1.

INTRODUCTION
Theoretical knowledge is the product of practical knowledge. However, the extent
that theknowledge can understand is greatly limited because it doest not come with
experience. Theacademic knowledge is not well enough to complete with real world.
It was a greatopportunity to experience of practical related work to an appraisal of
Colgate toothpasteCompany.
1.1.Background
Though we are the student of school of business in under graduate program
(Bachelor of Business Administration)We have to do innovate our potentiality to
develop our skill in various sources such as Reportmaking, preparing financial
statement of different kinds of organization. It is our academic part to prepare a
report on
Factors influencing consumer behavior specially focuses onColgate toothpaste
thats why we prepare it.
1.2.Significance
It
enhances our knowledge base. It gives us a broad idea about marketing analysis.
1.3.
Scope of the report
Today's business world is a place of challenge. Challenge and problem can come
fromanywhere & anytime. Marketing prepare people to cope with the competition.
1.4. Objective of the Report1.4.1 Broad Objective:
To identify the factor those influence the consumer behavior to buy a product or
service.
Page -2
The broader objective may be broken down into further specific objectives enlisted
asfollows:
o
To know the using time of Colgate tooth paste
o
To find the price suitability based on the economic situation of Bangladesh
o
To find the people opinion about the advertisement of Colgate up tooth paste

o
to identify the situation of 'Colgate up Crystal'
o
To see how efficiently Colgate up manages their trends of business.
o
Recommend the steps to be followed to increase the popularity & business.
1.5.
Methodology of the Study
1.5.1. Type of research
We research it in a descriptive way.1
.5.2. Sources of data

1.5.2.1 Primary data:

Primary data means first hand data. The data which is collectedthrough observation,
questionnaire, interview, telephonic talk etc is called primary data.
1.5.2.2 Secondary data:
Secondary data is such kind of data which is already collected by others.
1.5.3. Data collection procedure:1.5.3.1 Secondary data:
Bangladesh Bureau of Statistics, Internet, Annual report of Colgate toothpaste etc.
1.5.3.2 Primary data:
Marketing expatriate, by monitoring a survey, personalinvestigation, academic
learning, questionnaire etc.

1.5.4 Questionnaire:
There are fourteen questions are included in the questionnaire. It is prepared not
open-ended but close ended.
1.5.5 Sampling plan

1.5.5.1. Population:
The total set of observation of numerical characteristics under study iscalled
population. The size of population 50 and the people whose age is 15-30.

1.5.5.2. Sample element/units: 1.5.5.3. Sample frame:

There is no well structured sample frame is found.
1.5.5.4. Sampling procedure:
The process of selection of sample is called sampling procedure. In sampling
method instead of every unit of the population only a part of population is studied
& the calculations are drown on that basis for the entire population.There are two
sampling procedure this are probability & non-probability. Here we used probability
sampling procedure.
1.5.5.5. Sample size:
Total unit of sample. In this report the sample size is 50.
1.6. Limitations:
As result there some limitations in collecting information and conducting the report.
Thelimitations are follows:

The collection of data from person to person is a difficult task.

Lack of interest of people to join with this survey.

The limitation of time is a big factor of this survey.

The lack of experience to do work in SPSS Software at first time.

Financial problem.
Page -4
Representative part of population is called sample element.

02. Overview of the Company/Company profile

2.1. Back ground:

Page -5
Toothpaste has a history that stretches back nearly 4,000 years. Until the midnineteenthcentury, abrasives used to clean teeth did not resemble modern

