DISSERTATION: Consumer Buying Behavior of Toothpaste Brands in Kolkata


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DISSERTATION OBJECTIVES:- The purpose of the study is
1. To examine the external factors influencing purchase decisions
2. To examine the consumer awareness of toothpaste
3. To find out how promotional schemes are influencing the consumers
4. To examine how the product attributes influencing the consumer buying toothpaste

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DISSERTATION: Consumer Buying Behavior of Toothpaste Brands in Kolkata

  1. 1. Page |0 TABLE OF CONTENTS CONTENTS PAGE NO. Abstract 1 Introduction 2 Indian oral care industry 3 Problem Definition 4 Objectives 4 Research Methodology 5-6 Instrument Design 7Data Analysis & Interpretation 8-20Conclusion & Recommendation 21 Limitation 22 Bibliography 22 Annexure (Questionnaire) 23-26
  2. 2. Page |1 ABSTRACT„Consumer is king‟ –the statement carries profound truth in it. Today the success of any firmdepends upon the satisfaction of consumers. For satisfying the consumers the firm should knowabout the behavior of the consumers. In these circumstances understanding consumer is avery difficult task because of the changing technology, innovation, and changes in life style.As per the ideas given by the researchers, there are two factors influencing the consumers suchas intrinsic and extrinsic factors. It is difficult to classify consumers by conventionaldemographic factors and unless their thought process and buying behavior are fully understood,decisions on product designs and packaging, branding and distribution channels are likely to bemisplaced. With the inevitability of change looming large over the horizon, Indian companiesmust learn from their western counterparts; not only to identify the sources, timing anddirection of the changes likely to affect India, but also the new competencies andperspective that will enable them to respond to these changes, comprehensively andeffectively. This study mainly focus on understanding the external factors like demographic,social, cultural ,price, quality product attributes etc for buying toothpaste. The market share ofany product is highly determined by the purchasing behavior of the consumers. Following studyis conducted by me to find out the behavior of the consumers, to analyze the preference ofconsumers, & consumer awareness. Descriptive research design was adopted and the data iscollected through primary and secondary sources. The method adopted for conducting surveyis questionnaire; Simple random sampling technique was adopted for selecting the consumers.
  3. 3. Page |2Introduction:Consumer behavior is stated as the behavior that consumer display in searching for, purchasing,using, evaluating, and disposing of products, services and ideas that they expect willsatisfy their needs. The study of consumer behavior is concerned not only with what consumersbuy, but also with why they buy it, when and how they buy it, and how often they buy it.It is concerned with learning the specific meanings that products hold for consumers. Consumerresearch takes places at every phase of consumption process, before the purchase, duringthe purchase and after the purchase. According to Philip Kotler defined consumer behavior as “all psychological, socialand physical behavior of potential customers as they become aware of evaluate, purchase,consume and tell other about products and services”. The scope of consumer behavior includes not only the actual buyer and his act ofbuying but also various roles played by different individuals and the influence they exerton the final purchase decision .Individual consumer behavior is influenced by economic,social, cultural, psychological, and personal factors.
  4. 4. Page |3 Indian Oral Care IndustryMany people in India still clean their teeth with traditional products like neem twigs, salt, ash,tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is adismal 82gms.The dentist to population ratio is a critically low 1:35000 in the country. Thisresults in low oral hygiene consciousness and widespread dental diseases. Less than 15% of theIndian toothpaste users brush twice a day. Colgate and Hindustan Lever together account forover 85% of the organized toothpaste market. Red and Black toothpowder still accounts for 35%of the toothpowder market. In toothpowders, Colgate and Dabur are the leading playerssharing between them 75% of the market.ToothpasteThe toothpaste market is characterized by the presence of few large multinationalcompanies like Colgate Palmolive India Ltd, Hindustan Lever Ltd, Procter & Gamble ,SmithKline Beecham.Consumer health care and a handful of Indian companies such asDabur,Anchor Health and Beauty Products ,Vicco Laboratories etc. Traditionally, Colgate andHUL were the main players in the toothpaste market of white and gel form. Then Procter &Gamble joined the market. Domestic Indian companies like Balsara and Vicco industries usedto produce the ayurvedic range of toothpaste along with their other ayurvedic products.Anchor Company that was more famous for its switching products, made a successful foray into this sector, by launching toothpaste and positioning itself as first 100% vegetariantoothpaste companies such as Dabur and Baidyanath operated in the toothpowder market.
