A

RESEARCH REPORT
ON
“Consumer buying behavior towards toothpaste
brands in ludhiana”

Master of Business Administration

(Session-2007-09)

Submitted to:- Submitted by-

 Certificate
This is to certify that the research project entitled “Consumer buying behavior towards
toothpaste brands in Ludhiana” submitted for the partial fulfillment of requirement for the
degree of MASTERS OF BUSINESS ADMINISTRATION at Punjab college of Technical
Education, Ludhiana affiliated to PUNJAB TECHNICAL UNIVERSITY, JALANDHAR is a
bonafied research work carried out by A under my supervision and that
no part of this has been submitted for any degree.

The assistance and help received during the course of the investigation have been fully
acknowledged.

___________________
 ACKNOWLEDGEMT

I would like to thank my project guides for providing me

continuous guidance and support and for his valuable inputs during the course of my research
report.

The staff of government employee was very cooperative and helped me a lot by providing
required information whenever I needed.

And finally, I like to thank to our, and the entire Faculty

for equipping me to carry out this study.
Chapter Title Page No

I Introduction 5

II Consumer buying behavior & Brand loyalty 11

III Industry overview 13

IV Review of literature 23

V Objective of the study 25

VI Methodology 26

VII Analysis and interpretation 29

VIII Result & findings 41

IX Conclusion 42

x Bibliography 43
 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.
• 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.
 The more things change, the more they stay the same!

The ancient Egyptian recipe for toothpaste

The world's oldest-known formula for toothpaste, used more than 1,500 years before Colgate
began marketing the first commercial brand in 1873, has been discovered on a piece of dusty
papyrus in the basement of a Viennese museum.

In faded black ink made of soot and gum arabic mixed with water, an ancient Egyptian scribe
has carefully described what he calls a "powder for white and perfect teeth".

When mixed with saliva in the mouth, it forms a "clean tooth paste".

According to the document, written in the fourth century AD, the ingredients needed for the
perfect smile are one drachma of rock salt - a measure equal to one hundredth of an ounce -
two drachmas of mint, one drachma of dried iris flower and 20 grains of pepper, all of them
crushed and mixed together.

The result is a pungent paste which one Austrian dentist who tried it said made his gums
bleed but was a "big improvement" on some toothpaste formulae used as recently as a century
ago.

The world's oldest-known formula for toothpaste, used more than 1,500 years before Colgate
began marketing the first commercial brand in 1873, has been discovered on a piece of dusty
papyrus in the basement of a Viennese museum.

In faded black ink made of soot and gum arabic mixed with water, an ancient Egyptian scribe
has carefully described what he calls a "powder for white and perfect teeth".

When mixed with saliva in the mouth, it forms a "clean tooth paste".

According to the document, written in the fourth century AD, the ingredients needed for the
perfect smile are one drachma of rock salt - a measure equal to one hundredth of an ounce -
two drachmas of mint, one drachma of dried iris flower and 20 grains of pepper, all of them
crushed and mixed together.

The result is a pungent paste which one Austrian dentist who tried it said made his gums bleed
but was a "big improvement" on some toothpaste formulae used as recently as a century ago.

The discovery of the formula caused a sensation among Austria's normally sedate dentists
when it was disclosed at a dental congress in Vienna.
Dr Heinz Neuman, who attended the meeting where the recipe was unveiled, said: "Nobody in
the dental profession had any idea that such an advanced toothpaste formula of this antiquity
existed."

On trying it himself, he said: "I found that it was not unpleasant. It was painful on my gums
and made them bleed as well, but that's not a bad thing, and afterwards my mouth felt fresh and
clean. I believe that this recipe would have been a big improvement on some of the soap
toothpastes used much later."

Modern toothpaste is produced by mixing sodium fluoride, a cleansing product that gives the
paste its bulk, with triclosan, a whitener, and E number flavourings.

The recipe was written in Greek, the official language of Egypt for about 1,000 years until the
last temples closed in the sixth century AD.

