agents
 detergents
 humectants (prevent the paste from hardening)
 Herbal toothpastes have gained popularity for people looking for a "natural" toothpaste or
for those who don't want fluoride in their dental cleansers. Some herbal toothpastes
contain:
peppermint oil, myrrh, plant extract (strawberryextract) ,special oils and cleansing agents

Hey, didn't we see these ingredients in the toothpastes of the early 19th century?

And the 21st Century....

Your guess is as good as ours!! If the trends of the 20th century continue we should see more
toothpastes that whiten and brighten the teeth, are canker sore friendly, and give you the ultimate
brushing or rinsing experience.

How toothpaste work

Our mouth contains one or more of 500 types of microorganisms. Some of these, mainly
streptococcus mutans, create sticky plaque from food residue in your mouth. Microorganisms

9|Page
in our mouth feed on left over food to create acid and particles called volatile sulfur
molecules. The acid eats into tooth enamel to produce cavities while volatile sulfur molecules
give breath its foul odor.

Toothpaste works with toothbrush to clean teeth and fight plaque bacteria. Toothpaste
contains abrasives which physically scrub away plaque. In addition, toothpaste abrasives help
remove food stains from teeth and polish tooth surfaces. Some toothpastes contain
ingredients which chemically hinder the growth of plaque bacteria. These include ingredients
like natural Xylitol and artificial triclosan

10 | P a g e
 Consumer buying behaviour

Three basic psychological process play an important role in understanding how actually consumers
make a buying decision .marketers must understand every facet of consumer behaviour .smart
companies try to fully understand the customers buying decision process –all the experiences in
learning ,choosing using and even disposing the product

Problem recognition

Information search

Evaluation of
alternatives

Purchase decision

Post purchase behaviour

Five stage model of consumer buying process

11 | P a g e
 Brand loyalty

Brand loyalty is something that every company strives for and believes they can attain. All it takes is
a bigger marketing budget, a new advertising campaign or another creative agency. But ultimately
the brand loyalty they aim for, that is a consumer so loyally devoted to the brand that they buy it
again and again, can never be achieved because they place the emphasis of brand loyalty in the
wrong place. Companies assume that brand loyalty is something that the consumer does for them,
while in reality brand loyalty is something the company and the brand do for their customer.

Building a strong brand requires careful planning and a great deal of long term investment. At the
heart of a successful brand is a great product or service , backed by creatively designed and
executed marketing

Industry overview

India is still a nascent country in dental hygiene, with the majority of the population still not having
access to modern dental care but relying on substances like coal ash and neem sticks.

In India, per capita toothpaste consumption stood at 74g in 2005, which is amongst the lowest in the
world, compared to 350g and 300g in Malaysia and Vietnam respectively

Toothpaste enjoys a country wide penetration level of 50%. The penetration levels of dentifrice in
the country have been on an upward trend over the last few years driven by strong improvements in
toothpaste penetration

The Rs. 2,700-crore toothpaste market (the largest oral care segment), grew a robust 10 per cent in
value in 2000. But this wound down to 2.4 per cent in 2001. In the first six months of 2002, the
market for toothpastes in fact shrank by around 5.7 per cent in value; in volumes terms it was much
higher at 11 per cent. The going was tough for the oral care industry.

Little wonder that teeth were bared between the market leader, Colgate Palmolive, and the
challenger, Hindustan Lever, as the marketing war between the two FMCG giants for protecting
market share got tough.

As if that was not enough, these players found new aggressive competition coming their way from
regional low priced competitors such as Anchor Healthcare & Ajanta India, who priced their offerings
at over 40% discount, giving market leaders a run for their money

These low priced competitors accounted for more than 80 per cent of the growing ‘discount
segment’. It looked as if the multinational companies were helpless against challenger brands.

12 | P a g e
Table 1.1: Toothpaste Penetration

All India Urban Rural

Penetration 50% 75% 39%

Source: NRS 2006

With the huge consumer base waiting to be tapped and the expected rise in purchasing power as the
economy picks up, oral hygiene in India may receive a fresh lease of life.

13 | P a g e
The Toothpaste market: Oral hygiene continues to be under aggressive competition, with sales
increasing by a modest 3% in current value terms in 2006 to Rs. 2,400 crs. Toothpaste accounted for
a whopping 83% of value sales.

Table 2.1: Toothpaste market in value (in Rs. crs.)

Period Urban+Rural Urban Rural

Apr-Mar04 1897 1340 556

Apr-Mar05 1950 1386 565

Apr-Mar06 2009 1414 594

Table 2.2: Toothpaste market in volume (in tonnes)

Period Urban+Rural Urban Rural

Apr-Mar04 77320 53791 23529

Apr-Mar05 84501 59172 25329

Apr-Mar06 86562 59922 26640

Source: AC Nielsen Market Information Digest India 2006

Table 2.3: Value - Zone Wise (in Rs. crs.)

North Zone East West South

Zone Zone Zone

Apr-Mar06 486 335 543 645

% wise 24 17 27 32

14 | P a g e
Table 2.4: Value - Town Wise (in Rs.crs.)

Total market value Town class Metro Class 1 Others

Apr-Mar06 561 386 467

% wise 40 27 33

Source: AC Nielsen Market Information Digest India 2006

Long term growth drivers

 Improving penetration
Through better distribution and conversion from other modes of oral care

 Increased usage
Improved per capita consumption through increased usage frequency

 Population growth
annual 1.5% increase in population will help broaden the user base for oral care.
 Segments in the Industry

 Price-based segmentation of the toothpaste category

On the basis of price, the toothpaste market can be broken down into two distinct
categories:

The Regular segment: The Low price point segment:

Volume ( 64,922 tons ) Volume ( 21,641 tons )

Price range Price range :

50 gms Rs. 12.5-24 50 gms. Rs. 8-10
100 gms Rs. 25-30 100 gms Rs. 14-20
150 gms Rs. 35-45 150 gms Rs. 25
Prominent brands: Prominent brands:
 Colgate  Colgate Cibaca
 Pepsodent  Babool
 Close-up  Anchor
 Meswak  Ajanta
 Dabur Red

Source: B&K Report 2006– Colgate Pamolive India

15 | P a g e
Low Price Point Segment

The Lower Price Point segment accounts for around 25% of total category volumes
This segment offers good value for money and has seen its volume market share increase from
10.7% during 2000 to current levels.

The entire category is characterized by intense competition in both the price segments.

Threats from smaller brands in the low priced segment

Small and regional brands from the low priced segment are expected to perform well because they
are often close to the market, respond faster to changes and are willing to learn from mistakes.
Industry analysts believe that the new threat will come from smaller players who have embraced a
different kind of business model with a different value proposition. These include regional brands
and private labels. Regional brands typically take on well-known, established brands by pursuing a
flanking strategy which can be of two types – geographical or need-based. In a geographical attack,
the challengers identify regions where the opponent is underperforming. The other flanking strategy
is to serve unfulfilled market needs. The smaller brands have also started delivering on the quality
front

Key Players

The toothpaste segment is largely a two player industry, Colgate & Pepsodent accounting for 80% of
the entire market.

Table 4.1: Company Share (Value)

Colgate HLL Patanjali

Dentkanti

Apr-Mar18 47.3% 30% 7.2%

Table 4.2: Company Share (Volume)

Colgate HLL Patanjali

Dentkanti

Apr-Mar18 48.8% 27% 9.1%

Source: AC Nielsen Market Information Digest India 2018

16 | P a g e
Ken Research announced its latest publication on, “Consumer and
Market Insights: Oral Hygiene in India”, offer insights on the changing
trends and key issues in India Oral Hygiene market. The publication
includes an insightful analysis of consumer behaviour, packaging trends,
leading players and distribution trends. The analysis of the aforementioned
trends has been done across six product categories within the market:
Breath Fresheners, Dental Floss, Denture Care, Mouthwashes,
Toothbrushes & Replacement Heads and Toothpaste with further individual
products segmentation under them.