  5. 5. Page |4Problem definition :-Objectives:-The purpose of the study is 1. To examine the external factors influencing purchase decisions 2. To examine the consumer awareness of toothpaste 3. To find out how promotional schemes are influencing the consumers 4. To examine how the product attributes influencing the consumer buying toothpaste
  6. 6. Page |5 Research Methodology:Research methodology is the process of solving the problem systematically by research. Theobjective of the study is to solve the problem by using available data.Research Design:Research design is a detailed blue print used to guide the research study towards itsobjectives. Marketing research can classify in one of three categories: - Exploratory research Descriptive research Causal research These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories. Exploratory research: - has the goal of formulating problems more precisely, clarifying concepts, and gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Descriptive research: - is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. Descriptive research can be either quantitative or qualitative. It can involve collections of quantitative information that can be tabulated along a continuum in numerical form, such as scores on a test or the number of times a person chooses to use a-certain feature of a multimedia program, or it can describe categories of information such as gender or patterns of interaction when using technology in a group situation. Descriptive research involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection. It often uses visual aids such as graphs and charts to aid the reader in understanding the data distribution. Because the human mind cannot extract the
  7. 7. Page |6 full import of a large mass of raw data, descriptive statistics are very important in reducing the data to manageable form. In this study I used Descriptive research design which is appropriate for my study. Causal research: - seeks to find cause and affect relationships between variables. It accomplishes this goal through laboratory and field experiments.Sample techniqueSample is the fraction of the population; sampling is a technique or a method of selection ofsamples. Simple random technique is used for carrying out this research.Simple random sampling:Simple random sampling method, it is assumed that each and every unit in thepopulation has equal chance of occurrence or equal probability of occurrence. In other wordsthe sampling units are selected randomly. An unbiased random selection of individuals isimportant so that in the long run, the sample represents the population. However, this doesnot guarantee that a particular sample is a perfect representation of the population.Simple random sampling merely allows one to draw externally valid conclusions aboutthe entire population based on the sample.I have taken 80 samples randomly from the total population.Primary sources of data collected through questionnaire.Secondary sources of data collected through magazines, journals and website.Sampling plan:Sample size-80Sampling unit –Buyers of toothpasteExtent-KolkataType-Convenience
  8. 8. Page |7 Instrument DesignResearch tool: For collecting primary data, a structured questionnaire has been used asresearch tool in the study. It is the most popular method used when the population andsample size are large. A questionnaire includes a number of questions, printed in propersequence, for presenting to respondents for their answers. Each question is contributingto research objectives. Questionnaire was designed with most of closed ended questions andonly few open ended question. It was designed to cater to all areas and aspects of the study.Technique of survey & data collection: Personal interview is the method of contact used with the respondents.Personal interviewing method is used because sample size is relatively small and interviewercan ask more questions.Tool for data analyzing : After the data were collected in the questionnaire from the primarysources(respondents) all data have been represented and interpreted through GraphicalMethods. Based on the analysis necessary recommendations and conclusion have beengenerated.
