Study on Consumer Buying Behavior

@ Tooth Pastes

Presentation By

BALA KRISHNA NAKUL YADAV NAZIR SREENIVASULU NITISH SUBODH KUMAR REDDY

Oral Care Market 4200 crores

Tooth Paste 3100 crores 3226 crores by 2012

Tooth Powder 472 crores 458 crores by 2012

Mouth Wash 84 crores 90 crores by 2012

Tooth Brush 550 crores

Oral care in India has been greatly driven by Innovation, retail availability, packaging & promotion

Industry growth rate = 8 %

Dentist : Population = 1 : 35,000

Form : White & Gel

55 % of the population uses toothpaste, >15 % of the toothpaste users brush twice a day

Colgate Palmolive India Ltd, P&G, GSK, Dabur, Anchor Health & Beauty products, Vicco Laboratories, Balsara Hygiene, Future company, Himalaya drug company, Henkel India……

Tooth Paste Industry @ India

Study the consumer buying habit in Toothpastes.

To study the various factors and identify important parameters for customer acceptance

To plot popular Toothpastes Brands on the perceptual maps

Objectives of the Study

Sampling Unit is limited to only Pondicherry University & Muthialpet region.

Doesn’t covered some demographic details in the survey

Sample size is just 40 in number

The collection of data from person to person is a difficult task

Primary data is only through questionnaire

Sales managers of two companies were contacted but no response

Limitations of the Study

Consumer purchases are influenced strongly four factors. 1) Cultural 2) Social 3) Personal 4) Psychological

Cultural Factors

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class

Culture:-

Culture has a great influence on the behavior of a consumer. Because people learn from the society. If the culture of a country can not suggest to use toothpaste or Colgate is a good quality toothpaste then people will not buy this.

Factors Influencing Consumer Behavior

Sub Culture:-

If the experiences of the group says that Colgate is a bad toothpaste then people will not buy this product..

Social Class:-

If the social class of people is low or much high then people do not buy Colgate toothpaste.

Social Factors: A consumer's behavior also is influenced by social factors, such as the (i)

Groups (ii)Family (iii) Roles and status

Groups:- Sometimes groups make the choices of an individual.

Family:-

In context of Bangladesh if the head of family choice Pepsodent rather than Colgate, so the family can not use other paste. So we can say that family has a influence on the consumer behavior

Roles and Status:-

Lower-lower and Upper-Upper people will not buy same product. Because they have different roles and status in the society.

Personal Factors:

It includes (i) Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life style,(v) Personality and self concept

Age and Life cycle Stage Children and old do not want to use toothpaste where the very older has no

teeth and children likes taste. So age has the influence on consumer behavior

Occupation A doctor is always conscious about their health where a student has not same

consciousness. And also the choice and buying capacity of a product is depends on their occupation. It varies according to their jobs category

Economic situation A person's economic situation will affect product choice

Life Style:

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

Personality and Self concept

Choice of a product depends on the personality and the self concept of an individual. Personality depends on the status and self concept depends on the perception

Psychological Factors:

It includes these Factors i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Motivation:-

Company must take some motivated activities to persuade the customer. Ex-Advertising, give some free etc

Perception:-

The process by which people select, Organize, and interpret information to form a meaningful picture of the world. The company must try to create the positive perception on the mind of individual.

Learning:-

Perception filters a thing and then take decision it should be taken or not. It means perception filter the knowledge and give the shape of learning

Beliefs and attitudes:-

Belief is a descriptive thought that a person holds about something. So company always try to make belief through making reliability. Attitude, a Person's consistently favorable or unfavourable evaluations, feelings, and tendencies towards an object or idea.