Brief Overview of India Oral Hygiene Industry

India’s oral hygiene market is one of the most dynamic, fastest growing and
competitive sector of the FMCG industry. However, the scenario has not
been the same since its evolution. Over the time, it has changed from a
static to dynamic, less competitive to more competitive, traditional to more
organize and advanced one.

Earlier, the oral hygiene market was confined to the production of mostly
primary oral care products which were considered essential like
toothpastes and toothbrushes and hence held a nominal share of the
FMCG sector. However, over the time, the oral hygiene market in India has
gone through tremendous change on account of encouraging demand side
and supply side factors along with supporting govt. policies. Over the last
five years, India’s oral hygiene market has grown with a CAGR of 11.4%
and has become a significant FMCG sector in India.

Currently, India’s oral hygiene market is dominated by the toothpaste

category followed by toothbrush majorly including manual and electric
toothbrushes. Toothpowder sales have declined due to changing consumer
tastes. Advance oral care products such as mouthwashes, dental floss,
teeth whitening products are at an early stage in India, catering mostly to
urban consumers. Colgate-Palmolive Gmbh, Johnson & Johnson Gmbh
and Unilever PLC are the leading market players and convenience store
dominates the other distribution channels.

Key Factors Driving Growth in India’s Oral Hygiene Industry

17 | P a g e
The growth in India’s oral hygiene industry is mostly influenced by changing
consumer behaviour, companies’ business strategies, govt. policies and
the increasing entrance of various leading international brands in the Indian
With rising disposable income and changing tastes and lifestyle, consumers are
trading-up for expensive premium products. The mass product market has also
expanded on account of increasing population with the emergence of middle class.
Image consciousness and oral health awareness has led to increased demand for
advance oral care products.

To reap the benefits of increased consumer demands, companies are strategizing

their actions accordingly. They are focusing on innovation and launch of new
products, targeting untapped rural market through production of natural herbal oral
care products, premiumisation is playing a lead role, investing huge amounts in
advertisements through digital platform as well as through campaign and marking
their strong presence in the primary and advanced oral care product market such as
Govt. has also introduced various favourable policies along with increasing
awareness regarding oral health care by organising free dental check-ups
in semi-urban and rural areas and also deals with the problem of low
dentist population ratio in the country. toothpaste & mouthwash to tap the
potential opportunities.

Some of the key macroeconomic trends driving growth in oral hygiene industry:

Increasing populations with rising middle class boosting the mass market.

Rising GDP, leading to increased spending on improved oral care products.

Increasing purchasing power along with rising GDP per capita.

Non-increasing unemployment rates with increasing labour force, hence increasing

consumer base.

In The future outlook for the oral hygiene market of India appears to be
very promising owing to various market conditions and educative initiatives
on part of manufacturers and govt., which has led to increased demand
from consumer side as well as offers great potential growth opportunities to
the manufacturers. Apart from demand for improved oral care products,
Indian consumers are getting more inclined towards herbal products in
recent years. Large rural population depends upon natural products like
neem twigs etc. for oral hygiene. Hence, through premiumisation and
production of natural-herbal oral care products, a large market segment
can be captured. Also, low market penetration both in terms of region

18 | P a g e
(urban-rural) and product (primary and secondary oral care products),
implies a largely untapped Indian oral care market with great opportunities
to the manufacturers to expand and grow. dia’s

Oral Hygiene Market Prospects

The future outlook for the oral hygiene market of India appears to be very
promising owing to various market conditions and educative initiatives on
part of manufacturers and govt., which has led to increased demand from
consumer side as well as offers great potential growth opportunities to the
manufacturers. Apart from demand for improved oral care products, Indian
consumers are getting more inclined towards herbal products in recent
years. Large rural population depends upon natural products like neem
twigs etc. for oral hygiene. Hence, through premiumisation and production
of natural-herbal oral care products, a large market segment can be
captured. Also, low market penetration both in terms of region (urban-rural)
and product (primary and secondary oral care products), implies a largely
untapped Indian oral care market with great opportunities to the
manufacturers to expand and grow.

India’s oral hygiene market is expected to register moderate growth in

value and volume terms with a CAGR of 6% during 2015-2020 and sales
value forecasted to amount to INR 150 billion by 2020. Toothpaste will be
the largest category, while the Mouth Wash category is projected to register
fastest growth. Convenience store will be dominating the distribution
channels and the use of Screw Top closure type is anticipated to grow at a
CAGR of 2.8% during 2015-2020.

19 | P a g e
Mouthwash falls under premium category gaining popularity in urban area. Mouthwash
comes under secondary products for oral hygiene. Consumers are bending towards
mouthwash products due to change in lifestyle/ standard living and for better oral hygiene.
This category is lead by Johnson & Johnson and followed by Colgate & Palmolive India.
Others products (tongue cleaner and Dental floss) are expanding gradually in Indian Oral
care market. Availability of wide variety of products, increasing health awareness and rising
income levels are some factors which have led to higher consumption of oral care products
in upcoming years

Companies are focusing into rural area for penetration of other products to increase sales.
Rise in awareness of Oral hygiene has created huge demand of Premium and innovative
products in urban area. Rural consumer has start shifting from toothpowder to toothpaste &
toothbrushes. New emerging premium products like mouthwash has gain popularity in Indian
market. Top international players has strong presence in India and globally. However, per
capita consumption of oral care products in India is low compare to U.S and china etc and
penetration level in rural area is low, which poses latent opportunity for top players for
growth of oral care products in India.

With so many new tooth paste brands coming up in India, it is certainly pretty
much challenging rather confusing on whether the product that are using is
worth reliable. Are we dealing in the safe product or merely it is something that
we need to focus more on while choosing. At such point of time, when you
look around other countries in the world which have been selling such product,
you may notice that there are selective brands only that are sold in the market
on the commercial basis. Talking about some of the best products that are
sold at a higher rate in India, toothpaste is one of the leading one. With so
many different brands available in the same product, certainly consumer
needs to think from the budget and results point of view.

Standard toothpaste occupies a major share in the market, largely driven by increased routine
practice among consumer and economic price. Despite the dominant share in the market, standard
toothpaste is witnessing the fastest growth rate during the forecast period. Growing demand for
target specific toothpaste due to increase in consumer awareness and disposable income has
accelerated the market growth. Toothpaste with whitening effect is witnessing a robust demand
Asia-Pacific. Companies are focusing on natural ingredient based toothpaste under economic

20 | P a g e
price rage to gain market share. For instance, Patanjali launched its herbal toothpaste in India,
which offered tough competition to its competitors. The Colgate and Hindustan Unilever lost its
market share in past few years owing to rising herbal/natural toothpaste trend.

he Asia-Pacific Toothpaste market is expected to reach USD 13.06 billion by 2023, witnessing a
healthy CAGR during the forecast period. China dominates the sale of toothpaste in Asia-pacific.
About 3.89 billion units of Toothpaste consumed in the region in 2017, which is growing at a
steady CAGR during the forecast period. India is witnessing the fastest CAGR during the forecast
period. Increased dental problems among children and adults due to poor eating habits have
primarily driven the toothpaste market. Also, rising premiumization and consumer seeking a
more targeted solution for oral care are further accelerating the toothpaste market.

Rising disposable income and changing consumer lifestyle demanding target specific products
continue to drive the toothpaste sales. India recorded an impressive growth of 63% during 2012-
2017 in the toothpaste market, and the trend is expected to continue during the forecast period.
Standard toothpaste remains the key market in India. Specialist toothpaste accounts for a small
share of the market but is moving at the fastest growth rate. Vietnam, Thailand, and China are the
key growth market in Asia-Pacific for toothpaste.