  9. 9. Page |8 Data analysis and InterpretationThe data has been collected with the help of questionnaire. And it has been analyzed andinterpreted with the help of tables along with relevant descriptions. Appropriate treatment hasbeen done to the raw data and logical conclusions are drawn based on the findings.Table1 1: Demographic Variable Demographic variable Number of respondents Percentage i. Age(Years) a. 7-18 16 20 b. 18-25 24 30 c. 25-30 16 20 d. Above 30 24 30 ii. Gender a. Male 48 60 b. Female 32 40 iii. Educational qualification a. Up to 10+2 20 25 b. Up to graduation 28 35 c. PG/Higher education 32 40 iv. Occupation a. Student 32 40 b. Professional 24 30 c. House wife 8 10 d. Business man 16 20 v. Monthly (Family) income a. Below Rs.5000 8 10 b. Rs.5000-Rs.9000 16 20 c. Rs.9000-Rs.-11000 32 40 d. Above Rs.11000 24 30
  10. 10. Page |9Table 2: Toothpaste Usage RateUsage rate Number of respondents PercentageYes 64 80No 16 20 Toothpaste Usage Rate 100% 80% 60% 40% Toothpaste 20% Usage Rate 0% Yes NoInferences :- With a view to find the usage of toothpaste, the data pertaining to this is presentedin table 2. Based on this survey 80% of the respondents using toothpaste in Kolkata city and20% using like toothpowder and mouthwash etc.
  11. 11. P a g e | 10Table 3: Consumer Brushing PatternBrushing frequency Number of respondents PercentageOnce 48 60Twice 24 30Thrice 8 10 Consumer Brushing Pattern 10% 30% Once 60% Twice ThriceInferences :- With a view to find the brushing frequency of consumer, the data pertaining to thisis presented in table 3.An examination of the data reveals that 60% of the consumersbrushing once, 30% of the consumers brushing twice, and 10% brushing thrice. So thefrequency of brushing was less in Kolkata city, but as per the dentist advice 2 times brushingis compulsory for avoiding dental problem. Normally Indian people are not giving muchimportance to oral care, so the share of oral care industry is less in India when compare todeveloped countries.
  12. 12. P a g e | 11Table 4 : Frequency of PurchasePer month usage Number of respondents PercentageOnce 16 20Twice 40 50Thrice 24 30 Frequency of purchase 30% 20% Once Twice 50% ThriceInferences :- By having a view to find that frequency of purchasing toothpaste, the datapertaining to this is presented in the table 4. An examination of the table reveals that most of theconsumers buying toothpaste twice in a month, more than two times in a month, and once in amonth. Of the respondents 50% of them purchase twice, 30% of the respondents purchase morethan twice and 20% of them purchase once in a month. Based on this study frequency ofpurchasing is based on the brushing habit and members in the family.
  13. 13. P a g e | 12Table 5 : Awareness of Brands Brands Number of respondents PercentageColgate 45 56.25Close up,Pepsodent 20 25.00Dabur 5 6.25Anchor 3 3.75Others 7 8.75 Awareness of Brands 4% 9% 6% Colgate Close up,Pepsodent 25% 56% Dabur Anchor OthersInferences :- With a view to find that awareness of toothpaste brand, the data pertaining to thisis presented in table 5.An examination of the table reveals that most of the people aware ofColgate, Close-up, Pepsodent, Dabur and Anchor. Before some time Colgate was the genericname for toothpaste, this is the main reason, most of the respondents (56%) aware ofColgate. 25% respondents aware of Closeup and Pepsodent (recently launched byHLLcompany),Dabur, & Anchor is a Indian based company have a awareness level of 6%,&3%and ( 8%)respondents aware of by other brands.
  14. 14. P a g e | 13Table 6 : Usage of Toothpaste BrandsUsage of brand so far Number of respondents PercentageTwo 24 30Three 40 50More than three 16 20 Usage of Toothpaste Brands 20% 30% Two Three 50% More than threeInferences :- To identify the usage of different brand, the data pertaining to that ispresented in the table 6.An examination of the table reveals that most of the consumers used 3brands, two brands, and more than 3 brands. Of the respondents 50% of them used 3 brands,30% of the respondents used 2 brands, and 20% of them used more than 3 brands.
