the Introduction to Consumer Buying Behaviour
|✅ Paper Type: Free Essay||✅ Subject: English Language|
|✅ Wordcount: 1702 words||✅ Published: 1st Jan 2015|
The oral care market represented by toothpaste is fast growing and competitive one. Large numbers of players are there in market. They are trying to attract consumers by providing different advantage to them .Therefore, Consumer Buying Behaviour understanding well can add values to the toothpaste companies. Taste and preference of consumer are day by day changing and to come in par with competitors products one must be good enough able to understand the consumer behaviour.
The study is basically done in order check to what extent Specific Brand Selection and attractive factors (packing, flavour, quality, price) in toothpaste industry are associated and further other factors like colour of paste etc. preferences extent in industry.
In order to understand consumer behaviour survey is done in Lovely Professional University Students regarding their taste and preference, price sensitivity and other such elements in toothpaste industry. Then, this data is analysed with Simple-Tabulation and Cross-Tabulation ( Chi-Square method).
Introduction to Consumer Buying Behaviour
World over the oral care market is largely represented by toothpaste and toothbrush.
Other products in this category include mouthwash, sprays and oral rinses. In India, there
is a significant presence of toothpowder as well. Many other people in India still clean
teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal
ingredients. Recent studies have indicated dual usage (powder and paste) in 10% of rural
households. The younger generation is increasingly shifting to toothpaste even in rural
areas. In relative terms, penetration of toothpowder is higher in North and toothpaste in
South. This could be due to higher education, purchasing power and urbanization in the
Indian urban toothpaste per capita consumption is about 92 grams per month compared to
219 grams of China; and only 7% of Indian urban class brush twice a day compared to
86% in Malaysia. Thus there is tremendous scope for growth of doing business in India.
Toothpaste industry growth has been low as compared to other products. For market leader
Colgate, in 2007 growth had been around 12%. For same brands like Babool the market growth was as high as 50%. As per India Infoline Sector report, about 60%
of toothpaste in India is sold on family platform; there is single toothpaste for the entire family. Specialized toothpaste such as for children has been available in India only in last 2-3 years (mainly imported products) and usage is extremely low. About 35% of toothpaste is sold on cosmetic propositions. These are targeted mainly at young consumers and upper urban class on the proposition of fresh breath, white teeth and functional benefits of controlling plaque, preventing cavity etc. There is a niche market (5% of total) for toothpaste with therapeutic benefits. Toothpaste is also segmented based on product attributes as White, Gel, Herbal, etc. Some products are also available as a combination of both Whites and Gel. World over toothpaste positioned on anti-cavity platform, contains fluorides. Excessive usage of fluoride can cause a disease called Fluoresces, to which children are particularly vulnerable. In India, there is a strong societal aversion to fluoride toothpaste. Price wise, toothpastes can be segmented as Economy, Regular and Value-added segments. The price range varies from Rs.15-20 for a 100 gm pack in the economy segment to Rs.30-35 for a 100 gm pack in the Regular Segment to Rs.50 for a 100 gm pack in the medicated/value added segment.
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Biz Acumen, Inc (2009), Toothpaste – Global Market Trends, 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.
Kumar.S (2009), The report analyzes the oral care market in India. 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. Colgate and HUL together account for over two-thirds of the organized toothpaste market. In toothpowder market, Colgate, HUL and Dabur are the major players.
ICON Group International (2009), This study covers the world outlook for manufacturing and packaging soaps, laundry and dishwashing detergents, toothpaste gels, tooth powders, and natural glycerin across more than 2000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of U.S. dollars), the percent share the city is of the region and of the globe. These comparative benchmarks allow the reader to quickly gauge a city vis-à-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
ICON, (May,2009) This study covers the world outlook for toothpaste, gels, and toothpowder across more than 2000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of U.S. dollars), the percent share the city is of the region and of the globe. These comparative benchmarks allow the reader to quickly gauge a city vis-à-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
Icon Group (2008), In order to estimate the latent demand for toothpaste for sensitive teeth across the states or union territories and cites of India. Ignoring, for the moment, exogenous shocks and variations in utility across geographies, the aggregate relation between income and consumption has been a central theme. In fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be latent demand for toothpaste for sensitive teeth at the aggregate level. Product and service offerings, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.
Objective of study
The study is done in order understand the consumer buying behaviour as
- To understand how much Brand Selection to use toothpaste is associated with attractive factors packing, flavour, quality and price.
- To understand the consumers attention towards the ingredients and habit to purchase along with the income level of consumers.
- To understand the taste and preference they look for in different brands during purchase.
There are two major limitations of study
- Time constraint is major limitation this study.
- Lack Respondents willingness to respond.
Small sample size is taken, result can change with bigger sample size.
Better advertisement should be done as to why we can say Pepsodent is most liked by consumer.
Consumer is more aware therefore specifications on product should be accurate.
Price and quality should be well adjusted so as to capture large market.
Toothpaste companies should forward small packing in market.
There is significant relationship between specific brand selection and attractive factors (Packing, flavour, quality, price). Mostly, they look for price and quality in par with each other to brand they purchase. Abrasives, Anti-bacterial agents and Fluoride content ingredients are frequently taking into account. Pepsodent followed by Close-up are most preferred brands of toothpaste. Packing and color of paste are also plays significant role in purchase.
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