[Year]

Toothpaste
Marketing Management - 2
Group D1

Effort is like toothpaste. You can always squeeze a little more.

--Inspiration

PROJECT PROPOSAL

MARKETING PROBLEM:
How should the company enter the Indian market? Provide insights into the market including the
current scenario, competition as well as consumer behaviour.

MARKETING RESEARCH PROBLEM:

1. Segmentation Problem
a. Which segment should be the target?
b. What benefits are important for each segment?
2. Product Decisions Problem
a. Should the company launch a single product for all segments or multiple products
segment wise?
b. What features should be included in the product?
c. What type of package is preferred by the target customer?
d. What should be the SKU (Stock Keeping Unit) size and weight?
3. Price Problem
a. How should the product be priced?
4. Distribution Problem
a. What type of retailer should be used?
b. Should the company use push or pull strategy?
5. Advertising and Promotion Problem
a. What should be the channel of advertising?
b. What appeal/message should be used in advertising?
c. Would bundling help in promoting the product better?
6. Branding Problem
a. What should be the name, slogan and logo for the product?
b. How should it be positioned with respect to competitors offering?

SECONDARY RESEARCH:
Toothpaste Market in India
HEADLINES

Oral care sees current value growth of 13% in 2014, to reach INR94.0 billion
Toothpaste remains the biggest category, with an 80% share of value sales in oral care in
2014
Colgate-Palmolive India continues to lead oral care in 2014, with a 48% value share
Oral care is expected to see a value CAGR of 5% at constant 2014 prices in the forecast
period of 2014-2019

TRENDS

Brand extensions and additional benefit toothpastes, such as acid neutralisers, whitening
and gum care products, remained the focus for toothpaste manufacturers.
Per capita consumption of toothpaste in India is significantly lower compared with that in
other developing countries. It is a quarter of the per capita consumption in Brazil, and half of
that in China. Habits such as brushing twice a day are not highly practiced amongst the
majority of consumers, and also using only a small amount of toothpaste when brushing is
common, whilst companies recommend at least twice the amount is used.
Traditional white toothpaste, which leads in both paste and powder formats, lost further
share in 2014, making way for additional benefit toothpastes.
Consumers in rural areas are gradually switching from toothpowder to toothpaste, which
brought growth not only to toothpaste, but also toothbrushes, as the application of
toothpowder is mainly by fingers.
Whitening products gained the most popularity during the review period, as major
manufacturers continued to premiumise oral care by extending their brands into whitening.

COMPETITIVE LANDSCAPE

In 2014 Colgate-Palmolive held a value share of 50% in toothpaste, mainly because of its
nationwide distribution, and therefore the strong presence of its Colgate brand across the
country.
Colgate Visible White by Colgate-Palmolive India Ltd saw the fastest value growth of 80%
in oral care in 2014. This was mainly because of its consumer awareness drive and
promotion across media channels. The brand was promoted by Bollywood actors Sonam
Kapoor, which helped to increase the awareness as well.
International companies such as Colgate-Palmolive India and Hindustan Unilever continued
to dominate oral care in India in 2014, due to their strong presence and strong distribution
networks.
Domestic company Dabur India was in third position in value terms in 2014. However,
domestic brands such as Vicco with a herbal composition were losing further share, with
the entry of Procter & Gamble and GlaxoSmithKline in oral care.
Close up Diamond Attraction by Hindustan Unilever is a whitening toothpaste which claims
to use patented blue light technology to make teeth white instantly. The brand positions
itself as a beauty product, away from the oral care category.

PROSPECTS

Oral care is expected to increase by a value CAGR of 5% at constant 2014 prices over the
forecast period, to reach INR117.2 billion by 2019.
There is increasing awareness of oral care products and premiumisation in
all oral care categories. Volume growth is also expected, as manufacturers are increasingly

urging consumers via promotions to increase the amount of toothpaste used for brushing,
and also to brush twice a day.
Whitening products are expected to perform better during the forecast period. This
segment displays higher than average growth rates in terms of value sales. This growth is
expected to come from consumers looking for instant whitening.
Consumers will opt for traditional herbal-based toothpastes, as they have the impression
that these are safer and more effective than regular toothpastes. This is also evident in the
high growth rate displayed by Dabur Lal Toothpaste by Dabur India.
Launches in the future are expected to be innovative products dealing with specific issues
in oral care, rather than general oral care products.

