Overview of the Toothpaste Industry
Overview of the Toothpaste Industry
The toothpaste history in India can be tracked back from 1975 with 1200 tonnes of toothpaste produced by the toothpaste industry. Prior to the toothpastes Oral Hygiene was the domain of local homemade powders and ayurvedh practitioners. With the entry of Colgate in Indian marketplace the awareness about Oral care and the importance of oral care. In recent years the Industry has shown impressive growth rate of 18.6% (this growth is calculated in terms of value growth in Rs.). The growth in the urban market has been largely by the Gel Segment. Presently, a large chunk of the Market is still held by Colgate. The major players in the toothpaste Industry being Colgate Palmolive and Hindustan Lever Limited and several minor players like Balsara hygiene, Dabur etc. Presently Colgate Dental Cream holds 52% of market share. HLLs 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 Close up, Close up 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. In India toothpaste usage as compared to other countries is very low which signifies about the potential of the market. In Urban India the usage of toothpaste per person per year is just 190gms. Where as it is 200gms of toothpaste per person per year in developing countries as Indonesia and Thailand. In developed countries as USA and other European
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countries the toothpaste usage is 375 gms per person year. In India the toothpastes companies are going in for advertising on a heavy note, on an average the companies managing this FMCG category are spending 6.15% of their sales on development. Colgate Palmolive had shelled out 15% of their sales on ads in the year 1994. Dabur had an ad expenditure of 5.07% for the year 1993. Whereas balsara Hygiene spend a huge 10.17% of their sales.
CLOSE UP TOOTH PASTE: Young people. The target market being Multi Brand Households where young does not use what their parents. This particular targeting was significant when Close Up was launched because Colgate positioning was a sort of Flip flop between Tooth decay and Bad Breath and Colgate was going for a Broad market constituting of all the age groups. Sought to be perceived by the customers was Fresh Breath. The physical appearance by the users. The Bright Red Gel synerized well with the Fresh breath Benefit. The advertising account was handled by LINTAS which focused on Fresh Breath that brought teenagers closer. By 1980 Close Up had 3% of the 16,000 tonnes toothpaste market. The production capacity was doubled through a deal with third party manufacturer and the Brand was taken National over the next year and a half, the Premium slashed by 30%. Close Up countered this move by sharpening product benefits, while urging the customers to do the HA test by blowing air on the palm, the message was that Close Up feels a lot cooler which reiterated the basic benefit of a fresh breath. 1987 was a Probe into Problem year for HALL as Close Up was much below expectations with only 4.5% of the 32,000 tonnes toothpaste market. They identified two basic problems:
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(1) Appearance of Toothpastes detracts prospects from its serious buyers. (2) Commercials displayed too much of proximity between couples which was too much for a mother, who actually purchased the Toiletries. 1998 Lever reworked 3 Ps in its Marketing mix in Tamil Nadu where people have a strong sense of Oral Hygiene and the area has a cost effective media Reach. The three reworked Ps are as follows:
Tangerines of Read reduced. (For serious buyers.) Soft Squeeze lamitubes for toothpastes introduced for the first time in the
(3) Distribution Took Brand to Sub Urban and Rural areas. Posters and Mobile Vans arrived in areas where urban lifestyle was a
matter of aspiration. This was a purposeful move as the company did not want the Brand to be saddled with a restrictive. In 1991, Close Up launched Zing Green and simultaneously Lever sponsored Close up Sangeet Muquabala targeted at the rural youth. In 1991 Close Ups market share increased to 16% of Rs 377 crores per year market. 1991 witnessed a few problems for Close Up Blue, which was faltering on repeat purchases as customers did not perceive much freshness value in it. In 1992, HLL launched
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AQUA BLUE with added attributes like increased Mouthwash contents and a more Minter flavour, so that customers perceived benefit is Freshness which is Levers positioning stance. In response Colgate introduced Red Actirinse and then Colgate Blue. People at HLL thought to counter Colgates growth by cashing in on Medicinal appeal and came out with Close up with Germicheck snf Mentadent G now renamed as Close up G for Gum problems. Colgate countered this move by launching Colgate Total as an advanced paste to fight. Tartar, Gingivitis, and other Dental ailments. 1993 was the year when HLL tried to woo the customers by innovative packaging. Firstly it introduced Stand Up Pump dispensers for metros but it bombed in the market because of High price perception as compared to benefits. Sachets formula was used by lever to break into Colgates fort. The Close Up sachets was priced at Rs. 3 per unit and it offered 20 uses, which means that a family of five could use it four times each. The year it sponsored zee Close Up Antaksharee. HLL also went in for Close Up Toothbrushes under the Brand name Confident and launched it in Tamil Nadu. The confident toothbrushes were taken National and most importantly HLL advertisement account shifted from LINTAS to FTA due to Global alignment move by Levers parent Unilever. The brief given to the new agency was to Strengthen the Audiences perception of Brands functional values. Close Ups formulation was reworked and the new Close Up was enriched with Microwhiteners so that the perceived benefit by the customer be that he will have Shining Teeth. As the ad account was handed over to HTA, the ad moved closer to the Indian Culture, they also took note of the cultural changes which showed in their ads like Females were now more than equal participants in Boy Girl activity as in Salim Anarkali ad which showed her confidence by joining the Boy on the stage and saving the day.