  15. 15. P a g e | 14Table 7: Factors Which Makes Consumer to Buy ToothpasteFactors Number of respondents PercentagePrice 32 40Availability 24 30Packaging 12 15Others 12 15 Factors Which Makes Consumer to Buy Toothpaste 15% 40% Price 15% Availability Packaging 30% OthersInferences :- With a view to find the reasons to buy toothpaste, the data pertaining to this ispresented in table 7. An examination of the table reveals that, consumers are influenced by theprice, availability and Packaging. Of the total respondents 40% of them influenced by the price,30% influenced by the availability, 15% influenced by the packaging, and 15% influenced byother factors When the respondents were asked to mention the factors which motivate them tobuy a particular brand of toothpaste their replies are mostly price and availability. For increasing the price of a product the company should consider the viewsof consumer otherwise the consumer switch over to competitor product. Price wise toothpastecan be segmented as economy, regular and value added segment. The price range variesfrom Rs. 15-20 for a 100gm pack in the economy segment. Rs30-35 for a 100gm pack in theregular segment and Rs 50 for 100gm pack in the value added segment. So analyzing economicfactor is an important task for the company to fix the price.
  16. 16. P a g e | 15Table 8: Preference of ToothpastePreference Number of respondents PercentageBrand 32 40Quality 24 30Flavor 16 20Others 8 10 Preference of Toothpaste 10% 40% Brand 20% Quality Flavor 30% Others Inferences :- With a view to find the reason to buy toothpaste, the data pertaining to this is presented in table 8.An examination of the table reveals that, most of the consumers preferred brand, quality, and flavor. In the above table 40% of the respondents preferred brand name,30% of the respondents preferred quality,20% of the respondents preferred flavor, and 10% of the respondents preferred other factors. Brand name played a vital role in selection of toothpaste in Kolkata city. Brand image was considered to be a consistently favorable factor as a risk reliever. Consumer has a more positive attitude toward the product with a brand image than toward the product with no brand image.
  17. 17. P a g e | 16Table 9: Preference of an AttributeAttribute Number of respondents PercentageHealthy tooth & gums 28 35Long lasting freshness 8 10Prevention of tooth decay 16 20Whiteness 12 15Use of normal herbs 16 20 Preference of an Attribute Healthy tooth & gums 20% Long lasting freshness 35% 15% Prevention of tooth decay 10% 20% Whiteness Use of normal herbsInferences :- With a view to find the reasons to buy a toothpaste based on attribute, thedata pertaining to this is presented in table 9.An examination of the table reveals that, most ofthe consumers preferred healthy tooth & gums, prevention of decay, natural herbs, whiteness,freshness, and foam. The above table clearly shows that 35% of the respondent‟s preferredhealthy tooth, 20% respondents preferred prevention of tooth decay, 20%respondents preferrednatural herbs, 15% preferred whiteness & 10% preferred freshness. Based on this study product attributes also influencing the consumers for decisionmaking. Most of the respondents gave importance to healthy tooth and gums, prevention oftooth decay, herbal attribute, whiteness, long lasting freshness, and good foam. So peopleconsider the benefit of the product for buying toothpaste. Large number of families with childrenseriously concerned about the possibilities of cavities and shows a definite preference forfluoride toothpaste. Large group of young married people smoke more than average.They are giving importance to brighter teeth. So analyzing the requirement of people isimportant factor for selling the product successfully in the market.
  18. 18. P a g e | 17Table 10 : Person who Influenced Consumer to Purchase ToothpastePersons Number of respondents PercentageFriends 16 20Kids 12 15Parents 32 40Spouse 16 20Self 4 5 Person who Influenced Consumer to Purchase Toothpaste 5% 20% Friends 20% Kids 15% Parents 40% Spouse SelfInferences :- With a view to find the persons who influenced consumer to purchase toothpaste,the data pertaining to this is presented in table 10. An examination of the table reveal that, thepeople who influenced more are, parents, friends, spouse, kids and self decision. Based onthe above data, 15% kids are influencing the parents for buying particular brand, parents arethe main deciding authority for buying toothpaste(40%), spouse and friends are equallyinfluencing (20%) and 5% decide them self. So reference group also influencing the consumer indecision making.
