Project Report
A STUDY ON MARKETING STRATEGIES OF COLGATE PALMOLIVE LTD.
Vels University
Submitted to:
MS. VANMATI
Faculty of Vels University
MBA Department
Submitted by:
VINIT KUMAR
MBA II :-08301164
Contents
Introduction 1
Objective 2
Methodology 3
Company Profile 4
Company Strategy 6
Marketing Mix 15
SWOT Analysis 26
Survey Findings 28
Retailers Survey 34
Conclusion 37
Suggestions 39
Consumer Questionnaire
Retailer Questionnaire
Bibliography
INTRODUCTION
As early as 3000 B.C. Egyptians used toothbrushes fashioned from twigs. In
the 20th century a major design advance occurred in 1938 with the launch of
Dr. West’s Miracle Tuft toothbrush, the first nylon bristle brush. Until the late
1970’s toothbrushes were widely viewed by consumer as a commodity and
were primarily purchases on price. The involvement remained low and the
companies also treated their toothbrushes as an extension, to get their
consumers to use their toothpastes. Typically in the Indian market the
percentage of toothbrush users has slowly inched upwards. As it has always
been associated by the non-users as a non-essential item more so because
of their fierce loyalty to the margosa twigg(Datun) and the index finger. The
market of late has been the entry of several foreign players and the marketing
game has assumed a totally new dimension. Companies are trying to shift to
“PULL” strategy of long term returns and the inclination of consumers to shell
out a few rupees extra to ensure a more wholesome care of their teeth and
gum. This has resulted in rapid growth in value terms. Added to this is the
initiative of the companies to focus on expanding the market by bringing the
over 65% non-users in their consumer fold. With such vast potential to be
exploited, the entry of several new players with their innovative ideas and
experience in similar developing markets, the industry is likely to see a lot of
action in the immediate future.
OBJECTIVE
The above of the project was manifold.
First of all a general idea of the toothbrush industry - its competitiveness,
volume and potential was to be adjudged.
Next was to go on to analysis of the attitudes of a typical consumer and
his/her idea/perception of this low involvement category product.
This was to be followed up with the study of Colgate Plus toothbrush, as a
typical product of the company, Colgate Palmolive and its standing in the
market vis-à-vis other players, especially new entrants.
To amalgamate all above to conclude as to what was to be the
future/probable course of the toothbrush industry and Colgate Plus tooth
brush in particular.
METHODOLOGY
1. To get an idea of the industry, I went through all the relevant literature we
could lay my hands upon. This included A & M’s, Business Today’s.
2. For consumer attitudes, I prepared a questionnaire that was circulated
among 70 odd people, well spread out across the whole of Delhi. The
same was done with the retailers to try and see the conformity in findings
in some specific attributes.
3. The questionnaire was to structured that an idea of brand image and
relative studying of various brand could also be elicited.
4. The findings were synthesized, and keeping in mind the new entrants,
their potential and the potential of the market, projections were made and
conclusions were drawn.
COMPANY PROFILE
A household name for paste and tooth powder, Colgate Palmolive (India) was
established on 23rd September 1937 as a private limited company in
Bombay, as a wholly owned subsidiary of Colgate Palmolive Co. Of USA
Initially it started with trading activity and later set up manufacturing
operations in 1949 at Sewry (Bombay). The company became a public limited
company on 5th October 1978. In 1990-91 the company commissioned
facilities for fatty acid and toilet soap at Waluj (Aurangabad). The plants at
Sewri and Waluj manufacture oral care products like dental creams, tooth
powder tooth brushes and personal care products like toilet soaps, shampoo,
which are marketed under various brand names such as Colgate, Palmolive,
Halo, Protex and Charmis. The company’s distribution network covers 1700
stockists and 4,50,000 retailers with ware house facilities in Mumbai,
Calcutta, Delhi, Hyderabad, Lucknow and Madras ( and a new addition at
Faridabad). The company has its own Research and development facilities
and had also been getting the R&D benefits of the parent company. It has a
well established quality Control Department at Sewri & Waluj. For 40 years,
since inception till 1978, Colgate was carrying on its business in India with a
paid up capital of Rs. 1.5 lakh made up of 1500 equity shares of Rs. 100
each, when it was increases to Rs. 1.96 crore, by a bonus issue in the ratio of
130:1. To comply with the FERA regulations, Colgate Palmolive, USA diluted
its share holding to 40% in the Indian company, through an offer of sale to the
Indian public in October 1978. Following FERA relaxation, the foreign
shareholding was increased from 40% to 51% in September 1993.
Colgate Palmolive (CP) is a global leader in household and personal care
products. In 1991, it had sales of $ 6.06 billion and a gross profit of $ 2.76
billion, its world wide R&D expenditures were $ 114 million and media
advertising expenditure totalled $ 428 million.