According to the Fact.MR study, North America continues to reign supreme in the oral
health ingredients market. However, ever-evolving lifestyle of consumers and expanding
oral care industry in South Asian countries, such as India, Thailand, and Malaysia, is
expected to creative potentially robust and lucrative opportunities for oral health
ingredients manufacturers.

According to the study, the oral health ingredients market players are investing heavily
to expand their manufacturing facilities in developing nations, and leading oral health
ingredient manufacturers are aiming to assess the sales potential in the region. The
emergence of leading oral care companies, coupled with the government-led awareness
campaigns, will make South Asia a lucrative market for oral health ingredients.

All of us after waking up in the morning are in the habit of consciously or un-consciously
reaching for the toothbrush cabinet. Brushing is such an important part of our everyday
activity that it can be thought as a habit. It’s this habit which has given rise to the global oral
health care market which is estimated at a price of $ 12.6 billion. Currently 97% of the
population in developed countries brush once daily and 86% are in the habit of brushing
twice a day. Thus it leaves the marketers no room to expand. Compared to this the Indian

21 | P a g e
market is a stark contrast with 55% of the population using toothpaste and 15% brushing
twice a day. Hence it gives a clear indication that the market here lays untapped.

he world has come far ahead since those days and today there are tubes containing fluoride
pastes. Contrary to claims made about in the world media about the sanity concerns
prevalent in India, much of the country is fairly educated in terms of its oral health concern. I
do accept that factors like tobacco and similarly the omnipresent ‘ghutkha’ do skew the
result in favour of the existing belief, of Indians having low oral hygiene. How-ever I believe
we need to ask the right questions before we can pass on a judgement.

22 | P a g e
Colgate – the dominance continues

Colgate has been present in the domestic oral care market for the last 70 years and its oral
care brands enjoy strong brand equity in the market.

The company has traditionally been the leader in the domestic oral care market. Currently,
it occupies a dominant position in the toothpaste segment with a 48% market share in the
domestic market. Its relative market share is 1.5 times the second largest player.

Faced with tough competition from HLL during early 2000, Colgate made a slew of
successful new launches to protect its market share namely Colgate Herbal, Colgate Gel &
revitalized Colgate Cibaca Top (in the low price segment).

The company has continuously relied on innovations to stay ahead of the competition. It
launched 4 new innovative variants during the course of FY18

1. Colgate Active Salt – Which capitalises on the traditional use of salt for oral care
2. Colgate Advanced Whitening –Which contains microcrystal's that polish ones teeth,
restores and maintains their whiteness.
3. Colgate MaxFresh Gel – An innovative gel-based toothpaste with cooling crystals
4. Colgate Ayurvedic

Table 4.1.1: Current Brand portfolio: Toothpaste

1. Colgate Dental Cream 7.Colgate Active Salt

2. Colgate Total 8.Colgate Fresh Energy Gel
3. Colgate Herbal 9.Colgate Max Fresh
4. Colgate Kids Toothpaste
10.Colgate Cibaca
5. Colgate Advanced Whitening

Colgate is Ranked No.1 in Kantar World panel’s 2014 Brand Footprint report.
Colgate retained its position as the second most chosen brand globally in a
list of the top 50 brands. Colgate has become household name, brand’s
toothpaste category under Colgate brand name was so successful that the
name itself has been commoditized over the period of time.

Colgate is surrounded by giant competitors. FMCG giants like HUL, P&G &
many others local players have extensive products in the Oral, personal &
Home care category but some companies are dominant in some category
whereas some in others. HUL and P&G are more known for their detergents
and soaps as well as other FMCG products. Whereas, in all of them, for oral
hygiene, Colgate is the leader.

23 | P a g e
In the highly competitive FMCG market, oral care & personal care product categories
are over-crowded by large number of international & national players. The key factor
towards success in this segment is the right branding strategy as well as the
distribution and product quality. In all these points, Colgate has maintained its lead
and hence it is the market leader.

In the toothpaste category, the Company offers products, including Colgate Total
Charcoal Deep Clean Toothpaste, Colgate Active Salt Neem Toothpaste and
Colgate Sensitive Pro-Relief (CSPR) Enamel Repair Toothpaste. In the toothbrush
category, the Company offers the Colgate 360 degree Toothbrush range, including
360 degree Charcoal Gold, 360 degree Whole Mouth Clean, 360 degree Visible
White and 360 degree Floss-Tip, and Colgate ZigZag Black Toothbrush. In the
Personal Care category, the Company offers Palmolive's Foaming Hand Wash range
in approximately two variants.

1. The company is known for adapting quickly to changes in customer

behavior and constantly innovates so as to offer best products to its
customers. It does that with its technological expertise as well as
investing in hiring the best talent from across the country for its
technical as well as managerial roles. Colgate in association with Indian
Dental Association aims at improving the oral health awareness and oral
care across India on a mass scale. It does that through mechanisms
such as exhibitions, lectures, demo

stations, training programs, etc.

1. Colgate’s orientation

2. Nature of Demand

3. Over the century, market for toothpaste has remained constant. Even today,
people are highly concerned about the cavity prevention, whiteness of teeth
and odorless teeth. Colgate frequently comes out with a range of innovative
toothpastes and is selling these with top quality as well as performance

24 | P a g e
Extend of Demand

In 2001, Colgate toothpaste had the sales of about $551.5 million, giving 32.5% share of the
U.S. market and the volume sales raised 3.1% to 233.3 million units sold (Laird et al n. d.).

As shown below is the net sales of Colgate from year 2004 to 2008. We can notice that the
sales are increasing yearly.

FIGURE 1: NET SALES OF COLGATE

(Colgate 2008: 4)
Orientation

Colgate tries to sense the customer needs and demands. This proves that the company is
marketing oriented. Let us now analyze the Colgate’s orientation towards the marketplace.
Com varied from company to company. The challenging concepts beneath which companies
perform their marketing activities are (Kotler and Keller 2006: 15)

 Production Concept: Customers are attracted to those products which are

extensively available and cheaper. Organizations following this concept targets on
accomplishing the large production competence, minimal costs and bulk distribution
(Kotler and Keller 2006: 15).

Colgate follows this concept and has proved for the worldwide availability including
the rural areas with global presence in over 200 countries and territories (Colgate
2008). Colgate products are sold for affordable price. Colgate is leading in toothpaste
business therefore the productivity is high resulting in mass distribution.

 Product Concept: Costumers are attracted to those products which have the best
quality, performance and innovative features. Organizations following this concept

25 | P a g e
 targets on developing advanced innovative products and improving them regularly
(Kotler and Keller 2006: 15).

Colgate strongly follows this concept and has designed their business strategies
accordingly. Colgate prioritizes in innovating new products and improving existing
products by innovative ideas regularly.

 Selling Concept: Organizations embark on robust promotion and selling efforts. This
is followed with unwanted goods (buyers not interested in buying) like insurance,
encyclopaedias etc. This is mostly practiced by the organizations with congestion.
These organizations’ only aim is to sell what they have. They do not bother about
what the market demands are (Kotler and Keller 2006: 15).

Colgate does not follow this concept as Colgate focus on what the market demands
for. Colgate produces their products as per the customers’ demands and needs.

 Marketing Concept: This came into sight in the mid 1950s with a philosophy of
‘Sense-and-respond’ i.e. customer-centered. Earlier the philosophy was ‘Make-and-
sell’ which was product-centered. This concept aims at finding right products for your
consumers rather than finding right consumers for your products. Organization
becomes more valuable compared to their competitors in the means of innovation,
delivery and communication with enhanced customer value (Kotler and Keller 2006:
16).

Colgate follows this concept as well. Colgate tries to sense the customers’
requirements and respond by developing the products which fulfils all their
requirements. Mostly, Colgate is first to launch unique featured products in the
market. Due to this, Colgate has a tough competition with its competitors like P&G
and Unilever who equally trying hard to introduce new products (Datamonitor 2008a).
As time passes the demands of customers varies so Colgate offers its toothpaste in
three key lines to attract aged customers, adults and kids (Kotler and Keller 2006:
249).

