YOU ARE DOWNLOADING DOCUMENT

Please tick the box to continue:

Transcript
Page 1: MBA Students Habit Toward Toothpaste

A

PROJECT REORT ON

MARKETING RESEARCH

“MARKET SURVEY OF MBA STUDENTS ON TOOTHPASTE”

Page 2: MBA Students Habit Toward Toothpaste

ACKNOWLEDGMENT

‘Perseverance, Inspiration and Motivation have always played a key role in success of any

venture’.

I am fortunate enough to get support from a large number of persons for preparing my project

and to whom we I shall always remain grateful.

I have a deep sense of gratitude for my project guide Dr. Vasudev Modi for his constant

cooperation and necessary suggestions and also without whose guidance the project could not

have been completed. His inspiration and constructive criticism are the main cause of the report.

Finally i would like to express my gratitude to all the respondents for giving their precious time

and relevant information and experience, i required, without which the project would have been

incomplete.

2

Page 3: MBA Students Habit Toward Toothpaste

TABLE OF CONTENTS

1. Executive summary 3

2. Introduction

Trends in toothpaste industry 6

Ingredients of toothpaste 8

Toothpaste industry review 9

3. Research methodology

Research objectives and research problems 10

Research Design 11

Research instruments 11

Sampling plan 12

4. Findings 13

5. Conclusions 22

6. Recommendation 24

7. Limitations of the study 25

8. Appendix

- Questionnaire 26

9. Bibliography 27

3

Page 4: MBA Students Habit Toward Toothpaste

EXECUTIVE SUMMARY

This summary is based on my research work done on toothpaste to know the likings of

customer (MBA students) in relation to the maintenance of oral hygiene and to also find the

consumers response in terms of varieties those are present in toothpastes and which segments are

preferred by them & also are they brand loyal or not and the major problem which was faced by

me while doing this research was to find out what attributes consumers look for in a toothpaste

brand when the person buys toothpaste for themselves and to study their market awareness of

various toothpaste brands. In order to collect the data I preferred online questionnaire method.

For the purpose of data analysis i have used internet. My primary data source is questionnaire

and this data is collected from respondent who are MBA student. And my secondary data source

is internet from where i collected various information regarding the oral care industry in India.

There are many brands in the market, this segment of the consumer product offers a

tremendous opportunity to study the concept of brand positioning, especially when tooth paste is

a fairly intimate product and consumer prefers a brand which reflects his self image. Trend is

visible in the toothpaste market. The penetration in the toothpaste market is quite low, around

50%. Industry experts are thankful to awareness and affluence in rural areas, as there is a surge

in demand with consumers graduating from 'datum' to toothpaste. This growth has been largely

driven by a consumer shift in rural markets from toothpowders to toothpastes. In India, oral care

market offers huge potential as penetration and per capita consumption of oral care products is

very low. However, rising per capita income and increasing awareness is driving demand of oral

care products. Consumers have started switching to value-added toothpastes like mouth washes,

and teeth whitening products.

Sodium fluoride (NaF) is the most popular active ingredient in toothpaste to prevent

cavities; some brands use sodium monofluorophosphate (SMFP). Ingredients such as baking

soda, enzymes, vitamins, herbs, calcium, mouthwash, and/or hydrogen peroxide are often

combined into base mixes and marketed as being beneficial. Toothpaste comes in a variety of

flavors, most often being some variation on mint (spearmint, peppermint, regular mint etc).

4

Page 5: MBA Students Habit Toward Toothpaste

Toothpaste is one of the most dynamic segments of the oral care market. The frequency of

product launches in existing segments of the market and genesis of new product segments

contributes to continuous evolution of the toothpaste market. Whitening toothpastes and products

offering multiple functions are driving growth in the dentifrices segment. The toothpaste history

in India can be tracked back from 1975 with 1200 tones of toothpaste produced by the toothpaste

industry. In India toothpaste usage as compared to other countries is very low which signifies

about the potential of the market.

Research design includes incorporating knowledge from secondary information analysis,

qualitative research, methodology selection, question measurement & scale selection,

questionnaire design and sample design to be used. target population, sampling frame and

sampling techniques, sample size and then the execution of the sampling plan.i have collected

data by online questionnaire by convenience sampling.