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S1996 witnessed introduction of Close Up Liquid fresh a liquid in a carry along squeeze can in two sizes:
30 gm Rs.
100 gm Rs.
HLL gave it a dual positioning platform of a Mouthrinse and toothpaste, like squeeze the Gel directly into Mouth. Close Up is pushing hard for semi Urban and Rural areas were disposable incomes are rising rapidly and in order to tap these markets it is going for Vernacular Advertising in Eight languages. In Bengal as the communication did not work all that work initially, HTA has contracted Anjan Dutta a signer popular with both Young and old alike in Bengal.
CHAPTER 2
OBJECTIVES OF THE STUDY
Primary Objective:
To know how many of consumer to know the content and use the close up tooth paste.
Secondary Objective: To obtain information regarding the consumer preference towards various flavors offered by Close up toothpaste. To know the views of the user with the performance of Close up toothpaste. To give suitable suggestions to enrich the consumer preference of the Close up toothpaste.
The project is done in Chennai. This is done for students only. The study is conducted to know the consumer preference of Close up
toothpaste. This may help the company to decide upon their new ventured. The research focuses on the several features of the close up and to know the suggestions of the user which may help the company in further development of the close up toothpaste. The research provides a complete feedback on The close up toothpaste which may give a Sincere backup for their future plans with respect to design area.
LIMITATION OF THE STUDY The sample size is only 50. The period of study is limited There is no comparative study made. Under the study illiterate people excluded.
Customers are the people who are going to purchase and use that product. CONSUMERS VALUE: Consumers delivered value is the difference between total consumers value and total consumers cost. Total consumers value is the bundle of benefits consumers expect to incur in evaluating, obtaining, using and disposing of the product or service. CONSUMERS STATISFACTION: Satisfaction is a persons feelings of Pleasure of disappointment resulting from comparing products perceived performance (or outcome) in relation to his or her expectations. At this definition makes clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations, the consumer is dissatisfied. If the performance matches the expectations, the consumers are satisfied. If the performance exceeds expectations, the consumer is highly satisfied or delighted. Many companies are aiming for high satisfaction because consumers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less to switch. High satisfaction or delight creates an emotional bond with the brand, not just, a rational preference. The result is high consumers loyalty. From past buying experience, friends and associates advice, and marketers and competitors information and promises. The key to generating high consumers loyalty is to deliver high consumers value According
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to Michael Lanning, in high delivering profitable value; a company must develop a competitively superior value proposition and a superior value delivery system. A companys value proposition is much more than its positioning on a single attribute, it is a statement about the resulting experience consumers will have from the offering and their relationship with the supplier. The brand must represent a promise about the total resulting experience that consumers can expect. Whether the promise is kept depends upon the companys ability to manage its value delivery system includes all the communications and channel experiences the consumers will have on the way to obtaining the offering.
CHAPTER -5
RESEARCH METHODOLOGY:
DATA COLLECTION: The word data comes from datum. The datum is a Latin word, which literally means something given. It means a piece of information,
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which can be either quantitative or qualitative. The term data is the plural of datum and means facts and statistics collected together for reference or analysis. There are two type of that are collected and analysed in statistics. Primary data, and Secondary data.
PRIMARY DATA: Primary data is known as the data collected for the first time through field survey. Such data are collected with specific set of objectives to asses the current status of any variable studied. By survey methods the data can be collected by any one or more of the following ways. Questionnaire Schedule. Interview Observation. Feedback from. Sales force opinion. Projective techniques.
Mechanical devices.
