Summer Internship Report

On

STUDY OF CONSUMERS BEHAVIOUR ABOUT ANCHOR TOOTHPASTE AT ANCHOR HEALTH AND BEAUTY CARE PVT. LIMITED.
By

ASHWANI PRATAP SINGH GAUR

0911470020 MBA(Mktg.) Session: 2009-11 Under the Supervision of

Prof .S.N Laharia

Faculty (mktg.)

Institute of Professional Excellence and Management.

Submitted To:U P Technical University Lucknow In Partial Fulfillment of Award of Master of Business
Administration Session:-2009-2011

PREFACE
In recent year the Indian Economy has been undergoing an important transition a shift from ownership to Professional Management. This Project has been performed as a Part of our Summer Training in the Second Year of MBA. This will also serve as basic knowledge in respect of Marketing Strategy of Anchor Toothpaste at Anchor Health and Beauty Care Pvt. Ltd. Procedure and systems followed in the organization. This Project report covers various activities which involve an efficient use of funds for minimizing the risk of loss to attain profit objectives. It is accompanied with number of format, chart and flow diagram which will be helpful in understanding the subject matter

ACKNOWLEDGEMENT
There is little bit of Steel in everybodys life. A very common
saying. I could understand the real meaning of this during the course my project Every event comes to a successful end due to the involvement, guidance and co-operation of all the people conserved. I take this opportunity to thank all of them who are directly and indirectly involved with this project, without whose help this project would never have been completed successfully. I would like thank my Institute Director Dr.B.S.Goel and my very helpful project guide Sir S.N.Laharia for her continuous support and guidance. I am highly grateful to Mr.Dhirendra Sexena (SM) ANCHOR HEALTH AND BEAUTY CARE PVT.LTD. For providing me an opportunity to make a project in such a reputed organization. Its my prime responsibility to thank my parents and closed friends for having put up with the inconveniences caused during the preparation of this project.

Ashwani pratap Singh gaur Roll no.:-0911470020

DECLARATION
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This is Certify that Mr. ASHWANI PRATAP SINGH GAUR student of Master of Business Administration ( 3rd Semester ) from Institute of Professional Excellence and management Ghaziabad, U P Technical University Lucknow. ( U.P ) hereby declare that I have completed Summer Internship on STUDY

OF CONSUMER BEAVIOUR ANCHOR TOOTHPASTEAT ANCHOR HEALTH AND BEAUTY CARE PVT LTD. as part of the course
requirement. I further declare that the information presented in this project is true & original to the best of my knowledge.

( ASHWANI PRATAP SINGH GAUR) Date: July 28, 2010

Place: Ghaziabad 0911470020

CERTIFICATE OF APPROVAL
This is to certify that Mr. ASHWANI PRATAP SINGH GAUR student of Master of Business Administration (Mktg.), session 2009-11, Institute of Professional Excellence and Management U.P. Technical University U.P. Roll No: 0911470020 have undertaken the Summer Internship Training at Anchor Health and Beauty Care Pvt. Ltd. He has worked under my guidance for the Project Titled, STUDY OF CONSUMER BEHAVIOUR OF ANCHOR TOOTHPASTE AT ANCHOR HEALTH AND BEAUTY CARE. This project report is prepared in partial fulfillment of Master of Business Administration (Mktg.) to be awarded by U.P.TECHNICAL UNIVERSITY, Uttar Pradesh. To the best of my knowledge, this piece of work is original and no part of this report has been submitted by the student to any other Institute / University earlier.