toothpastes. People were primarily concerned with cleaning stains from their teeth
and used harsh, sometimes toxicingredients to meet that goal. Ancient Egyptians
used a mixture of green lead, verdigris (thegreen crust that forms on certain metals
like copper or brass when exposed to salt water or air), and incense. Ground fish
bones were used by the early Chinese.In the middle Ages, fine sand and pumice
were the primary ingredients in teeth-cleaningformulas used by Arabs. Arabs
realized that using such harsh abrasives harmed the enamel of the teeth.
Concurrently, however, Europeans used strong acids to lift stains. In
westerncultures, similarly corrosive mixtures were widely used until the twentieth
century. Table saltwas also used to clean teeth.In 1850, Dr. Washington Wentworth
Sheffield, a dental surgeon and chemist, invented thefirst toothpaste. He was 23
years old and lived in New London, Connecticut. Dr. Sheffieldhad been using his
invention, which he called Crme Dentifrice, in his private practice. The positive
response of his patients encouraged him to market the paste. He constructed
alaboratory to improve his invention and a small factory to manufacture it.Modern
toothpaste was invented to aid in the removal foreign particles and food
substances,as well as cleans the teeth. When originally marketed to consumers,
toothpaste was packagedin jars. Chalk was commonly used as the abrasive in the
early part of the twentieth century.Sheffield Labs claims it was the first company to
put toothpaste in tubes. WashingtonWentworth Sheffield's son, Lucius, studied in
Paris, France, in the late nineteenth century.Lucius noticed the collapsible metal
tubes being used for paints. He thought putting the jar- packaged dentifrice in these
tubes would be a good idea. Needless to say, it was adopted for toothpaste, as well
as other pharmaceutical uses. The Colgate-Palmolive Company alsoasserts that it
sold the first toothpaste in a collapsible tube in 1896. The product was calledColgate
Ribbon Dental Crme. In 1934, in the United States, toothpaste standards
weredeveloped by the American Dental Association's Council on Dental
Therapeutics. They rated products on the following scale: Accepted, Unaccepted, or
Provisionally Accepted.The next big milestone in toothpaste development happened
in the mid-twentieth century(1940-60, depending on source). After studies proving
fluoride aided in protection from toothdecay, many toothpastes were reformulated
to include sodium fluoride. Fluoride's
Page -6

effectiveness was not universally accepted. Some consumers wanted fluoride-free

toothpaste,as well as artificial sweetener-free toothpaste. The most commonly used
artificial sweetener issaccharin. The amount of saccharin used in toothpaste is
minuscule. Companies like Tom's of Maine responded to this demand by
manufacturing both fluoridated and non-fluoridatedtoothpastes, and toothpastes
without artificial sweetening.
Employees Structure:

Chairman,, is
the chief of
Colgate Group
of Companies
Ltd. One
Managing
Director (M.
D.) and four

other
Directors are
functioning
under him.
The four
directors
are:Director
of Sales &

Marketing,
Director of
Procurement,
Director of
Finance
&Accounts, a
nd Director of
Administratio

n (Human Res
ources Depart
ment). Theorg
anizational
hierarchy
is:Page -8
Chairman
Managing
Director

Director
(Procurement)

Director
(Sales and
Marketing)

Director
(HRD)

Director
(Finance
&Accounts)

GMAG
M
Manage
r
Assistant
Manager

Senior Executi

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Executiv
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Managemen
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Trainee

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Manage
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Assistant
Manager

Senior Executi

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Executiv
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Management

Trainee

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Assistant
Manager

Senior Executi

ve
Executiv
e
Management

Trainee

GMAGM

NationalSalesM
anagerMarketin
gManagerDistri
butionManager

2. 2 Vision:

To strive towards excellence and leadership in manufacturing of quality

toothpasteaffordable to all to continue to unfold products on the threshold of latest
technologyand to satisfy customers need at all time with impeccable quality service
throughoptimizing its resources in order to achieve high productivity and quality.
2.3.

Mission:

Improve the quality of life by bringing essential products within the reach of
thecommon people. To continuously develop and market high technology
products,which offer value and bring delight to our esteemed customers by creating
acompetitive advantage through innovation, cost structure and customer
relationships.Skilled professionals, prudent human resource management and
excellent service anddelivery systems will adequately support these initiatives.
2.4. Goal:

Its goal is to-

Continually set the highest standards of customer satisfaction in our country

Secure the strongest competitive position in our markets

Be recognized as an employer of first choice.