SECONDARY DATA: The secondary data, are those which have already been collected some other agency and which have already been processed. Generally speaking, secondary data is collected by some organization to satisfy its own need but it is
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being used by various departments for different reasons. Census figures taken are used by social scientists (economists) social planning and research. SOURCES OF SECONDARY DATA: INTERNAL SOURCES: Register, Documents, Annual report, Sales reports, Previous research papers, Sales records, Invoice etc., EXTERNAL SOURCES: Journals on magazines, Newspapers, Public speeches, State and Central government departments reports etc., SAMPLES: Samples size Target sample Sampling techniques : : : 50. Age between 20-30. Random sampling.
INTERPRETATION The term Interpretation means explaining the meaning and significance of the data so arranged. It is the study of relationship between various factors. ANALYSIS AND INTERPRETATION Analysis and Interpretation are closely related. Interpretation is not Possible without analysis and without interpretation analysis has no value. Hence the term analysis is widely used to refer both analysis and interpretation. Readers satisfaction is an important element of marketing function which decides the profitability of any concern. In this chapter an attempt is made to analyze the main factors influencing the purchase decision of the selected sample respondents in the study area. For the purpose of the analysis, variables are classified into two important strata viz., dependent variables and independent variable. The independent variables used in the study are age, sex, educational status, occupation, and income of the respondent, size of the family and awareness of the sample respondents.
The study uses both primary as well as secondary data; primary data was collected through field survey method. For collecting the data questionnaire was used as a main tool. The data thus collected were tabulated systematically in an orderly form. Simple statistical too like percentage age, and chi-square test were employed
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CHAPTER - 7
PERCENTAGE ANALYSIS: AGE:
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PERCENTA GE ANALYSIS
0 50 0 0 50
0 100 0 0 100
INTERPRETATION:
The above table inferred that 100% of respondents are aged between 2130 years.
GENDER:
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GENDER
NO. OF RESPONDENTS
PERCENTAGE ANALYSIS
MALE
35
70
FEMALE
15
30
TOTAL
50
100
INTERPRETATION: The above table inferred that 70% of respondents are male and 30% are female.
EDUCATION QUALIFICATION:
Qualification
Respondents
15
Percentage
analysis PG 30 60
UG
20
40
TOTAL
50
100
INTERPERTATION: The above table inferred that 60% of respondents are PG and 40% of respondents are UG.
OCCUPATION:
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OCCUPATION
PERCENTAGE ANALYSIS
35 12 3 50
70 24 6 100
INTERPRETATION: The above table inferred that 70% of respondents are students and 24% of respondents are workers and 6% of respondents are business people.
PERCENTAGE ANALYSIS
13 26 11
26 52 22
TOTAL INTERPERTATION:
50
100
The above table inferred that 26% of respondents are one time brush every day and 52% of respondents are two time brush every day and 22% of respondents are three times brush every day.
REASON
NO. OF RESPONDENTS
PERCENTAGE ANALYSIS
ECONOMICAL
18
18
36
12 20 50
24 40 100
TOTAL
INTERPRETATION: The above table inferred that 70% of respondents are students and 24% of respondents are workers and 6% of respondents are business people.
USING
[Link]. RESPONTENTS 17
PERCENTAGE ANALYSIS 34
PAST 6 MONTH
19
PAST 1 YEAR
22
44
11
22
50
100
INTERPRETATION: The above table inferred that 34% of respondents are using past 6 month and 44% of respondents are using past 1 year and 22% of respondents are using more than a year.
PERCENTAGE ANALYSIS 36
20
12 7 8 5 50
24 14 16 10 100
INTERPRETATION: The above table inferred that 36% of respondents are highly satisfied, 24% of respondents are satisfied, 14% of respondents are neutral 16% of respondents are dissatisfied and 10% of respondents are highly dissatisfied.
ATTRACTIVE
MICRO WHITENERS
21
18 11
36 22
TOTAL
50
100
INTERPRETATION: The above table inferred that 42% of respondents are attractive in micro whiteness, 36% of respondents are attractive in active clean, and 22% of respondents are attractive in colour.
QUALITY OF PRODUCT:
QUALITY
EXCELLENT
PERCENTAGE ANALYSIS
36
22
19 13
38 26
TOTAL
50
100
INTERPRETATION: The above table inferred that 36% of respondents are says excellent, 38% of respondents are says good, and 26% of respondents are not satisfied.
PRICE
VERY CHEAP
23
AFFORDABLE
20
40
EXPENSIVE
15
30
TOTAL
50
100
INTERPRETATION: The above table inferred that 30% of respondents are says very cheap, 40% of respondents are says affordable, and 30% of respondents are says expensive.