Colgate Palmolive’s five year plan for 1991 to 1995 emphasized new product
launches and entry into new Geographic markets, along with improved
efficiencies in manufacturing and distribution and a continuing focus on core
consumer products. In 1921 $ 243 million was spend to upgrade 25 of
Colgate Palmolive’s 91 manufacturing plants, 275 new products were
introduced world-wide; several strategic acquisitions (e.g. of the Mennen
men’s toiletries company) were completed and manufacturing began in China
and Eastern Europe. Since 1985, gross margins had climbed from 39% to
45% while annual volume growth since 1986 had averaged 5% International
sales Colgate Palmolive’s strong unit, accounted for 64% of sales and 6% of
profits in 1991.
COMPANY STRATEGY - ORAL CARE AND
TOOTHBRUSH INDUSTRY IN PARTICULAR
“Volume is the key” says Richard Usuquen, VP Marketing Colgate Palmolive
(India) Ltd. To expand the market in all ranges, CP has an ongoing RURAL
VAN PROGRAMME and SCHOOL PROGRAMME covering 14 million
villages and 80 million consumers, teaching people brush or even clean their
teeth with the fingers. CP’s action centring around finely balancing the urban
market - (59.5%) and rural markets (68% share) . So while the company has
introduced such premium packaging as stand up toothpaste tubes with flip-up
caps in the urban market, it is also selling sachets of Colgate dental cream at
low prices.
This focus on volumes is also evident in the toothbrush market, estimated at
400 million units per annum. C-P is the toothbrush leader in India with an
approximately 60% market share, but since ‘95 it is facing challenges from
HLL which has already garnered 8% market share.
Usuquen says “The penetration of brushes in India is very low, so more than
market share, it is important to grow the market”. To that end CP has actively
introduced line extensions across all three segments - economy, middle and
premium since last year. At the entry level it has adopted the sleeve
packaging, with no individual cases. The focus is on driving volumes through
the price-sensitive segment. The mid-price market has been the introduction
of the HIGH KLEEN range, while the upper end has seen the zig - zag and
Double - Action launches.
For the economy segment, a price focus has been adopted. On offer are five
toothbrushes each from the CP and Cibacca stables to rural consumers, at
prices low enough to generate trial. For the urban market, the focus is on
maintaining novelty value by introducing new variants and added features.
“Whatever is new, people buy. So the idea is to accelerate choice through a
variety of product features”.
CP’s perception of the Indian market is of one where people welcome change
but clamour for high end products at cheaply prices. The answer to this
conundrum as per the company’s strategy is to
“..... Optimise cost and formulation and the proceses and come up with
efficient manufacturing to answer this “. CP’s strategy is to pour in a lot of
investment in the Indian market in terms of capital expenditure and
organizational support and each out to the deepest interiors.
SEGMENTATION
The toothbrush industry can be regarded as a component of the Oral Care
industry which broadly comprises tooth paste, mouth wash and floss, besides
tooth brushes and a large unorganized naturally available cleaning mediums
viz. Index Finger, Neem twigs etc. But Colgate Plus need not to bothered
about latter as it operates in a different category.
The tooth brush industry can be segmented in the basis of social class &
income group (Demographic Segmentation ), price (Product segmentation),
benefit (behavioural segmentation), the last being the most important.
DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE
Segment Category Brands Characteristic
Low income rural
class
Economy Promise, Cibaca Looking for low price
Middle income
group semi urban
consumer
Standard Colgate Classic
Pepsodent popular
Value for money
Upper middle
income urban
consumers
Premium Colgate Plus,
Classic, Ajay, Royal
High quality cleaning
efficiency
Upper class urban
sophisticate
Super
Premium
Oral B, Aquafresh,
Jordan, Close Up
Unique, attribute,
dentists
recommendation
The last two categories merge, since Colgate Plus is intelligently positioned in
between the two to maintain a high quality in age as well as encourage
switches from standard category to up grade
PSYCHOGRAPHICS
Variations in
Product
Jazzy looks,
Transparent
handle Flashy
colours Superior
Packing
Simpleton looks,
Modest
packaging, Solid
colours
Mix of the two :
transparent
handle but not
very flash
packaging.
Urban
sophisticate
Chooses with
care, sports it as
a status symbol
while interacting
in group travels
Abhors Abhors
Semi urban Non
Chalant User
Aspires for it, but
finds it difficult to
afford; tries it
seldom
Very often goes
for this as it
serves is purpose
without much
expenditure
Some times this
Rural User Does not have
access/can’t think
of
Is the only option
Datun
Generally can’t
afford this either
Tooth brushes
brands
Oral B, Jordan,
Aqua fresh etc.
Promise, Forhans
etc.
Cibaca, Ajanta,
Ajay etc.
The overall response reflects a gradual move in the direction of the premium
to super premium segment as it is once in three months/four months
purchase, thus being successful in luring all customers (except the rural user
who are a small minority of the Market) to try out the ones that are places at a
higher price on account of their trendy looks and overall appeal of style and
splendor.