 Holistic Marketing Concept: This involves development, design and

implementation of marketing programs, processes, and activities that recognizes
organization’s breadth and interdependencies. Precisely, this concept is an approach
to marketing that tries to identify and resolve the opportunity and difficulties of
marketing activities. There are four main elements in Holistic marketing namely
(Kotler and Keller 2006: 16)

26 | P a g e
 o Integrated marketing involving communications, products & services,
channels

o Social responsibility marketing involving Ethics, Environment, Legal and

Community

o Relationship marketing involving Customers, Channel and Partners

o Internal marketing involving Marketing department, senior management and

other departments .Colgate strictly follows this concept as it includes most of
the marketing activities.

Colgate’s Business strategies

 Colgate strictly follows the leadership strategy which aims at the main businesses of
the company namely: Oral Care, Personal Care, Home Care and Pet Nutrition
(Colgate 2008: 2).

 Globally, all the Colgate employees work together to achieve in Driving Growth,
Funding Growth and become Best Place to Work (Colgate 2008: 2).

Colgate’s Business strategies

 Colgate strictly follows the leadership strategy which aims at the main businesses of
the company namely: Oral Care, Personal Care, Home Care and Pet Nutrition
(Colgate 2008: 2).

 Globally, all the Colgate employees work together to achieve in Driving Growth,
Funding Growth and become Best Place to Work (Colgate 2008: 2).

 Colgate’s history of robust performance comes from Colgate’s main worldwide

businesses with a victorious worldwide financial strategy. The financial strategy is
built to grow the gross profit margin and drop the costs to fund growth initiatives and
produce higher profitability (Colgate 2008: 2).

1.1 Conclusion

Colgate is a Marketing orientation company. This can be clearly shown below

Potential Marketing
Customer market products Customers
needs opportunities and services
27 | P a g e
 FIGURE 2: MARKETING ORIENTATION
(Jobber 2007: 6)

2. SWOT analysis

“SWOT analysis is a structured approach for evaluating the strategic position of a business
by indentifying its Strengths, Weaknesses, Opportunities and Threats” (Jobber 2007: 63). To
get a clear idea of Colgate toothpaste’s outlook, it is useful to analyze the company’s as well
as the product’s (toothpaste) Strengths, Weaknesses, Opportunities and Threats (SWOT).
Additionally, a SWOT analysis summarizes the outcome of marketing audit of the company
(Jobber 2007: 61).

Strengths

 First to introduce in market: In 1873, Colgate-Palmolive Company introduced its first

toothpaste in glass jars. Later in 1896, Colgate was the first toothpaste which began
to sell in a collapsible tube (Colgate 2007a).

 Brand Image: Strong customer perceptions. Colgate is most reliable and renowned
brand around the globe today. This image would aid in attracting new customers. In
2005, around 14 European countries were participants to name their most reliable
brands in various categories. Colgate was chosen for the most trusted brand in the
toothpaste category with 53% of votes (Jobber 2007: 331).

 Robust market place: Leads the toothpaste market in United States with the market
share of above 35% and also leads in few of the European countries (Datamonitor
2008a).

 Global presence (in above 200 territories and countries): Colgate has successfully
ruled about half of the toothpaste market around the globe (Cadit 2003).

 Performance sustainability: The year 2007 created a history in company by a

strong operating performance. In 2007, company’s revenues increased by 12.7% to
$13,789.7 million and the net profit increased by 28.4% (Datamonitor 2008b: 5).
Robust financial performance reinforced the financial position of the company. This
gained the confidence and trust of the company’s partners and shareholders which is
very helpful for the company’s growth.

28 | P a g e
  Innovative and introducing new products: Colgate prioritizes on product
innovation. The company endeavours to launch new innovative products and also
works on creating innovative ideas to market their existing products (Datamonitor
2008b: 5). Ansoff proposed the “product-market expansion grid” which can be used
for analysing the new rigorous expansion opportunities (Kotler and Keller 2006: 48).

Current products New products

Current markets

New markets

FIGURE 3: PRODUCT-MARKET EXPANSION GRID

(Kotler and Keller 2006:48)

The company operates its oral care’s innovation centre in New York. There are totally
nine innovation centres of the company for different products (Datamonitor 2008b: 5)

Colgate’s Global Innovation Fund encourages their employees to come up with

innovative ideas for which they are waged. The company has also teamed up global
innovation
specialists to 1. Market- Penetration Strategy 3. Product-development strategy
gather
innovative 2. Market- Penetration Strategy (Diversification strategy)
ideas. In
2008, Colgate with Givaudan S. A.

jointly developed the internal fragrance for all the Colgate products (Datamonitor
2008b: 6).

The robust product development and innovation is beneficial in revising the Colgate’s
product line at regular period and this would certainly result in growth of revenue and
customer’s reliance.

 Colgate Business Planning (CBP): CBP is a planning and execution process which
started in 2006 to improve the market margins and shares of the company. This
process assures a constant move to commercial investment throughout and a
worldwide attention on increasing the return on investment. It also let the company to

29 | P a g e
 plan the aims for more than a year in terms of brands and customers. This evaluates
the performance against these parameters and adjusts whenever necessary.
Implementation of the CBP’s first phase namely CBP essentials began in the end of
2007 where around 50 countries were representing above 80% of Colgate’s
worldwide trade investment and 6 other countries had finished the entire CBP
implementation. In 2008, CBP was implemented in 12 more other countries
(Datamonitor 2008b: 6).

 First International Malaysian Halal Logo: Colgate created a history by being the
first company to acquire the first international Malaysian Halal logo on its Colgate®
toothpaste manufactured in Thailand. Colgate was first who obtained the Halal
certification from Halal Industry Development Corporation (HDC) (Colgate 2009b;
Daily Express 2008).

Weaknesses

 Excessive debt: In 2007, Colgate had a debt of about $3,222 million i.e. equity ratio
of 1.47 compared to its competitor P&G whose was 0.53. In 2007, company’s interest
increased to $157 million. Earlier the interest was $136 million in 2005 and $120
million in 2004. This resulted in an unfavourable consequence on company’s liquidity
position and may perhaps hinder its reliability in the market (Datamonitor 2008b: 7).

 Summon up: In 2007, the company had to summon up two pet products due to
issues with the supply of wheat gluten at a contract manufacturer. Though these
products holds small portion of sale of the total sales but affected the brand value
and the operating profit of the company (Datamonitor 2008b: 6).

Opportunities

 New products: Colgate is keen on constant innovation and introduction of new

products which attracts the customers’ attention and also grows in the range of
products with the increase in market share (Ivythesis Typepad 2008).

 Growing demand of oral products: There is a huge growing demand of the Colgate
oral care products all over the world. Colgate is popular for its oral care products and
this is considered to be the main source for the growth in company’s revenues
(Ivythesis Typepad 2008).

 Widespread marketing: Global customer awareness can be done mostly by

marketing. Colgate is successfully marketing their products regularly. Colgate can

30 | P a g e
 grow their revenues by global marketing which would most probably attract more and
more customers (Ivythesis Typepad 2008).

 Hispanics in U.S: Colgate performs promotional campaign and exclusive marketing

to attract the Hispanic market by television, on-line media and print. The growing
population of Hispanics in U.S. can be the cause of development in Colgate’s
revenues (Datamonitor 2008b: 7).

Threats

 Accusation: Recently, Colgate was accused for the involvement in illegal price-fixing
cartels. Moreover, Colgate and other few companies illegally swapped the data with
retailers regarding ongoing price talks (Datamonitor 2008b: 8).

