Project Report

A STUDY ON MARKETING
STRATEGIES OF COLGATE
PALMOLIVE LTD.

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. Wests Miracle Tuft toothbrush, the first nylon bristle brush. Until the late
1970s 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.

i . exe

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--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 & Ms, Business Todays.
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 companys 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 Palmolives 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 Palmolives 91 manufacturing plants, 275 new products were
introduced world-wide; several strategic acquisitions (e.g. of the Mennen
mens 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 Palmolives 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. CPs 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.
CPs 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 companys strategy is to
..... Optimise cost and formulation and the proceses and come up with
efficient manufacturing to answer this . CPs 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

Low income rural Economy

Brands

Characteristic

Promise, Cibaca

Looking for low price

Colgate

Value for money

class
Middle

income Standard

group semi urban

Classic

Pepsodent popular

consumer
Upper
income

middle Premium
urban

Colgate

Plus, High quality cleaning

Classic, Ajay, Royal

efficiency

consumers
Upper class urban Super

Oral B, Aquafresh, Unique,

sophisticate

Jordan, Close Up

Premium

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

Jazzy looks,

Simpleton looks,

Mix of the two :

Product

Transparent

Modest

transparent

handle Flashy

packaging, Solid

handle but not

colours Superior

colours

very flash

Packing
Urban

Chooses with

sophisticate

care, sports it as

packaging.
Abhors

Abhors

Some times this

a status symbol
while interacting
in group travels
Semi urban Non

Aspires for it, but

Very often goes

Chalant User

finds it difficult to

for this as it

afford; tries it

serves is purpose

seldom

without much
expenditure

Rural User

Does not have

Is the only option

access/cant think Datun

Generally cant
afford this either

of
Tooth brushes

Oral B, Jordan,

Promise, Forhans Cibaca, Ajanta,

brands

Aqua fresh etc.

etc.

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

Invalid oral health Involved

Characteristic

consumer

health Consumer Health Consumer

Therapeutic

Cosmetic

Non-chalant

Brushers

Brushers

Brushers

Product

Search

Search

Differentiater

functionally

product

superior

oral Uninvolved

for Views

interest

many delivers cosmetic

attributes.
Advertising

Put

appeal

hardsell

benefits

off

by Influenced

by Relatively

Prefers promotion,

unaware of ads

dentist

hammering on a can at most be

recommendation

USP

or

influenced

informed

price

opinion
Buying behaviour

products

that as same Lack of

product effectively

with

Oral

by
offs,

package deals

Buys for himself, Buys and uses Buys for family.,

will

go

to

a for himself.

specialised store

Will will pick up any

not go beyond a brand available.

large

shop,

supermarket
Regularity

of Brushes

after Brushes

mostly At most once a

usage

every meal

once, sometimes day

twice

Brand loyalty

High

Price (Willing to >20

Low

Nil

15-20

<12/0q

pay)
Major Brands

Jordan, Oral - b Colgate

Indicator

Pepsodent
Perfect

Plus, 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 USPs 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.

BRANDING
Colgate 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 USPs.
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/Man

Feature

Benefit

Reason

Tagline

ufacturer
Oral
Indicator

B Indicator
Bristles

(Gillette)

Tells

you Blue

when
change

to fades
the way

band The

brand

half most dentists

use

toothbrush
Reach
(Johnson
Johnsons)

Angled neck, Cleans even Slimmed

& raised rubber hardest
ridges

Feel

the

to down tapered difference

on reach places

head

handle
Colgate Plus Diamond

Reaches

Unique

Because your

(Colgate

Head,

Soft inner crevices diamond

Palmolive)

outer

and of the mouth, shaped head meant to last

hard

inner gentle

bristles

to (narrow

gums,
comfort

smile

was

in a lifetime

front)
and

efficacy
Aquafresh

Pressure

Prevents gum Flexes as you For

Flex

sensitive

irrigation

(SmithKline

squiggle

absorb extra

Beecham)

neck,

pressure

dotted

rubber grip

brush

gentle

to 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 companys 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

witnessed to promote any large scale events, Colgate

not been
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 PS 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--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 Johnsons 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--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
Ask by
name
bought
person

it

MALES (%)

FEMALES (%)

brand 57.6

70.8

62.8

in 73.3

75.0

70.4

80
70
60
50
40
30
20
10
0

TOTAL (%)

Ask by brand namebought it in person

eagerness
spend

to

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

50
45
40
35
30
25
20
15
10
5
0

Rs. 5-10

Rs. 10-15

Rs. 15-20

> Rs. 20

ASCRIBED TO
No
reason

specific 59.4

word of mouth
impressed
advt.