Based on the data analysis and interpretation, it can be concluded that majority of Indian

consumers rely on toothpaste with some who use both toothpaste and mouthwash together to

cater to their hygiene needs. CLOSE-UP market share is 40% and COLGATE with 29% market

and then followed by PEPSODENT which has 15% market share are the major players in this

industry and these three brands together capture 84% of the market leaving a very small share for

others. Price is not taken into consideration by majority when it comes to their oral hygiene. And

majority of the respondents think ideal toothpaste to be a blend of all the attributes and not with

one or two attributes and a major conclusion is the increasing market for mouthwash in India.

The lifestyle and eating conditions of Indian consumer are changing very rapidly. And

consumers for oral care industry are very much brand loyal.

5

Page 6: MBA Students Habit Toward Toothpaste

INTRODUCTION

This project is basically about the analysis of the consumer preferences regarding

toothpaste industry. The main objective of this project is to find the consumers response in terms

of varieties those are present in toothpastes and which qualities are preferred by them & also are

they brand loyal or not. In order to collect the data we preferred questionnaire method because

firstly it was the most feasible way to interact with the sample and get the relevant data for my

research and secondly as it was suitable to get these questionnaires filled instead of interviewing

the relevant persons. For the purpose of data analysis i have used internet.

TRENDS IN TOOTHPASTE INDUSTRY

Indian tooth paste industry is one of the country largest consumer markets. The Indian

tooth paste market is pseudo-mature. It is amazingly complex being segmented not only on the

basis of prices and benefits but even range of emotions with in that outlining framework. With in

over 10-15 brands in the market, this segment of the consumer product offers a tremendous to

study the concept of brand positioning, specially when tooth paste is a fairly intimate product and

consumer prefers a brand which reflects his self image.

The penetration in the toothpaste market is quite low, around 50%. Industry experts say

that thanks to awareness and affluence in rural areas, there is a surge in demand with consumers

graduating from 'datun' to toothpaste. "This growth has been largely driven by a consumer shift

in rural markets from toothpowders to toothpastes. With the growing affluence and awareness

levels in rural India, more and more people are directly moving from using datun to toothpastes,

which is further driving growth in the category," industry experts say.

The focus of this study about tooth paste is consumer perception of the various brand are

available. Certain major facts about the toothpaste industry are:

6

Page 7: MBA Students Habit Toward Toothpaste

Many 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 a dismal 82gms.

The dentist to population ratio is a critically low 1:35000 in the country. This results in

low oral hygiene consciousness and widespread dental diseases.

Less than 15% of the Indian toothpaste users brush twice a day.

The toothpaste market grew at a CAGR of 7-8% between1995-2000. But in 2001 the

market grew by only 4%.

Colgate and Hindustan Lever together account for over 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 players sharing between them 75%

of the market.

Penetration of toothpowder in the urban areas has been declining, as more and more

consumers switch from powders to paste.

Brand loyalty is quite high for toothpastes, but is extremely low for toothbrushes.

10 years ago the most expensive toothbrush was priced at Rs4. Today one can also buy a

toothbrush priced at Rs999!

In India, oral care market offers huge potential as penetration and per capita consumption of oral

care products is very low. However, rising per capita income and increasing awareness is driving

demand of oral care products. Consumers have started switching to value-added toothpastes like

gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching from

toothpowders to toothpastes. A key industry trend is the move towards natural products

comprising of herbs, vitamins and minerals. A serious challenge for the industry is the low

dentist-population ratio, with just one dentist for 10,000 people in urban areas and about 0.25

million people in rural areas. There is an urgent need of more dental health practitioners with

relevant qualifications and training. Government has taken various initiatives like dental health

camps to promote good oral care. Manufacturers have used advertising campaigns to promote

higher consumption of toothpastes and toothbrushes. Colgate and HUL together account for over

7

Page 8: MBA Students Habit Toward Toothpaste

two-thirds of the organized toothpaste market. In toothpowder market, Colgate, HUL and Dabur

are the major players. The report analyzes the oral care market in India.

Today’s companies are operating in macro environment forces. They are facing the

toughest competition ever. So, all the companies are involved in winning customers and out

performing competition. Indian tooth paste industry is one of the country largest market. The

Indian tooth paste market is very big. Large numbers of manufacturers are present. They are

trying to go at top most position.

8

Page 9: MBA Students Habit Toward Toothpaste

INGRIDIENTS OF TOOTHPASTE

Sodium fluoride (NaF) is the most popular active ingredient in toothpaste to prevent

cavities; some brands use sodium monofluorophosphate (SMFP). Nearly all toothpaste sold in

the United States has 1000 to 1100 parts per million of one of these active ingredients. This

consistency leads some to conclude that cheap toothpaste is just as good as expensive toothpaste.

When the magazine Consumer Reports rated toothpastes in 1998, 30 of the 38 were judged

excellent.