PROF. S.N. LAHARIA (Faculty Guide)

Company certificate

PLAN OF STUDY

Preface Acknowledgement Declaration Certificate of the institute Certificate 0f company

CONTENTS

Part - I

Introduction of the Organization

(a) (b) (c) (d) (e) (f)

History of the Organization Organization Structure Vision, Mission & Philosophy Performance Product/Service Problem of the Organization

Part - II

Introduction of Study

(a) (b)

Objective and Scope of Study Research Methodology (c) Data Analysis and Interpretation

(d) (e) (f) (g) (h)

Finding Results Conclusion and Recommendation Limitations Annexure Bibliography

PART: - 1

INTROD UCTION

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History of the Anchor

The History of the Anchor dates back millennia. The most ancient anchors were probably rocks and many rock anchors have been found dating from at least the Bronze Age. Many modern moorings still rely on a large rock as the primary element of their design. However, using pure mass to resist the forces of a storm only works well as a permanent mooring; trying to move a large enough rock to another bay is nearly impossible. The ancient Greeks used baskets of stones, large sacks filled with sand, and wooden logs filled with lead, which, according to Apollonius Rhodium and Stephen, were formed of stone; and Athenaeums states that they were sometimes made of wood. Such anchors held the vessel merely by their weight and by their friction along the bottom. Iron was afterwards introduced for the construction of anchors, and an improvement was made by forming them with teeth, or "flukes", to fasten them into the bottom.

The 19th century

Rodgers Anchor. The arms, de, do were formed in one piece, and were pivoted at the crown d on a bolt passing through the forked shank ab. The points or peeve, f, to the palms g were blunt. Until the beginning of the 19th century anchors were of imperfect manufacture, the means of effecting good and efficient welding being absent and the iron poor, whilst the arms, being straight, generally parted at the crown, when weighing from good holding-ground. A clerk in Plymouth Yard, named Peering, in the early part of that century (1813) introduced curved arms; and after 1852 the British admiralty anchor, under the direction of the Board, was supplied to H.M. ships, followed by Lieutenant (afterwards Captain) Rodger's anchor. Rodger's anchor marked a great departure from the form of previous anchors. The arms were formed in one piece, and were pivoted at the crown on a bolt passing through the forked shank. The points or pees to the palms were blunt. This anchor had an excellent reputation amongst nautical men of

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that period, and by the committee on anchors, appointed by the British admiralty in 1852, it was placed second only to the anchor of Trot man.

Later came the self-canting and close-stowing Martin anchor, which, passing through successive improvements, became the improved Martin anchor made of forged iron. A projection in the center of the arms works in a recess at the hub of the shank; the vacancies outside the shank are filled by blocks bolted through on each side, and are flush with the side plates, which keep the flukes in position.

The introduction of cast steel in 1894 led to the improved Martin-Adelphi pattern, in which the crown and arms are cast in one, and, with the stock, are made of cast steel, the shank remaining of forged iron. A projection in the crown works in a recess (right image), and is secured in its place by a forged steel pin, fitted with a nut and washer, which passes through the crown and the heel of the shank. All of the above anchors were provide with a stock, the use of which is to "cant" the anchor. If it falls on the ground, resting on one arm and one stock, when a strain is brought on the cable, the stock cants the anchor, causing the arms to lie at a downward angle to the holding ground; and the pees enter and bury themselves below the surface of the soil. Stockless anchors have been extensively used in the British mercantile marine and in some other navies. In 1903 they were adopted generally for the British Navy, after extensive anchor trials, begun in 1885. Their advantages are: handiness combined with a saving of time and labor; absence of davits, anchor-beds, and other gear, with a resulting reduction in weight; and a clear forecastle for "right ahead" gun fire or for working ship. On the other hand a larger hawse-pipe is required, and there appears to be a consensus that a stockless anchor, when "let go" does not hold so quickly as a stocked one, is more uncertain in its action over uneven ground, and is more liable to "come home" (drag).

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The 20th century

T the beginning of the 20th century, the stockless anchors principally in use in the British navy are Hall's improved, Byres, and Westerners Smith's.

In Hall's improved anchor, the arms and crown of cast steel are in one piece, and the shank of forged steel passes up through an aperture in the crown to which it is secured by two cross bolts. Two grunions or lugs are forged to the lower end of the shank.