It was discovered among part of the largest collection of ancient Egyptian documents in the
world - 180,000 items up to 3,500 years old, including stone and clay tablets - gathered by the
Habsburgs, the rulers of the Austro-Hungarian empire.

The foundation of the collection was a mass of papyri, purchased in 1878 after being found on
a rubbish dump outside the ancient Egyptian city of Crocodilopolis.

Dr Hermann Harrauer, who heads the papyrus collection at Austria's National Library in
Vienna and who found the recipe, said: "It's a fascinating document. It was written by someone
who obviously had some medical knowledge, as he used abbreviations for medical terms.

"As papyrus was hard to come by, it was often reused, and this document had on the back
details of correspondence between monasteries, implying that perhaps the person who wrote it
was connected with them in some way.

Maybe he was a monk. By the fourth century AD, Egypt had been Christianised and Christian
monks were also physicians, and this would fit in with what we know."

Dr Harrauer's team is painstakingly translating and filing the documents, of which only a
fraction have so far been deciphered. He said: "We still don't have an idea about half of what is
here. It's a treasure trove waiting to be opened."

Dentists have recently discovered the beneficial properties of the iris, which has been found
effective against gum disease and is now in commercial use again.

In addition to the toothbrush history , the following toothpaste history will be something
interesting for your child as well. This will give them more insight into the origin of brushing
teeth.
Toothpaste History

The development of toothpaste began as long ago as 300/500BC in China and India. According
to Chinese history, a learned man, Huang-Ti, studied the care of teeth and claimed different
types of pain felt in the mouth could be cured by sticking gold and silver needles into different
parts of the jaw and gum. It was theories such as these that led to the development of dental
cream.

First attempts at tooth cleaning included using abrasives such as crushed bone, crushed egg and
oyster shells, which were used to clean debris from teeth. Tooth powders were the first
noticeable advance and were made up of elements like powdered charcoal, powdered bark and
some flavouring agents. This would be applied to teeth using a simple stick.

Toothpowder or dentifrice was first available in Britain in the late eighteenth century. It came
in a ceramic pot and was available either as a powder or paste. The rich applied it with brushes
and the poor with their fingers.

Modern toothpastes were developed in the 1800s. A dentist called Peabody was the first to add
soap to toothpaste in 1824. Chalk was first added to toothpaste by John Harris in the 1850s. In
1873, toothpaste was first mass-produced into nice smelling toothpaste in a jar. In 1892, Dr.
Washington Sheffield of Connecticut was the first to put toothpaste into a collapsible tube.
Sheffield's toothpaste was called Dr. Sheffield's Creme Dentifrice. Advancements in synthetic
detergents (after World War II) replaced the soap used in toothpaste with emulsifying agents
such as Sodium Lauryl Sulphate and Sodium Ricinoleate.

The 1960's saw the introduction of fluoride into toothpaste. This development was followed in
the 1980's with the addition of soluble calcium fluoride to fluoride toothpastes. It is therefore
within the last thirty years that toothpastes contains the two ingredients - calcium and fluoride.
Nowadays, there are controversial views on the effectiveness and safety of fluoride toothpaste.
For those who are safety concious, the use of natural toothpaste might be a better choice.
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
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
 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

 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.

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 .

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 Rura

l
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
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
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: 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

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 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

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 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

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

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.

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 Pepsodent Gumcare
Vitamin Fluoride System
Pepsodent 2 in 1
Close-up Lemon Mint
Pepsodent Complete 10
Close-up Milk Calcium
Pepsodent Whitening

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
 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.

Close-Up Active Gel

Launched in 1975, Close-up was the first gel toothpaste in India. It has since then undergone
periodic relaunches.

In 2004, Close-up was relaunched 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%.

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.

Colgate Cibaca Top

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

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
 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.

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.

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.

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.

Brand wise Market Share

Brand Share (Value)

Colgate Pepsodent (all Close-up (all Cibaca Colgate Fresh

Brand Share % Dental Cream variants) variants) Top Energy Gel
Apr-Mar06 33.8 % 16.0% 11.0% 5.7 % 3.3 %
Brand Share (Volume)

Colgate Pepsodent (all Close-up (all

Brand Share % Dental Cream variants) variants) Cibaca Top Anchor
Apr-Mar06 32.0 % 15.0% 8.5% 10.3 % 4.5 %

Source: AC Nielsen Market Information Digest India 2006

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

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%,

Objective of the study

  To examine the decision making process of consumer.

