PREFACE

A comprehensive study of MARKET SHARE AND FACTORS AFFECTING CHOICE OF TOOTH PASTE & TOOTH POWDER is a supplement to the theoretical classroom knowledge. It helps to understand the subject more precisely and practical implications of various concepts.

This report tries to outline idea of professional world and helps in understanding the pragmatic aspect of management function. Own observations are significant towards the contribution in learning the subject...

My humble endeavor and motive in presenting the project report is to impart a balanced introduction and knowledge of MARKET SHARE AND FACTORS AFFECTING CHOICE OF
TOOTH PASTE & TOOTH POWDER, which is an important integral part of Tooth Paste

Industries.

It is hoped that this project will serve as supportive document to research worker as efforts has been tired to make this report an informative, stimulating, and self-explanatory.

Acknowledgement
Sometimes our light goes out But is blown in to flame by another human being. Each of us owes deepest thanks To those who have rekindled this light

I take this opportunity to thank all the magnanimous persons who rendered their full support to my work directly or indirectly. Firstly my thanks is due to Mrs. Veena Mathur (Executive Chairperson of my college, Rakshpal Bahadur Management Institute Bareilly) & Dr. Manish Sharma (Director of the college) Dr. Neeraj Saxena (Deputy Director of the college) without them dissertation could not been a reality. I would like to express my deep sense of gratitude to my guide Miss Anshika Asthana (Lecturer) For their invaluable guidance. Their willingness to address my problems and their unwavering faith in my abilities motivated me to put in our best efforts. My special thanks to Mr. Anupam Saxena(coordinator of Management Department) & for providing the facilities for the completion of the dissertation. Thanks are also my friends who assisted in preparing this dissertation. My deep appreciation goes to my parents for the encouragement and support. At least, I would also like to give thanks to the staff of library, Management Department R.B.M.I. Bareilly for their kind corporation.

Sunita

CONTENT

1. Introduction 2. Company profile 3. Objective 4. Research Methodology 5. Data analysis 6. Finding 7. Suggestion 8. Conclusion 9. Limitation 10.Annexure: Bibliography Questionnaire

Introduction

Executive summary
To understand the consumer mindset is one of the most critical things for any marketer. At the same time it is also most dynamic in nature. The prime objective of the research was to understand the consumer behavior in respect to toothpaste.The finding supports the research that Colgate is undisputable market leader, behind them is HUL as market challenger. The overall impact of advertisements and sales promotion is critical for any brands success and failure. The finding suggests that T.V commercials are prime source of influence on consumer. About 50% of consumers came in contact of more then one media. It also came out that there is good amount of satisfaction among consumers for their brand that leads towards brand loyalty. Discount and offers are the key element of a brand, which attracts a consumer towards it. In case of toothpaste the promotional offers by companies are mainly Extra Qty. (46%), Price offs (26%), Free gifts (11%). 17% of customers fell they are not getting any kind of offer. So companies need to come up with different new offers that can attract more and more customers. There is increasing trend of awareness for oral hygiene.

Oral Care
The oral care market can be segregated into toothpaste (60%), toothpowder (23%) and toothbrushes (17%). While 60% of toothpaste is sold on the family platform, around 35% is sold on cosmetic propositions. On the other hand, while toothpowder accounts for 52% of the market, red toothpowder accounts for 40% and black toothpowder accounts 8%. The penetration level of toothpaste/powder in urban areas is 3X that in the rural areas. Traditional materials such as neem and tobacco are popular for cleaning in the rural areas, Frequency of usage for toothpaste is only 1.5 times among other consumers, compared with 2 times in the developed world. Per capita consumption of toothpaste is only 70 gm compared with 300 gm in Europe and 150 gm in Thailand. Given the low per capita consumption and penetration rates, toothpaste demand is mainly being driven by the overall market growth of 8-10%. The rural segment is also driving toothpowder growth.