A segmentation scheme for toothpastes

Sensories

Sociables

Worriers

Independents

principal benefit

flavor, product appearance

brightness of teeth

decay prevention

low price

behavioral characteristics

users of spear-mint flavor

smokers heavy users heavy users

demographics children teens, young

adults large families men

psycho-graphics

high self-involvement, hedonistic

high sociability, active

hypochondriac, conservative

high autonomy, value-oriented

Company : Colgate Palmolive (India) Limited Brand : Colgate Segmenting Factor : Family Target Audience : The Brand Colgate and it’s extensions are

targeted at Indian families taking both economical and premium stances

Availability : All over India. Positioning Stance :  on Health care through Duality of benefits,

talks about “Stops bad breath and fights tooth decay.” This positioning stance has worked well in Indian probably because Oral. Now also the company is constantly following the fresh breath route which proved successful for the company

Market Leader

Company: Hindustan Lever Limited Brand Name: Close Up Segmenting Factor: Age Targeted At: Young people. The target market being “Multi Brand

Households” where young does not use what their parents. This particular targeting was significant when  Close Up was launched because Colgate positioning was a sort of Flip flop between Tooth  decay and Bad Breath and Colgate was going for a Broad market constituting of all the age groups.

HLL gave it a dual positioning platform of a Mouth rinse and a toothpaste, like squeeze the Gel directly into Mouth. Close Up is pushing hard for semi Urban and Rural areas were disposable incomes are rising rapidly and in order to tap these markets it is going for Vernacular Advertising in Eight languages. In Bengal as the communication did not work all that work initially, HTA has contracted Anjan Dutta a signer popular with both Young and old alike in Bengal.

Market Challenger

Sampling Unit Students of Pondicherry University & KV School & Muthialpet Residential public

Target Population Students mostly

Sample Size 40 respondents

Approach of Research Descriptive

Method Simple Random Sampling

Data collection Primary data- questionnaire, Secondary data

Data analysis tools % analysis, SPSS, Excel

Questionnaire 17 questions

Questions Type Open-ended, 3-Point scale, yes/no

Research Details

ZONE      PERCENTAGE

East 21

North 25

West 21

South 33

From the Secondary Data Available:

(A)   ZONE WISE SEGMENTATION :

(B) SEGMENTATION AS RURAL AND URBAN MARKETS :

MARKET PERCENTAGE

RURAL MARKET             40

URBAN MARKET 60

(C) MARKET SHARE OF MAJOR PLAYERS OF THE INDUSTRY :

Others: Vicco, Himalaya, Anchor, Dabur, Baidyanath, Ajanta, Sensodyne, Forhans, Sensofoam, Neem etc

NAME SHARE (%)

COLGATE DENTAL 46

CLOSE UP  18

COLGATE GEL 10

PROMISE  9.5

PEPSODENT  9

CIBACA   3

BABOOL 0.5

Others 3

Most of the candidates are loyal to the brand which is being used presently.

Most of the loyal customers are satisfied but not very-satisfied.

Colgate and HLL products have been positioned in the customer's minds

Market leader in the survey area is Colgate-Palmolive brand whereas, Pepsodent & Closeup are competing with 25 % each, so HLL is Market challenger and/ Market follower in this area.

“Findings” from Primary Data Available:

Other brands (Market niche) are overlooked / ignored by the Colgate and HLL companies and if they do so then the companies listed in OTHERS will jump into Market followers list becoz they already getting desirable market share.

The most attractive attribute is the “Quality” rather than packaging, flavor, frothiness and even Price.

Approximately 93 % of the customers without any side effects so “Happy Morning with Happy Brushing.”

Important Preference toward ingredients in toothpaste is Anti-bacterial agent.

Buying toothpaste in Box-set is Better than buying Sachey. On average 30-60 bugs per month per customer.

Most of them switch to another brand if Non-Availability of present one.

The attributes / factors which influences customer’s mindset while purchasing toothpaste is Family (Sentiment) followed by Friends (recommendation/suggestions).

70% of them don’t want to brush >1 time a day.

Routine suggestion to companies: Please try to increase the flavor

In-store advertising, staff and advertisements outside the shop doesn’t show much influence.

Dentist advice, information on packaging, Memories of previous toothpaste purchases & advertisements on TV has much influence over “BUYING BEHAVIOR”.

Focus as well as Cost leadership to be followed by the new firms / and to be continued by the Colgate & HLL firms.

try to have direct promotion through sponsoring & free dental checkups‘ & have contacts with dentists Instead of more and more focusing on the promotion on TV.

discounts are important factor

Main mantra for the companies to be successful is to satisfy the consumers and develop brand image and brand loyalty amongst them

Recommendations:

THANK U

DMS-MBA : 2nd Year B-Section