 To know the brand loyalty of the consumer.

 To study the media and advertisement effects on buying behaviour.

 To know the preference and satisfaction level of the consumer.

Methodology

Research comprises:
  Defining the problem
 Formulating Hypothesis
 Collecting, Organizing and Evaluating Data
 Making Deductions
 Reaching Conclusions &
 Testing that conclusion Fit the Hypothesis or not

Keeping in view the specified objectives and nature of projects, research methods are
adopted. Research in the common parlance refers to the search for the knowledge. In
fact, it is an art of scientific knowledge.

A successful completion of any project and getting genuine results from that depends upon
the method used by the researcher. The plan or the methodology for this study is laid upon
the following basis:-

TYPE OF RESEARCH:
Descriptive method has been used in this research for the collection of data. As the research is
related to the study of consumer behavior, which can more effectively be studied through direct
questions, experimental research will not be much effective. Also, considering the time
constraint, descriptive research is the most suitable design for this research.

SOURCE OF DATA:
To overcome the limitations of incompatibility, obsolescence, and bias, primary data was
collected. Considering the time and money constraints, sampling method of data collection was
suitable for the project.

Primary Data

Primary data are those data that are collected for the first time, It is better to go for primary
data since it is first hand information and there is less chances of personnel bias and

information can be collected with accuracy at the same time. It could be re-tabulated and

survey concerned in various forms this data can be used. For collecting primary data I have

chosen the questionnaire method.

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 behavior as possible.

SAMPLE SIZE:
Total 100 persons were contacted and interviewed.

SAMPLING:
Here study of the consumer behavior of the people of Ludhiana city. Within the city samples
were collected from different areas. To reduce the biases this may come through difference in
the level of income, attitude, lifestyle etc. of the people in different areas.

Limitations of study:
1) Since survey is conducted only in Ludhiana this means it doesn’t reflect whole
population (smokers) in country.

2) This survey is done only for males, since female smokers are not socially
acceptable.

3) Sample size is very small especially this kind of study sample size should high.

4) The views of the respondents are personal.

5) The sample size selected may not be adequate

Analysis and interpretation

1. Market share of different brands

no. of
Brands respondents
Anchor 6
Colgate 38
close-up 23
pepsodent 17
dabur red 14

Market share of diffrent brands

40
35
30
25
Share

20 no.of resp
15
10
5
0
Anchor colgate close-up pepsodent dabur red
Brands

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 ludhiana

2. Attributes which affect the buying decision

 Attributes respondents
Price 14
Packaging 11
Advertisement 14
Functionally
strong 47
any other 14

Preference towards attributes

50
45
40
respndendents

35
30 percentage of
25
20 respondents
15
10
5
0
t

ng

r
e

en

he
in
ic

ro
m
pr

ag

ot
st
se
ck

y
l ly

an
r ti
pa

na
ve
ad

tio
nc
fu

Attributes

Interpretation: 47% of people go for purchase due to the functional aspect of the product while
it is an interesting fact that came out from this research that advertisement does not influence
huge number of people price and packaging also holds a meager percentage of people

3. To find out which source of media is effective

 response respondents
print 0
television 72
third
person 15
any other 13

Effective source of creating awareness

80
70
60
respondents

50
percentage of
40
respondents
30
20

10
0
print television third person any other
Source of media

Interpretation: in the research it is founded that television is the most effective media of
creating awareness about your brands 72% of the people get to know about various brands of
toothpaste through television while from third person or through word of mouth only a handful
of people get to know about different brands of tooth paste
4. To know the preferred location of place from where customer buys the product

Source Place
Kiryana 54
Department 28
Supermarket 18

Preffered place of consumer to buy the product

60
50
respondents

40
percentage of
30
respondents
20
10
0
kiryana department supermarket
place

Interpretation: most of the consumer do their buying from supermarket while department stores
also is a popular option for buying the toothpaste during the research it is founded that people
look for more convenient option for buying the toothpaste.