  19. 19. P a g e | 18Table 11 : Which Mode of Promotion Consumer gets AttachedMode of promotion Number of respondents PercentageAdvertisement 36 45Celebrity 20 25Banner 16 20Others 8 10 Which Mode of Promotion Consumer gets Attached 10% 20% 45% Advertisement Celebrity Banner 25% OthersInferences :- With a view to find out which mode of promotion consumer gets attracted, the datapertaining to this is presented in table 11.An examination of the table reveals that, most ofthe consumers preferred advertisement, celebrity, banners. Majority of the respondents 45%preferred advertisements, 25% of the respondents preferred celebrity endorsements, 20%preferred banners, and 10% preferred other mode of promotion. Advertisement creates attentionand stimulates the consumer to buy a particular brand. In recent circumstances technology plays an important role in decisionmaking; especially in advertising field the technology role is very high. Televisionadvertisement inducing the consumer mind for decision making, especially kid‟s advertisementfor toothpaste influencing the kids to influence the parents to buy a particular brand. Otherkind of advertisement in magazine, newspaper also influencing the people. Advertising is astrong base for consumer to select toothpaste. Celebrity endorsement also influencing theconsumer for decision making; attractive banner in road side attracts the consumer to select aparticular brand.
  20. 20. P a g e | 19Table12 : Factors Which makes Consumer to Buy ToothpastePromotion tools Number of respondents PercentageGift 28 35Discount 16 20Extra quantity 20 25Price off 12 15Others 4 5 Factors Which makes Consumer to Buy Toothpaste 5% Gift 15% 35% Discount 25% Extra quantity 20% Price off OthersInferences :- By having a view to find the promotion tools preferred by consumer, thedata pertaining to this is presented in table 12. An examination of the above data reveals that,most of the consumers preferred gift, extra quantity, discount, price off. Above table indicatesthat, gift attracted more respondents(35%),25% of the respondents preferred extra quantity,20%preferred discounts,15% preferred price off and 5% preferred other tools. Sales promotion toolespecially gift attracted more respondents.
  21. 21. P a g e | 20Table 13 : Switching to Other BrandReasons for switching Number of respondents PercentageImpact of packaging 8 10.00Price rise of current brand 13 16.25Scheme of brands 14 17.50Advertisement impact 16 20.00Consumer brand is not available 8 10.00To try new one 11 13.75Influence by other 10 12.50 Switching to Other Brand Impact of packaging 10% 12% Price rise of current 14% 16% brand Scheme of brands 18% 20% 10% Advertisement impact Consumer brand is not availableInferences :- With a view to find the reasons for switching to other brand , the data pertaining tothis is presented in table 13.An examination of the table reveals that, most of the consumersswitches to other brand due to strong advertisement impact; next factor was scheme availablewith product like discount, free gift, price off etc. Due to sudden increase in price also makes therespondents to switch; some consumers always have a mindset like laggards to try new optionsavailable in the market. Kids also influencing the parents to buy a particular brand, not onlykids and also friends, relatives, wife etc. sometimes consumers are attracted by packaging toswitch. Non availability of brand is one more reason to brand switching. In this analysis 20%respondents changed to other brand due to advertisement impact, 18% respondents due toscheme (offer), 16% respondents changed due to price rise, 14% respondents switched to otherbrand to try new options, 12% respondents due to the influence of others, while other 10%respondents switched to other brand due to better packaging, and 10% respondents changed non-availability of product in the market.
  22. 22. P a g e | 21 Conclusion and RecommendationConsumer behavior is not exactly predicted one; somewhat it is predicted with the help ofresearch activity. Starting and ending of the survey ends with only one statement „consumer isking‟ .So the companies concentrate in analyzing the requirement of people thoroughly tosatisfy and retaining the consumer. This study revealed that consumer awareness of toothpaste is less in Kolkatacity. Oral care market offers huge potential as penetration and per capita consumption of oralcare product is very low in India. However, rising per capita income and increasingawareness is driving demand of oral care products, the dentist population is also low in India.For promoting the product consumption and creating awareness government has taken initiativelike dental health camps, Manufactures have used advertising campaigns to promote higherconsumption of toothpaste. Creating the awareness is a part of social responsibility of thecompany. Most of the consumers are ready to accept the suggestion of dentist, so the governmentis also responsible for appointing more dentists to create the awareness. There are some important factors considered by the consumer for decisionmaking. Brand image, advertising, and offer play an important role in purchasing toothpaste,sometimes based on the offer the consumer compare with competitor product and select thebest one. Product attribute also analyzed by the consumer for deciding a brand. Switching ofone product to other company product is mainly based on advertisement, brand name, packaging,availability, and price rise, etc. So the companies analyze all these factors and find out thebest suitable tools for promoting their toothpastes in India.