In W.L. Buyers plan, the flukes and crown consist of a steel-casting secured to a forged shank by a through bolt of mild steel, the axis of which is parallel to the points of the flukes; one end of the bolt has a head, but the other is screwed and fitted with a phosphor bronze nut to allow the bolt to be withdrawn for examination. A palm is cast on each side of the crown to trip the flukes when the anchor is on the ground, and for bringing they snug against the ship's side when weighing.

Westerners Smith's anchor is composed of three main parts, the shank and crown which form one forging, and the two flukes or arms which are separate castings. A bolt passes through the crown of the anchor, connecting the flukes to it; to prevent the flukes working off the connecting through bolt, two smaller bolts pass though the flukes at right angles to the through bolt and are recessed half their diameter into it.

The 21st century

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Continued development of small boat anchor patterns

The "Bowlegged" is essentially a modified fluke style anchor which made it known at the very beginning of the 2000s. Rather than two flukes in a symmetrical configuration, it adds a third for an equilateral triangular arrangement. This concept is an improvement over the Dan forth in terms of general purpose usage, but is slightly comparatively inefficient (on account of the fact that one fluke is always unused), and is difficult to stow. New Zealander Peter Smith in the early 2000s took elements of the Spade and other types, and developed unique solutions of his own, in order to design the "Rockne" anchor, a general purpose type which uses a concave fluke, a self-righting roll-bar, and setting skids. Independent testing shows the Rockne to be perhaps the penultimate general purpose small boat type

Consumer Durables Although the consumer durables sector does not count among the core sectors of the economy, it is immensely significant being a near precise indicator of the nation's economic well being, especially as a pointer to the distribution of prosperity among different income segments. Consumer durable items can be classified into three categories viz. consumer electronics, white goods, and air conditioners. The consumer electronics sector, which includes video and audio products, is valued at an estimated Rs.87 billion. The domestic white goods industry, which includes household appliances like refrigerators, washing machines and microwave ovens, is valued at around Rs. 50 billion. The domestic market for room air conditioners is estimated to be Rs. 15 billion. The penetration levels of consumer durables in India are low as compared to the rest of the world. For example, penetration level of television sets in India is 24% as compared to 98 %

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In China, 235% in France, 250 % in Japan and 333% in the US. Refrigerators also have good potential for growth in view of a meager 2% penetration level. Marketers in recent times have realized the importance of marketing orientation, and this is being reflected in the application of marketing mix elements. Consumer needs are fundamental to the formulation of any marketing strategy, from developing a communication plan to offering a discount sale. It may be worthwhile to explore the intricate aspects of consumer behavior which focus on consumer needs. These concepts enable marketers to analyze the applicability of strategies planned by them.Recognising consumer needs Need at a fundamental level is a state of deprivation. In todays marketing context, however, the meaning of the word need is very broad based and could include anything from buying a value-based detergent to aspiring for a designer outfit which has an aura of prestige. In any situation, the task of the marketer is to recognize two basic states of the consumer psyche which will have relevance to His or she needsthe actual state and the desired state. Recognition of these two states leads to the recognition of the need. The discrepancy between the two states helps the marketer to focus on consumer needs. Two decades ago, the actual and desired states may not have existed with regard to washing machines (though, even today, the penetration of washing machines is not high). Recognizing the need states (the two states) helps the marketer to also know if the timing is right for a specific product. If there is no discrepancy reflected (among the states) by consumers, the marketer may have to either wait for the product to be launched or create awareness about the actual state and desired state. The protection of the environment and the health and safety of our customers, our people and the communities in which we live and operate is an integral part of Colgate-Palmolive's mission to become the best truly global consumer 15

products company. We are committed to conducting ourselves in a socially responsible manner and to keeping our business operations environmentally sound. It is our worldwide policy to manufacture and market our products and operate our facilities so that we comply with or exceed applicable environmental rules and regulations. The health and safety of our customers, our employees, and the communities in which we operate must be paramount in all we do. These concerns have been translated into the following guiding principles: Products Anchor will provide the public with safe and effective products and will strive to produce products that have the lowest practical impact on the environment.

