3. CASE STUDY

Consumer Buying Behaviour in Toothpaste Industry: A Case Study of Colgate.

Toothpaste industry has grown immensely in the global scenario. There is a lot of competition in the industry mainly between two major players Colgate and Unilever .The companies are coming up with new schemes as well as products to lure the customers. The usage of toothpaste has grown because of the lifestyle and the way the individuals are living i.e. more awareness about health. Colgate is going ahead with almost 60% of the market share in the industry.

It was found that many firms are in the toothpaste segment. So it is a highly competitive segment. It was found that focus as well as cost leadership was being followed by the firms when they were going in the toothpaste segment. The firms are more and more focusing on the promotion and they are spending a lot of money on this front. Customers are also becoming demanding now-a-days and it is seen that many attributes are important for the success of a particular brand. The firms are going in for new launches. It is found that the discounts are important factor. Another important factor is brand image or brand name. The case provided an opportunity to know about a competitive segment and how consumers behave in that segment. It also provided an insight into the toothpaste industry and the attitude and perception of the consumer in that segment.

The toothpaste industry is going to be more competitive in the near future. The profit margin is going down over the year and going to be continuing for the future also. So, the main mantra for the companies to be successful is to satisfy the consumers and develop brand image and brand loyalty amongst them.

So, it has become very necessary for the companies to understand the global consumers very well. Thus, in the future the companies who come up with new products at competitive prices and with good quality are going to the successful one. Promotional activities are also going to play an important role that should to be for both retailers and consumers. Thus, we are going to see a market which is going to heat up in the near future where mainly two major players Colgate and Unilever will fight the war.

Questions:

1. Summary of the case?

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2. Why has the usage of the toothpaste grown?

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3. What should a company do for successful future?

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4. What are the important factors for the customer satisfaction?

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