Indian Oral Care Market

Many people in India still clean their teeth with traditional products like Neem twigs, salt, ash, tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is a dismal 82gms. The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases. Less than 15% of the Indian toothpaste users brush twice a day. The toothpaste market grew at a CAGR of 7-8% between 1995-2000. But in 2001 the market grew by only 4%. Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market. Red and Black toothpowder still accounts for 35% of the toothpowder market. In toothpowders, Colgate and Dabur are the leading players sharing between them 75% of the market.

Penetration of toothpowder in the urban areas has been declining, as more and more consumers switch from powders to paste. Brand loyalty is quite high for toothpastes, but is extremely low for toothbrushes. 10 years ago the most expensive toothbrush was priced at Rs4. Today one can also buy a toothbrush priced at Rs999! The Rs. 2,200-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 .But then the big boys struck back, Colgate revitalized one of its existing brands, Cibaca as ColgateCibaca. It was to act as the price flanker brand in the portfolio. Ditto by HLL with Aim. At prices similar to the low priced challenger brands it took the battle right into their turf. The market dynamics changed. Within a year, Colgate Cibaca managed to garner whopping 50% of the market share in the discount segment and established Colgates supremacy once again. HLLs Aim however could not match the success and was subsequently withdrawn from the market. Today not only has Colgate's flagship brand grown, but Colgate Cibaca hasrisen to become the 4th largest paste brand in the country in volume terms after Colgate Dental Cream, Pepsodent and Close-Up (in fact Colgate Cibaca is now #2 in some geographies). It is interesting to note that Colgate Cibaca became big without any intensive communication support. It relied more on trade level activities and below the line strategies for its success. However the journey for brand Colgate Cibaca has just begun. Having come up this far, Colgate now aims to move Colgate Cibaca to the next level of growth. Hence the challenge is increase the share of Cibaca without cannibalizing mother brand Colgate.

Company profile

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 countrywide 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. Table 1.1: Toothpaste Penetration All India Penetration {Source :NRS 2006} 50% Urban 75% Rural 39%

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 .

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 Apr-Mar04 Apr-Mar05 Apr-Mar06

Urban+Rural 1897 1950 2009

Urban 1340 1386 1414

Rural 556 565 594

Table 2.2: Toothpaste market in volume (in tonnes) Period Apr-Mar04 Apr-Mar05 Apr-Mar06 Urban+Rural 77320 84501 86562 Urban 53791 59172 59922 Rural 23529 25329 26640

Source: AC Nielsen Market Information Digest India 2006

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

North Zone Apr-Mar06 % wise 486 24

East Zone 335 17

West Zone 543 27

South Zone 645 32

Table 2.4: Value - Town Wise (in Rs.crs.)

Total market value Town class Apr-Mar06 % wise

Metro 561 40

Class 1 386 27

Others 467 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 An 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: Price range :

The Low price point segment: Price range :

Volume ( 64,922 tons ) 50 gms Rs. 12.5-24 100 gms Rs. 25-30 150 gms Rs. 35-45

Volume ( 21,641 tons ) 50 gms. Rs. 8-10 100 gms Rs. 14-20 150 gms Rs. 25

Prominent brands: Prominent brands: Colgate Close-up Dabur Red Babool Ajanta ` Pepsodent Meswak Colgate Cibaca Anchor

Source: B&K Report 2006 Colgate Pamolive India

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 under performing. The other flanking strategy is to serve unfulfilled market needs. The smaller brands have also started delivering on the quality front. 4. Key Players The toothpaste segment is largely a two player industry, Colgate Palmolive & HLL accounting for 80% of the entire market Table 4.1: Company Share (Value) Colgate Palmolive HLL Dabur

Apr-Mar06

47.3%

30%

7.2%

Table 4.2: Company Share (Volume)

Colgate Palmolive

HLL

Dabur

Apr-Mar06

48.8%

27%

9.1%

Source: AC Nielsen Market Information Digest India 2006

4.1: 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. Colgate acquired Cibaca in 1994 from Ciba Geigy. The company today has two main brands in the toothpaste segment Colgate and Colgate Cibaca. 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 3 new innovative variants during the course of FY06. 1. Colgate Active Salt Which capitalises on the traditional use of salt for oral care 2. Colgate Advanced Whitening Which contains microcrystals that polish ones teeth, restores and maintains their whiteness. 3. Colgate MaxFresh Gel An innovative gel-based toothpaste with cooling crystals