COMPANY PROFILE
Anchor is a renowned brand in electrical in India and Asia also.

Anchor health & beauty care PVT LTD is started in 1983.

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 The total turnover of the company is 150 cores.

Its sister concern company of anchor electrical limited. This organization basically deals with oral and personal product.
Regna. Office of Anchor is at Mumbai.

Manufacturing plant -Oral division -Daman

-Personal division haridwar

Anchor Health and Beauty Care Pvt. Ltd.

COMPANY OVERVIEW

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Anchor Health and Beauty Care Pvt. Ltd., a FMCG company, provides oral and personal care products. Its products include white toothpaste, gels, toothbrushes, tooth powders, and soaps. Anchor Health and Beauty Care Pvt. Ltd. provides its products through distributors and retail outlets. The company was incorporated in 1992 and is based in Mumbai, India. Anchor Health and Beauty Care Pvt. Ltd. is a subsidiary of Anchor Group.

KEY EXECUTIVES Mr. Sanjay Shah Managing Director Mr. Sashi Nair President of Marketing Mr. Vivek Patwardhan GM - R&D
Mr.Tejprakash Mishra

Brand Manager

KEY DEVELOPMENTS FOR ANCHOR HEALTH AND BEAUTY CARE PVT. LTD.
As per sources, Anchor Health and Beauty Care Pvt. Ltd. have put the anchor toothpaste brand on the block. The company is looking to focus on brands image of Anchor toothpaste and Dyna soap, rather than profit. While anchor health product has a notable heritage appeal, Anchor Health would have to invest significantly to re-position anchor health product and make it contemporary. In a highly competitive toothpaste market, Anchor Health is keen to back its existing brands, said the source. Anchor Health promoters Sanjay Shah and could not be reached for comments.

Anchor

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Anchor Health & Beauty Pvt. Ltd. is one of Indias growing FMCG Company. AHBC is a part Anchor group, was set up in the 1997 with the launch of Anchor White Tooth Paste. Has a range of products in Oral care & Personal care like Anchor White paste, Dyna Soap, Anchor Toothbrush etc. our brand ambassadors are Kajol & Katrina Kaif.

Key Statistics about Anchor

Headquarters Industry Type Status Company Size Website Median Age Median Tenure Gender India Consumer Goods Privately Held Operating 1,200 employees http://www.anchorglobal.n... 28 years 1.5 years Male Female 62% 38%

Department Structure of Anchor

GM

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PERSONAL

FINANCE

MARKETING

PRODUCTION

P&I

SALES

PURCHASE

STORE

MISSION
SET UP AND CARRY OUT R & D FOR THE MANUFACTURE AND DEVELOPMENT OF THE PRODUCT.

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VISION
AIMING TO INTRODUCE VARIOUS TYPES OF PERSONAL CAREB ITAMS.

PHILOSPHY
Despite technology support from the global leader in oral care, a strong brand equity and distribution network, Colgate has been facing the threat of losing its market dominance. The company has adopted an aggressive strategy of new launches and a significant hike in marketing expenditure. The company has been targeting schools to create oral awareness among children. Rural reach and penetration is sought to be increased by conversion of non-users through various sales promotion measures such as small volume low priced sachets, distributing free toothbrushes, Rural Van Programmed etc. The high decibel advertising will have to be continued in the wake of stiff competition from not only the number 2 player, but also from small local brands which compete by attractive pricing.