MAIN INGERDIENT:
INGERDIENT SORBITAL
PERCENTAGE ANALYSIS 46
24
15 12 50
30 24 100
INTERPRETATION: The above table inferred that 46% of respondents are sorbital, 30% of respondents are sodium fluoride, and 12% of respondents are sodium saccharin.
CHAPTER 8
FINDING AND SUGGESTION:
every day, 26% of respondents are once in a day, and 22% of respondents are three times brush every day.
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It was found that sale is increase in last one year. In the survey past
one year 22 person starts to buy close up tooth paste. It was found that many consumers highly satisfied in this product.
up. Afterwards active clean is more attractive in the close up. Quality of product is many consumers are satisfied. Because 38%
of consumers say thats good. Afterwards 36% of consumers say thats excellent.
Because in the survey 40% of consumer says price is affordable. In this product only 46% of consumers only know the main
ingredient in this paste. Others do not know the main ingredient of the product. Many of the consumer are giving suggestion is to introduce the
more flavour in the close up. Many consumers want to more innovation in the products.
SUGGESTION: The following are the suggestion offered to increase the satisfaction level of the close up toothpaste based on the readers opinion and analysis of the data.
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Most of the consumers expressed dissatisfaction over the price of the toothpaste and suggestions are given to improve the cavity protection of this toothpaste. A few respondents felt that their gum felt weak, so the makers have to take steps to improve this gum care feature. A few respondents in rural areas are dissatisfied because of nonavailability of this toothpaste. Hence this toothpaste should reach rural areas also. A few respondents are dissatisfied about cavity protection of this toothpaste, so the maker has to ensure this feature. People in rural areas would like to have close up toothpowder.
The company to improve the quality of the product. Because in the survey excellent percentage is less than the other. Most of the buyers only say thats good.
The company to give more importance to the advertisement. To put new and innovative advertisement.
CHAPTER -9
CONCLUSION
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Toothpaste plays a vital role in our life. Food is one of the most important things to live and to eat and grind that food tooth is needed, so to keep that teeth safe toothpaste is essential selection of toothpaste is also important in protecting our teeth. They have contributed enormously for the protection of our teeth. From the data analysis most of the respondents have preferred close up because of its gum care and cavity protection. Suggestions have been given by respondents to improve its quality.
CHAPTER - 10
BIBLIOGRAPHY
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Books
I, BASKAR doing MBA in Sathyabama University. As I have to do a project for the fulfillment of my degree and requesting to fill a following question.
1. NAME
:
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2. AGE
3.
: : MALE FEMALE
GENDER
4. EDUCATIONAL QUALIFICATION
5.
OCCUPATION
STUDENT
BUSINESS
WORKER
6. WHICH TOOTHPASTE ARE YOU USING? a) COLGATE b) PEPSODENT c) CLOSEUP d) OTHER ----------(PLEASE MENTION THE NAME OF THE TOOTH PASTE)
8. WHY ARE YOU USING THAT PASTE PARTICULARY? a)ECONOMICAL b) DOCTORS ADVICE c) ADVERTISEMENT 9. HOW LONG HAVE BEEN USING CLOSE UP? a) PAST 6 MONTH b) PAST 1 YEAR c) MORE THAN A YEAR [Link] YOU SATISFIED WITH THIS TOOTHPASTE? a) YES b) NO
[Link] YOU THINK ABOUT THE QUALITY OF OUR PRODUCT? a) EXCELLENT b) GOOD c) NOT SATISFIED [Link] DO THINK ABOUT THE PRICE OF OUR PRODUCT?
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a)VERY CHEAP
b) AFFORDABLE c) EXPENSIVE
[Link] IS THE MAIN INGERDIENT IN CLOSE UP? a)SORBITOL b) SODIUM FLUORIDE c) SODIUM SACCHARIN [Link] YOU HAVE ANY SUGGESTONS AND FEEDBACK FOR THE BETTERMENT OF THE PRODUCT?
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SIGNATURE
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Close Up adapted its product and marketing strategies by addressing consumer feedback and employing innovative product modifications. After identifying that the visual appearance of the toothpaste and excessive proximity between couples in advertisements were issues for consumers, Close Up introduced product variations such as Blue mint flavor and reduced use of red, which appealed to serious buyers. Additionally, they enhanced their distribution by targeting suburban and rural areas and introduced soft squeeze lamitubes to better cater to consumer preferences. To counter Colgate's growth, Close Up focused on unique benefits like fresh breath through new formulations and engaged in vernacular advertising to penetrate semi-urban and rural markets .