15.6

with 9.3

33.3

50.0

16.7

19.1

20.8

11.9

shopkeeper
insisted

15.6

20.8

14.3

dentists advice

6.3

8.3

4.8

60
50
40
30
20
10
0

No specific
reason

word of mouth

impressed
with advt.

shopkeeper
insisted

dentists
advice

REPLACEMENT
FREQUENCY
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

3-4
MONTHS

2-3
MONTHS

1-2
MONTHS

0-1
MONTHS

35
30
25
20
15
10
5
0

>4
MONTHS

0-1 MONTHS

FREQ.
BRUSHING

OF

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

very 2.9

0.0

2.2

Not
particular

70
60
50
40
30
20
10
0

MALE (%)

FEMALE (%)

TOTAL (%)

pressed
with
Advertisement
YES

11.1

22.2

12.9

NO

88.9

78.0

87.1

90
80
70
60
50
40
30
20
10
0

YES
NO

MALE

FEMALE

TOTAL

RELATIVE IMPORTANCE OF ATTRIBUTES

MALES

FEMALES

TOTAL

RANK

PRICE

62.7

57.3

61.2

PACKAGING

40.2

49.3

44.6

DURABILITY

74.5

74.7

75.4

LONG HANDLE

51.9

60.0

57.0

FLEXIBLE NECK

52.9

60.0

57.1

COMFY. ANGLE

68.6

78.7

73.7

SOFT BRISTLES

78.4

86.7

82.9

LOOKS

46.1

40.0

44.

DIAMOND HEAD

36.3

41.3

38.9

10

GRIP

58.8

68.0

63.4

INDICATOR

28.4

41.3

34.3

11

RANK

TOTAL

FEMALES

MALES

20

40

60

80

100

COLGATE PLUS USERS RESPONSE

Males

Females

Total

v.
Goo
d

God

Cant
say

v.
Goo
d

God

Cant
say

v.
Goo
d

God

Cant
say

Quality

17

73

10

40

60

21.5

65.5

13

Access

90

10

97.5

2.5

95.5

4.5

Value/pric 42
e

50

60

23

51

32

17

Loyalty

No97

Yes3

No97

Yes
-3

No -97

Value/price

Loyalty

Yes3

100
90
80
70
60
50
40
30
20
10
0
Quality

Access

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

CIBACA

BRANDS

35
30
25
20
15
10
5
0

CLOSE-UP

BRANDS

JORDAN

FURTHER FINDINGS

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

30
25
20

BRANDS
COLGATE
PLUS

15

PEPSODENT
POPULAR

10

CIBACA

ORAL-B

0
AQUA-FRESH
AJANTA

Only about 5% of the respondents could not remember which toothbrush

they were presently using which were excluded from the above computing.

RETAILERS 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--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, AquaFresh

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. Retailers 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 dont 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
(CPs 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 :

15-30 Years

2. SEX :

30-40 Years

40-50 years

Above 50 years

Male

Female

3. OCCUPATION :
Govt. Service Self-employed

Corporate Executive

Student Others (specify __________________)

4. MARITAL STATUS :

Single

Married with children

Married without children

5. AVERAGE MONTHLY INCOME/ALLOWANCE

<Rs. 3000

Rs. 3000-6000

Rs. 10000 - 20000

Rs. 6000-10000

> Rs. 20000

6. Which toothbrush do you generally use?

7. Name any other five toothbrushes that you can recall
1

8. Who purchases your toothbrush?

Myself

A family member

9. Do you ask for a toothbrush by name?

A Subordinate
Yes No

10. How much are you ready to spend on a toothbrush?

Rs. 5-10 Rs. 10-15

Rs. 15-20

> Rs. 20

11. What prompted you to purchase your current toothbrush?

Dentists advice
Impressed with the advertisement
Shopkeeper gave it to me
A well-wisher recommended it to me
Just bought it no specific reason.
12. How often do you replace your toothbrush?
0-1 month

1-2 months 2-3 months 3-4 months

> 4 months
13. How often do you brush your teeth a day?
Once

Twice

After every meal

Not particular

14. What according to you are the relative importances of the following?

V. Imp

Imp.

Not so
Imp.

Doesnt
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
ORAL-B
AQUA FRESH
ROYAL
COLGATE PLUS

NO

IF YES, THEN WHY

16. Kindly answer the following in case you have used Colgate Plus/Aqua
Fresh toothbrushes:
AQUA FRESH

COLGATE PLUS

*V. GOOD * GOOD

* V. GOOD * GOOD

* MODERATE

* MODERATE

* NO GOOD

* NO GOOD

* EASY * NOT SO EASY

* EASY * NOT SO

* DIFFICULT

EASY * DIFFICULT

IF IT WORTH THE

* YES *NO

* YES

PRICE

* CANT SAY

*CANT SAY

IF THE BRAND IS NOT

* WILL WAIT

* WILL WAIT

AVAILABLE, THEN I

* WILL NOT WAIT

* WILL NOT WAIT

QUALITY

AVAILABILITY

* NO

THANK YOU FOR SPARING YOUR VALUABLE TIME!!

RETAILER QUESTIONNAIRE
1. Location of the store :
2. Selling toothbrushes since
3. Brands stocked
Colgate Plus

Cibaca Supreme Aqua Fresh

Jordan

Oral-B

Royal

Pepsodent

Promise

Ajay

Ajanta

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:

Good

Picking up

Moderate

Poor

2. Colgate Plus Good

Picking up

Moderate

Poor

1. Aquafresh

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

Yes

No

Colgate Plus

Yes

No

(b) Maintain regular supply

Aquafresh

Yes

No

Colgate Plus

Yes

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?

ACKNOWLEDGEMENT

I would like to express my sincere thanks to Prof. N.S.

Uppal for entrusting me with a challenging project and along
with it, his help and encouragement has been exemplary.
I wish to place my sincere gratitude to the officials of
concerned organization and libraries who in spite of their
busy schedule always spared their time whenever needed.

i . exe