CATEGORY DATA
Sales of Toothpaste by Type1
% retail value rsp

2010

2011

2012

2013

2014

Acid Wear/Enamel Strengthening

2.4

2.4

2.3

1.8

1.9

Children's

2.0

2.2

2.6

2.7

3.0

Fresh Breath

13.4

12.3

11.1

9.5

10.2

Gum Health

3.0

3.0

3.0

2.6

2.9

Sensitive

0.6

1.6

4.4

8.6

9.1

Total Care/Complete Care

20.0

20.0

19.4

19.2

19.0

Traditional/Standard/Basic

53.1

52.4

49.7

46.6

44.0

Whitening

5.5

6.2

7.6

9.1

9.9

Others

0.0

0.0

Total

100.0

100.0

100.0

100.0

100.0

Brand Shares of Toothpaste1

% retail value rsp

Company

2011 2012 2013 2014

Colgate Dental Cream

Colgate-Palmolive India Ltd

27.9

26.3

25.4

25.8

Close-Up

Hindustan Unilever Ltd

12.3

11.1

9.3

8.2

Pepsodent

Hindustan Unilever Ltd

9.5

8.9

8.2

7.4

Babool

Dabur India Ltd

5.2

5.1

5.0

5.0

Colgate Active Salt

Colgate-Palmolive India Ltd

3.2

4.4

4.7

4.9

% retail value rsp

Company

2011 2012 2013 2014

Colgate Cibaca

Colgate-Palmolive India Ltd

5.7

5.2

4.8

4.7

Colgate Tooth Powder

Colgate-Palmolive India Ltd

5.5

5.3

4.1

4.1

Colgate Sensitive Pro

Relief

Colgate-Palmolive India Ltd

0.0

0.7

3.0

3.3

Dabur Red Toothpaste

Dabur India Ltd

3.4

3.2

3.0

3.0

Sensodyne

GlaxoSmithKline Consumer Healthcare

Ltd

0.5

1.6

2.4

2.8

Dabur Lal Dant Manjan

Dabur India Ltd

3.4

3.0

2.7

2.7

Colgate Visible White

Colgate-Palmolive India Ltd

1.5

2.4

Glister

Amway India Enterprises Pvt Ltd

2.5

2.6

2.6

2.3

Colgate Herbal

Colgate-Palmolive India Ltd

1.5

1.4

1.4

1.7

Meswak

Dabur India Ltd

1.5

1.6

1.6

1.6

Himalaya Dental Crme

Himalaya Drug Co, The

1.6

1.6

Colgate Total

Colgate-Palmolive India Ltd

1.7

1.5

1.5

1.5

Promise

Dabur India Ltd

1.3

1.3

1.1

1.2

Close-Up Diamond
Attraction

Hindustan Unilever Ltd

1.1

Anchor

Anchor Health & Beauty Care Pvt Ltd

2.1

1.6

1.3

0.7

Oral-B Pro Expert

Procter & Gamble Home Products Ltd

0.2

0.2

Close-Up

Hindustan Lever Ltd

Pepsodent

Hindustan Lever Ltd

Others

Others

12.9

15.0

14.4

14.0

Total

Total

100.0 100.0 100.0 100.0

Urban Rural Distribution of oral care market

Distribution of Toothpaste1

Year

2009

2010

2011

2012

2013

2014

Rural

29

29.5

32

33

35

35.1

Urban

71

70.5

68

67

65

64.9

Total

100

100

100

100

100

100

Year

2009

2010

2011

2012

2013

2014

Independent Small
Grocers

61.9

61.5

60.6

60.5

60.5

60.9

Modern Grocery
Retailers

18.4

19.5

19.4

19.2

20.2

20.5

Chemists/Pharmacies

12.9

12.7

12.2

12.3

11.9

10.8

Other Grocery
Retailers

3.2

2.6

4.1

4.2

4.2

4.6

Others

3.6

3.7

3.7

3.8

3.2

3.2

Total

100

100

100

100

100

100

OBSERVATION STUDY:
All observation studies can be found in document labelled Observation_GroupD1.