BENEFIT SEGMENTATION
User
Characteristic
Invalid oral health
consumer
Therapeutic
Brushers
Involved oral
health Consumer
Cosmetic
Brushers
Uninvolved Oral
Health Consumer
Non-chalant
Brushers
Product
Differentiater
Search
functionally
superior product
with many
attributes.
Search for
product that
effectively
delivers cosmetic
benefits
Views products
as same Lack of
interest
Advertising
appeal
Put off by
hardsell Prefers
dentist
recommendation
or informed
opinion
Influenced by
promotion,
hammering on a
USP
Relatively
unaware of ads
can at most be
influenced by
price offs,
package deals
Buying behaviour Buys for himself,
will go to a
specialised store
Buys and uses
for himself. Will
not go beyond a
large shop,
Buys for family.,
will pick up any
brand available.
supermarket
Regularity of
usage
Brushes after
every meal
Brushes mostly
once, sometimes
twice
At most once a
day
Brand loyalty High Low Nil
Price (Willing to
pay)
>20 15-20 <12/0q
Major Brands Jordan, Oral - b
Indicator
Colgate Plus,
Pepsodent
Perfect
Colgate, Classic,
Cibaca, promise
TARGETING
Colgate plus has been intelligently targeted at the upper middle class,
towards the lower end of Premium / super Premium category to not only take
advantage of growing consumer affordability but also to provide a pull factor
to family user in standard/popular category to upgrade to higher quality
Colgate Plus.
An implicit assumption about the large segment is that it is decently educated,
hygienic conscious and keenly discerning about the cleaning efficiency of the
toothbrush used. They primarily live in metros, urban areas, big towns, and
have a good standard of living.
At the time of its launch in 1987, Colgate Plus was the first indigenously
manufactured toothbrush in premium segment. Company claims, it built this
segment single handily and obviously has the first mover advantage
exemplified by its No.1 position despite the onslaught of variety of premium
brands from abroad.
Colgate believed that with rising income & increasing westernisation, it could
upgrade the toothbrush market and consumer could be willing to pay a few
rupees more for a quality product.
DIFFERENTIATION & POSITIONING
In the toothbrush market which is heavily cluttered both in terms of brand
varieties and corresponding messages and constant hammering of almost
similar USP’s it is very difficult to differentiate and position a product as
mundane as a tooth brush in the consumers mind to persuade him to become
a loyal user.
Positioning in tooth brush market done at various levels
PRODUCT : Design differentiation like angular neck, dolled rubber grip,
rigged edges and design of bristles, convenient head shaper etc.
These work only in upper segment, which is willing to pay a premium for
added attributes. Colgate Plus has a unique diamond shaped head & soft
outer bristles.
PACKAGING :Cardboard cartons, transparent blisters, hanger shaped
hooks, coffin packing (storing when not in use). In a blister pack, packaging
makes up to 40% of cost. Colgate Plus comes in transparent blister pack with
a hanger shape hook.
PRICE : By super premium pricing one can give a perception or aura of
technical superiority/high quality to a brush Jordan, Oral - B, Close Up
Contact have followed this route.
Or one could take value for money route to target large families and heavy
user economy pricing for market penetration especially in rural markets.
Colgate plus has positioned itself in lower end of super premium category.
RECOMMENDATION / RELIABILITY : Oral - B has its USP as the tooth
brush most dentists world wide use & recommend - One could go for celebrity
endorsement in cosmetic segment but its not at all an effective strategy in a
low involvement product like toothbrush.
Colgate world - wide has a image of brand for committed to public oral care
and hence its association with a dentists and the ‘ring’ of protection &
confidence.
Positioning Colgate Plus as a higher quality product in the “Professional”
segment was an intelligent move as it prevented cannibalization of its other
brands like Colgate Classic.
BRANDINGColgate is a brand having a cult following. It world wide reach and association
with dental health has made it a brand associated with a caring attitude,
providing quality oral care to masses at an affordable price.
Colgate is No. 1 brand in Indian Market the three consecutive surveys by A &
M magazine. So, while launching the new toothbrush, it was imperative to
keep “Colgate” as a part of the name and incorporate something that could
justify the increment in price. As modifications in the form of an entirely new
category “diamond head” was introduced, it was ideally decided upon a name
that promised to deliver something extra, additive, etc. “Plus” was thus added
on.
MARKETING MIX
PRODUCT
Product is anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a need or want.
The product can be looked at five levels:
The Core product is the essential service that the buyer is buying. In this
case it is Oral care.
The Generic product is toothbrush.
The Expected product is a set of attributes that the buyer expects to get./ in
this case being, efficiency of cleaning, thoroughness in cleaning and care of
gums.
Augmented Product is that what is provided by the seller beyond the
expected product attributes i.e. those attributes that seek to distinguish the
product from others in its category. Colgate Plus is put across as a complete
dental care product. It uses its diamond shaped head, soft outer bristles, hard
inner bristles and accreditation by the Indian Dental Association as its USP’s.
