MARKETING RESEARCH REPORT ON

“STUDY OF CONSUMER ORIENTATION”

FOR

MESWAK TOOTHPASTE

BY

AKASH KUMAR LAL (03)

&

VIVEK GUPTA (106)

Under the supervision of

Prof. VIJAY NAGRANI

NEW DELHI INSTITUTE OF MANAGEMENT

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062

E-mail: info@ndimdelhi.org Website: www.ndimdelhi.org

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EXECUTIVE SUMMARY

Toothpaste industry has grown immensely in the Indian scenario. There is a cut-throat competition in the industry mainly between different major player viz. Colgate, HUL, Dabur etc. The companies are coming up with new schemes as well as products to lure the customers. The usage of toothpaste has grown because of the lifestyle and the way the individuals are living i.e. more awareness about health.  Colgate is going ahead with almost 60% of the market share in the industry.

The title of the project is “Study on consumer buying behavior in the toothpaste industry”.

The objective of the study is to “Study the consumer buying habit” and “to study the toothpaste brands to identify important parameters for customer”. The questionnaire methodology was adopted and the direct personal investigation was conducted in order to have their view on toothpaste. The area of the study was restricted to New Delhi and 10 respondents were contacted.

The firms are more and more focusing on the promotion and they are spending a lot of money on this front. Customers are also becoming demanding now-a-days and it is seen that many attributes are important for the success of a particular brand. The firms are going in for new launches.It is found that the discounts are important factor. Another important factor is brand image or brand name. The project provided an opportunity to know about a competitive segment and how consumers behave in that segment. It also provided an insight into the toothpaste industry and the attitude and perception of the consumer in that segment.

The brand chosen for the study is Meswak Toothpaste.

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S.No.

CONTENTS PAGE NO.

01 EXECUTIVE SUMMARY 02

02 COMPANY BACKGROUND 04

03 INDUSTRY OVERVIEW 05

04 CONSUMER BEHAVIOR 07

05 OBJECTIVE OF THE STUDY 08

06 RESEARCH METHODOLOGY 09

07 PRIMARY ANALYSIS 12

08 KEY FINDINGS & CONCLUSIONS 17

09 SUGGESTIONS &

RECOMMENDATIONS

18

10 ANNEXURE 19

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COMPANY BACKGROUND

Segmentation/Target: Meswak was first launched in 1988 and generated with a rare combination of ancient scripture and modern science. It basically targets consumers seeking natural benefits in their toothpaste and is used by vegetarians, religious and health conscious people.

Positioning:

• Attribute based positioning: The astringent and bactericidal properties of Meswak help reduce tooth decay, fight plaque and prevent gum disease. Imagine Toothpaste that's a rare combination of Ancient Wisdom and Modern Science. Imagine Toothpaste containing a natural herbal ingredient in renowned ancient scriptures, and provided 70 different health benefits for the entire body. This Toothpaste is scientifically proven to help strengthen gums, prevent tooth decay, eliminate bad breath, and ensure strong teeth all at once.

• Emotion based positioning: Some of the ad slogans of Meswak are:“Sadiyon ka khazana ab aasan hai apnana” in 1998,“Meswak apnaiye, vishwas phelaiye” in 1999,“Formula sirf Bharat ke pass hai” in 2002

These taglines cater to emotional based positioning promoting that consumers will beproud to use an Indian brand. Hence, competing with multinational brands

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INDUSTRY OVERVIEW

Indian oral care industry (including toothpaste and toothpowder) is about Rs. 35 billion.Colgate and HUL contribute around three fourth of the total market. Other major players include Dabur and Anchor group together contributing around 15% of total market.

HUL46%

Colgate25%

Dabur12%

Anchor4%

Others13%

Oral Care Industry Market Share

HULColgateDaburAnchorOthers

Major Players

Company Brand ProductHUL Close-Up Close-Up Red

Close-Up BlueClose-Up Green

Pepsodent Pepsodent GPepsodent 2 in 1Pepsodent RegularPepsodent Whitening

Colgate-Palmolive Colgate Colgate Dental creamColgate TotalColgate Max Fresh GelColgate kidColgate Fresh Energy

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Colgate CibacaCompany Brand ProductColgate-Palmolive Colgate Colgate active SaltDabur Promise Promise