2.7. Company SWOT analysis
A name synonymous with the Indian oral care industry, Colgate, is the undisputed
marketleader in toothpastes with over 45% share in the Rs 21 bn (90,000 TPA) oral
care segment.
Page -9
The companys parent has a presence in over 200 countries worldwide. In India,
Colgateranks No.1 in top of the mind recall in many consumer surveys.
Background

Promoted by Colgate-Palmolive USA, the parent operates through its 51%subsidiary

and has a presence in India since last 50 years. The companys flagship
product,Colgate Dental Cream is the largest selling toothpaste in India, with an
estimated marketshare of over 30%. The company acquired Hindustan Ciba Geigy
(Cibaca) in the year 1994,which helped it increase its market share. The company
also has a significant marketshare inthe toothbrush category. This and shaving
brushes accounted for 10% of its FY04 revenues.The toothpaste segment can be
divided into two broad categories: Whites, which accountsfor a dominant share of
the Indian oral care market. Gels are estimated to be only about 15% plus of the
market. Colgate is considerably backward integrated. It has captivemanufacturing
facilities for flavor and other ingredients, which yield significant cost savings.It has
also set up a world-class facility for manufacture of Di-calcium Phosphate, a
keyingredient in toothpaste.
ThePotential
As per our estimates, 12.2% of the total world population lives in rural
India.Currently, only a small portion (about 15%-20%) of region has been tapped.
Although,expansion in rural areas requires huge investments, it is a market that
cannot be overlookedand has huge potential. To put things in perspective, the per
capita consumption of toothpastein India is only 82 gms, as compared to 262 gms
for Thailand, 376 gms for Mexico and 518gms for USA (Source: Colgate,
Equitymaster Research). In India, urban per capitaconsumption is 153 gms whereas
rural consumption is a mere 38 gms.
Competition
The Company has been facing immense competition from organised as well as
unorganised players. HLL is the closet rival of Colgate with a share of 34% with its
Pepsodent and Close-up (gel whereithas a lions share) brands. The latest entrant in
the organised sector is LGthat has ventured into the FMCG market and launched
premium consumer products across 8
Page -10

categories including toothpastes, shampoos, soaps, detergents, etc. Also, there has
beenspeculation from sometime now that P&G (its worldwide rival) would debut its
billion-dollar- plus toothpaste brand Crest in India. This could intensify competition
in the segment.
Concerns
The Company has high reliance on a single category (Oral Care), which accounts for
94% of its sales and 98% of its profits (FY04). A large part of the companys product
folio consists of premium products, which do not have a large potential market in
India. This is evident as newlaunches by the parent in India have been much lower
than other markets. In the last couple of

years, the companys top line has stopped growing and in order to achieve
growth,Colgate cut prices of its products by an average 17% in April 2003 (Source:
CompanyAnnual Report). The company has been able to increase its margins by
continuouslycutting advertising expenses, which cannot go below a certain point,
owing to itssingle product dependence.
STRENGTHS
Strong financial performance Focus on innovation and new product launchesColgate
business planning initiative
WEAKNESSES
Product recalls Highly leveraged
OPPORTUNITIES
Emerging markets growth Deploying advance technologies Growing Hispanic
population inthe US Specialty pet nutrition growth
THREATS
Competitive landscape from other CPGs Private label growth Increasing commodity
pricesFalling consumer confidence in the US
Consumer purchases are influenced strongly by or there are four factors.01. Cultural
Factor 02. Social Factor, 03. Personal Factor, 04. Psychological Factor,Page -11

Cultural Factor:Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii)
SocialClass**
Culture:*** Culture has a great influence on the behavior of a consumer. Because
peoplelearn from the society. If the culture of a country can not suggest to use
toothpaste or Colgate is a good quality toothpaste then people will not buy this.
Sub Culture:*** If the experiences of the group says that Colgate is a bad toothpaste then
peoplewill not buy this product..
Social Class:*** If the social class of people is low or much high then people do not buy
Colgatetoothpaste.
02. Social Factors:A consumer's behavior also is influenced by social factors, such as the (i) Groups
(ii)Family (iii) Roles and status

