Business Research Methods

(TERM-III SESSION-2012-2014) A PROJECT REPORT ON

Analysis of Consumer buying behavior in the oral care sector specifically toothpaste

Submitted To:
Dr. Vibhava Shrivastava

Submitted By:
GROUP -9 SECTION-A

Assistant Professor IMT Nagpur

AnkitChaudhary Anuj Job Mathew

(2012047) (2012057)

Executive Summary Oral hygiene is sought to be one of the most necessary aspects to maintain good health since the pre-modern era where natural products like Neem sticks were used to maintain good teeth. With the advancement of technology in the modern era, products like toothpastes, mouth washes, dental floss, and teeth whiteners have been introduced. Realizing the importance of these products in consumers daily lives especially toothpastes, many companies like P & G, Hindustan Unilever etc. are planning to launch products to fight for the share of the existing market giants. Before launching a new product in the market, the companies need to realize the factors affecting the buying behaviour so as to design their marketing strategies to cater to the correct consumer segment(s). Initially, an exploratory research was conducted to figure out what brands of toothpastes the consumers know about and what factors do the consumers consider while making their purchase decision. Then questionnaires were administered through an online survey. Other approaches used for analysis were tabs, cross-tabs, chi-square, factor analysis, cluster analysis, etc. These statistical tools were used with the help of MS-Excel and SPSS. The analysis from these tools helped gather useful insights upon what type of respondents we had, what attributes the consumers consider while making the purchase decision, how the consumers perceive the various brands to be etc. Background: Oral hygiene is sought to be one of the most necessary aspects to maintain good health since the pre-modern era where natural products like Neem sticks were used to maintain good teeth. With the advancement of technology in the modern era, products like toothpastes, mouth washes, dental floss, and teeth whiteners have been introduced. In terms of dental hygiene, India is still a nascent country, with majority of the population still not having access to modern dental care and is still relying on substances like coal ash and neem sticks. Traditional materials like neem and tobacco are popular for cleaning teeth in the rural areas. The Oral care industry in India is worth Rs. 5,400 Cr. annually & comprises of: Toothpastes: 60 %: Rs. 3,240 Cr., Tooth powder: 23 %: Rs. 1,242 Cr. and Toothbrushes: 17 %: Rs. 918 Cr Realizing the importance of these products in consumers daily lives especially toothpastes, many companies like P & G, Hindustan Unilever, GSK, etc. are planning to launch products to fight for the share of the existing market giants. Before launching a new product in the market, the companies need to realize the factors affecting the buying behaviour so as to design their marketing strategies to cater to the correct consumer segment(s).

An exploratory research was conducted to figure out what brands of toothpastes the consumers know about and what factors do the consumers consider while making their purchase decision. Then questionnaires were administered through an online survey. Statistical tools were used with the help of MS-Excel . The analysis from these tools helped gather useful insights upon what type of respondents we had, what attributes the consumers consider while making the purchase decision, how the consumers perceive the various brands to be etc.

Research Objectives Primary Research Objective (PRO): To determine the consumer preferences while buying toothpastes in the age group 21-35

Secondary Research Objectives (SROs): To determine the various factors affecting the purchase of toothpastes. To determine the brand preferences for toothpastes in the age group. To determine the type of toothpastes preferred by consumers in the age group. To determine the positioning of various brands in the minds of consumers in the age group. To determine whether the various demographical factors affect the purchase of toothpaste.

Literature Overview The oral care market in India is estimated to be Rs 4,200-crore. Toothpaste, for the record, is estimated to be Rs 3,100 crore in size. Colgate Palmolive is the leader in Indian toothpaste market having a market share of 47% in 2011. HUL follows with 30%. HULs brand Close-Up has a market share of 17% and Pepsodent 13%. Dabur is enjoying 9.5% market share. From past few years the toothpaste market is restructuring & market share of different players are changing. Since 2009-10, analysts said HUL has lost 8-10% market share in oral care. Market is likely to see a few key launches in the toothpaste segment this year. The consumer products arm of Johnson & Johnson (J&J) may launch toothpaste under the Listerine umbrella, while GlaxoSmithKline (GSK) Consumer Healthcare may re-launch its Aqua fresh brand, phased out a few years earlier. GSK had launched Sensodyne toothpaste last year. A mass-market toothpaste product is what is missing at the moment, which GSK will plug with the re-launch of Aqua fresh. Kishore Biyani's Future Group is also entering the fray with its private label The toothpaste segment in India is largely a two player industry, Colgate Palmolive & Hindustan Unilever (HUL) which account for 76 % of the entire market. Colgate dominated the toothpaste market with a 54.30 % market share. The Company is India's biggest oral care products company with more than 95 % of its sales coming from this product category. FMCG giant Procter and Gamble (P&G) is also geared up to enter the toothpaste segment in India (it already has its toothbrush products in India with). P&G launched Oral B toothpaste in several countries like Venezuela, Greece, Portugal and Israel