Current Brand portfolio: Toothpaste

1. Colgate Dental Cream 2. Colgate Total 3. Colgate Herbal 4. Colgate Kids Toothpaste 5. Colgate Advanced Whitening 6. Colgate Active Salt 7. Colgate Fresh Energy Gel 8. Colgate Max Fresh 9. Colgate Cibaca

Strong distribution
The company has backed its products with a very strong distribution network. The company's distribution network covers 940 direct accounts and 3.8 million retail outlets. Colgate is the 2 nd most widely distributed product in the country. The company is tying up with initiatives like E-Choupal and Disha to further strengthen its distribution network.

Tremendous brand equity

Over the years, Colgate has been able to develop strong brand equity. It has been voted the The Most Trusted Brand in the country for 3 consecutive years in the AC Nielsen Brand Equity Survey.

4.2: 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.

Table 4.2: Current Brand portfolio: HLL

Close Up Pepsodent

Close-up Active Gel (red) with Vitamin Fluoride System Close-up Lemon Mint Close-up Milk Calcium

Pepsodent Gumcare Pepsodent 2 in 1 Pepsodent Complete 10 Pepsodent Whitening

4.3: 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).

Top 5 Brands
5.1 Colgate Dental Cream
Colgate Dental Cream is the most widely distributed oral care brand in India has a market share of 34% in value terms. It was revitalized in 2003 with an improved germ fighting formulation. Its anti-bacterial ingredient has been boosted to offer superior germ fighting efficacy. These improvements come in addition to its calcium and minerals formula that helps repair weak spots on teeth and locks in additional calcium and essential minerals to make teeth stronger than ever before.

5.2 Close-Up Active Gel

Launched in 1975, Close-up was the first gel toothpaste in India. It has since then undergone periodic re launches. In 2004, Close-up was re launched with a bang. And this time it was packed with the power of Vitamin Fluoride System a powerful mix of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger, whiter teeth. Close-up is now the first Gel toothpaste with Fluoride in Indian Market. Current market share stands at 14%.

5.3 Pepsodent Complete 10

Pepsodent, the second offering from HLL with a market share of 11% was launched in 1993 and was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. Pepsodent has always been regarded as a mother's oral health care ally and has been associated with inculcating good dental habits amongst kids. Currently the brand is championing night brushing habits amongst kids

through its latest TV commercial. The thrust is on making brushing at night a fun activity for kids. The brand plans to continue with its initiatives to promote healthy brushing habits.

5.4 Colgate Cibaca Top

Colgate Cibaca Top is currently the fourth largest brand with 5.7% market share.

5.5 Colgate Fresh Energy Gel

The Company launched new Colgate Gel Toothpaste in 1991. Colgate Fresh energy contains icy cool gel, which leads to mouth coolness, and minerals, which make teeth stronger. It has a market share of 3%. The Colgate Fresh Energy Gel advertising campaign launched in 2001 used an innovative catch phrase Talk to Me and used television, outdoor and online media to connect with the youth. The company continued to build on its highly successful campaign and re-launched it with a new flavour in a transparent tube, a first for the category in India.

Other brands
5.6 Anchor
Anchor belongs to Anchor Health and Beauty Care (AHBC), a part of the Anchor Group (makers of Anchor Electrical switches). Anchor forayed into the FMCG market with the launch of Anchor White Toothpaste, which was positioned as India's first British Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997. In fact this proposition had so strong a consumer-pull that by 2002 it was the number three toothpaste brand. In 2006, Anchor decided to directly compete with Colgate Dental Cream, thereby differentiating itself from the LPP segment. It significantly upgraded its product bundle, both

in terms of superior formulation (almost parity to CDC) claims and by the development of an All-round Protection sub brand. This is currently endorsed by Dravid with strong TV support.