** Groups:***Sometimes groups make the choices of an individual.

Family:*** In context of Bangladesh if the head of family choice Pepsodent rather
thanColgate, so the family can not use other paste. So we can say that family has
ainfluence on the consumer behavior.
Roles and Status:*** Lower-lower and Upper-Upper people will not buy same product. Because
theyhave different roles and status in the society.
03. Personal Factors:It includesi.Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life
style,(v) Personality and self concept.
** Age and Life cycle Stage:*** Children and old do not want to use toothpaste where the very older has no
teethand children likes taste. So age has the influence on consumer behavior.
Occupation:Page -12
A doctor is always conscious about their health where a student has not
sameconsciousness. And also the choice and buying capacity of a product is
depends ontheir occupation. It varies according to their jobs category
Economic situation:*** A person's economic situation will affect product choice
Life Style:*** Life Style is a person's Pattern of living, understanding these forces
involvesmeasuring consumer's major AIO dimensions. i.e. activities (Work,
hobbies,shopping, support etc) interest (Food, fashion, family recreation) and
opinions (aboutthemselves, Business, Products)
Personality and Self concept
:-*** Choice of a product depends on the personality and the self concept of
anindividual. Personality depends on the status and self concept depends on the
perception.
04. Psychological Factors:It includes these Factors.i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and
attitudes

 Motivation:o Company must take some motivated activities to persuade the customer. ExAdvertising, give some free etc.
Perception:o The process by which people select, Organize, and interpret information to form
ameaningful picture of the world. The company must try to create the positive
perception on the mind of individual.
Learning:o Perception filters a thing and then take decision it should be taken or not. It means
perception fiter the knowledge and give the shape of learning.
Beliefs and attitudes:o Belief is a descriptive thought that a person holds about something. So
companyalways try to make belief through making reliability.o Attitude, a Person's
consistently favorable or unfavorable evaluations, feelings, andtendencies towards
an object or ideaPage -13
Factors influencing consumer behavior
Consumer purchases are influenced strongly by or there are four factors.01. Cultural
Factor 02. Social Factor, 03. Personal Factor, 04. Psychological Factor,
01. Cultural Factor:Page -14
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii)
SocialClass**
Culture:*** The set of basic values perceptions, wants, and behaviors learned by a member
of society from family and other important institutions. Culture is the most basic
causeof a person's wants and behavior. Every group or society has a culture, and
culturalinfluences on buying behavior may vary greatly from country to country.
Sub Culture:*** A group of people with shared value systems based on common life
experiencesand situations.Each culture contains smaller sub cultures a group of
people with shared value system based on common life experiences and situations.
Sub culture includes nationalities,religions, racial group and geographic regions.
Many sub culture make up importantmarket segments and marketers often design
products.
Social Class:-

*** Almost every society has some form of social structure; social classes
aresociety's relatively permanent and ordered divisions whose members share
similar values, interests and behavior.
02. Social Factors:A consumer's behavior also is influenced by social factors, such as the (i) Groups
(ii)Family (iii) Roles and status
** Groups:*** Two or more people who interact to accomplish individual or mutual goals.A
person's behaviors are influenced by many small groups. Groups that have a
directinfluence and to which a person belongs are called membership groups.Some
are primary groups includes family, friends, neighbors and coworkers. Someare
secondary groups, which are more formal and have less regular interaction.
Theseinclude organizations like religious groups, professional association and trade
unions.
Family:*** Family members can strongly influence buyer behavior. The family is the
mostimportant consumer buying organization society and it has been
researchedextensively. Marketers are interested in the roles, and influence of the
husband, wifeand children on the purchase of different products and services.
Roles and Status:*** A person belongs to many groups, family, clubs, and organizations.The person's
position in each group can be defined in terms of both role and status.For an
example, M & "X" plays the role of father, in his family he plays the role of husband,
in his company, he plays the role of manager, etc. A Role consists of theactivities
people are expected to perform according to the persons around them.Page -15