Many, though not all, toothpastes contain sodium lauryl sulfate or another of the sulfate

family. SLS is found in other personal care products as well, such as shampoo, and is largely a

foaming agent. A small percent (15%) of the population may be affected by long-term usage of

SLS in toothpastes, in the form of increases in minor cold sores in one's mouth. Switching to a

non-SLS brand may reduce this effect. Ingredients such as baking soda, enzymes, vitamins,

herbs, calcium, mouthwash, and/or hydrogen peroxide are often combined into base mixes and

marketed as being beneficial. Toothpaste comes in a variety of flavors, most often being some

variation on mint (spearmint, peppermint, regular mint etc). Other more exotic flavors include:

anise, apricot, bubblegum (marketed mostly to children), cinnamon, fennel, ginger, vanilla,

lemon, orange, even unflavored.

Toothpaste is intended to be spit out. Some types of toothpaste may cause nausea or

diarrhea if swallowed in sufficient quantity. This is why children of a young age should not use

it, or use it only under close supervision. Calcium used in toothpaste can be derived from animal

bones or from lime. Vegetarians prefer to use products free of any ingredients derived from

animals. For this reason, in India toothpaste suitable for vegetarians has been introduced and has

done extremely well.

9

Page 10: MBA Students Habit Toward Toothpaste

TOOTHPASTE INDUSTRY OVERVIEW

Toothpaste is one of the most dynamic segments of the oral care market. The frequency

of product launches in existing segments of the market and genesis of new product segments

contributes to continuous evolution of the toothpaste market. Increase in sales of oral hygiene

products in major markets worldwide has largely resulted from growing awareness of hygiene

and product innovation. New advancements have led to the launch of a variety of high-priced,

value-added multifunctional products in several oral care categories such as toothpastes and

toothbrushes. Whitening toothpastes and products offering multiple functions are driving growth

in the dentifrices segment. Currently, for major toothpastes, averting tooth decay is not

sufficient, which usually guarantee benefits such as fresher breath, healthier gums and whiter

teeth. Technological advancements in recent years have altered the toothpaste segment to one

that offers additional benefits besides just fighting cavities to customers. This made

manufacturers to roll out products with a lot of additional features that were not available

previously.

Presently Colgate Dental Cream holds 52% of market share. HUL’s Close up lies far

behind with 23% of the existing market share. The third player in the marketplace in terms of

market share is Colgate Gel with 10.5% of the market share. That leaves 14.5% market share for

other Brands like Pepsodent, Pepsodent G, Promise, Babool, Sensofoam, Forhans, Cibaca,

Neem, Vicco etc. The toothpaste market is presently valued at Rs. 750 crores out of which the

Gel segment has already bagged 1/3rd portion of it. The Gel segment presently stands at Rs. 248

crores and is growing at a rate much faster than Cream.

10

Page 11: MBA Students Habit Toward Toothpaste

RESEARCH OBJECTIVES AND RESEARCH PROBLEMS

RESEARCH OBJECTIVES-

i conducted this research to fulfill following objectives

To find the consumers’ response to varieties those are present in toothpastes and which segments

are preferred by them

To find if consumers are brand loyal

To find if consumers are aware of the contents present in the toothpastes and its effects

To find if consumers get affected by various ads and perceive their paste accordingly

To find if consumers are price sensitive when it comes to oral hygiene

To find if consumers supplement their toothpastes with mouthwash

To find the taste preference of the consumers

To find if consumers have switched their brands after using a new brand.

To find if consumers supplement their toothpastes with mouthwash.

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

tooth paste.

The project is also conducted to create an opportunity for the toothpaste brands to get new

customers by creating awareness about their products qualities and employing new strategies.

RESEARCH PROBLEM

The main problem which was faced by us while doing this research was to find out “What

attributes consumers look for in a toothpaste brand when he/she buys for himself/herself and to

study their market awareness of various toothpaste brands.” With such a large market, the needs

of the consumer vary from person to person. It is very difficult to include all the attributes in our

study.

11

Page 12: MBA Students Habit Toward Toothpaste

RESEARCH DESIGN

Research design is the most encompassing of all the steps of marketing research. Research

design includes incorporating knowledge from secondary information analysis, qualitative

research, methodology selection, question measurement & scale selection, questionnaire design

and sample design to be used. According to the objective of the marketing research, the research

design is descriptive. The aspect of what, who, how, when and where are defined in the

research. Descriptive research determines the perception of toothpaste characteristics in the

minds of respondents. Here, respondents are asked questions their behavior, intentions, attitude,

lifestyle, awareness and buying behavior towards the toothpaste.