5.7 Babool
Babool originally a Balsara product was acquired by Dabur last year. Babool straddles the economy and herbal platforms. Its natural toothpaste contains ayurvedic and medicinal benefits of the Babul tree, 'Acacia Arabica'. While Babool still pursues an aggressive promo strategy on all its SKUs, it has also upgraded its bundle ever since the acquisition, by putting the Dabur brand on its pack and signing up Vivek Oberoi as a brand ambassador.

5.8 Ajanta
Ajanta toothpaste is an offering from the personal care division of Ajanta Clock Manufacturing Company. With aggressive pricing as its USP, the company decided to do a Nirma in the toothpaste Industry. Originally priced at one-third of a Colgate or a Pepsodent, Ajanta rewrote the rules of the game for oral care products. It targeted its offering in the low price, mass-market segment.

5.9 Colgate Cibaca Top

In the year 2000, Colgate revitalized Cibaca which was relaunched nationally in the economy segment as 'All New Colgate-Cibaca Top. With the launch, Colgate entered a new price band - the economy segment.

Salient features of Cibaca Toothpaste

First economy toothpaste from Colgate Initiative to maintain leadership of the growing low price segment and capitalise

on equity of Colgate. Revitalized formulation for strong teeth and fresh breath Features Colgate logo on the pack and tube

5.10 Brand wise Market Share

Table 5.10.1: Brand Share (Value)

Brand Share%

Colgate Pepsodent

Close-up

Cibaca Top Colgate Fresh

Apr-Mar06

33.8 %

16.0%

11.0%

5.7 %

3.3 %

Table 5.10.2: Brand Share (Volume)

Brand Share%

Colgate

Pepsodent

Close-up Cibaca Top

Anchor

Apr-Mar06

32.0 % 15.0%

8.5%

10.3 %

4.5 %

Source: AC Nielsen Market Information Digest India 2006

Cibaca's steady climb in market share

Despite relaunches by Anchor & Babool, Cibaca continues to strengthen its dominance of the Low price point segment in 2006 Source: AC Nielsen Volume Share.

Current Communication

Brand

Tagline Bhartiya dentists ki number."

Proposition

Colgate

Colgate is the expert ( the last one pasand word) on dental care and provides you with 12 hour protection safeguarding you against 12 common tooth problems With Pepsodent on guard parents no longer have to worry because brushing with Pepsodent at night ensures protection of their children's teeth the whole night through

Pepsodent

Pepsodent, raat bhar . dishum dishum ."

Close-Up

"Vitamin floride system wala nayaClose-Up." Vitamin fluoride has three fold benefits- whitens yellow teeth, freshens your breath and makes your teeth strong "Meswak toothpaste. Formula sirf Bharat ke paas hai." Proud to use an Indian brand Babool "Subah Babool ki to din tumhara ." natural and sweet peppermint taste adds zest to your life and enables you to face life head-on Advanced formula that protects one teeth from germs and keeps them strong

Meswak

Babool's

Anchor Naye zamaane ki nayi suraksha

SWOT analysis of Market Leader Colgate Pamolive India Ltd.

Colgate: A SWOT analysis

A name synonymous with the Indian oral care industry, Colgate, is the undisputed market leader in toothpastes with over 45% share in the Rs 21 bn (90,000 TPA) oral care segment. The company's parent has a presence in over 200 countries worldwide. In India, Colgate ranks No.1 in top of the mind recall in many consumer surveys.

Background
Promoted by Colgate-Palmolive USA, the parent operates through its 51% subsidiary and has a presence in India since last 50 years. The company's flagship product, Colgate Dental Cream is the largest selling toothpaste in India, with an estimated market share of over 30%. The company acquired Hindustan Ciba Geigy (Cibaca) in the year 1994, which helped it increase its market share. The company also has a significant marketshare in the toothbrush category. This and shaving brushes accounted for 10% ofits FY04 revenues. The toothpaste segment can be divided into two broad categories: White's, which accounts for a dominant share of the Indian oral care market. Gels are estimated to be only about 15% plus of the market. Colgate is considerably backward integrated. It has captive manufacturing facilities for flavor and other ingredients, which yield significant cost savings. It has also set up a world-class facility for manufacture of Di-calcium Phosphate, a key ingredient intoothpaste.

