INTRODUCTION

Research Report

On

COSTOMER SATISFACTION TOWARDS THE COLGATE

Submitted in partial fulfillment of the requirement for the degree

Master of Business AdministrationSession-2014-2015

DECLARATION

I Devi dayal vishwakarma hereby declare that the research report entitled COSTOMER SATISFACTION TOWARDS THE COLGATE Submitted in partial fulfillment of the requirement for the Award of the degree of MBA. It is the original work of mine and not submitted for the award of any degree or similar title or prize.Devi dayal vishwakarma

MBA IV Semester

Roll No.-1364170012PREFACE

The report research is based on customer satisfaction towards Colgate toothpastes. We carried quite in one of the concern of Colgate thought me. The research report consists of description of the concept of Advisor recruitment. In this research report we also apply research methodology, the interpretation & analysis of the questionnaire gives the final result & conclusion.

Devi Dayal Vishwakarma

MBA 2ND YEAR.

Roll No.-1364170012ACKNOWLEDGEMENTThis research report of mine has imprints of all those who formally or informally helped me to developed it. My hearties thanks to all of them.I hereby express my heartiest gratitude to my research report guide, Mr. Mr.Rajendra Tiwari, assistant prof., for giving me an opportunity to complete my project report under his supportive guidance. I am very grateful to him for his valuable suggestion and for sharing with me his past experience related to the project.

I am also very thankful to our Director of Ashoka institute of technology and management pahariya Varanasi, Prof. P.S. dubey for his generous cooperation and guidance without which it would not have been possible for me to complete my work.

I also thankfull to all my faculty members, all my friends and the people who are directly or indirectly related to project and helped me out for completing my work successfully.

Devi Dayal Vishwakarma

MBA 2ND YEAR.

Roll No.-1364170012CONTENTS INTRODUCTION ...02

COMPANY PROFILE.05

PRODUCT AND SERVICES..54

COMPETITOR................................60

SWOT ANALYSIS...65

COMPARATIVE STUDY....68

OBJECTIVE OF STUDY.77

RESEARH METHODOLOGY..79

QUALITATIVE ANALYSIS.82

SUGGETION..95 CONCLUSION...98 LIMITATION..........................100

QUESTIONNAIRE.102 BIBLIOGRAPHY...10

INTRODUCTIONWILLIAM COLGATE1783-1857

As early as 3000 B.C. Egyptians used toothpastes 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 toothpastes were widely viewed by consumer as a commodity and were primarily purchases on price. The involvement remained low and the companies also treated their toothpastes as an extension, to get their consumers to use their toothpastes. Typically in the Indian market the percentage of toothpastes 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. Colgate Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, healthcare and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes).

Under its Hills brand, it is also a manufacturer of veterinary products. The companys corporate offices are on Park Avenue in New York City, across from the Waldron Astoria.

In India, it operates under the name as Colgate-Palmolive (India) limited and its head office is at Mumbai.

Colgate Palmolive is a $10.6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable.COMPANY PROFILECompany name Colgate Palmolive Ltd.

Date of Establishment 23-09-1937

Revenue 632.253 (USD in Millions) Market Cap 111160.5286158 (Rs. In millions)Corporate Address Colgate Research Centre,

Main Street

Hiranandani Gardens

Powai, Mumbai-400076,

Maharashtra

www.colgate.co.inManagement Details Chair person - J Skala MD R D Calmeyer

Directors Derrick Samuel, J K Setna, Skala,

K V Vaidyaanathan, M Elias, PK

Ghosh, R A Shah, V S Mehta

Business Operation Household &Personal Products

Background Colgate-Palmolive is Rs 1.300 crore companies Started in year 1937. In Rs 2,400 crore

Domestic market it enjoys 50% of markets

Share. It spread across 4.5 million retails

Outlets out of which 1.5 million are direct

Outlets.

Financials Total Income Rs 20606.60 Million (year

Ending Mar 2014)

Net Profit Rs 4232.60 Million (year Ending Mar

(2014)Company Secretary Niket GhateCOLGATE PALMOLIVE INDIA Headquarter in Mumbai. Annual Turnover around 1100 corers. Market leaders in oral care. Colgate consistently won India no 1 brand of the year award from last three Years. Colgate ranked among best employer in India. Customer base of more than 8 lacks retailers. Serviced by company field force, more than 1800 stockiest & super stockiest & their field force.Colgate is the brand that people trust, for complete oral care protection for themselves and ones they love.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 is marketed under various brand names such as Colgate, Palmolive, Halo, Protex and Charmis. The companys distribution network covers 1700 stockiest 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 totaled $ 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 HISTORY 1806 - William Colgate starts a starch, soap and candle business on Dutch Street in New York City.