  23. 23. P a g e | 22Limitation: Our study suffers from some limitation. This study failed to talk about about thepsychographics of the consumer. Understanding psychographics of the consumer is an importanttool to understand the inner feelings, and attitude of the consumer. The changingdemographic profile of the population in terms of education, income, size of family andso on, are important by what will be more substantive in days to come will be thePsychographics of customers that is how they feel, think or behave. Marketers will have toconstantly monitor and understand the underlying Psychographics to map their respectiveindustries are moving and decide what needs to be done, by way of adding value that motivatescustomers to buy the company‟s products and influence the future industry structure.One more problem in this study was questionnaire. Most of the questions are closed ended itlimits the respondents answer. BIBLIOGRAPHYBOOKS : 1. Marketing Management “Philip Kotler” ,11th EDITION 2. Marketing Management in Indian Context‟ – V S Ramaswamy & S. Namakumari 3. Marketing Management S.A.Sherleker 4. Research Methodology “ C.R.Kothari” 5. Market Research An Applied Orientation- Naresh K. Malhotra 6. Consumer Behaviour(In Indian Context)-Srivastava,Khandari 7. Consumer Behaviour- Del Hawkins, I., Roger Best, J. & Kenneth Coney, A 8. Research for Marketing Decisions‟ – Green, Tull & AbrahamINTERNET: www.google.com
  24. 24. P a g e | 23 ANNEXURE QUESTIONNAIREDear Respondent, I am a MBA(Marketing) student of IISWBM(C.U.).As a part of my study, Iam conducting a survey and would be grateful if you could spare some of your precious time tofill this questionnaire for the same.1. Consumer’Profile---- i. Age(Years) :- a. 7-18 b. 18-25 c. 25-30 d. Above 30 ii. Gender :- a. Male b. Female iii. Educational Qualification :- a. upto10+2 b. up to graduation c. PG/Higher education iv. Occupation :- a. Student b. Professional c. House wife d. Businessman v. Monthly(Family) Income:- a. Below Rs. 5000 b. Rs.5000-Rs.9,000 c. Rs.9000-Rs.11,000 d. Above Rs.11,000
  25. 25. P a g e | 242. Do you use toothpaste? a. Yes b. No3. No. of times do you brush your teeth per day? a. Once b. Twice c. Thrice4. What is the frequency of purchase of tooth paste in a month? a. One b. Two c. More than two5. What is your most preferred brand? a. Colgate b. Close up,Pepsodent c. Dabur d. Anchor e. Ajanta f. Others6. What no. of brands of toothpaste you use so far? a. Two b. Three c. More than three7. Which factors make you to buy toothpaste? a. Price b. Availability c. Packaging d. Others8. Which factors make you most preference of toothpaste? a. Brand b. Quality c. Flavor d. Others
  26. 26. P a g e | 259. Which attribute is most preferable to you for selecting toothpaste? a. Healthy tooth & gums b. Long lasting freshness c. Prevention of tooth decay d. Whiteness e. Use of natural hubs10. By whom are you influenced during purchase toothpaste? a. Friends b. Kids c. Parents d. Spouse e. Self11. By which mode of promotion are you gets attached? a. Advertisement b. Celebrity c. Banner d. Others12. Which promotional tools make to buy toothpaste? a. Gift b. Discount c. Extra quantity d. Price off e. Others13. For which reason you switch to other brand? a. Impact of packaging b. Price rise of current brand c. Scheme of brands d. Advertisement impact e. Consumer brand is not available f. To try new option g. Influence by other
  27. 27. P a g e | 2614. Feedback (Optional & open)--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Signature _____________ Place___________ Date___________ Thank you very much for your co-operation!