Potential Product refers to set of possible new features that might eventually
be added to the product being offered. Toothbrush as a product does not
offer much scope beyond changes in design and material/ shape of bristles.
Design changes are usually made on grounds of aesthetics, handling and
efficiency in cleaning. Colgate Plus has recently introduced Colgate Plus Zig
Zag on the grounds of efficiency in cleaning.
Some product differentiates in the industry are ;
Pepsodent Popular - the Squiggle between the head and the handle is
flexible and stand along structure.
Jordan Magic - the colour changes to indicate when you have brushed
enough.
Close-Up Confident -a thick handle with a shall head giving better
access.
Oral - B -blue tuft as indicator which loses colour as bristles
harden with use.
PACKAGING:
Packaging provides one with means and scope of differentiating in relatively
homogenous product market. Packs have graduated from cardboard cartons
to blister packs to let the consumer pick the colour of his choice. Some like
Pepsodent Perfect and Colgate Plus, come in hanger shaped hooks on the
blister packs because most small sized retail outlets lack the shelf space
required to dangle peg-racks.
The pricing depends a lot on the packaging and advertising. In a blister pack,.
The product makes up 60% of the cost, packaging the rest. A coffin pack,
where the brush can be kept back after use, inflates the packaging cost.
While these ‘hygiene packs’ do prevent the toothbrush from accumulating
dust, they end up with a double layer of packing, the outer one indicating
mandatory product details.
Major Operators in the Premium Toothbrush “Segment
Product/
Manufacturer
Feature Benefit Reason Tagline
Oral B
Indicator
(Gillette)
Indicator
Bristles
Tells you
when to
change the
toothbrush
Blue band
fades half
way
The brand
most dentists
use
Reach
(Johnson &
Johnson’s)
Angled neck,
raised rubber
ridges on
handle
Cleans even
hardest to
reach places
Slimmed
down tapered
head
Feel the
difference
Colgate Plus Diamond Reaches Unique Because your
(Colgate
Palmolive)
Head, Soft
outer and
hard inner
bristles
inner crevices
of the mouth,
gentle to
gums,
comfort and
efficacy
diamond
shaped head
(narrow in
front)
smile was
meant to last
a lifetime
Aquafresh
Flex
(SmithKline
Beecham)
Pressure
sensitive
squiggle
neck, dotted
rubber grip
Prevents gum
irrigation
Flexes as you
brush to
absorb extra
pressure
For gentle
dental care
PLACE
A marketing channel performs the work of moving goods from producers to
consumers. It overcomes the time, place and possession gaps that separate
goods from those who want them.
The decisions regarding distribution channels are a very crucial part of the
marketing of Fast Moving Consumer Goods (FMCGs) more so because of
tooth brush being a low price product with negligible brand loyalty, no
Consumer would be willing to walk more than 2 km to procure a tooth brush
and would accept, without much hesitation, any toothbrush thrust upon him by
the shopkeeper. So the markets has to make extra efforts to ensure easy
availability of this low involvement product, which is no easy task in a country
of the size & diversity as that of India.
Channel decisions have important implications for other elements in
marketing mix.
Colgate Palmolive had to design a distribution strategy which would best
attain following channel objectives.
Achievement of greatest possible coverage of the target market
Ensuring that the consumer can easily procure the toothbrush (Under no
conditions stock out can be allowed.)
Maintaining mutually beneficial relationship with the retailers since tooth
brush is basically push marketed.
PROMOTION
The discussion of marketing mix elements cannot be complete without
analyzing the promotional strategy of the company. In a low investment
category, where there is hardly any individual who can call himself “brand
loyal’ and most of them happy with whatever toothbrush they can lay their
hands on, without caring too much about price, a marketing effort to ensure
an optimum push and pull combination and an impact presence in the
consumers mental frame is a must. However, because of the callous attitude
with which consumers purchase a tooth brush, too much marketing effort in
one direction or some particular defined directions without immediate
appraisal does not make sense, more so because of the low turnover to
promotional expenses. It simply does not make sense to spend 20% extra on
promotion to gain 0.2% extra market share. In view of the above. Colgate
Plus has been very selective about its campaign and has moved between
mediums very slowly.
Advertising Campaign
Colgate Plus launched in the U.S. in 1985, was introduced in India in 1987
and was among the very few players in the premium segment. “Colgate”
brand name was capitalized upon with the diamond shaped head being
shown as the ‘hero’ in oral care and all set to take on the toothbrush market.
As competition intensified it shifted its focus on softness and comfortable
feeling with efficiency in cleaning plaque. The advertisements were screened
on Doordarshan and in leading magazines. They were targeted to the family
as a whole, very much like the strategy for other Colgate products. The focus
gradually shifted to soft outer bristles and hard inner bristled to ensure a
caring approach to gums and meticulous cleaning. The tagline used was
“ . . . Because your smile was meant to last a lifetime”.