5. Ideal pack size for respondent

 Response Respondents
50gm 19
100gm 20
150gm 38
200gm 23

ideal pack size for consumer

40
35
30
respondents

25
percentage of
20
respondents
15
10
5
0
50gm 100gm 150gm 200gm
pack size

Interpretation: it is founded that about 58% of the people like to go for 150 gm or higher pack
size and only few people go for small pack size depending upon their need.
6. How frequently do you purchase?

response respondents
>15 days 21
1 month 56
2 month 23

50
45
40
35
percentage

30
25 percentage
20
15
10
5
0
>15 days 1 month 2 month
period of purchasing

Interpretation: is founded in research that consumer purchase a brand of toothpaste after 2

months. This denotes that it is rather easy for a company to loose its market share if it does not
take care of its existing consumers.

7. The purpose is to know the effect of lack of availability of product on brand loyalty
 response respondents
yes 45
no 55

lack of availability

60

50

40
respondents

30 percentage of
respondents
20

10

0
yes no
options

Interpretation: Availability of favorite brand is most important for the consumer. If it is not
available then around 45% will go to another brand and around 55% who are brand loyal but
may be dissatisfied with the non-availability of their favorite brand.
8. Buying of alternative brands if preferred brand is not available

Brands Respondents
close-up 23
Colgate 45
pepsodent 12
nothing 20

lack of Availibty of preffered brand will lead to

purchase of following brands

50
40
Respondents

30 percentage of
20 respondents
10
0
close-up colgate pepsodent nothing
Brands

Interpretation: From the figure it is clear that most of the consumer will go for Colgate a sit is
tried and tested brand in the market while other consumer will go to their previous brand if
their present brand is not available.

9. In the past six month the customers who have left their previous brand.
response respondents
yes 33
no 67

Loyal vs disloyal

80
70
60
respondents

50
40 percentage of people
30
20
10
0
yes no

disloyal loyal

Interpretation: From this we can see that the brand loyalty amongst the consumers is very high

10. Reasons behind leaving a brand

Reason number percentage
taste 7 21.21212
effective ness 8 24.24242
for a change 12 36.36364
doc. Recomd 4 12.12121
family is using other
brand 2 6.060606

reasons for leaving a brand

14
12
respondents

10
8 Percentage of
6 respondents
4
2
0
taste effective for a doc. family is
ness change Recomd using
other
brand
reasons

Interpretation: here it is founded that most common reason on the part of consumer to switch to
another brand is that because he wants a change while taste is another criteria which makes a
customer leave a brand

11. Satisfaction level of consumers with the present brand

response respondents
yes 74
no 18
can't say 8

Percentage of respondents

80
70
60
respondents

50
Percentage of
40
respondents
30
20
10
0
yes no can't say

satisfied not satisfied ??

Interpretation: This graph shows that most of the consumer a are satisfies with their existing
purchase while those who are not satisfies may go for a new brand and that may be an
opportunity for the other companies to increase their market share

12. Effect of advertisement on the purchasing decision

 response respondents
yes 57
no 23
can't say 21

Advertisement effectiveness

60
50
respondents

40
percentage of
30
respondents
20
10
0
yes no can't say
effectivness

Interpretation: Most of the respondents are influenced by the overall presentation of the
advertisements. Youngsters are mainly influenced by the model(s) or punch line (logo) of the
brand. So it is a psychological effect of advertisement on the respondents.

About 23% of the respondents replied that even though it may have all the factors, which they
wanted in the advertisement, they would not switch to the new brand only for the reason that
its advertisement is good.

From the above analysis, we can conclude that good advertisement of the new brand
does attract the consumer to switch their brand

RESULTS AND FINDINGS

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

Conclusion
♦ 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 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.
Bibliography

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

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

2007.

Websites
www.Thehindubusinessline.com
www.Economictimes.com
www.Google.com/articles on toothpaste market in India
www.fcbulkacomstrat.com