The journey over the years?

(Rs m) FY00 FY01 Sales 10,896 11,769 Other Income 228.9 295 Expenditure 10,231 10,801 EBDIT 665 968 OPM % 6.1% 8.2% Net profit after tax(loss) 518 625 FY02 11,609 310 10,544 1,065 9.2% 698 FY03 9,474 358 8,170 1,304 13.8% 887 FY04 CAGR FY05 9,392 -4% 7,242 299 7% 217 7,928 -6% 5,995 1,464 22% 1,247 15.6% ~ 17.2% 1,080 20% 809

From the above table, we infer that although top line has shown a de growth of 4% on a compounded basis over the 5 year period, bottom line has grown at a good 20% rate in the same period. The company has been able to curtail its expenditure, which went down by 6% during the period under consideration. Operating margins have been increasing and in 9mFY05 touched a peak of 17%. The key reason for a significant improvement in operating margins over the years is the reduction of advertising expenditure (see chart). The company has lost significant market share in toothpaste that had peaked at 65% in FY95, as compared to 45% plus today. Most of this has been lost to HLL and smaller players like Dabur and Anchor.

The potential
As per our estimates, 12.2% of the total world population lives in rural India. Currently, only a small portion (about 15%-20%) of region has been tapped. Although, expansion in rural areas requires huge investments, it is a market that cannot be overlooked and has huge potential. To put things in perspective, the per capita consumption of toothpaste in India is only 82 gms, as compared to 262 gms for Thailand, 376 gms for Mexico and 518 gms for USA (Source: Colgate, Equitymaster Research). In India, urban per capita consumption is 153 gms whereas rural consumption is a mere 38 gms.

Competition
The company has been facing immense competition from organised as well as unorganised players. HLL is the closet rival of Colgate with a share of 34% with its Pepsodent and Closeup (gel where it has a lion's share) brands. The latest entrant in the organised sector is LG that has ventured into the FMCG market and launched premium consumer products across 8 categories including toothpastes, shampoos, soaps, detergents, etc. Also, there has been

speculation from sometime now that P&G (its worldwide rival) would debut its billiondollar-plus toothpaste brand Crest in India. This could intensify competition in the segment.

Concerns
The Company has high reliance on a single category (Oral Care), which accounts for 94% of its sales and 98% of its profits (FY04). A large part of the company's product folio consists of premium products, which do not have a large potential market in India. This is evident as new launches by the parent in India have been much lower than other markets. In the last couple of years, the company's topline has stopped growing and in order to achieve growth, Colgate cut prices of its products by an average 17% in April 2003 (Source: Company Annual Report). The company has been able to increase its margins by continuously cutting advertising expenses, which cannot go below a certain point, owing to its single product dependence.

Consumer Products
Oral Care - Toothpaste
The two market leaders in the dental care products are Colgate and Hindustan Lever. Colgate leads with a 54% share of the market. It is a climb down from 75% level enjoyed by it a decade ago. Hindustan Lever has been able to introduce new products. Colgate launched its Colgate Gel in 1989 and has a market share of 10%. Colgate Palmolives net profit rose marginally by 3% in the first half of 1997-98 over that of the corresponding period of the preceding year. Net sales advanced by 11% expanding from Rs 4583 million to Rs 5081 mn (against a total of Rs 9045 mn in 1996-97). The increases were not so increasing as the company is accustomed to a much better performance. It was also so because these results did not reflect higher spending on promotion which impinged on profits. Hindustan levers

