CONSUMER BEHAVIOUR MODEL OF COLGATE & PEPSODENT

CONSUMER BEHAVIOUR MODELOF PEPSODENT & COLGATE10/7/20131NDIM M3

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INTRODUCTIONIn 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of William Colgate and Company.

In 1857 ,William Colgate died and the company was reorganized as Colgate and company under the management of Samuel Colgate his son.

In 1873,the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.10/7/2013NDIM M33His company sold the first toothpaste in a tube, Colgate Ribbion Dental Cream, 1896.

In 1928,Pamolive- Peet bought the Colgate company to form a Colgate-Pamolive-Peet Company.

In 1953,PEETwas dropped from the title, leaving only "Colgate Pamolive Company, the current name.

Today Colgate Pamolive has its presence in more than 200 countries but they are publically listed only in U.S.A and India

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ADVERTISEMENT10/7/2013NDIM M35Video\Colgate - YouTube.mp4Factors Influencing Consumer BehaviorCULTURAL FACTORS

SOCIAL FACTORS

PERSONAL FACTORS

PSYCHOLOGICAL FACTORS

10/7/2013NDIM M36CULTURAL FACTORSOCIAL CLASS Social class is a concept based on distribution of status and the categories are usually ranked in a hierarchical order ranging from low to high status. Social status is an idea basis for segmenting the market. If the social class of people is low or much high then people do not buy Colgate toothpaste.

10/7/2013NDIM M37SOCIAL FACTORFAMILY- As observing the consumer behavior family plays an important role in influencing purchase decision.

ROLES & STATUS- Lowerand Upper class of peoplewill notbuy sameproduct as they have different roles and status in the society.

10/7/2013NDIM M38PERSONAL FACTORSAGE - Children and old do not want to use the same toothpaste as the older people looks for protecting their teeth and children looks for taste. So age has the influence on consumer behavior.

INCOME- Income puts a constraint on buying a particular product. Small sachets for LIG groups.

LIFE STYLE- Life Style is a person's Pattern of living, understanding these forces involves measuring consumers major AIO decisions.i.e.activities(Work,hobbies, shopping, support etc) interest (Food, fashion, family recreation) and opinions (about themselves, Business, Products)

10/7/2013NDIM M39PSYCHOLOGICAL FACTORSMOTIVATION- Companymusttakesomemotivatedactivities topersuadethecustomer.Ex-Advertising, give some free goodies etc.PERCEPTION- The process by which people select, Organize, and interpret information to form a meaningfulpictureoftheworld Thecompanymusttrytocreatethepositiveperception on the mind of individual.LEARNING- Perception filters athing and then take decision itshould betaken or not. Itmeansperception filter the knowledge and give the shape of learning.BELIEF & ATTITUDE- Belief is a descriptive thought that a person holds about something. So company always try to make belief through making reliability. Attitude, a Person's consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea

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10/7/2013NDIM M311INTRODUCTIONIndias largest Fast Moving Consumer Goods Company with 80 factories across India.

Hindustan Unilever Limited HUL,formerly Hindustan Liver Limited(renamed in late June 2007 as HUL)

The Anglo Dutch Company owns a majority stake in Hindustan Unilever.10/7/2013NDIM M312Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India.

Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs. Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums.10/7/2013NDIM M313ADVERTISEMENTVideo\Shah Rukh Khan @iamsrk at Pepsodent new ad -Don't blame your kids!- 2013 - YouTube.flv10/7/2013NDIM M314

CULTURAL FACTORS

SOCIAL CLASS-Social class is a concept based on distribution of status and the categories are usually ranked in a hierarchical order ranging from low to high status. Social status is an idea basis for segmenting the market.

10/7/2013NDIM M315SOCIAL FACTORREFERENCE GROUP- They are used in advertising to appeal to different market segments like celebrities experts etc. in this advertisement the reference group is Sharukh Khan.

FAMILY- consumer purchase decision is also influenced by his/her family member like in the advertisement father plays a influencing role.

OPINION LEADER- Apart from the family member consumer is influenced by friends neighbor etc similarly in this advertisement doctor plays an influencing role to purchase the product.10/7/2013NDIM M316PERSONAL FACTORSAGE - Differences in the age of consumer influence a purchase decision for e.g. a child looks for taste and color in the toothpaste while the parents looks for its ingredients.

INCOME- The income which a person earns is an extremely important influence on his consumption behavior. He may aspire to buy certain goods and services but his income may become a constraint.

LIFESTYLE- In the advertisement one child is getting influenced by the life style of the other.

10/7/2013NDIM M317PSYCHOLOGICAL FACTORSMOTIVATION- Companymusttakesomemotivatedactivities topersuadethecustomer.Ex-Advertising, give some free goodies etc.PERCEPTION- The process by which people select, organize, and interpret information to form a meaningfulpictureoftheworld Thecompanymusttrytocreatethepositiveperception on the mind of individual.LEARNING- Perception filters athing and then take decision itshould betaken or not. Itmeansperception filter the knowledge and give the shape of learning.BELIEF & ATTITUDE- Belief is a descriptive thought that a person holds about something. So company always try to make belief through making reliability. Attitude, a Person's consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea

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ADVERTISEMENT10/7/2013NDIM M319CONCLUSIONInvolving in such kind of advertisement war will only create a negative perception about the brand Pepsodent.

Consumer also do not get influence by such ads and hence it will not lead to any increase in sale of a product rather than just a negative brand image.10/7/2013NDIM M320RECOMMENDATIONColgate is the big brand and market share of Colgate is more as compared to Pepsodent. We think Colgate spend more money on promotion, advertisement. And therefore price of Colgate hence increased. Hence we recommended Colgate that Colgate has to reduce promotion expenditure.

Pepsodent is a brand but market share of Pepsodent very less than Colgate. Pepsodent has to introduce new variety in product and they have to introduce different quantities of product. Pepsodent has to increase their promotion strategy. They have to target rural consumersand have to promote product accordingly.

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