PERFORMANCE OF ANCHOR COMPANY

Impact on Rural Economy After having grown at over seven per cent annually during 1994 and 1997, India's GDP growth slowed down substantially because of the sharp fall in

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agricultural production and income. After an impressive 8.2 per cent raise in production in 1998-99, the pace of growth in the farm sector turned negative with output shrinking by 1.5 per cent in FY2000 and 4.5 per cent in FY2001. This meant there was less disposable income generated in the rural areas and hence the demand pull from vast majority of population was absent. The last two years were marked by a drought in states like Gujarat, Maharashtra and Rajasthan which contribute significantly to domestic production and also account for substantial amount of consumer spending. With a pickup in income in these areas, the demand for goods and services is expected to pick up this year and that should contribute to the overall growth in economy. Impact on Industry Increased income in farm sector impacts the entire economy; however it has an almost immediate impact on some sectors like consumer durables and non-durables, tractors and motorcycles. There is also an increased demand for cement and steel from the resurgent housing sector. Heavy commercial vehicles to attract buying as transportation of goods picks up across the country and demand for services too is higher. Therefore, the relationship between agricultural income and economic growth is almost direct. We expect FMCG companies, tractor manufacturers and motorcycle makers to feel an immediate pickup in demand once the kharif crop is harvested. This sentiment has already been reflected in the stock markets with the FMCG leader, Hindustan Lever attracting huge amount of buying by fund managers in expectation of a large towline growth this year. We might also see a turnaround in the subdued sentiment in industries such as televisions, washing machines and refrigerators which have seen a fall in sales due to sluggish rural demand over the past two years. Higher demand for goods and

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services in rural areas necessitates increased movement of goods and hence a pick up in demand for commercial vehicles. This means increased demand in almost all sectors such as steel and engineering. Therefore, if the agriculture sector does grow at the projected 9 per cent this year, economy would receive a big boost by the end of the year. Growth in Industry The growth in industry suffers from poor demand in consumption as well as investments. Due to a decline in farm income over the past two years, demand from rural areas was poor and as result of this investment sentiment remains sluggish too. The situation can only reverse if consumption rises giving a boost to investment sentiment. However, as the impact of increased income in farm sector would be felt only from the end of the year, the growth in industrial production in expected to remain this year. CMIE has projected that the growth in industrial production this year would be nearly 4.5 per cent, down from 5 per cent in the last financial year and the lowest level since 1998-99. The CMIE forecast notes that the index of industrial production (IIP) registered a growth of 5 per cent last year and 6.6 per cent in 1999-2000. While in April 2001 industrial production grew only 2.7 per cent and in May it was even lower at 1.9 per cent, the overall growth may be better as the impact of improved demand is felt later in the year. Morgan Stanley Dean Witter too has projected that the industrial activity will pick up in the second half of this calendar year and the IIP should be between 4 and 5 per cent for the year. Gains from Rains According to the CMIE study, the 2001 south west monsoon has been fairly widespread and intensive across most parts of the country. Between June 1

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and June 27, 2001, as many as 29 out of the 35 meteorological sub-divisions in the country received excess to normal rains, covering almost 90 per cent of the gross cropped area. Out of this 75 per cent of the area received excess rains. In comparison, in June 2000 only 72 per cent of the cropped area in 26 meteorological sub-divisions had received excess rains, the CMIE report states. Thus rains have not only been good they have also been evenly distributed leading to prospects of widespread growth. Rains have been particularly good for Eastern and Western UP, Haryana and Punjab, raising hopes of a huge demand rise in these states early next year. The only areas that have received deficient rainfall so far include Rayalseema in Andhra Pradesh, interiors of Karnataka and some parts of Tamil Nadu. Early and good rains have enthused farmers to go for kharif sowing operations ahead of the normal schedule. The CMIE report says that it expects kharif crop to be much better this year than the harvest of 2000. Stocks to Watch As we have stated earlier, the direct beneficiary of a surge in rural demand would be companies in the FMCG sector, like Hindustan Lever. HLL has seen a sluggish top line growth over the past two years largely because of a slowdown in demand from rural areas. The company can be expected to capitalize heavily on a revival in farm income. The markets have already anticipated this and last week several prominent funds were buying into the counter. Infect, Hindustan Lever was one of the biggest gainers in the stock market index last week. Others that could gain too include Nirma, Colgate Palmolive, Britannia Industries and Tata Tea. The other gainers could be tractor majors who have faced a sharp slump in demand over the past two years. The decline in farm income had forced a big slump in tractor sales. Tractors sales are almost first to be impacted by a change in farm income. We expect that tractor majors such as Punjab Tractors