Babool BaboolMeswak Meswak

Himalaya Himalaya Himalaya Dental Cream

Ajanta Dentostrong DentostrongDentocare DentocareDentofresh Dentofresh Gel

Ayucare Ayucare Neem toothpasteVardhaman Chemicals

Amar Regular

StrongWhite Toothpaste

Vicco Labs Vicco VajradantiVajradanti Sugarfree

GSK Aquafresh AquafreshLG Cliden ClidenAnchor Anchor Fluoride Herbal

Fluoride KidzFluoride Multi-protectionSensicareGelFluoride ToothpasteAnchor Toothpaste

Forhans Forhans

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CONSUMER BEHAVIOR

World over the oral care market is largely represented by toothpaste and toothbrush. Other products in this category include mouthwash, sprays and oral rinses. In India, there is a significant presence of toothpowder as well. Many other people in India still clean teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients. Recent studies have indicated dual usage (powder and paste) in 10% of rural households. The younger generation is increasingly shifting to toothpaste even in rural areas. In relative terms, penetration of toothpowder is higher in North and toothpaste in South. This could be due to higher education, purchasing power and urbanization in theSouth India. Indian urban toothpaste per capita consumption is about 92 grams per month compared to 219 grams of China; and only 7% of Indian urban class brush twice a day compared to 86% in Malaysia. Thus there is tremendous scope for growth of doing business in India. Toothpaste industry growth has been low as compared to other products. For market leader Colgate, in 2007 growth had been around 12%. For same brands like Babool the market growth was as high as 50%. As per India Infoline Sector report, about 60% of toothpaste in India is sold on family platform; there is single toothpaste for the entire family. Specialized toothpaste such as for children has been available in India only in last 2-3 years (mainly imported products) and usage is extremely low. About 35% of toothpaste is sold on cosmetic propositions. These are targeted mainly at young consumers and upper urban class on the proposition of fresh breath, white teeth and functional benefits of controlling plaque, preventing cavity etc. There is a niche market (5% of total) for toothpaste with therapeutic benefits. Toothpaste is also segmented based on product attributes as White, Gel, Herbal, etc. Some products are also available as a combination of both Whites and Gel. World over toothpaste positioned on anti-cavity platform, contains fluorides. Excessive usage of fluoride can cause a disease called Fluoresces, to which children are particularly vulnerable. In India, there is a strong societal aversion to fluoride toothpaste. Price wise, toothpastes can be segmented as Economy, Regular and Value-added segments. The price range varies from Rs.15-20 for a 100 gm pack in the economy segment to Rs.30-35 for a 100 gm pack in the Regular Segment to Rs.50 for a 100 gm pack in the medicated/value added segment.

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OBJECTIVE OF THE STUDY

The primary objective of conducting this study was to analyze the entire procedure behind the branding of Meswak and whether it creates the desired impression in consumer’s mind. We also try to understand the competitor’s strategies and its image in customer’s mind. We have carried out a primary survey to throw more light on consumer’s insight.

Sub-Objectives:

To know about Brand awareness.

To know about the factors that influence the consumers decision to buy a particular brand of tooth paste.

To know about the attributes that consumers look for in a tooth paste brand, when he/she buys for himself/herself.

To know about the possible reasons that lead to brand switch over.

To study the Consumer Buying habits in Toothpastes. 

To study the various factor and identify important parameters for customer acceptance.

To plot popular Toothpastes Brands on the perceptual maps.

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RESEARCH METHODOLOGY

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PRELIMINARY INVESTIGATION:

This phase involved preliminary investigation of the various factors which possibly affects the customer’s preferences towards the various available brands. The secondary data gathered was analyzed to understand the current market scenario, brands available & USPs of different brands.

Collection of Quantitative Data:

Questionnaire Design:

This phase involved the design of the questionnaire on the basis of the potential factors identified as influencing the customer’s preferences. Research problems were listed and then the information needed was identified. The questions were then prepared in order to fulfill the information requirements as identified earlier.

Survey:

There are various methods available for collection of data. In this respect, Mall- Intercept Survey was conducted for the respondents. Due to the shortage of time, a few Telephonic Interviews were also conducted to maintain the diversity in data.

The Mall Intercept survey was chosen because of the following reasons:

High flexibility of data collection: We interacted with the respondents directly, so that the questionnaire can be administered without any complexity or difficulty;

Diversity of questions: There was moderate variety of questions to be asked from the respondents;

Sample control: Mall intercept survey was helpful to reach the specified units/respondents effectively and efficiently.