There was parallel thrust on Dentist Accreditation which successfully
translated into Colgate Plus beginning to appear on dentist prescriptions.
However in the face of intense competition, no large scale endorsement by
event or personality was sought for and Colgate Palmolive continued to target
the family as it kept on doing with its toothpaste.
Throughout its advertising strategy planning Colgate Palmolive relied
nonprofessionals agencies. The account is currently handled
by :”Redifussion”.
Sales Promotion
1. POP : The company provided danglers, small posters and
hooked/dispenser packing to its retailers. These were particularly
splashed across retail outlets during the discount periods with “Red &
Yellow” colour combinations to ensure high rate of impulse purchases.
However, besides the discount offers, no other POP display means made
much of an impact in terms of increase in sales.
2. Health Mela : Colgate Palmolive organizes a ‘Young India Dental Health
melas in select cities where free check ups and free sample distributions
of toothpaste and toothbrushes are done. This aims at achieving a three
pronged strategy of
Increasing dental care consciousness
to create a good brand recall of Colgate oral care products
to increase the company’s image as a socially responsible entity.
3. Keeps India smiling - Ad campaign : In a break from its earlier attitude of
only ascribing to its oral care image. Colgate joined the list of companies
basing their campaigns on the 50 years of independence. They launched
a “Vande Mataram” series of campaigns with people from all walk of life
coming and sharing their experiences on how the times have changed for
the better following it up with “Vande Mataram”. The small snippet was
followed up with Colgate being flashed in the form of a smiling face,
emphasizing both its attachment with the growth and development of the
Nation and its contribution in keeping India smiling for the last 50 years
thus striking both an intellectual and emotional chord. The snippets were
strategically screened in key media slots.
4. Sponsorships : Though Colgate oral care products have not been
witnessed to promote any large scale events, Colgate has often
associated itself with TV serials based on social and family themes e.g.,
Humlog and Buniyaad - thus re-emphasizing their positioning as a family
products.
Though not all of the above specifically emphasized the promotion of Colgate
Plus toothbrushes, they are conclusive image building exercises for the
company as a whole and aimed at highlighting its supremacy and
commitment to the ‘oral care sector’. As such it automatically translated into
an image building exercise for the toothbrush category as well.
Colgate Plus was distributed free with the September : issue of the filmfare
magazines.
PRICING
Generally the most important of all the P’S in a developing country like India
where semi-urban and rural population constitutes, a massive portion of the
total market, has to be decided upon after contemplating on all the aspects
related to the market and the product itself.
For a product like toothbrush, the major cost is that of packaging (about 40%
of total), the rest being spread over the bristles, the nickel silver wire holding
the tufts in place and on the body of the brush.
The prices of toothbrushes have taken a quantum leap. The costliest
toothbrush in 1986 was Rs. 4/- which is today in the range of Rs. 25/-. Thus
we have seem a major jump in value sales vis-à-vis volume sales.
Colgate Plus when it was launched in 1987, was introduced as a champion
product to become the ‘hero’ of the toothbrush market meant to ‘keep your
smile forever’. It promised to deliver more than the rest and was priced
accordingly and soon became a major player in the market. At that time it was
playing against ‘Jordan’ and ‘Royal’, both of which were being imported.
Gradually as the market expanded, with the several new players coming in,
Colgate Plus continued to be the top most brand of the players till Oral - B,
Aquafresh, Forhans Galaxy came in . So right now Colgate Plus priced at Rs.
18/- is behind Close Up Confident (Rs. 19.75/-), oral- B (Rs. 20/-) Forhans
Galaxy (Rs. 22/-) and Aquafresh (Rs. 25/-). As such it is at the bottom level of
the Super Premium segment along with Johnson’s Reach (Rs. 18/-) Jordan
(Rs. 19/-), Forhans Zest (Rs. 18/-) trying to deliver more value for money.
While the present strategy keeps Colgate Plus (all three-sensitive, adult and
zig-zag) at a penetrative pricing as regards to Oral-B, Aquafresh Flex and
Forhans Galaxy, it gets and advantage of superior oral care image vis-à-vis
the other brands in the same price brand.
The strategy can be said to be working well as Colgate Plus, as of today is
the market leader both in terms of volume and value share.
SWOT ANALYSIS
STRENGTHS
1. Colgate continues to be the number one brand in consumer perception as
per A& M survey of the last four years.
2. Colgate products are perceived as a champion of the oral-card industry.
3. Advantage of better penetration, and better presence in the consumers
mental faculties.
4. Massive retailer network and strong supply base.
5. Image of a ‘company committed to complete dental care of the whole
family’.
6. Market growth of more than 25% in value terms.
WEAKNESSES
1. Lacks the universal appeal and accreditation of world wide players like
ORAL-B, AQUA-FRESH etc.
2. Has not been able to penetrate the rural segment in volume terms.
3. No regular system of feedback or appraisal of the sale status of is
toothbrush.