In 2006, German competition regulator noticed that Colgate planned to increase by

5% price of all the Colgate toothpaste brands. As Colgate carried out the report of the
cooperative role, Federal Cartel office did not charge any fine on them (Datamonitor
2008b: 8).

Such kind of accusations would surely affect the brand image and high chances of
drop in the market share.

 Losing U.S. customers’ confidence: In recent times, it has been noticed that the
U.S. customers’ confidence on Colgate is continuously dropping. This was based on
the reports from around five thousand U.S. households. However, this drop has
resulted in the reluctance of customer spending. In 2007, company produced
$3,321.5 million i.e. 24% of the total revenue from the U.S. market. This shows that
Colgate has extensive business in U.S. markets and the dropping customers’
confidence would highly distress the image of all Colgate products (Datamonitor
2008b: 8).

 Costly fuel and raw materials: Colgate requires products which have go through
numerous price fluctuations due to inflations, recessions, external circumstances,
and variations in legal agricultural activities. Colgate had to confront the unpredicted
rise in raw material and packaging money due to the partial evade against product
cost fluctuations. For manufacturing the products, Colgate has to reliant on the
energy suppliers. Additionally, the distributors and shipping firms are reliant on the
gasoline and diesel (Datamonitor 2008b: 8).

31 | P a g e
 As per the prediction of the US Energy Information Administration, the following table
shows the West Texas Intermediate (WTI) prices for recent 3 years (Datamonitor
2008b: 8).

Year WTI price

2007 $72 per barrel

2008 $122 per barrel

2009 $126 per barrel

FIGURE 4: WTI PRICES PER ANNUM

(Datamonitor 2008b: 9).

Since the company has a huge distribution network, increased fuel cost is most likely to have
a straight impact. This will affect the margins of Colgate. The company will be unable to grow
in the costs of raw materials which results in low profits and operations.

 Competitors: There are a couple of companies who are toughly competing with Colgate
toothpaste. These competitors are also working hard in introducing new products and in
increasing their market share. The nearest competitor of Colgate toothpaste is Crest of
P&G and other being Unilever (Ivythesis Typepad 2008).

 Forex risks: Since, Colgate is spread worldwide in around 200 countries and territories;
there are huge threats in the business operations. This is also one of the vital reason for
which the company would be extensive affected (Ivythesis Typepad 2008).

 Counterfeit Colgate toothpaste: In 2007, U.S. Food and Drug Administration

announced that the Colgate–Palmolive Company were alerting about the counterfeit
Colgate toothpaste. It is been noticed that the toothpastes are deceptively packaged as
“Colgate” which was found in various dollar-type discount provisions in New York, New
Jersey, Pennsylvania, and Maryland. The company clearly mentioned that the counterfeit
toothpastes are not distributed or manufactured by the Colgate-Palmolive Company
(U.S. Food and Drug Administration 2007; MSNBC 2007).

Recently, from 28 November to 5 December, two major retailers Sainsbury’s and Boots
were swindled in selling the counterfeit Colgate toothpaste (Telegraph 2008).

32 | P a g e
This is a serious threat for the company as counterfeit toothpastes may contain
harmful ingredients and mar the brand image. Additionally, this reflects the financial
status of the company.

Design and Packaging

Colgate’s focus on innovation also concentrates on the product designs and their
packaging. As shown below are the few of many varieties of Colgate toothpastes
with outstanding innovative designs and packaging. We can see the uniqueness of
each and every product with different style, colours and names. This proves how
Colgate is keenly working on attracting the customers and understanding the new
generation.

FIGURE 6: VARIOUS COLGATE TOOTHPASTES

33 | P a g e
Channels

The Colgate toothpastes are sold in retail outlets like supermarkets, malls, pharmacy, co-
operative stores etc. The products are distributed by the Colgate’s supply chain as shown
below (Foolonahill n. d.).

Distributors Wholesalers Retailers Consumers

FIGURE 9: SUPPLY CHAIN IN C OLGATE

Coverage

Colgate toothpastes are available in almost all countries around the globe. Colgate serves
people of above two hundred countries and territories. Now, their market also includes the
semi-urban and rural areas where the company is primarily focusing on (Foolonahill n. d.).

Locations

Colgate has successfully ruled about half of the toothpaste market around the globe. Colgate
serves people of above two hundred countries and territories. Colgate toothpastes can found
easily in any store. They are placed in oral care section in every store. In few places the
products of lowest quantity are placed near the payment counter on a trial basis.

Advertising

Advertising involves internet, print, outdoor, broadcast etc (Armstrong and Kotler 2009: 383).

In 2004, Colgate invested large budget examining new on-line advertising campaign to
realize the competence of appending on-line advertising to media mix. On this, E-business
director of Colgate Palmolive, Gabi Stade said: "The objective is to test whether including
online within the media mix works more efficiently than TV and traditional media alone. At
Colgate-Palmolive we are always keen to push the boundaries of the marketing mix while
being sure to track any innovations to assess their effectiveness." (Whitehead 2004).

In 2007, growth in gross profit margin and saving programs supported in the development of
advertising for introducing new products and improvement in market shares globally. In
Brazil, a mix of robust advertising focused on the benefits of the products, endorsements
and testimonials. During 2007, 20% of the total toothpaste sales are from the Brazil whereas
four years later the sales were just 1% (Lee and Johnson n. d.). The importance and growth
of advertising the Colgate products is shown below. We notice that company is spending lots
for advertising so the budget increases yearly.

34 | P a g e
 FIGURE 10: ADVERTISING
(Colgate 2007b: 3)

Few of the advertising slogans of Colgate toothpaste:

 Colgate toothpaste (1945)

Advertising slogan: “It cleans your breath while it cleans your teeth” (Wininspiration n. d.).

 Colgate toothpaste (1967)

Advertising slogan: “The Colgate ring of confidence” (Wininspiration n. d.).

 Colgate Total toothpaste

Advertising slogan: “Number 1 recommended by dentists.” (Textart n. d.).

 Colgate Oxygen toothpaste

Advertising slogan: “Pure. Fresh. Clean.” (Textart n. d.).

Translation disaster of one of the Colgate toothpaste: In France, Colgate launched
toothpaste called "Cue", unfortunately it happen to be the name of a popular porno
magazine (The University of Texas at Austin 2009).

Colgate is attracting the growing population of Hispanic in U.S. by printing the ads in
Spanish. Colgate focuses on advertising their products in rural areas (example: India) where
the people are almost unaware of the products (Lee and Johnson n. d.).

On October 2006, Colgate posted online advertisement on yahoo homepage. This resulted
in increase of visitors to yahoo 94 million and the traffic to the Colgate Total site increased to
2000% (Kramer 2007).

35 | P a g e
Sales promotion

Sales promotion involves demonstrations, discounts, displays and coupons (Armstrong and
Kotler 2009: 383).

By 2003, the company expected rural India to draw above half of the revenue as
company had spent 5 times more of it for marketing in rural areas. Many of the rural
Indians were not aware of the toothpaste tubes. Less than 15% of rural Indians were
using the dentifrice. Since ages to clear their mouths, rural Indians were using the
charcoal powder and indigenous plants. Colgate showed the infomercial video to the
people and also offered them free samples. They marketed by the subtext of
“Colgate is good for your breath and teeth”. They also demonstrated how to use the
toothpaste with toothbrush. To encourage and attract the people to buy Colgate
toothpaste, Colgate offered free toothbrushes to few children.

HLL – the challenger.

In the late 1980s, Hindustan Lever used the novelty element in gel toothpaste to make steady
inroads into Colgate's dominance in the oral care market. Its gel toothpaste, Close-Up helped HLL
become the second largest paste brand; posing a stiff challenge to Colgate.

However as the novelty of gel toothpastes wore off, HLL renewed focus on its other brand
Pepsodent to help it protect its turf.