Close Up's innovative packaging strategies included the introduction of soft squeeze lamitubes and 'Stand Up Pump dispensers.' While the Stand Up Pump dispenser was unsuccessful due to high price perception relative to the benefits, lamitubes benefited from offering convenience and freshness preservation, positively impacting consumer perception. Packaging innovations like sachets at a lower price point effectively increased brand accessibility to price-sensitive consumers. These strategies reinforced the brand's functional values and helped reposition Close Up as a fresh and modern alternative, although some innovations required recalibration to align with consumer expectations more effectively .
Close Up adapted its marketing strategies by tailoring its product offerings and promotional activities to align with the preferences of different geographical regions. In Tamil Nadu, Close Up focused on emphasizing oral hygiene, introduced the Zing Green variant, and utilized cost-effective media reach. For broader rural penetration, the brand engaged in vernacular advertising across eight languages and leveraged local influencers like singer Anjan Dutta in Bengal to enhance relatability. By crafting region-specific strategies, Close Up effectively engaged different demographic and cultural segments, optimizing its reach and resonance in each targeted area .
Advertising was crucial in Close Up's strategy to enhance its market presence by emphasizing fresh breath benefits, appealing imagery, and messages targeting young consumers. Campaigns focused on the ‘freshness test’ and demonstrations of product benefits, which were effective in differentiating Close Up from competitors like Colgate. The brand used culturally resonant advertisements, showcasing themes of closeness and modernity that appealed to younger audiences, and strategically shifted its advertising account to HTA to better align with cultural changes. These elements created strong brand recall and engagement among target consumers, contributing to increased market share .
The competitive landscape of the toothpaste industry in India is characterized by a few dominant players and several smaller brands. Colgate holds the largest market share with various products targeting different consumer needs. Key factors driving competition include market share battles, such as Colgate's dominance challenged by Hindustan Lever Limited (HLL) with its Close Up brand. Innovations in product offerings, such as gel toothpaste, flavor varieties, and unique packaging, are critical for differentiation. Advertising plays a significant role, with companies like Colgate investing heavily in promotional activities. Additionally, consumer preferences for aspects like fresh breath, affordability, and appealing flavors further fuel the competitive dynamics within the industry .
Close Up distinguished itself from Colgate by targeting a younger audience and focusing on fresh breath as its primary benefit. The brand was positioned as a vibrant and modern choice, appealing to young people who wanted something different from their parents' choices. Close Up used bright red gel and fresh breath benefits in its marketing, and its ads displayed more youthful and modern themes to attract its target demographic. Additionally, Close Up leveraged cultural insights and used unique distribution strategies, like reducing product premium by 30% through a third-party manufacturing deal, to enhance its market presence .
Close Up's primary challenges in sustaining its market share included competition from Colgate, consumer perception issues regarding toothpaste appearance, and advertising content. Consumer feedback indicated that the product's bright colors and the too-close depiction of couples in advertisements were not well received by mothers, who were primary decision-makers in purchases. In response, HLL adjusted Close Up's marketing mix by reducing the prominence of red color and modifying formulations to introduce new flavors like Blue mint for more serious buyers. Additionally, Close Up expanded its distribution beyond urban areas to tap into semi-urban and rural markets, addressing these challenges through strategic product and marketing adaptations .
Close Up employed pricing strategies that included reducing product premium by 30% through third-party manufacturing agreements and introducing products like sachets, which provided affordability without sacrificing usage. These sachets were strategically priced to deliver maximum usage at a lower cost, making the brand more accessible to price-sensitive consumers. Despite these efforts, some initiatives like the ‘Stand Up Pump dispensers’ failed due to perceived high costs against benefits. However, the overall pricing strategy helped Close Up gain traction among a diverse consumer base and support market share growth by positioning it as an affordable yet effective choice .
Close Up leveraged cultural insights by aligning its advertisements with popular cultural norms and trends. For example, in Tamil Nadu, it sponsored events like "Close up Sangeet Muquabala" to engage rural youth, showcasing how it adapted its strategies based on regional cultural preferences. The brand also tailored its media outreach by using vernacular advertising to connect with diverse linguistic groups across India. This approach enabled Close Up to resonate with broader audiences and expand its market share by making the brand relatable and aspirational for different segments of the population .
Colgate's entry into the Indian market significantly impacted the oral care industry by increasing consumer awareness about the importance of oral hygiene. Before Colgate, oral hygiene was primarily maintained through local homemade powders and Ayurvedic practices. The company's approach to target a broad market and emphasize benefits such as tooth decay prevention and fresh breath raised awareness and influenced consumer habits, ultimately leading to Colgate holding a substantial market share .