All these factors would mean Colgate will have to invest heavily in brand building, advertising and promotional activities, which could put operating margins under check to maintain its leadership position. Highly competitive Indian consumption driven market which has increased its market share over the years

Research Approach Data Collection Method: An exploratory research was conducted for which the following techniques were used: Open-ended questionnaire

These questions were used to know what are the different attributes which a student at IMT looks for while selecting toothpaste. Focused group discussions Here, a discussion among a group of students was arranged to bring out the attributes that are evaluated by the students while selecting toothpaste.

Measurement Technique: To record the data the following measurement techniques would be used: Rank order scale In order to know the preference of this scale would be used to rank the various brands. Itemized non- comparative rating scale Respondents would rate certain attributes of tooth paste on a scale with positions from extremely influential to not at all influential. Likert Scale The Likert scale would be used to find out how the respondents perceive the features of toothpaste.

Sampling Plan: The sample for survey would be taken on the following basis. Sample Frame People residing or working in India Sample Unit Students and working professionals Sample Size 159 respondents Time Frame 10-15 Days. Sampling Method Simple random sampling (SRS) Data Analysis Technique The data collected from the exploratory research provided us with the different factors that a consumer looks for in toothpaste. Based on these responses, another questionnaire will be used to do factor analysis to reduce the number of attributes handled into fewer attributes, so that handling of factors becomes easier for subsequent analysis. To determine the profile of various consumers so that we can know more about their lifestyle, attitudes and preferences so as to gain an insight on what kind of toothpaste they are likely to choose, we will use cluster analysis, a segmentation technique. Finally to evaluate the student perceptions about toothpastes of different brands, we will use attribute based perceptual mapping using discriminate analysis and also Multi-Dimensional Scaling. Apart from using these three major techniques, we plan to use chi square analysis with crosstab to evaluate whether the preferences are different for various demographical factors. We will also use ANOVA technique to analyze if the effect of various independent variables on the choice of the brand of toothpaste and also the interaction effect that these variables have on the toothpaste choice of the population. These various techniques would be carried out the help of software like MS-Excel, SPSS etc.

Data Collected 1. Region North South West East Total

42 14 76 27 159

Region distribution
North South West East

17%

26%

48%

9%

2. Occupation Student Service Self-employed Total

130 24 5 159

service 15% self employed 3%

Occupation

student 82%

3. Gender Male Female Total

105 54 159

Gender
Male Female

34% 66%

4. Age: Less than 15 Between 16-20 Between 21-25 137 Between 26-30 22 Above 30 Total

0 0 137 22 0 159

140 120 100 80 60 40 20 0 0 Less than 15 0 Between 16-20 Between 21-25 Between 26-30 137 22 22 0 Above 30 137

5. Frequency of use Once a day Twice a day After every meal Total

81 75 3 159

Frequency of use
Series1

81

75 3

Once a day

Twice a day

After every meal

6. Purchase Frequency: Every month Every two months Every three months Not very often Total

84 60 11 4 159

84

Frequency of purchase
60

11 4 Every month Every two months Every three months Not very often

7. Current Brand: Colgate Close up Pepsodent Meswak Babool Dabur Red Sensodyne Others Total

72 37 31 5 1 6 1 6 159

Others Sensodyne Dabur Red Babool Meswak Pepsodent Close up Colgate 1 1

5 31 37 72

Data Analysis
Analysis 1: Type of Toothpaste vs. Age Group Hypothesis: H0: The type of the toothpaste does not have a significant impact on the buying behaviour of various age groups. Ha: The type of toothpaste has a significant impact on the buying behaviour of various age groups. Count Type Paste 70 17 87 Total Paste 137 22 159

Age Between 21-25 Between 26-30 Total

Gel 61 4 65

Others 6 1 7

70 70 60 50 40 30 20 10 0 Paste Gel Others 17 4 6 1 Between 21-25 Between 26-30 61

Value of chi Square is P calculated= 5.5869 Degree of freedom is 2 For 95% confidence the value of chi square from table is P observed=5.3185 Since P observed < P calculated we reject the null hypothesis indicating that there is significant relationship between age group and the type of toothpastes preferred.