1817 - First Colgate advertisement appears in a New York newspaper.

1820 - Colgate establishes a starch factory in Jersey City, New Jersey.

1857 - Upon the death of founder William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son.

1873 - Colgate introduces toothpaste in jars.

1879 - Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the Mennen Company.

1896 - Colgate introduces toothpaste in a collapsible tube.

1902 - Stylish Colgate advertising begins, emphasizing ingredient purity and product benefits.

1906 - Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products.

1911 - Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.

1914 - Colgate establishes its first international subsidiary in Canada.

1930 - On March 13, Colgate is first listed on the New York Stock Exchange.

1939 - Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy from kidney disease. This breakthrough leads to the first Hill's Prescription Diet product.

1956 - Colgate opens corporate headquarters at 300 Park Avenue in New York City. 1968 - Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities. 1972 - Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals. 1985 - Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley & Hazel, a leading oral care company, which adds strength in key Asian markets. 1989 - Annual Company sales surpass the $5 billion mark. 1995 - Colgate enters Central Europe and Russia, expanding into fast-growing markets. 1997 - Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems. 2004 - Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community. Today Today, with sales surpassing $15 billion, Colgate focuses on four core businesses: Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in over 200 countries and territories worldwide.

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 centering 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 toothpastes market, estimated at 400 million units per annum. C-P is the toothpastes 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

..... Optimize cost and formulation and the processes 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.SEGMENTATIONThe toothpastes industry can be regarded as a component of the Oral Care industry which broadly comprises tooth paste, mouth wash and floss, besides toothpastes 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 toothpaste industry can be segmented in the basis of social class & income group (Demographic Segmentation), price (Product segmentation), benefit (behavioral segmentation), the last being the most important.

DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE

Segment CategoryBrands Characteristic

Low income rural classEconomyPromise, CibacaLooking for low price

Middle income group semi urban consumer StandardColgate Classic Pepsodent popular Value for money

Upper middle income urban consumersPremiumColgate Plus, Classic, Ajay, RoyalHigh quality cleaning efficiency

Upper class urban sophisticate Super PremiumOral B, Aquafresh, Jordan, Close UpUnique, 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 ProductJazzy looks, Transparent handle Flashy colours Superior Packing Simpleton looks, Modest packaging, Solid coloursMix of the two : transparent handle but not very flash packaging.

Urban sophisticateChooses with care, sports it as a status symbol while interacting in group travelsAbhorsAbhors

Semi urban Non Chalant User Aspires for it, but finds it difficult to afford; tries it seldomVery often goes for this as it serves is purpose without much expenditureSome times this

Rural User Does not have access/cant think of Is the only option DatunGenerally cant afford this either

Tooth brushes brandsOral B, Jordan, Aqua fresh etc.Promise, Forhans etc. Cibaca, Ajanta, Ajay etc.

The overall response reflects a gradual move in the direction of the premium to super premium segment as it is once in three months/four months purchase, thus being successful in luring all customers (except the rural user who are a small minority of the Market) to try out the ones that are places at a higher price on account of their trendy looks and overall appeal of style and splendor.

BENEFIT SEGMENTATION

User Characteristic Invalid oral health consumer Therapeutic BrushersInvolved oral health Consumer Cosmetic Brushers Uninvolved Oral Health Consumer Non-chalant Brushers

Product Differentiater Search functionally superior product with many attributes. Search for product that effectively delivers cosmetic benefitsViews products as same Lack of interest

Advertising appeal Put off by hard sell Prefers dentist recommendation or informed opinionInfluenced by promotion, hammering on a USP Relatively unaware of ads can at most be influenced by price offs, package deals

Buying behaviourBuys for himself, will go to a specialised storeBuys and uses for himself. Will not go beyond a large shop, supermarketBuys for family., will pick up any brand available.

Regularity of usageBrushes after every meal Brushes mostly once, sometimes twiceAt most once a day

Brand loyaltyHighLow Nil

Price (Willing to pay)>2015-20