4. Market growth of 10% in volume terms.
OPPORTUNITIES
1. Any ‘PUSH’ can be easily and quickly affected n account of its widespread
presence.
2. Doing a ‘NIRMA’ to the toothbrush market is something Colgate is quite
capable of , given the base and vision that the company commands.
3. Investment into R&D and the sales campaign so as to effect a strong long
term pull can transform the nature of the market completely as not one
has acted in this direction so far.
4. With the average semi-urban/urban consumer ready to shell out this extra
bucks it pays to go n for technological innovations and addition of utilities
to this low involvement product which has to so far been centered only
around cleaning of teeth.
THREATS
1. Foreign brands like AQUA-FRESH, ORAL-B, JORDAN, etc are trying to
take the course of the market to different dimensions.
2. The low margins being offered might go against the prospects of Colgate
plus in case some player in the lower segment starts offering high
margins.
3. Low Involvement category and poor brand loyalty - susceptible to sudden
large scale switching in a very short span of time.
SURVEY FINDINGS
CONSUMER SURVEY
FEATURES
1. No. of respondents : 67
2. Areas covered : Defence Colon, Khan Market, South Avenue,
North Campus, Sarojini Nagar
3. Nature of Survey : Structure Questionnaire
4. Objective : 1. To analyze brushing habits and associated
attributes of the general populace.
2. Get a feedback from the Colgate Plus
users.
5. Limitations : As only well to do families/people were
accessed, the findings are expected to be
asked to the premium and the super premium
segment.
FINDINGS
RESPONSE MALES (%) FEMALES (%) TOTAL (%)
Ask by brand
name
57.6 70.8 62.8
bought it in
person
73.3 75.0 70.4
eagerness to
spend
Rs. 5-10 29.0 0.0 22.5
Rs. 10-15 41.9 29.2 40.0
Rs. 15-20 25.8 45.8 30.0
> Rs. 20 3.0 25.0 7.5
ASCRIBED TO
No specific
reason
59.4 33.3 50.0
word of mouth 15.6 16.7 19.1
impressed with
advt.
9.3 20.8 11.9
shopkeeper
insisted
15.6 20.8 14.3
dentists advice 6.3 8.3 4.8
REPLACEMENT
FREQUENCY
0-1 MONTHS 23.5 12.5 17.4
1-2 MONTHS 26.5 29.2 28.3
2-3 MONTHS 23.5 29.2 30.4
3-4 MONTHS 23.5 16.7 19.6
> 4 MONTHS 2.9 16.7 4.3
FREQ. OF
BRUSHING
Once (per day) 50.0 28.0 46.7
Twice 44.2 68.0 46.8
after every meal 2.9 4.0 2.2
Not very
particular
2.9 0.0 2.2
pressed with
Advertisement
YES 11.1 22.2 12.9
NO 88.9 78.0 87.1
RELATIVE IMPORTANCE OF ATTRIBUTES
MALES FEMALES TOTAL RANK
PRICE 62.7 57.3 61.2 5
PACKAGING 40.2 49.3 44.6 8
DURABILITY 74.5 74.7 75.4 2
LONG HANDLE 51.9 60.0 57.0 6
FLEXIBLE NECK 52.9 60.0 57.1 6
COMFY. ANGLE 68.6 78.7 73.7 3
SOFT BRISTLES 78.4 86.7 82.9 1
LOOKS 46.1 40.0 44. 9
DIAMOND HEAD 36.3 41.3 38.9 10
GRIP 58.8 68.0 63.4 4
INDICATOR 28.4 41.3 34.3 11
COLGATE PLUS USERS RESPONSE
Males Females Total
v. Good
God Can’t say
v. Good
God Can’t say
v. Good
God Can’t say
Quality 17 73 10 40 60 - 21.5 65.5 13
Access 90 10 - 97.5 - 2.5 95.5 - 4.5
Value/price
42 50 8 60 23 7 51 32 17
Loyalty Yes-3
No-97
Yes-3
No-97
- Yes -3
No -97 -
FURTHER FINDINGS
BRANDS PERCENTAGE
COLGATE PLUS 30.96
CIBACA 14.28
ORAL-B 16.66
CLOSE-UP 9.52
PEPSODENT POPULAR 7.14
JORDAN 9.52
OTHERS 11.90
BRAND RECALL
BRANDS PERCENTAGE
COLGATE PLUS 20.47
PEPSODENT POPULAR 11.02
CIBACA 10.24
ORAL-B 9.54
AQUA-FRESH 7.59
AJANTA 7.09
OTHERS 28.35
Only about 5% of the respondents could not remember which toothbrush
they were presently using which were excluded from the above computing.
RETAILER’S SURVEY
FEATURES
1. No. of Respondents : 20
2. Areas covered : Defence Colony, South Avenue, Khan
Market, North Campus, Sarojini Nagar
3. Nature of survey : Structured Questionnaire
4. Objective : a) To gather the respond to new
entrants vis-à-vis Colgate Plus as
perceived by retailers.