Close-up is trying hard to penetrate the market deeper. Close-up is also in the market for a long time full two decades and has captured a 13% share of market. HUL had launched Pepsodent in the same range but colgate feels secure. Colgate produces also Pamolive range of toilet soaps and intends to go into the product in bigway. It has done well with its Optima and Halo shampoo brands and has entered the household surface care products segments with the dishpaste Axion. The company is planning also to launch new products mainly in toothpaste segmentand this will give it volume growth. In 1996 , the company launched Colgate Fresh strip toothpaste. It plans to double its turn over by the year 2000. Balsara Hygiene Products with its Babool toothpaste launched in 1987-88 was a forerunner in Indainising the product-base with herbal inputs. By a concentrated media effort at highlighting the ethnic virtues of Babool, the company has carved a share of tenth of the market. During 1992-93, the company launched another toothpaste brand, Promise exclusively targeted at kids. This enabled the company to garner a significant share in the market dominated by MNCsColgate and Hindustan Unilever. Now Balsara is part of Dabur India Ltd., Daburs are also trying their best to promote the brand. Hindustan Ciba Geigy had created a sir in the toothpaste market in 1960s, 1970s and good part of the 1980s with its Binaca toothpastes. The brand name was taken off and transferred to Reckitt & Colman. With abnormal price rise experienced by th company for raw materials, the toothpaste business did not remain profitable. The company introduced Cibaca Gel in 1993-94 but not much activity is noticeable as far as toothpaste business goes. The company has, nevertheless, carved a niche for itself in the toot brushes market having garnered a share of 31% by volume, ahead of 30% share by Colgate pamolive. Jordans Regular and Magic Wonder Tip have in a short span of time captured a significant chunk of

tooth brushes market (17% by value and 20% by volume). Among the Indian brands, Promise of Balsara has also remain active in the nearly Rs 900 market for tooth brushes.

Demand: Past & Future

Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2006-07 Rs bn 5.80 6.40 7.00 6.90 9.10 10.70 11.50 13.00 15.00 17.00 19.50 22.00 40.00

Research design

Research design is purely and simply the framework plans for study that guides the collection and analysis of data. There are three major types of research design, i.e., exploratory research design, descriptive research design and experimental research design. This study is basically exploratory analysis type.

Exploratory research
The idea gets deeper insight into sales promotion scenario in toilet soap market and to get perceptions of consumers. In order to address above-mentioned objectives (I) study of secondary sources was carried out from NCAER (II) structured questionnaire was designed to seek consumer responses.

Descriptive research
Analyzed the data, which was collected.

Objective

Objective of the study

To assess current consumer sales promotion schemes in toothpaste market. To study consumer perceptions regarding various schemes in this category and responses toward them. To find brand loyalty among Consumers. To access market share of different brand.

Research Methodology

Research Methodology
There are different methodologies in a research study. A popular research methodology has to be adopted for a study. Target population The target population for the study of Promotional aspects of toothpaste & its effect on Consumer buying behavior is - Consumers, from different economical & demographical background, who are purchasing & using toilet soaps

Sampling
Sample unit Consumers using Toothpaste Sample plan The selection of the samples is done following the two sampling techniques, which are: - Simple random sampling - Convenience sampling Sample Location: Bareilly Sample size: - Customers-100 (Both male & female) Collection of data: -The data was collected from primary & secondary sources. A survey was conducted through structured questionnaire. The study was done among consumers who are using toothpaste and conducted personal interview for collecting the required information. Secondary data was collected from Bareilly

Data Analysis

Data Analysis
Demographics of Sample
Gender

Chart Title

40% 60%

Male Female

In total sample size of 100, there was 60 male (60%) and 40 female (40%). So sample has a balanced contribution of male and female respondents.

Age

19%

22% 0-20

11%

20-30 30-40 40-80

48%

Age of Sample

Due to time and manpower constraint the sample collection was done at college campus and surrounding area.

Education Background

2% 24% 25% 10th 12th graduation PG & Avove

49%

Education Background

The most of the respondents are quite educated as pie chart is showing 49% are Graduate, 24% are Post Graduate or above, again 25% are Intermediate and only 2% are 10th pass.

Occupation

10% 25%

28% Service Business Student 37% Other

Occupation As already mentioned that sample collection was mainly one at college campus so most of the respondents 87% are students, further breakup is visible in Pie chart.