03. Personal Factors:It includesii.Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life
style,(v) Personality and self concept.
** Age and Life cycle Stage:*** People change the goods and services they buy over their lifetimes. Tastes
infood, clothes, furniture, and recreation are often age related. Buying is also
shaped bythe stage of the family life cycle.
Occupation:*** A person's occupation affects the goods and services bought. Blue collar
workerstend to buy more rugged work clothes, whereas white-collar workers buy
more business suits. A Co. can even specialize in making products needed by a

givenoccupational group. Thus, computer software companies will design different

products for brand managers, accountants, engineers, lawyers, and doctors.
Economic situation:*** A person's economic situation will affect product choice
Life Style:*** Life Style is a person's Pattern of living, understanding these forces
involvesmeasuring consumer's major AIO dimensions.i.e. activities (Work, hobbies,
shopping, support etc) interest (Food, fashion, familyrecreation) and opinions (about
themselves, Business, Products)
Personality and Self concept
:-*** Each person's distinct personality influences his or her buying
behavior.Personality refers to the unique psychological characteristics that lead to
relativelyconsistent and lasting responses to one's own environment.
04. Psychological Factors:It includes these Factors.i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and
attitudes
Motivation:o Motive (drive) a need that is sufficiently pressing to direct the person to seek
satisfaction of the need
Perception:o The process by which people select, Organize, and interpret information to form
ameaningful picture of the world.
Learning:Page -16

Changes in an individuals behavior arising from experience.

Beliefs and attitudes:o Belief is a descriptive thought that a person holds about somethingo Attitude, a
Person's consistently favorable or unfavorable evaluations, feelings, andtendencies
towards an object or idea.

3.3 The Marketing Mix (The 4Ps of Marketing)

The set of controllable tactical marketing tools-product, price, place, and promotionthat the firm blends to produce the response it wants in the target market.

A. Product:
Product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need.Example: Packaging, New-product
development, Product naming, logos, Trademarks,Product quality, Product
warranties, Product servicing after sale.
B. Price:
The amount of money charged for a product or service, or the sum of the values
thatconsumer exchange for the benefits of having or using the product or service.
Example:
Price level changes, Payment terms, and Published prices, Trade discounts.
C. Place:
It includes company activities that make the product available to target consumers.
Example:
forward vertical integration, Channel selection Concentration, Channelsupports,
Customer service, Inventory & ware housing issues, Direct Marketing,Personal
selling.
D. Promotion:
Promotion is the coordination of all seller-initiated efforts to set up channels of
information and persuasion to sell goods and services or to promote an idea.
Example:
Brand positioning, Advertising spending level, Chosen media, Schedules,Creative
thinking, Sales promotion, Publicity.Page -17
Marketing mix is the set of marketing tools that the firm uses to pursue its
marketingobjectives in the target market. The marketing mix consists of everything
the firm cando to influence the demand for its products.Figure 3.1: Four Psof
marketing
3.4 Sellers and Buyers View
In marketing mix the four Ps represent the sellers' view of the marketing
toolsavailable for influencing buyers. From a buyer's point of view, each marketing
tool isdesigned to deliver a customer benefit. Thus, while marketers see themselves
asselling products, customers see themselves as buying value of solutions to their
problems. And customers are interested in more than just the price; they are
interestedin the total costs of obtaining, using, and disposing of a product.
Customers want the products and services to be as conveniently available as
possible. Finally, they wanttwo way communications. Marketing is all about getting
the right product at the right place at the right time, at the right price, using the
right promotion to attract customer who will purchase products and

services.Marketers would do well to think through the four Cs first and then build
four Ps onthat platform. Robert Lauterborn suggested that the sellers' four Ps
correspond to thecustomers' four Cs.
Four Ps Sellers viewFour Cs Buyers viewProductCustomer solutionPriceCustomer
costPlaceConveniencePromotionCommunication
Page -18

Winning companies will be those who can meet customer needs economically
andconveniently and with effective communication. It is important for an
establishmentto identify its target market before attempting to blend marketing
tools to create amarketing mix.
3.5 Brand
A name, term, sign, symbol, or design, or a combination of them, intended to
identifythe goods or services of one seller or group of sellers and to differentiate
them fromthose of competitors.
Example:
Volvo (safety), Hallmark (caring), Lexus (quality).Figure3.2
:
Brand Development Strategies.