The method of obtaining information from the respondents is through online questionnaire. It

also includes fixed alternative questions in which respondents choose from a set of

predetermined answers.

RESEARCH INSTRUMENT

The research instrument used by us is Questionnaire method because it is the most feasible way

to interact with the sample organizations and get the relevant data for my market research

project.

Mostly all the questions are in structured form as the questions are multiple choice questions or

they are to be answered in yes or no. few open ended questions were there to understand the

mentality of the consumers.

Scaling techniques used by us in the questionnaire includes:-

DICHOTOMOUS QUESTIONS

Which has only two response alternatives: yes or no? The decision of the respondent is

guided by whether they approach the issue as a yes or no.

12

Page 13: MBA Students Habit Toward Toothpaste

MULTIPLE CHOICE QUESTIONS

In which respondents have to choose one answer from many options. These questions

gives a wide choice to the respondents so that they can give the most accurate and

reliable answer.

SAMPLING PLAN

The objective of most marketing research project is to obtain the characteristics or parameters of

a population. A sample which is a subgroup of the population selected for the participation in the

study affect a lot the findings of the market research.

So a researcher should follow the sampling design process in his research which includes certain

steps that are as follows-

1. The target population- The target population for the toothpaste research project was defined

as follows-

Elements - Students of MBA college.

Sampling units - MBA student

Extent - Gujarat

Time - 2011

2. Sampling frame - random selection by selecting any MBA student available irrespective of

age, income, qualification, vocation, sex.

3. Sampling techniques - Non probability convenience sampling. i used convenience

sampling for the sample selection as respondents are selected because they happen to be in the

right place at the right time.

4. Sample size - 138

13

Page 14: MBA Students Habit Toward Toothpaste

5. Execution of the sampling plan and analysis of data

Q. Age?

14

Page 15: MBA Students Habit Toward Toothpaste

Q. how much do you spend on toothpaste each month?

It is clear from the above graph that most of the consumers spend 20-40 rs monthly on

toothpastes purchase.

15

Page 16: MBA Students Habit Toward Toothpaste

Q. how often do you brush your teeth each day?

It is clear from the graph that most of the people brush once or twice a day. There are very few

people who brush thrice a day. According to the survey there is none who doesn’t brush. But it is

not possible as people may not be interested to disclose if they don’t brush.

16

Page 17: MBA Students Habit Toward Toothpaste

Q. On which basis do you buy a particular brand?

It is clear from the above graph that most of the consumers (43%) purchase the toothpaste on the

basis of mouth fresher content. And there are very few people who are attracted towards the

packaging.

17

Page 18: MBA Students Habit Toward Toothpaste

Q. Which toothpaste brand do you use?

it is clear from the above graph that 40 percent consumers use CLOSE UP, then comes

COLGATE with 29 percent market share.

18

Page 19: MBA Students Habit Toward Toothpaste

Q. why did you change the brand?

There are so many reasons; some of them are as follows. There are different reasons for different

persons, its totally subjective matter. There are many people who change their without any

reason also. They change it just for the change.

19

Page 20: MBA Students Habit Toward Toothpaste

Q. how much do you purchase in a single buy?

It is clear from the above data that most of the consumer (38%) purchases in the 100 grams

which is followed by 150 grams. There are very few people who purchase in 20 grams and 35

grams.

20

Page 21: MBA Students Habit Toward Toothpaste

Q. would you change your brand if

From the above graph it is proved that the people switch their brand in order to experience the

new brand which is recently launched in the market. Then there are 25 percent people who are

brand loyal. Few people are attracted to the advertisement in this market.

21

Page 22: MBA Students Habit Toward Toothpaste

Q. Are you aware of any side effect of toothpaste?

Most of the people are aware of the side-effect of the toothpaste.

22

Page 23: MBA Students Habit Toward Toothpaste

CONCLUSIONS :

Based on the above data analysis and interpretation, it can be concluded that

Majority of Indian consumers rely on toothpaste with some who use both

toothpaste and mouthwash together to cater to their hygiene needs. With various

players present in this industry, there is oligopoly present in the oral care market

in the major cities in India. CLOSE-UP with 40 percent market share,

COLGATE whose market share is 29% and PEPSODENT with 15% market

share are the major players in this industry. These three brands together capture

84% of the market leaving a very small share for others such as Dabur, meshwak

and others.