Its attempt at offering a low priced brand Aim was not completed and the brand was subsequently
pulled back after launching it in early 2000

Both Close Up and Pepsodent have a combined market share of 30%

The current brands offer distinct propositions; Close Up addresses the youth with new benefits and
value-driven propositions, whereas Pepsodent is firmly entrenched on the family health platform
with variants catering to oral health.

36 | P a g e
Table 4.2: Current Brand portfolio: HLL

Close Up Pepsodent
Close-up Active Gel (red) with Vitamin Pepsodent Gumcare
Fluoride System
Pepsodent 2 in 1
Close-up Lemon Mint
Pepsodent Complete 10
Close-up Milk Calcium
Pepsodent Whitening

HUL loses sheen in oral care market

Read more at:

//economictimes.indiatimes.com/articleshow/46162718.cms?utm_source=contentofinterest&utm_medium=text&u
tm_campaign=cppst

NEW DELHI: A major shake-up is underway in the Rs 6,200 crore oral care market
with FMCG major Hindustan Unilever (HUL) losing ground, with homegrown Dabur
eating into its market share and Colgate-Palmolive consolidating its leadership.

HUL spokesperson said: "Oral Care continues to be a priority for HUL. We continue
to drive our growth in this category through consumer relevant innovations.

"We have launched several innovations in the category in the recent past, such as
Closeup Diamond Attraction, Pepsodent Clove and Salt, and the relaunch of
Pepsodent Expert Gum care. These innovations have received very good consumer
response."
"We have launched several innovations in the category in the recent past, such as
Closeup Diamond Attraction, Pepsodent Clove and Salt, and the relaunch of
Pepsodent Expert Gum care. These innovations have received very good consumer
response."

In the April-December period this fiscal, Colgate- Palmolive increased its volume
market share to 56.7 per cent from 56.2 per cent in the year-ago period. HUL, on the
other hand, saw it decline to 21.4 per cent from 22.5 per cent in the correspond

"Toothpaste category is highly competitive. Colgate continued to be a

leader with better volumes and HUL is consistently losing market share,"
Prabhudas Lilladher Sr Vice President - Research (FMCG) Amnish

37 | P a g e
Aggarwal told PTI.

Dabur – Growth through acquisition

Dabur has managed to grab a 7.2% market share with the acquisition of
Balsara's oral care brands: Babool, Promise and Meswak in addition to its own
brand Dabur Red (targeted to capture consumers shifting from toothpowder to
toothpaste).

Patanjali’s Toothpaste Market.

38 | P a g e
A year of faltering growth didn’t stop Baba Ramdev-backed Patanjatali
Ayurved Ltd. from eating into the share of larger rivals, including market
leader Colgate Palmolive India Ltd., in India’s Rs 10,000-crore toothpaste
market.

Patanjali’s share doubled in the year through March to 7.4 percent,

according to Nielsen data sourced from the industry. Most of it came at the
expense of Colgate Palmolive, and Pepsodent and Close-Up manufacturer
Hindustan Unilever Ltd. Colgate Palmolive’s volume share fell from 55.1
percent to 53.4 percent during the period—and compares with the highest-
ever 57.8 percent in 2015.
Herbal appeal and lower pricing have won Patanjali consumers in the
world’s second-most populous nation with 1.3 billion people. Millions now
use everything from honey to hair oil made by the company, helping it
become the nation’s No. 2 consumer goods maker with about Rs 10,500-
crore sales in 2016-17. Dant Kanti (Sanskrit for shining teeth), a muddy-
brown herbal toothpaste that leaves a tingling.

One rival is unlikely to feel threatened: herbal products maker Dabur India
Ltd. Patanjali’s success has had a rub-off. In the year ended March, its
share in the toothpaste market rose from 15 to 15.4 percent.
Dabur was in fact among the first challengers to Colgate-Palmolive with its
Dabur Lal Dant Manjan (red toothpowder) as early as 70s. When
televisions became more commonplace in the 80s, the Burman family-led
company ran a TV campaign where a schoolmaster learns that the secret
of a pupil’s “pearl white” smile was Dabur’s red toothpowder—only to be
ribbed by students about his stained teeth.

First, it was charcoal, then salt. Now it is cardamom, mint, and even
turmeric. With yoga guru Ramdev-led Patanjali’s “herbal” game being
received well, other Indian toothpaste makers, including multinationals
like Colgate and Hindustan Unilever (HUL), are wooing consumers with
more and more traditional flavours.

And firms selling herbal or natural toothpaste are winning in India’s

Rs10,000 crore ($1.57 billion) oral-care market, suggests a report
by HDFC Securities released last month. “The oral care category has
witnessed significant disruption owing to the success of Patanjali’s Dant
Kanti,” the report says.
Colgate and HUL have lost market share over the last couple of

39 | P a g e
years as Patanjali reshaped demand with its cheaper Ayurvedic
products and nationalist rhetoric. Patanjali’s range of fast moving
consumer good (FMCG) products has scaled a revenue of over
Rs10,000 crore.

As a result, Ayurveda or herbal-based products now constitute

about 20% of the total oral care market, as compared to zero even
10 years ago, the HDCF Securities report said, citing market data.
And even though established players like Colgate and HUL have
adapted to changing tastes, Patanjali and Dabur still sell four out of
five herbal and Ayurvedic products in the oral care market.

Changing tastes aside, pricing may be a crucial factor in a nearly-

saturated oral care market in urban India, where over 90% of
houses use either a toothpaste or a tooth powder.

Patanjali’s hit toothpaste brand, Dant Kanti, costs Rs40 for a 100
gram tube, while similar products from Colgate and HUL cost
anywhere between Rs55 and Rs100. While Colgate is still a market
leader by many miles, its market share has dropped to 53% from
57.4% in 2015.

40 | P a g e
 RESEARCH METHODOLOGY

STAGES IN RESEARCH :

41 | P a g e
Problem Defination
 To identify the consumer characteristics of the Toothpaste industry.
 To understand the influence on purchasing consumers mind set.
 To know about customer acceptance of the product.
 To see the perception of consumers in region of the Kolkata
 To understand why customer buy a particular product.
 To help the company to know what consumer want in the product.
 To understand Brand Imagery, Brand Quality perceived by customers, Brand
credibility, consideration, superiority and feelings.

RESEARCH DESIGN:

Research Design:

The research will be carried out in the form of a survey which will be done in Kolkata.
The population has been segmented on the basis of Age Group

Sample Design:

The target population for our study is households. The sample will be selected by a
simple random sampling method .

Sample Size:

The sampling unit is 150 which are divided as follows:

Number of 40
respondents
Age-group 10 – 45
Survey Locations Bara Bazar Kolkata

Age Group 10 - 25 25 - 35 35 – 45
Number of Respondents 25 5 10

DATA COLLECTION PLAN

42 | P a g e
Data Gathering:
This study involves data collection (primary research) from different households in
four different areas of Kolkata Bara Bazar.

DATA COLLECTION METHOD:

Data has been collected through questionnaire method. The questionnaire was
designed in such a way to cover as many aspects of consumer behaviour as
possible.

Limitations of study:

1) Since survey is conducted only in Kolkata this means it doesn’t reflect whole
population in country.

SURVEY RESULTS:
1. Do you use toothpaste?

Answer Yes (100%)

43 | P a g e
 DATA ANALYSIS

2. Market share of different brands.

Answer : Colgate 19, Pepsodent 7, Dant Kanti 9, Others 5,

Sales

Colgate
Pepsodent
Dant Kanti
Other

Interpretation: It is founded that most favoured brand is Colgate and enjoys a huge market share.
During the research it was founded that Colgate and its variants are most popular amongst the
consumers of Kolkata.

44 | P a g e
 Price range of toothpaste per 100g pack people prefer.

Series 2
35

30

25

20

Series 2
15

10

0
Rs 50-100 Rs 100-150 Rs 150-200 Rs 200+

Interpretation: Majority of people prefer price range Rs50-100 for 100g pack.