Analysis 2: Place of Purchase V/S Age Group Hypothesis: H0: The place of purchase of the toothpaste does not have a significant impact on the buying behaviour of various age groups at confidence level of 95% Ha: The place of purchase of the toothpaste has a significant impact on the buying behavior of various age groups at confidence level of 95%

Age: Between 21-25 Between 26-30 Total

Place of purchase General Stores Departmental Stores 87 47 8 13 95 60

Total Medical Shops / Pharmacies 3 137 1 22 4 159

90 80 70 60 50 40 30 20 10 0

87

47 Age: Between 21-25 Between 26-30 8 13 3 1

General Stores

Departmental Medical Shops Stores / Pharmacies

Value of chi Square is P calculated = 5.83167 Degree of freedom is 2 For 95% confidence the value of chi square from table is P observed=4.6051 Since P observed > P calculated we do not reject the null hypothesis indicating that there is no significant relationship between the place of purchase and age group.

Analysis 3: Brand vs. Age Group Hypothesis: H0: The brand of the toothpaste does not have a significant impact on the buying behaviour of various age groups at confidence level of 90%. Ha: The brand of the toothpaste has a significant impact on the buying behaviour of various age groups at confidence level of 90%.

BRAND AGE 21-25 25-30 COLGATE 59 13 72 CLOSE- PEPSOUP DENT 35 27 2 37 4 31 MESWAK BABOOL DABOUR 5 0 4 0 5 1 1 2 6 SENSODYNE OTHERS 1 6 0 1 0 6 TOTAL 137 22 159

60 50 40 30 20 10 0 21-25 25-30

Value of chi Square is P calculated = 13.37109 Degree of freedom is 7 For 95% confidence the value of chi square from table is P observed=12.01704 Since P observed < P calculated we reject the null hypothesis indicating that there is a significant relationship between the age group and the brand they use.

Analysis 4: Brand V/S Region Hypothesis: H0: The Brand of the toothpaste does not have a significant impact on the buying behaviour of various regions at confidence level of 95% Ha: The Brand of the toothpaste has a significant impact on the buying behavior of various regions at confidence level of 95% Count Brand Colgat Clos Pepsode e e Up nt Total Other Colgat s e

Meswa k

Babo ol

Regio n: West East North South Total

34

17

16

Dabur Red Toothpas te 1

Sensody ne

76

13 20 5 72
35 30 25 20 15 10 5 0

4 11 5 37

6 7 2 31

1 1 1 5

0 1 0 1

3 1 1 6

0 0 0 1

0 1 0 6

27 42 14 159

West East North South

Value of chi Square is P calculated = 16.73623 Degree of freedom is 21 For 90% confidence the value of chi square from table is P observed=29.6150 Since P observed > P calculated we do not reject the null hypothesis indicating that there is no significant relationship between the region and the brand they use.

Analysis5. Brand vs. Occupation Hypothesis: H0: The brand of the toothpaste does not have a significant impact on the buying behavior of occupation groups at confidence level of 95%. Ha: The brand of the toothpaste has a significant impact on the buying behavior of occupation at confidence level of 95%. Count Brand Colgate

Close Up

Pepsodent

Meswak

Babool

Student Service Self employed Total

58 12 2 72

34 3 0 37

23 6 2 31

5 0 0 5

0 1 0 1

Dabur Red Tooth paste 4 1 1 6

Senso dyne

Others

Total

1 0 0 1

5 1 0 6

130 24 5 159

60 50 40 30 20 10 0 Student Service Self employed

Value of chi Square is P calculated = 15.77131 Degree of freedom is 14 For 95% confidence the value of chi square from table is P observed=23.685 Since P observed > P calculated we do not reject the null hypothesis indicating that there is no significant relationship between the gender and the brand they use.

Analysis 6: Occupation Vs Frequency of Change Hypothesis: H0: The occupation of the users does not have a significant impact on the frequency of change of brands at confidence level of 95% Ha: The occupation of the users has a significant impact on the frequency of change of brands at confidence level of 95% Frequency Old Change Brand loyal Student Service Self Employed Total 76 13 1 90 Occasionally 48 11 3 62 Frequently 6 0 1 7 Total 130 24 5 159

80 70 60 50 40 30 20 10 0 Brand loyal Occasionally Frequently Student Service Self Employed

Value of chi Square is P calculated= 6.131125 Degree of freedom is 4 For 95% confidence the value of chi square from table is P observed=5.989 Since P observed < P calculated we reject the null hypothesis indicating that there is significant relationship between occupation and frequency of change.