Mode of Cleaning the Tooth

5% 15% Tooth paste Tooth powder Datun/stick 20% 60% Others

Mode of Cleaning the Tooth The finding says about 60% population in urban areas use toothpaste as mode of clean the teeth in contrast to rural areas where things are quite different. There still people rely on several other mediums. Here pie chart is showing that 20% people are using tooth powder, 15% sticks and 5% other medium such as tobacco.

Brands People Use

5% 10% 8%

15% colgate 50% pepsodent close-up neem 12% vicco Dabur

Brand Preference

Brand wise market is quite fragmented, the reasons are first there good amount of small and big player in the market at the same time presence of hell number brands of from a single company. But it is clear that Colgate is undisputed leader but HUL is not far behind with its two major brands Close-up & Pepsodent. Colgate includes all its sub brands like Gel, Total & other variants.

Frequency of Cleaning Teeth

10%

Once 32% 58% twice thrice

Frequency of Cleaning With the awareness campaign and peoples health conscious generation the importance of oral hygiene is increasing among the population that is visible with about 32% brushes their tooth twice daily, 58% once and 10% thrice.

Place to Shop Toothpaste

30% 12% 58% Neighbourhood Shop Medical Store Super Store

Place to Shop Toothpaste

58 of people still rely to their local kirana shops for toothpaste, 30% purchase from superstore and 12% from medical store. The 30% is showing growing craze of organized retailing in India.

Average Consumption of Toothpaste

10% 30% 50-100 gm 100-200 gm 60% More Than 200

Monthly Consumption

India has a very less per capita toothpaste consumption, the research is supporting that also as in 30% families the approximate consumption is 100-200 gms, in 10% families more then 200 gms, and in 30% families even less then 100 gms.

Duration for Using One Brand

22% 40% 6 Month 1 Year 2 Year 22% 16% More than 2 Year

Duration of Using

Major chunk of population 44% is associated with associated with same brand from more then two years. 16% from about two years, 22% each from 6 months and 1 year. It shows that a good amount of population is brand loyal in terms of toothpaste.

Source of Information

4% 7% 9% 7%

2% 6%

T.V. Print Ads Hordings 60% Store Display Road Shows Sales man

5%

Friends/Family Radio

Sorce of Information How a consumer came to know about a particular brand it is very much important for marketers, because with the help of this they can reach to their market in better way. It is clear from the finding the T.V Advertisements are the major source of information for customers; rest contributes marginally to the brand awareness. About 60% of consumers came in contact of more then one media.

Attributes to opt a Brand

4% 27%

3% 9% 6% 3%

Packing price taste Advertisment

21%

27%

Herbal Freshness Whiteing Fight gainst tooth decay

Attributes to Choose a Brand

When it comes to why a customer opts for a brand, which attributes attract him most? The opinion is divided into lot of factors, lot of customer prefer for more then one attribute. But three core attribute on which the whole toothpaste market is standing are Whitening-21% Freshness-27% Fight against tooth decay-27% Interestingly 9% customers feel taste also as a choice criterion.

Satisfaction Level for Brand

1% 1% 13% 19% High Satisfied Least 66% Unsatisfied Moderate Satisfied

Satisfaction level The prime aspect that will decide brand loyalty is the satisfaction level of a customer. Here 66% population is satisfied with their existing brand. The numbers of unsatisfied customers are marginally less 1%.

Discounts & Offers with Brand

17%

26% Price Off 11% Free Gift Extra Qty.

46%

No Offers

Discount & Offers

Discount and offers are the key element of a brand, which attracts a consumer towards it. In case of toothpaste the promotional offers by companies are mainly Extra Qty. (46%), Price offs (26%), Free gifts (11%). 17% of customers fell they are not getting any kind of offer.

Recommendation

15%

Yes No 85%

Recommendation

Word of mouth promotion has a deciding impact on consumers. Here finding shows that companies are successful in this as 85% of consumer recommend the brand to others.

Continuation With same Brand

26% Yes No 72% Cant Say

2%

Brand loyalty

The consumers thinking regarding will they will be continue with the same brand in near future the response is in favor of companies as 72% people are ready to continue with their existing brand. 26% people are susceptible to brand switching as they are not convinced. Only 2% are not comfortable with the brand they are using.