Summary:
Observers were split in terms of store from where they buy toothpaste. People preferred kirana
stores, supermarkets and chemist shops to purchase toothpastes.
Store characteristics:
Generally, stores had a good amount of shelf space for toothpaste where multiple brands were
displayed distinctly. Some stores also displayed various SKUs of same brand. In Kirana stores and
small chemist shop toothpastes were kept behind the counter and customer had to as the
shopkeeper for a particular brand and size. In supermarkets due to their larger size had ample
space for customers to pick and choose paste of their choice.
Purchase behaviour:
Generally, for all the shoppers toothpaste is a planned purchase and is part of a large list of
items she intended to buy. However, in some cases the lady was reminded about it after going
to store. Also in most of cases the lady had fair idea about which brand of paste she wanted to
purchase and generally they preferred larger package (mostly because it is cost effective)

DISCUSSION GUIDE:
Oral Hygiene
1. How frequently do you clean your teeth? (once/twice a day/other)
2. How frequently do you visit a dentist? (Once in 3 months/Once in 6 months/Once a
year/Only when you have problems/Never visited till now)
Preference and usage
1. What do you use to clean your teeth (Choose all that apply)
(Salt, Toothpaste, Toothbrush, Toothpowder, Mouthwash, Floss, Tongue Cleaner)
2. Which type of toothpaste do you prefer? (Paste/Gel)
3. What are the top 3 qualities that you look for in the toothpaste? (Taste, whitening effect,
decay prevention, long listening freshness, plaque removal, sensitivity relief, herbal)
4. Apart from the factors mentioned above do you look at any additional qualities while
choosing the toothpaste? (Open ended)
5. Do all members of the family use the same toothpaste (Yes/No)
6. If your answer is no, what is the major reason for using different toothpastes?
(Taste/Different Needs/tooth problems/Others-Please specify)
Purchasing behaviour
1. How frequently do you buy toothpaste? (Once a fortnight, monthly, bimonthly, quarterly)
2. What size of toothpaste do you buy regularly? (75g, 100g, 150g, 200g, others)

3. Where do you purchase your toothpaste from? (Modern Retail, Kirana stores, Pharmacies or
Online)
4. Which person in your family purchases the toothpaste? (Father /Mother /Children /
Domestic Help)
5. Who decides which toothpaste needs to be purchased? (Father /Mother /Children)
6. Does packaging of toothpaste/ toothpaste colour affect your choice of a particular brand
toothpaste? (Y/N)
7. To what degree do you consider shopkeepers recommendations while purchasing?
(unimportant, somewhat important, important, very important)
8. What is the reason behind you choosing a particular toothpaste? (TV advertisement, dentist
recommendation, friends recommendation)
Effect of branding
1. When you think about toothpaste, what are the top three brands that come to your mind?
(Open Ended)
2. Do you look for a particular brand while purchasing toothpaste? (Y/N)
3. If your preferred brand is not available would you purchase a toothpaste of a different
brand? (Y/N)
4. If your answer to the previous question is no, would you go to another shop or postpone
your purchase? (Y/N)
5. How frequently do you switch brands? (Never, once a year, once in six months, at every
purchase)
6. What is the reason behind your switching of brands? (New product in Market, TV
advertisement, dentists recommendation, friends recommendation)
Advertising and Promotions
1. Do you associate brands with their advertisements? (Y/N)
2. If there are offers on other toothpastes, would you consider buying them? (Y/N)
3. If your answer to the previous question is yes, which of the following would increase your
propensity to buy it? (free toothbrush/ discounts/ extra toothpaste/others(please specify))
4. Do you believe that the dentists shown in toothpaste advertisements are real and offer
unbiased advice? (Y/N)
5. Would recommendation by IDA and other agencies increase your propensity to purchase a
particular toothpaste? (Y/N)
6. Would promotion by actors or sportspersons increase your propensity to buy a particular
brand? (Y/N)

FINDINGS FROM IN-DEPTH INTERVIEWS:

Transcripts of all in-depth interviews can be found in document labelled Transcripts_GroupD1.

Summary:
Oral Care Habits
Most households visited a dentist at least once a year. Also, they brushed their teeth twice every
day. Some households had preferences for different products among different members whereas
the majority of families used the same brand.
Product Preferences
Colgate came across as the most preferred brand. Most people preferred paste based toothpastes
over gel based. Herbal/Ayurvedic preferences were seen across only a very few examples with
brands like Meswak & Patanjali.
Feature Preferences
The most commonly mentioned feature was taste, though not the most important, with other
features being preferred among different respondents. The other preferred features in a product
consisted of plaque removal, decay protection, whiteness, freshness, herbal content & sensitivity
relief.
Purchasing Habits
Most people bought the product once in a month. The largest pack and the combo packs were the
most preferred SKUs. The places of purchase include both Kirana stores and Modern Retail Stores.
Brand Awareness & preferences
Most respondents were aware of all the major competitor products in the market. All respondents
preferred the brand they use and continued to use it only because they had been using it since long,
probably their childhood and were never dissatisfied with the product. The brand preferences
werent affected by endorsements by either TV ad even if endorsed by their favourite personalities
or celebrities.