3. Rank the following according to their important while purchasing

(a) Cleaning Teeth

(b) Brand Name
(c ) Price
(d) Anti-cavity
(e) Sensitivity
(f) Taste
(g) Price

Result:

45 | P a g e
 Series 1
14

12

10

6 Series 1

0
Cleaning Brand Name Price Anti-Cavity Sensitivity Teste
Teeth

Cleaning Teeth is Rank 1 followed by Price then Brand Name, Anti-Cavity, Sensitivity
and test.

4. Which type of toothpaste you prefer

Answer: Majority of people still prefer Modern toothpaste.

46 | P a g e
 Preference

Ayurvedic/Organic
Modern

5. Would you like to recommend your used brand of toothpaste to

others?

Answer

67% said yes for recommendation.

47 | P a g e
 Recommendation

Yes
No

Demographic Questions

In Which age group do you belong most?

Age Group

20

15

10

5 Age Group

0
Below 20 Age Group
20-30
30-40
Above 40

48 | P a g e
Gender

Gender

1st Qtr
2nd Qtr

The education group people belong to:

Education
20
18
16
14
12
10
Education
8
6
4
2
0
Class 10 Class 12 UG Others

49 | P a g e
Income group

Income
16

14

12

10

8
Income
6

0
Below 20000 Rs20000-40000 Rs40000-60000 Above Rs60000

Occupation group

Occupation
12

10

6
Occupation

0
Student Service Business Housewife Retired

50 | P a g e
Questionnaires.

Demographic Questions.

(1) In Which age group do you belong to?

(a) Below 20 years. ( ) (b) 20 years to 30 years. ( )
(C) 30 years to 40 years. ( ) (d) 40 to 50 years ( )
(e) Above 50 years ( )
(2) Gender
(a) Male ( ) (b) Female ( ) (c ) Other ( )
(3) In Which education group do you belong to?
(a) Class 10 ( ) (b) class 12 ( ) (c ) UG (d) Others , please specify.

(4) In which income group do you belong to?

(a) Below Rs 2000 [ ] (b) Rs 20000 to 40000 [ ]
(c ) Rs 40000 to Rs 60000 [ ] (d) Above Rs 60000 [ ]
(5) In which occupation group do you belong to?
(a) Student [ ] (b) Service [ ] ( c ) Business [ ]
(d) House Wife [ ] (e) Retired [ ] (f) Professional [ ]
(g) Others [ ]
(6) Rank the following according to their important while purchasing.
(a) Cleaning Teeth
(b) Brand Name
(c ) Price
(d) Anti-cavity
(e) Sensitivity
(f) Taste
(g) Price
(7) Price range of toothpaste per 100g pack you prefer?
(a) Rs50-100 [ ] (b) Rs100-150 [ ] (c ) Rs 200-250 [ ]
(d) Rs250+ [ ]

(8) Which type of toothpaste you prefer?

(a) Ayurvedic / Organic [ ] (b) Modern Toothpaste [ ]
(9) Which brand of toothpaste do you use?
(a) Colgate [ ] (b) Pepsodent [ ] (c) Babul [ ] (d) Sensodyne [ ]
51 | P a g e
 (e) Ayush [ ] (f) Others [ ]
(10) Why do you prefer this brand?

(11) Would you like to recommend your used brand of toothpaste to

others?
Yes [ ] No [ ]

52 | P a g e
 SUGGESTIONS AND CONCLUSION

1. In the research it is founded that Colgate has the highest market

share while HUL and other small players has started giving tough
competition to the big players.
2. In the research it is founded that the product needs to be
functionally strong while other factors like price and packaging are
also important but quality holds the key.
3. It was founded that television is the most effective media and
most of the time people get all the information regarding a brand
through television.
4. Attractive advertisement of the new brand does not influence
consumer to switch their brand. Even though the most attractive
model(s) or overall good presentation of advertisement is
provided by new brand, they will stick to the regular brand. So it
fails to attract the significant consumer of other brand.
5. Change is the buzz word most of the consumer switches to
another brand for a change.
6. Colgate emerges as the next best alternative brand in case of lack
of availability and customers are satisfied with their existing
purchase

 Advertisement does have an impact on the consumer to switch to

other brand.
 Taste is the influencing factor for a customer to go for a new
brand
 Functional aspect of the brand has strong effect on the selection
of particular brand.
 Availability of favorite brand is of utmost importance for a
cigarette smoker. If it is not available, then around 45% of the

53 | P a g e
 respondent will switch to other brand . So the delivery of the
cigarettes on time to various outlets (shops) is very important.

Brand loyalty amongst the consumers are very high and those who are
not loyal they are just doing it for a change and will return to a previous
brand if they don’t find it better.

54 | P a g e
 Review of literature

1. (Bureau, 1995) The domestic toothpaste industry has long been dominated by several
well -known brands produced by Colgate. The industry began to grow at a faster rate in the
1980s with various brands at various prices, including those produced by small producers or
home industries. The growth of the industry has been supported by increases in the people's
purchasing power and the growing awareness of the importance of dental health, especially among
people in the urban areas with rapid economic growth

2.(Percy Dubash, 1998) Prior to 1978 the Indian toothpaste market was dominated by
multinationals such as Colgate- Palmolive, Ciba-Geigy and Geoffrey Manners. It is then that the
BalSara Group founded way back in 1925 launched Promise -- a toothpaste heavily promoted for its
clove oil ingredient. And the rest is history. Promise achieved the distinction of being the first Indian
toothpaste brand to be accredited by the British Dental Health Foundation (BDHF). Currently
Balsara's Promise brand and its variants and Babool enjoy a market share of 5 per cent each.

3. (Bureau, 2002) Rural Distribution Expansion Programme – Rural India still presents huge
opportunity for the company to grow the market. Even today, over 70% of population
resides in rural areas. Colgate, therefore, continues to focus on expanding its rural
distribution. Thrust of this market expansion programme commenced in FY 2001 under
“Operation Jagruti”. This programme is in 2nd phase with massive rural sampling and seeding
exercise for Colgate Herbal, targeted at non-users and infrequent users of dentifrices.

4.(vinay kamath, 2003) The price-offs, industry sources said, is expected to give a boost to a
lacklustre market for toothpastes, which has been on a decline the past couple of years. The
drop in prices, said retail sources, has begun to have an impact as toothpaste sales saw a
surge of 10-12 per cent in the May-July period.

5.(Bureau, 2006) It’s a David-versus-Goliath story yet again. Dabur India’s big-ticket
acquisition of Balsara brands two years ago has begun showing results, with the homegrown
FMCG company’s oral care basket growing faster than its well-entrenched MNC rivals
Colgate and Hindustan Lever Ltd.

6. (AC Nielsen 2006) Dabur’s kitty of oral care brands (Babool, Meswak and Lal Paste) have
beaten market leader Colgate, followed by Hindustan Lever Ltd’s (HLL) Pepsodent and
Close-Up brands, both by value and volume

55 | P a g e
7 (Simon Pitman,2007 )- A study undertaken by the government-run Associated Chambers
of Commerce and Industry (Assocham) indicates that there is significant growth potential
for marketers of personal care products in rural and semi-rural India.

8. (Reuben mark,2008)Colgate People, working around the world, share a commitment to

our three core corporate values: Caring, Global Teamwork and Continuous Improvement.
These values are reflected not only in the quality of our products and the reputation of our
Company, but also in our dedication to serving the communities where we do business.As a
leading consumer products company we are also deeply committed to advancing
technology which can address changing consumer needs throughout the world. In fact, our
goal is to use our technology to create products that will continue to improve the quality of
life for our consumers wherever they live.