B) Retailers favorite brand(s)
Margins offered
5. Limitations : Given the areas covered, the response
was bound to be asked in favour of the
upper class users.
FINDINGS
A. Availability
Easy : Classic, Aqua-Fresh, Oral-B,
Pepsodent, Colgate Plus
Not Easy : Royal, Forhans, Cibaca, Jordan,
Prudent.
B. Sales
High : Colgate Plus, Cibaca, Classic,
Pepsodent, Oral-B
Satisfactory : Close-up, Ajanta, Ajay, Jordan, Aqua-
Fresh
C. Profit Margins
Highest : Classic, Royal
High : Jordan
Medium : Oral-B, Aqua-Fresh, Reach, Cibaca
Low : Colgate Plus, Pepsodent, Close-up
* Highest Margin : 35-40% Lowest Margin - 10-15%
N.B. Colgate Plus features in the lowest level of margin and yet commands
the highest market share. The low margin was however denied by the Sales
Office of Colgate-Palmolive at Delhi, who claimed to offer equal to that of the
industry standards.
Colgate Plus was not backed up by any appraisal system whatsoever.
Supply is kept regular on weekly basis.
D. Retailer’s Perception Of Preferences
BY BRAND NAME 36.5%
CHEAP BRUSH 9.3%
SPECIFY PRICE RANGE 15.9%
EXPENSIVE 21.5%
TRY NEW ONESE 16.8
E. Retails insisted on “Pushing” Classic as it was moderately priced and yet
offered a very good margin.
* The “D” above was also substantiated by our consumer survey.
CONCLUSION
The present day brushing habits of the Indian society as a whole leaves a lot
to be desired - 41 toothbrushes are sold for every 100 persons per year! Total
units sold add u to a little over 400 million, growing at the rate of 10% p.a in
volume terms and 25% in value terms (difference explained by the shift to
upper end of the market). This implies not much inroad has been made into
the rural and semi-urban market. Non-users constitute about 65% of total
population.
While the global brands try to create new markets and add new dimensions,
there is much greater latent demand.
Out of their stable of marketing strategies, advertising till now had been low
priority for the players (this was confirmed in our survey as 88.9% of
respondents don’t recall the ads). This indicates companies find it formidable
to change the low involvement level psyche of consumers and the route of
aggressive sales promotion by way of price offs, POP displays, tied sales and
generous trade margins still hold the key to increasing off take of
toothbrushes.
No one has made a serious attempt in the virgin territory of 65% non-users
(CP’s Rural Van Programme is a recent drive). The thought of doing a Nirma
to the toothbrush market has escaped everyone.
Despite packaging constituting a substantial (upto 40%) of the cost of a
toothbrush it has found to have influenced the purchasing decisions of the
buyers. In our survey consumers corroborated to this effect (refer to the
survey findings). Companies could rethink their strategy of increasing
differentiability by packaging and instead invest in product development for
the same.
SUGGESTIONS
Some possible product improvisations
Attached straight tongue cleaner cased in the toothbrush handle.
Cartoons character printed on the handle to attract kids.
Padding on the handle end to massage the gums.
Casing the toothbrush (for kids) in a toy form.
Neck with adjustable handle.
Get a certificate by the Indian Dental Association (IDA) for the toothbrush,
like the Colgate Calciguard Toothpaste.
Segregate the toothbrush types for different age groups, e.g.,
Children - Thicker handle for better grip, bright colours and cartoons printed
on the handle.
Young People of Teenager - more trendy colours and designs, like stripes or
polka dotted, more vibrant colours.
Adults - Simple designs and sober and decent colours.
For the new entrant
Introduce the product with the offer of one free toothbrush with the
purchase of a brush which will help in blocking and prepointing the
purchase of the buyer.
As the target segment is the premium segment therefore, premium pricing
of the product is necessary.
Price the product at Rs. 251 -* or at Rs. 301- and not at Rs. 361 or Rs.
221- because the shopkeepers face a problem in returning small changes
of Rs. 31 or Rs. 31- and Rs. 11 so they sometimes avoid the product as
confessed by the shopkeeper.
Add value to the product by giving tips on taking good oral care, in the
back side of the package or a free pamphlet with the purchase of a brush,
like brushing twice a day, flossing, polishing, regular dental check-up by
your dentist, this shows a caring and concerned attitude by the company.
With the purchase of a toothbrush, give a free coupons which is to be filled
in by the consumer and can be used by him or her for getting a free dental
check-up as when and where specified in the advertisement in the
newspaper. This kind of scheme can be implemented by the company
once in two three months.
However, these suggestions can be used by the big players in the market or
the new entrant, who has to be a big player because a large investment is
needed for such heavy sales promotion and also an attempt should be made
to convert this low involvement product into a high involvement as it is
concerned with personal card and hygiene and a product of daily use.