FINDINGS

FINDINGS
Basically as per the research it is found that the major section of the youth population uses one or the other toothpaste in which freshness, protection against tooth decay and whitening is major attributes for him. Mid quality toothpaste has major market share in urban areas. Some medicinal toothpaste. The consumers are satisfied with the quality & other major aspects of the respective commodity, some small benefits or schemes are not going to distract them with their Brand loyalty.

SUGGESSTION

SUGGESSTION
The response was not too much positive. Most of the people felt every thing is O.K or nothing. Few suggestions I got are More offers More freshness Herbal ingredients Good packaging etc. The emerging youth population is an opportunity for marketers. As India has one of the least per capita Toothpaste consumption companies has to work on this. The all players if come under one umbrella and promote the functional benefits of toothpaste to consumers as well as that we should clean our tooth at least twice. Companies should analyze their strategy, as 17% of population is not aware about the promotion and offers. They should also work upon their promotional offers, as lots of customers were not satisfied with the additional benefits.

Conclusion

Conclusion
The over all conclusion derived from this study is that the toothpaste industry enjoys a very good & strong position in Indian market, as such toothpaste is one of most demanded & necessary goods of day to day use without which urban Indians will find it really difficult to clean their tooth. Rural people can survive without it, but when comes the oral hygiene use of toothpaste is advisable by doctors also. Every section of the society whether it is middle, upper middle or higher segment uses toothpaste especially in urban areas. Like Emoform, Senequel-F etc are also attracting customers. At the same time herbal paste as well as brand sold through direct marketing like RCM, Glister etc also penetrating the market. The major aspect of consumer buying behavior in terms of promotional benefits which came into being after this research is that if the consumers are satisfied with the quality & other major aspects of the respective commodity, some small benefits or schemes are not going to distract them with their Brand loyalty. As such in this study it is found that although consumers are not satisfied & not having proper knowledge about various promotional schemes of their toothpaste, but still they are satisfied, want to continue & recommend the same brand to others too. This over all study reveals the fact that it is the functionality in terms of efficiency & effectiveness of the product which overall affects the consumer purchase decision-making brand promotion, advertisements celebrity endorsement only can not attract a consumer. So the marketer should use more effective tools to communicate the same to its target customers apart from attracting for additional benefits & offers.

Limitation

Limitation People were hesitating to disclose on their financial ground. People were not aware for different brands of paste. People have not full knowledge of the market. The size of consumer community is very big. It took a large time to meet the individuals .

Annexure

Bibliography
Website
www.Google.com www.colgatepamolive.com www.pepsodent.com www.daburindia.co.in www.ncaer.in www.indomainmba.com Consumer products: Report, NCAER 2006.

Questionnaire
Name: Age: Education Gender: Profession:

Que.1 What you use to clean your teeth? Toothpaste Toothpowder Datun/Stick Others

Que.2 Which Brand do you use? Colgate DaburRed Close-up Neem Pepsodent Vicco Meswak Glister

Que.3 How many time you clean your teeth in a day? Once Twice Thrice

Que.4 From where you purchase paste/powder? Neighbourhood Shop Medical Store Super Store

Que.5 What size of product do you use? 50-100 100-200 More then 200

Que.6 How long you are using a particular brand? 6 months 1 year 2 years More then 2yrs

Que.7 Which of the following sources induce you to use particular brand? T.V Ads Display Print Ads Road-Shows Hoardings Salesman Store Friends/Family

Que.8 Which of the following attribute to use particular brand you use? Packaging Whitening Price Fight againstTooth Decay Herbal Ingredients Taste Freshness Advertisment

Que.9 What is the level of satisfaction in using particular brand? Highly satisfied Satisfied Least Unsatisfied Moderate

Que.10 What attract you in purchasing a particular brand? Price off Free Gifts Extra Qty. No offers

Que.11 Will you like to recommend your particular brand to others? Yes No