PILOT SURVEY QUESTIONNAIRE:

Questionnaire can be found in document labelled Questionnaire_GroupD1.

ANALYSIS OF SURVEY DATA:

Factor Analysis

Component Matrix
Component
1

3.

Do you look for a particular brand while purchasing a toothpaste?

.288

-.288

.762

If there are promotional offers on toothpastes other than your

.206

.296

.632

.424

.726

.164

.386

.234

.256

.638

.484

-.050

.723

-.085

-.416

.521

-.733

-.113

.460

-.682

.288

.649

.112

-.401

preferred choice, would you consid...

To what extent do you agree to the following statements:-Dentists
shown in toothpaste advertisements are real
To what extent do you agree to the following statements:-Dentists
shown in toothpaste advertisements show unbiased advice
To what extent do you agree to the following statements:Recommendation by IDA and other agencies increase your
propensity to purchase a particular brand of toothpaste
To what extent do you agree to the following statements:Promotion by actors or sports persons increase your propensity to
buy a particular brand of toothpaste
To what extent do the following affect your choice of toothpaste:Packaging
To what extent do the following affect your choice of toothpaste:Color of the toothpaste
To what extent do the following affect your choice of toothpaste:Shopkeeper's recommendation
Extraction Method: Principal Component Analysis.

Conclusion:
Component 1: Effectiveness of Brand Communication
Component 2: Product Preferences
Component 3: Brand Preferences and Loyalties

Cluster Analysis:

Agglomeration Schedule
Cluster Combined
Stage

Cluster 1

Stage Cluster First Appears

Cluster 2

Coefficients

Cluster 1

Cluster 2

Next Stage

17

36

.063

13

16

31

.129

21

30

.267

23

15

.407

13

16

33

.553

24

22

25

.706

14

32

34

.938

12

10

12

1.179

17

1.422

18

10

35

1.674

21

11

26

1.962

19

12

18

32

2.323

23

13

17

2.698

25

14

22

3.074

26

15

24

3.497

22

16

20

28

3.925

30

17

10

13

4.413

27

18

27

4.946

33

19

29

5.504

11

28

20

19

23

6.110

24

21

37

6.722

10

25

22

14

7.414

15

26

23

18

21

8.240

12

31

24

16

19

9.344

20

29

25

10.488

21

13

27

26

12.633

14

22

30

27

10

14.888

25

17

33

28

17.189

19

31

29

11

16

19.823

24

32

30

20

24.743

26

16

34

31

18

30.696

28

23

32

32

11

41.262

31

29

35

33

57.546

27

18

34

34

77.721

33

30

35

35

105.000

34

32

Final Cluster Centers

Cluster
1
A-R factor score 1 for

2
.78203

-.78203

.29984

-.29984

-.10679

.10679

analysis 7
A-R factor score 2 for
analysis 7
A-R factor score 3 for
analysis 7

Cluster 1 : Highly influenced by Brand Communications, a bit choosy about product

preferences and likings and no particular brand preferences and loyalty
Cluster 2 : No influence of brand communications and highly brand loyal

Conclusion
The major players in the market are Colgate, Close Up & Pepsodent. There is also an emerging
market for Herbal/Ayurvedic/Organic products.
Most customers are Brand Loyal and do not easily switch between brands. The most preferred
qualities in a toothpaste were Long Lasting Freshness and Whitening effect.
Cluster 1 is a segment which should be targeted since they can be influenced by advertisements and
will purchase the products if their quality preferences are met. However they are not brand loyal
and therefore may or may not be long term customers of the brand.
Therefore, the target segment should be people who belong to the cluster 1 and a Herbal/Organic
product with long lasting freshness and whitening effect should be a good option to enter the
market.

Bibliography
1. Euromonitor. Oral Care in India. Category Briefing, Euromonitor International, 2015.
https://www.wattpad.com/55403766-toothpaste-market-in-india-to-2017
2. http://www.managementparadise.com/sayed123/documents/15207/project-ontoothpaste-industry-in-india/
3. http://www.livemint.com/Companies/uS5h7rgtmvp55O1hFBwdvI/Colgate-continues-to-bea-blue-chip-in-oral-care-sector-in-I.html