Analysis 7: Gender Vs Frequency of change

Hypothesis: H0: The gender of the respondents has a significant impact on the frequency at which they change the toothpaste at confidence level of 90% Ha: The gender of the respondents has a significant impact on the frequency at which they change the toothpaste at confidence level of 90% Observed Value Frequency of change Occasionally Frequently 42 2 20 5 62 7

Gender Male Female Total

Brand Loyal 61 29 90

TOTAL 105 54 159

70 60 50 40 30 20 10 0 Brand Loyal Occasionally Frequently Male Female

Value of chi Square is P Calculated = 4.5729 Degree of freedom is 2 P observed= 3.219 At 95% confidence level, since P observed < P Calculated we reject the null hypothesis indicating that there is significant relationship between the gender and frequency at which they change the toothpaste.

Factor analysis:
Component Matrixa Component CALCIUM CONTENT CLEANSNING BRAND PROMOTION LATHER FEATURES OFFER PRICE DIFFERENT FLAVOUR PROTECTION AGAINST CAVITY MEDICAL VALUE PROTECTON BREATH AGAINST BAD 1 .909 .909 .899 .899 .849 .849 .325 .325 .252 .252 .232 .232 2 .065 .065 .260 .260 .387 .387 .629 .629 .825 .825 .904 .904 3 .064 .064 .003 .003 .166 .166 .685 .685 .417 .417 .162 .162

Inference: Component 1 Calcium content, cleansing, brand, promotion, lather, features. Basically the internal features of paste Component 3 - Price and offer- pricing strategy of company Component 2 Differ flavour, protection against cavity, protection against bad breath and medical values. Are the medical values of the paste.

Analysis
Through our analysis in this report, we have figured out various important factors through which marketers can target various consumer segments for their brands of toothpastes. With the help of chi square analysis, it was found that with the change in demographic factors, the various consumer patterns for toothpastes also change. The following results were found: Young people prefer gel based toothpastes while older people prefer pastes. preference for brand also change as younger people relate themselves with brands like Close Up and Pepsodent while older people relate themselves with brands like Dabur etc. preference for the point of purchase also changes. the toothpastes also changes. While students do not experiment much because of lower disposable income, earning people tend to experiment more with toothpastes and hence become frequent switchers. be more brand loyal than females.

With the help of factor analysis, we found out the various factors that a consumer consider while buying toothpaste. These factors are: Sales Promotion The various offers given by companies like extra toothpaste, discounts, freebies, promotional packs have a significant impact on the buying behaviour. Prevention Against Germs The protection provided by toothpaste against cavity and bad breath is considered very important by consumers Value For Money The brand and the price at which the brand is offered is also a major influence in the buying decision. Medicinal Content The medicinal value provided by the toothpaste along with the calcium content is considered an important feature for buying toothpastes. Functions The basic functions provided by toothpastes like cleansing, whitening, freshness etc also influence consumers while buying their toothpastes. Based on these 5 factors, 10 perceptual maps were drawn to see how the various attributes are associated with each other and also to find the nature of association between the attributes. Then, multi-dimensional scaling was used based on the responses given by two similar set of respondents. One set of respondents were measured on the basis of non-attribute based questions while the other set of respondents were measured on the basis of attribute based questions. With the analysis, we identified two major dimensions i.e. Prevention against Germs and Medicinal Content on which consumers perceive each brand. The perceptual map drawn on the basis of this technique helped to identify the market gap at which marketers can introduce their new toothpastes.

Time Requirement: Sl. No. 1 2 3 4 5 6 7 Activity Submission of research proposal Questionnaire preparation Data collection Data entry Data analysis Final report compilation Buffer Expected Start Date 03rd feb 17th feb 20th feb 2nd march 6th march 9th march 2 days Expected CompletionDate 07th feb 19th feb 1st march 3rd march 8th march 10th march

Cost requirement: Mainly Report Printing

Limitations Research was conducted within a constrained sample of respondents mainly the students of various colleges. Respondents were largely from big cities which biased the results towards the consumer behaviour of the urban areas. Unequal distribution of both the genders. Unequal distribution of the various age groups. The chances of respondents filling the questionnaire hastily are high. Conclusion This project was aimed to understand the consumer buying behaviour for toothpastes in the age group 21-30. According to the findings of the project, we can confer that consumers are more enticed by factors like sales promotion, prevention against germs, and value for money, medicinal content and functions. Marketers hold a huge potential to target such opportunities and to cash in all what they can attain. As a researcher, this project was a great platform to learn the techniques and apply them in a marketing research project.