Consumer-Buying-Behavior-on- Consumer Buying Behavior on Toothpaste

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  • A MARKET RESEARCH PROJECT ON TOOTHPASTE

    Submitted by: Priyanka Saha Siddharth Mukul Baruah

    Suraj Rajagopalan

    Sankhadip Chatterjee

    In partial fulfilment for the award of the degree

    Of Post Graduate Programme in Business Administration (Phase1)

    Indo German Training Centre

    Quantitative Methods

    Project coordinator- Mohit Jain

    October-2011

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  • Analysis of Buying and Disposing Behaviour of Toothpaste amongst Consumers

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    Index Page No.1.Introduction 32.An Overview of The Toothpaste Market in India

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    3.Summary 54.Acknowledgement 66.Case studya) formulation of questionnaireb) the survey experiencec) data inferred

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    5.Objective of study 127.Research Methodologya) Type of researchb) Source of datac) Data collection methodd) Sampling

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    8.Data collection 159.Findings-Data Analysis and Data Interpretationa) buying frequencyb) package sizec) buying locationd) purchase influencee) usage longevityf) areas to improveg) brand loyaltyh) switch simulatori) brand imagej) source of brand awarenessk) Annova testing (age vs brand preference)l) occupation vs brand

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    9.Limitations 3410.Suggestions and Recommendations 3612.Conclusion 3713. Bibliography 38

  • +IntroductionConsumer is king the statement carries profound truth in it. Today

    the success of any firm depends upon the satisfaction of customers. For satisfying the consumers the firm should know about the behaviour of the

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  • consumers. In these circumstances understanding consumer is a very difficult task because of the changing technology, innovation, and changes in life style. Researchers conducted many research in this area, and they have given only few suggestion, but there is no final conclusion. It is difficult to classify consumers by conventional demographic factors and unless their thought process and buying behaviour are fully understood, decisions on product designs and packaging, branding and distribution channels are likely to be misplaced. With the inevitability of change looming large over the horizon, Indian companies must learn from their western counterparts; not only to identify the sources, timing and direction of the changes likely to affect India, but also the new competencies and perspective understanding the external factors like demographic, social that will enable them to respond to these changes, comprehensively and effectively. This study mainly focuses on price, quality, and product attributes etc. for buying toothpaste. The market share of any product is highly determined by the purchasing behaviour of the consumers. Following study is to find out the behaviour of the consumers, to analyse the preference of consumers, & consumer awareness in the toothpaste market.

    An Overview of Toothpaste Market in India Toothpaste market in India is worth Rs. 2200 crores (2006).

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  • 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%. Rural: 39% Urban: 75% 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 crores. Toothpaste accounted for a whopping 83% of value sales.

    HLL's market share in the dental care market has grown from a mere five per cent in 1979 to an impressive 36 per cent today, whereas Colgate-Palmolive has been seen its market share decline from a dominating 75 per cent to a struggling 56 per cent.

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  • SummaryWe,a group of four people had been assigned a project on the market survey of a F.M.C.G product i.e toothpaste. We were hired by a reputed market research agency to conduct a survey on the consumer buying behaviour of toothpaste according to the present scenario of the toothpaste industry. The purpose of the survey was to project the condition of the market in the toothpaste industry as a new product will be launched by the Himalayan company .As per previous research made by the company the penetration of toothpaste is very high in eastern regions of the country so, we were supposed to conduct the survey in Kolkata.

    In the survey we were told to approach 100 respondents from various parts of the city and make a study on their buying and disposing behaviour. Consumers make many buying decisions every day. Most companies, research consumer buying decisions in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behaviour is not so easythe answers are often locked deep within the consumer's head.

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  • Acknowledgement

    We sincerely want to thank our faculty and project co-ordinator Mr Mohit Jain for giving us the opportunity to work in this project. We thank him for extending his full co-operation for completion of the project.

    We also like to thank our programme director Mrs Sabina Pandey for extending her co-operation and encouraging and giving us full moral support for completion of the project.

    Lastly we would like to thank and extend our heartiest gratitude to all the 100 respondents without whose time, support and co-operation the project could not have been possible.

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  • CASE STUDYWe are True Find Market Research Agency and we recently conducted an independent market research on the 4th largest FMCG industry in India, the toothpaste industry. The study conducted was focused towards finding out the buying and disposing behaviour of people regarding toothpastes in various parts of Kolkata Mega City. The data collection areas were mainly in and around Bangur in North Kolkata to Ruby, Kasba, Santoshpur, Gariahat, Tollygunj in South Kolkata.

    Another aspect of this research is to find out what prospects a new company has in this industry and what should their approach be like while entering this huge market of toothpaste industry that is worth about Rs.2500 crores and is already dominated by age old major players. We have also tried to find out new innovations that could be worthwhile coming up with or even to revamp an existing product in the market.

    This study was conducted through a period of about 1 month and the sample size consisted of 100 people of various age groups and different occupations. Data collection method was a questionnaire consisting of 15 strategically designed questions and the respondents were toothpaste buyers from a local shop through super markets.

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  • Formulation of the questionnaire:The first few questions were attempted towards finding out the buying

    behaviour of the people. Later people were questioned not only about their tastes, preferences and their perceptions about a variety of brands but also were tested on their brand loyalty of the current brand they are using. After which we have also tried identifying the various marketing methodologies that can be explored by various companies for better marketing of their products.

    The design of the questionnaire can be understood as follows. The first question was about the frequency of the buying and since all questions were supposed to be closed ended ones, we were limited to providing four options such as weekly, monthly, fortnightly and when they feel the need. This was question was basically designed to find out the rate at which the toothpaste sold. Next question was targeted to know the place from where the toothpaste was bought which consisted of the options- local shop, supermarket, medical store and general store. We wanted to know the place from where majority of the people preferred to buy their toothpaste. Then came the strategic question on the most influential parameter which decided the buying pattern of a certain brand of toothpaste and the options were retailer, family tradition, flavour, advertisement and looks or packaging. This question would basically help us understand the parameter which affected a certain purchase decision. Following question was to know the exact brand preference of a particular individual which consisted of four major brands Colgate, close-up, Sensodyne and Pepsodent. Next, question was about brand loyalty and where we wanted to know the period of time for which a person had used a particular brand of toothpaste. Hence loyalty was based on people who would use toothpaste for more than a year and disloyalty was based on people who would choose the option for more than a year. Following question was to know the kind of improvisation that people wanted in their current brand despite the brand being their favorite and its options were based upon the following attributes such as color,

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  • flavor, more fluoride content and better foaming. Next we wanted people to rank all four brands of toothpaste based on perception on the following attributes Breath freshening, cavity prevention, enamel protection, teeth whitening and taste. The ranking scale was provided from 1 to 5 where 1 stood for most liked and 5 for most disliked. This was followed by a question which went like this would you try out a new brand brought out by a new company and the options were yes, no and maybe. Using this we could categorize people based on all who chose yes and maybe taken