9. (Nikhil Vora,2006) The toothpaste market in India has players like Colgate-Palmolive,
whose brand Colgate leads the market, Hindustan Lever, with brands Pepsodent and Close-
Up, and Dabur (brands Meswak and Babool). “The toothpaste market is growing at 8% but it
is expected to grow faster on the back of upgrades from toothpowder to toothpaste. The
30% growth of the toothbrush category is another indicator of this trend,”

10. (Sunil duggal,2007)"Yes, the toothpaste market is fiercely competitive but gaps and
platforms are always available

11. (Robert Walberg, 2008) Increased ad spending is also helping Colgate expand its market
share. For example, Colgate Total's share of the toothpaste market grew 0.6 percentage
point to 14.9%,

Due to the reported consumer and patient dissatisfaction with their perceived tooth
color, toothpaste manufacturers have responded by developing a vast array of
contemporary whitening toothpastes. One of the key functional ingredients in
whitening toothpastes is the abrasive system. In general, these have been designed
to give effective removal of extrinsic stains and help prevent tooth stains from
reforming without undue abrasivity towards the dental hard tissues. Whitening
toothpastes may contain additional agents that augment the abrasive cleaning by
aiding the removal and/or prevention of extrinsic stains, for examples, peroxide,
enzymes, citrate, pyrophosphate and hexametaphosphate, or optical agents such as

56 | P a g e
blue covarine which can improve tooth whiteness following tooth brushing. In vitro
methods used to evaluate tooth whitening efficacy typically determine the ability of a
toothpaste formulation to remove/prevent model extrinsic stains on substrates such
as enamel or hydroxyapatite or changes in the intrinsic color of tooth specimens.
Clinical protocols for evaluating the efficacy of whitening toothpastes typically
determine either stain removal or prevention, where changes in natural stain or
chlorhexidine/tea induced stain are measured typically over 2-6 weeks. In some
clinical studies the overall tooth color change was measured using techniques such
as Vita shade guides, colorimeters and image analysis of digital photographs of
teeth.

Toothpaste can be used as a vehicle for substances to improve the oral

health of individuals and populations. Therefore, it should be
recommended based on the best scientific evidence available, and not on
the opinion of authorities or specialists. Fluoride is the most important
therapeutic substance used in toothpastes, adding to the effect of
mechanical toothbrushing on dental caries control. The use of fluoride
toothpaste to reduce caries in children and adults is strongly based on
evidence, and is dependent on the concentration (minimum of 1000 ppm
F) and frequency of fluoride toothpaste use (2'/day or higher). The risk of
dental fluorosis due to toothpaste ingestion by children has been
overestimated, since there is no evidence that: 1) fluoride toothpaste use
should be postponed until the age of 3-4 or older, 2) low-fluoride
toothpaste avoids fluorosis and 3) fluorosis has a detrimental effect on
the quality of life of individuals exposed to fluoridated water and
toothpaste. Among other therapeutic substances used in toothpastes,
there is evidence that triclosan/copolymer reduce dental biofilm,
gingivitis, periodontitis, calculus and halitosis, and that toothpastes
containing stannous fluoride reduce biofilm and gingivitis.

57 | P a g e
Toothpastes are daily oral care products, the chemical composition of which is constantly
changing due to manufacturer’s competition. Toothpastes are recognized as the best source
of fl uoride, which most effectively protects both deciduous and permanent teeth from
caries [1]. However, fl uorides are not the only active ingredients in toothpastes. Also
important are the cleaning abilities of toothpaste provided by abrasives [2], the antibacterial
qualities, which, in turn, are provided by a variety of substances with different abilities to
inhibit the growth of germs in the oral cavity [3], as well as a number of ingredients with
specifi c purposes to solve specifi c problems. The wide selection of toothpastes and the
various ingredients make it diffi cult for patients to choose the proper toothpaste and
complicate the acquisition of dental products by professionals. Literature provides a number
of toothpaste reviews focused on specifi c conditions, but there had been found only two
reviews combining several kinds of dentifrices [4, 5], however no levels of evidence are
presented for recommendations given by authors, neither any classifi cation of all
toothpastes are proposed

58 | P a g e
 Future Scope

Market Overview
The toothpaste market was valued at USD 26.09 billion in 2018, and it is projected to reach
USD 36.98 billion by 2024, registering a CAGR of 6.1% during the forecast period.
Increasing dental problems among children and adults, due to poor eating habits, and the rise
in popularity for herbal oral care products are the factors primarily driving the toothpaste
market. Moreover, rising premiumization and consumers seeking more targeted solutions are
accelerating the growth of the market studied. The rise in consciousness of oral health has
helped vendors introduce oral hygiene product categories, like teeth-whitening products. One
of the popular products used for teeth whitening is whitening toothpaste. Manufacturers offer
toothpaste with teeth-whitening functionality that differs from ordinary toothpaste. However,
an increase in awareness among the consumers toward harsh chemicals used in toothpaste is
expected to hinder the market growth. This has increased the scope for key players in the
market to expand their presence and product portfolio with natural products. Standard
toothpaste is the major shareholder in the market. Geographically, Asia-Pacific accounts for a
major share in the market, mostly because of a strong customer base, coupled with increase in
household expenditure and changing lifestyles.

Deterring Oral Health among the Global Population

The rapidly changing lifestyle, improper diet, including sugar-rich diets, and the
increased consumption of alcohol and tobacco have made oral health one of the
major public health problems in almost every part of the world. The impact of oral
diseases on people’s everyday lives is subtle and pervasive, influencing food
habits, sleep, rest, social roles, and almost every phase of the day. Collectively,
oral diseases and disorders create substantial pain and suffering. Owing to this,
consumers across the world have started paying immense attention to maintaining
their oral health, which has led to an increase in the sales of toothpaste across the
world. Although dental caries has been declining in permanent teeth for many
children, since the 1960s, previous findings showed caries in primary teeth for
preschool children increasing from 24% to 28%, between 1988 and 2004.
Disparities in caries continue to persist for some race and ethnic groups in the
United States. Prevalence of dental sealants, applied to the tooth chewing surfaces
to help prevent caries, has also varied among socio-demographic groups. Some of
the factors that influence the choice of toothpaste from the customers’ point of
view are perceived performance, brand awareness, product attributes, taste, the

59 | P a g e
credibility of the company, availability of product information, and herbal
ingredients.

60 | P a g e
 Bibliography

Books and Readings

Marketing – Philip Kotlar

Consumer behaviour-Michel R Solomon.

Marketing Management, Philip Kotler, Pearson Education / PHI, 11th Ed., 2003.

Research Methodology, C. R. Kothari, New age international publishers second edition,

2007.

Websites

www.Google.com

www.Yahoo.com

www.gsk-ch.in

www.nestle.in/

http://trak.in/tags/business/2010/08/05/horlick-foodles-maggi-noodles/

en.wikipedia.org/wiki/Maggi

bestadreviews.blogspot.com

www.consumerpsychologist.com/

www.scribd.com

www.Thehindubusinessline.com

www.Economictimes.com

www.Google.com/articles on toothpaste market in India

www.fcbulkacomstrat.com

61 | P a g e
 Annexure
Questionnaire

1Do you consume ready to eat food like noodles and pasta?

2Which of the following food item would you consume?

3What is the frequency of consumption?

4 What is the brand that comes to your mind when we say the word noodles?

5 Are you aware of Horliks foodles

6 How do you aware of Horliks?

7 Would you like to try Horliks Foodles?

8 On a scale of 1 to 5 rate Maggi on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

9 on a scale of 1 to 5 rate Horliks foodles on the following parameters

62 | P a g e
(1 very good, 2good, 3medium, 4 bad, 5very bad)

10 According to you which age group prefer Maggi most?

11. According to you which age group prefer foodles most?

12 .Which of the following do you think healthier product?

13. Which feature out of the following instigates you to buy the product of your
choice?

14. Do you keep switching on products?

15. Demographic Information

Age:

Gender: M-------- F---------

Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children’s: -----------------------------

63 | P a g e