Quantity of data: A high amount of data was required regarding expectations and actual delivery of services.

SAMPLING PROCESS:

Target Population:

The target population is the collection of elements or objects that process the information sought by the researcher and about which inferences are to be made. The population included the Aged (Parents) and the Young (Students).

Sample Size: It denotes the number of elements to be included in the study. The sample size chosen is 45.

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Sampling Technique:

Eligible respondent:

Although we were targeting one and all but still our special preference was for them who were a regular user of toothpaste and holds some knowledge about the brands available in the market and a potential customer to the present dynamic environment.

Sampling element:

The individuals who would give appropriate responses to the questionnaire are the sampling element.

FIELDWORK:

Once the questionnaire has been successfully designed, then begins the process of fieldwork, wherein the actual information is obtained from the respondents. The aim of the survey was to understand consumer’s preferences towards choosing a particular brand, and the multiplicity of factors that lure to shift brands. Along with it, past experiences of using a particular brand and any consequences or issues caused by it and their opinion for any toothpaste company to boost up the sale was also accorded due consideration.

PLANS FOR ANALYSIS OF DATA:

Once all the data has been collected from the respondents, next begins with the actual analysis of data. Under this analysis of data, the methodology adopted is:

1. Questionnaire Checking/ Editing: The questionnaire is checked for completion and interviewing quality. Editing is the review of the questionnaire with the objective of increasing accuracy and precision.

2. Collection Analysis of Data: The next step is the assimilation of data. The primary data assimilated is then analyzed through the employment of frequency charts, pie charts and bar graphs.

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PRIMARY ANALYSIS

Analysis of the Response

Given below are the graphical representations of the responses received on questions asked through the questionnaire. The interpretation derived and the model adopted will be explained in detail in the later part of the report. On asking the following questions, the replies were received accordingly: 

1. Which is your favorite brand of toothpaste?

Colgate24%

Close-Up26%

Pepsodent32%

Meswak

8%

Others10%

Favorite Brand

ColgateClose-UpPepsodentMeswakOthers

2. What attracts you to the product you choose?

Packaging18%

Flavor26%

Frothiness10%

Price21%

Quality25%

Attracting Features

PackagingFlavorFrothinessPriceQuality

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3. Have you ever had any side-effects using a particular brand of toothpaste? 

Yes4%

No96%

Side Effect

YesNo

4. What are preferences toward ingredients present in your toothpaste? 

Abrasive20%

Fluoride8%

Anti-Ba-terial Agent21%

Colors24%

Foaming Agents

25%

Others1%

Preferences

AbrasiveFluorideAnti-Baterial AgentColorsFoaming AgentsOthers

5. In what way do you prefer buying toothpaste? 

Box-Set58%

42%

Preffered Buying

Box-Set

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6. Approximately how much do you spend on toothpaste in a month? 

0-3029%

30-6044%

60-904%

90-1207%

120 & above16%

Spending On Toothpaste

0-3030-6060-9090-120120 & above

7. What do you think results in healthier teeth?

Times49%Way

51%

Reason for Healthier Teeth

TimesWay

8. I would switch to another brand, possibility for one or more of the following reason.

Price Rise26%

Better Packaging

11%Schemes Offered24%

Adver-tisements

8%

Non-availabilty

24%

Other's Influence6%

Reason For SwitchingPrice RiseBetter PackagingSchemes OfferedAdvertisementsNon-availabiltyOther's Influence

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9. If you ever had any dental problems what steps did you take to improve them? 

Prescribed Toothpaste

51%

Never ac-

quainted49%

Steps Against Dental Problem

Prescribed ToothpasteNever acquainted

10.Have you ever used Meswak toothpaste?

Yes20%

No80%

Used Meswak

YesNo

11.How would you suggest toothpaste companies to increase sales? 

On asking this question almost every respondent advised to improve the quality and reduce the price. Aggressive selling was also a major recommendation.

Those respondents using or those who have used Meswak recommended reducing price and making its availability at a hand distance. Apart from it there were also lots of suggestions for improvement in taste and availability in sachets.

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12.Do you brush your tooth twice a day?

Yes51%

No49%

Twice Brushing

YesNo

13.Which age bracket do you belong to? 