CONSUMER QUESTIONNAIRE
1. AGE : ¹ 15-30 Years ¹ 30-40 Years ¹ 40-50 years
¹ Above 50 years
2. SEX : ¹ Male ¹ Female
3. OCCUPATION :
¹ Govt. Service ¹ Self-employed ¹ Corporate Executive
¹ Student ¹ Others (specify __________________)
4. MARITAL STATUS : ¹ Single ¹ Married with children
¹ Married without children
5. AVERAGE MONTHLY INCOME/ALLOWANCE
¹ <Rs. 3000 ¹ Rs. 3000-6000 ¹ Rs. 6000-10000
¹ Rs. 10000 - 20000 ¹ > Rs. 20000
6. Which toothbrush do you generally use?
7. Name any other five toothbrushes that you can recall
1 2 3 4 5
8. Who purchases your toothbrush?
¹ Myself ¹ A family member ¹ A Subordinate
9. Do you ask for a toothbrush by name? ¹ Yes ¹ No
10.How much are you ready to spend on a toothbrush?
¹ Rs. 5-10¹ Rs. 10-15 ¹ Rs. 15-20 ¹ > Rs. 20
11.What prompted you to purchase your current toothbrush?
¹ Dentist’s advice
¹ Impressed with the advertisement
¹ Shopkeeper gave it to me
¹ A well-wisher recommended it to me
¹ Just bought it no specific reason.
12.How often do you replace your toothbrush?
¹0-1 month ¹ 1-2 months ¹ 2-3 months ¹ 3-4 months
¹ > 4 months
13.How often do you brush your teeth a day?
¹ Once ¹ Twice ¹ After every meal ¹ Not particular
14. What according to you are the relative importances of the following?
V. Imp Imp. Not so Imp.
Doesn’t matter
PRICE
PACKAGING
DURABILITY
FLEXIBLE NECK
COMFORTABLE ANGLE
SOFTNESS OF BRISTLES
LOOKS (TRANSPARENT HANDLE ETC.)
DIAMOND HEAD
GRIP
INDICATOR
15. Has any toothbrush ad (seen on TV/in a magazine) made an impact on
you?
YES NO IF YES, THEN WHY
ORAL-B
AQUA FRESH
ROYAL
COLGATE PLUS
16. Kindly answer the following in case you have used Colgate Plus/Aqua
Fresh toothbrushes:
AQUA FRESH COLGATE PLUS
QUALITY *V. GOOD * GOOD
* MODERATE
* NO GOOD
* V. GOOD * GOOD
* MODERATE
* NO GOOD
AVAILABILITY * EASY * NOT SO EASY
* DIFFICULT
* EASY * NOT SO
EASY * DIFFICULT
IF IT WORTH THE
PRICE
* YES *NO
* CAN’T SAY
* YES * NO
*CAN’T SAY
IF THE BRAND IS NOT
AVAILABLE, THEN I
* WILL WAIT
* WILL NOT WAIT
* WILL WAIT
* WILL NOT WAIT
THANK YOU FOR SPARING YOUR VALUABLE TIME!!
RETAILER QUESTIONNAIRE
1. Location of the store :
2. Selling toothbrushes since
3. Brands stocked
¹ Colgate Plus ¹ Cibaca Supreme ¹ Aqua Fresh
¹ Jordan ¹ Oral-B ¹ Royal
¹ Pepsodent ¹ Promise ¹ Ajay
¹ Ajanta ¹ Classic
4. Which are the top three toothbrushes in terms of exist sales?
1. 2. 3. 4.
5. In case not covered above. What is the status of:
1. Aquafresh ¹ Good ¹ Picking up Moderate ¹ Poor
2. Colgate Plus ¹ Good ¹ Picking up Moderate ¹ Poor
6. How do consumers ask for a tooth brush? (Rank them)
(a) Ask by brand name (b) Ask for a cheap brush
(c) Specify a price range (d) Go for an expensive brush
(e) Keep trying newer ones
7. Which of these two companies make it a point to:
(a) Get a regular feedback
Aquafresh ¹ Yes ¹ No
Colgate Plus ¹ Yes ¹ No
(b) Maintain regular supply
Aquafresh ¹ Yes ¹ No
Colgate Plus ¹ Yes ¹ No
8. Rank your profit margin for the following brands:
1. Cibaca Supreme 2. Colgate Plus
3. Oral-B 4. Aqua Fresh
5. Classic 6. Ajanta
7. Pepsodent 8. Jordan
9. What is your a) Highest Margin
b) Lowest Margin
10. If the consumer does not ask for a specific toothbrush then which one
would you offer him? Why?
BIBLIOGRAPHY
1. Business Today Library
2. A&M Issues of June ‘05, June ‘05, April ‘2006
3. CII Library
4. FORE Library
5. Kotler Philip (Principles of Marketing)
6. Kotler, Philip (Marketing Management).