Most of the brands are perceived by customers to be providing a high quality to

them. There is not much differentiation in the basic features of all the product,

however, there are various product segmentation present.

Most of the people spend just 20-40 rupees for the consumption of the toothpaste.

Most of the people use toothpaste once or twice. And there is none in the

respondent who doesn’t use toothpaste. There are 18% people who use thrice in a

day.

Most of the people purchase the toothpaste on the basis of mouth freshening

content followed by taste. That is the reason that CLOSE-UP is at the top among

MBA students.

23

Page 24: MBA Students Habit Toward Toothpaste

There are 25 percent people who are brand loyal. There are 35 percent people

who said that they would change the paste if there is any new products comes in

the market. And there are different reasons for this. Most of the people want to

change for the change only. There is no specific reason.

Most of the people purchase the paste in 100 grams package followed by 150

grams. There are very few people who purchase 20 grams or 30 grams. There are

few people they may be staying alone.

Also color does not attract majority as toothpaste is perceived to provide hygiene

only. With the advancement in time, many brands has launched toothpaste with

varying colors such as red, blue, green, pink etc. But only a few consumer segments

are attracted by them. Also there are very few people who are attracted towards the

packaging of the product.

Majority of the respondents think ideal toothpaste to be a blend of all the attributes and

not with one or two attributes. Also, majority of the respondents feel that their toothpaste have

the characteristic of ideal toothpaste. Thus, the various toothpaste brands have been successful in

providing customer satisfaction.

24

Page 25: MBA Students Habit Toward Toothpaste

RECOMMENDATIONS:

Most of the toothpaste purchases are made in medium or family packs since toothpaste is a

product of daily need of customers.

A major conclusion is the increasing market for mouthwash in India. The lifestyle

and eating conditions of Indian consumer are changing very rapidly. With the

changing lifestyle, people are shifting towards eating fast foods and other items

which results in their bad breath. This can lead to embarrassment when is felt by

others. To prevent this embarrassment, people want to have a fresh breath and

therefore prefer using mouthwash. This increasing mouthwash market is a

currently new in India and various brands can make an edge in this industry by

making a best use of this market by launching various mouthwash ranges with

innovative ideas.

Consumers for oral care industry are very much branding loyal. Dabur is having

the highest brand loyalty from its competitors. Though it has a small market

share but its market share is consistent because of its customers brand loyalty.

Brand loyalty is also high for other brands. This makes it difficult for the various

brands to attract new customers.

Also dentist recommendation affects the buying behavior of Indian consumers

and therefore it should be taken into appropriate consideration by the producers.

According to my study, very few people are affected by innovative or interesting

advertising. The producers should make simple advertises which are easy to

understand and which concentrate on the specific features of the toothpaste.

25

Page 26: MBA Students Habit Toward Toothpaste

LIMITATIONS OF THE STUDY

The Research is based on a sample of 138 customers. Therefore, the generalizations of the results

of the study are limited as defined by the size of the sample and the generalizations of the

findings for the other brands are also unwarranted.

The present study lacks internal validity. Thus, notwithstanding its richness of data, it lacks

control of variables. Thereby influencing the research results.

The selected brands are chosen with regards to their sales and popularity due to their large

product depth and vast availability.

This data is majorly for the urban population. The data however could be totally different for the

consumers of rural India.

26

Page 27: MBA Students Habit Toward Toothpaste

QUESTIONNAIRE

1) name -----------

2) Age -----------years

3) how much you spend on toothpaste each month?

A) <20 B) 20 to 40 C) 40 to 60 D) >60

4) how often do you brush your teeth in a day?

A) once B) twice C) thrice

5) on which basis do you buy a particular brand?

A) colour B) taste C)mouth fresher content

D) white teeth element E)gifts F)packaging

6) which toothpaste brand you use?

A) colgate B) pepsodent C)close-up D)dabur Red

E) dabur red F) other

7) which other brand have you used before current brand?

A) yes..then specify B) no

8) why did you change the brand ? -------------------------------------------------------------

9) how much do you purchase in a single buy?

A) 25 gms B) 50 gms C)100gms D)> 100gms

10) would you change your brand if?

27

Page 28: MBA Students Habit Toward Toothpaste

A) new product in the market B) advertisement 3) for a change

D) low price

11) Are you aware of any side-effect of toothpaste?

A) yes, then specify

B) no.

28

Page 29: MBA Students Habit Toward Toothpaste

BIBLIOGRAPHYBIBLIOGRAPHY

WEBSITES

• www.timesofindia.com

• www.colgate.com

• www.wikipedia.com

29


Related Documents