12 to 1611%

17 to 2124%

21 and above64%

Age Bracket

07 to 1112 to 1617 to 2121 and above

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KEY FINDINGS & CONCLUSIONS

Pepsodent is the most commonly used brand although Colgate ranks 2nd in the race followed by close-up and Meswak;

Flavor is the most luring feature. However Quality and price are also accorded due consideration;

As per the investigation done and data collected a very marginal number of people has been contracted with any side-effect by using any particular brand, however they didn’t disclose the name of brand;

Talking about the preferences towards ingredients maximum people supported Fluoride content, Anti-bacterial and foaming feature in their brand. However colors and other features were ranked 5th and 6th respectively.

Maximum 58% people prefer to buy Box-sets against loose sets.

Rs. 30-60 is the common range that is usually expended by the maximum respondent. However some high earning group and Joint family people also spend more than Rs. 100 on toothpaste in a single month.

On asking about the reason for healthier teeth , maximum respondent mentioned the proper way of brushing.

Schemes offered by the different companies are the major reason behind switching to the other brand.

Although majority of respondent prefer to use the prescribed toothpaste by the dentist, however maximum people could not keep their consent as they never contracted any dental problem.

It was shocking to note that only 20 % have used Meswak toothpaste and the reason for the same was lack of knowledge, high price and irregular and limited availability.

It was positive to note that maximum 51% of the respondent brush their teeth twice a day.

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SUGGESTIONS & RECOMMENDATIONS

Meswak needs to create more awareness. They can hold free dental

camps, workshops, sponsor events etc.

As a brand name, it is good, but if it will enhance its distribution

strategies and reach to the villages also, like Colgate, then it could also

become a Pan-India brand.

Brand loyalty plays an important part in this product. Constant resonance

is to be generated among customers, so that they remain brand loyal to

Meswak.

Needless to say, taste, freshness and benefits could be enhanced.

Its unique price strategy which is comparatively higher than others is a

major constraint in its mass acceptance.

It could come in various sizes that suit everyone’s pocket.

If Meswak could also get a certificate from some kind of dental

organization, then definitely the users will switch to Meswak.

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ANNEXURE

Questionnaire

1. Which is your favorite brand of toothpaste? □ Colgate □ Close-Up□ Pepsodent□ Meswak □ Other (pls. specify) _________________ 

2. What attracts you to the product you choose? a. Packaging (tube, box color) □ Yes □ No b. Flavor □ Yes □ No c. Frothiness □ Yes □ No d. Price □ Yes □ No e. Quality □ Yes □ No 

3. Have you ever had any side-effects using a particular brand of toothpaste? 

□ Yes (pls. specify) ___________ □ No 

4.What are preferences toward ingredients present in your toothpaste? □ Abrasives (for removal of plaque and tartar) □ Fluoride content (prevents decay) □ Anti-bacterial agents □ Colors (red, blue, green etc.) □ Foaming agents □ Other (pls. specify) _________ 

5. In what way do you prefer buying toothpaste? □ Loose Set □ Box-sets 

6. Approximately how much do you spend on toothpaste in a month? Rs._____________ 

7. What do you think results in healthier teeth? : □ The number of times one brushes his teeth □ The manner/thoroughness in which one brushes his teeth 

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8. I would switch to another brand, possibility for one or more of the following reason:□ Price rise of current brand□ Better packaging of another band□ Scheme offered by another brand□ Advertisement Impact□ Non availability of my brand□ Influence by others

9. If you ever had any dental problems what steps did you take to improve them? □ Doctor’s prescribed toothpaste □ I’ve never had a dental problem □ Other (pls. specify _____________________________________________) 

10. Have you ever used Meswak toothpaste? □ Yes □ No

11. How would you suggest toothpaste companies to increase sales? __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________  

12. Do you brush your tooth twice a day? □ Yes □ No 

13. Which age bracket do you belong to? □ 7-11 □ 12-16 □ 17-21 □ 21 and above 

14.What is your total monthly: 

□ Income ____________□ Expenditure____________________

Personal Details20

Date_______________

Name of respondent: ________________________________

Gender: □ Male □ Female 

Contact Number: ____________________________________

Occupation: ________________________________________

Address:__________________________________________________

__________________________________________________

__________________________________________________

Signature___________________

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