A brand is a complex symbol that can convey up to six levels of meaning __

1.Attributes.2.Benefits.3.Values.4.Culture.
5.Personality.Page -19
Line extensionBrandExtensionMultibirandsNew BrandsProduct
CategoryNewExistingBrandNameNewExisting

lauryl sulfate, sodium lauryl sulfoacetate, dioctyl sodium sulfosuccinate,

sulfolaurate,sodium lauryl sarcosinate, sodium stearyl fumarate, and sodium stearyl
lactate.Humectants retain water to maintain the paste in toothpaste. Humectants
keep thesolid and liquid phases of toothpaste together. They also can add a
coolness and/or sweetness to the toothpaste; this makes toothpaste feel pleasant in
the mouth whenused. Most toothpastes use sorbitol or glycerin as humectants.
Propylene glycol canalso be used as a humecant.Toothpastes have flavors to make

them more palatable. Mint is the most commonflavor used because it imparts a
feeling of freshness. This feeling of freshness is theresult of long term conditioning
by the toothpaste industry. The American publicassociates mint with freshness.
There may be a basis for this in fact; mint flavorscontain oils that volatize in the
mouth's warm environment. This volatizing actionimparts a cooling sensation in the
mouth. The most common toothpaste flavors arespearmint, peppermint,
wintergreen, and cinnamon. Some of the more exotictoothpaste flavors include
bourbon, rye, anise, clove, caraway, coriander, eucalyptus,nutmeg, and thyme.In
addition to flavors, toothpastes contain sweeteners to make it pleasant to the palate
because of humecants. The most commonly used humectants (sorbitol and
glycerin)have a sweetness level about 60% of table sugar. They require an artificial
flavor tomake the toothpaste palatable. Saccharin is the most common sweetener
used, thoughsome toothpastes contain ammoniated diglyzzherizins and/or
aspartame.Fluorides reduce decay by increasing the strength of teeth. Sodium
fluoride is themost commonly used fluoride. Sodium perborate is used as a tooth
whiteningingredient. Most toothpastes contain the preservative p-hydrozybenzoate.
Water isalso used for dilution purposes.Page -22

The Manufacturing Process

Weighing and mixing

After transporting the raw materials into the factory, the ingredients are
bothmanually and mechanically weighed. This ensures accuracy in the ingredients'
proportions. Then the ingredients are mixed together. Usually, the glycerin-water
mixture is done first.

All the ingredients are mixed together in the mixingvat.The temperature

andhumidityof vat are watched closely. This is important to ensuring that the
mixcomes together correctly. A commonly used vat in the toothpaste industrymixes
a batch that is the equivalent of 10,000 four-ounce (118 ml) tubes.
Filling the tubes

Before tubes are filled with toothpaste the tube itself passes under a blower and a
vacuum to ensure cleanliness. Dust and particles are blown out in thisstep. The tube
is capped, and the opposite end is opened so the filling machinecan load the paste.

After the ingredients are mixed together, the tubes are filled by the fillingmachine.
To make sure the tube is aligned correctly, an optical device rotatesthe tube. Then

the tube is filled by a descending pump. After it is filled, theend is sealed (or
crimped) closed. The tube also gets a code stamped on itindicating where and when
it was manufactured.
Packaging and shipment

After tubes are filled, they are inserted into open paperboardboxes. Somecompanies
do this by hand.

The boxes are cased and shipped to warehouses and stores.

Quality Control
Each batch of ingredients is tested for quality as it is brought into the factory.
Thetesting lab also checks samples of final product.Page -23

Chart no. 1
How many years do you perchasetoothpaste?
1 year 2year 3year More
Figure: 4.1 Purchase of toothpaste
We observed among 50 people that how long they have been using it.From the
above pie chart we have seen that 25 people use it below three years long.So we
cansay that if it wants to keep up the customers on its hand,then it have to take
promotional step.
Chart no. 2
Figure 4.2.Agree and disagree of toothpaste.Here we see that male 8 out of 12 said
disagree, 3 out of 5 said strongly disagree. Another side female 5 out of 8 said
agree, 4 out of 12 said disagree\, 3 out of 4 said strongly agree
Page -24
MaleFemale
Sex

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