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and Mahindra & Mahindra would be biggest beneficiaries of a look up in the prospects. Both the stocks, particularly, Mahindra & Mahindra, have taken a big hit in valuations due to the fall in sales. Both the companies are fundamentally sound and have very good management. We could see a major re-rating of the industry in the coming months. Investors could watch out for these stocks. E also expects motorcycle sales to pick up and companies Hero Honda Motors could be the biggest gainers. While other two-wheeler makers should also see a pickup in demand, Hero Honda can outperform the market by a long margin. Other manufacturers of consumer durables like cooler televisions, refrigerators and washing machines could also see a surge in demand driven by consumption in rural economy. Manufacturers such as Electrolux Kelvinator, Whirlpool and Voltas could see demand rising for their products. Electrolux and Whirlpool could be particularly fancied due to their large capacities and strong brand presence. A surge in rural economy would also mean more transportation needs, increased housing and larger demand for services. CMIE projects the growth in services at 7 per cent in the current year. We also expect commercial vehicle makers like Telco and Ashok Leyland to gain. Cement and steel could also see increased demand from a pickup in housing activity. Overall, we may say that the worst may soon be over for the economy and things could begin to look much better from the second half of the year.

PRODUCT PROFILE
Anchor White Toothpaste: Anchor Gel Toothpaste Anchor Tooth Powder ::100gm 100gm 100gm 150gm 150gm 150gm 200gm 200gm 200gm

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Anchor Tooth Brush

Anchor Fluoride Herbal Toothpaste Anchor Fluoride Kids Toothpaste Anchor Fluoride Multi Protection Toothpaste Anchor Fluoride Seniscare Toothpaste Anchor Fluoride Toothpaste Anchor Gel Toothpaste Anchor Anchor Toothpaste Anchor Toilet Soap : - Dyna Beauty Soap, ( Rose, Lime, Sandal, Almond )

Anchor White Toothpaste Commercial-Real Solid!

In a long time comes a commercial which grabs your attention and makes you wonder what product it features. Anchor White has delivered one such commercial recently. Their latest Cake commercial is real solid literally. While surfing through the TV channels, TM Bee came across this interesting commercial. In the start it didnt seem to be toothpaste commercial at all. It seems to be some consumer durable aiming at having a young brand personality, and then suddenly comes the twist. The cake shoots off the plate and

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hits the fridge and leaves a big dent in it and then falls on the floor to break the tiles. Then the door bell rings and the husband of the protagonist enter and see the cake. Without second thoughts, he picks the cake up and bites into it. Now What? Nothing, he eats it easily as he brushes his teeth with the new Anchor White toothpaste.

Anchor Toothpaste: Desperate measures

'Daant fit toh life fit'. That's the new message from Anchor toothpaste. Well, err; we knew that already, no? I mean, you can't be having a good life if you are in urgent need of a root canal, correct? Or, for that matter,

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'Kidney fit though life fit', 'Heart fit though life fit', 'Kean fit though life fit' are also valid, right? So then what are they saying out here? Well, I suspect makers of Anchor Toothpaste could simply not find anything new or relevant to say for their brand. Germs and plaque have become infra dig.

Colgate has already hired all the dentists in the country to plug their different variants (isn't that against ASCI guidelines? Does anyone care?). And Close Up has adopted street kissing and made it its own. So it seems the poor Anchor guys had no option but to weave in a convoluted tale. A while back, they called Anchor Toothpaste a '100% vegetarian product' (whatever that means), but clearly that either didn't work out with the veggies, or they have switched loyalties.

So now they are asking you to have a blast in life, with the help of power teeth. The TVC stars an exuberant young bride (who looks like she stays at Malabar Hill). She obviously has spent more time in her life at spas and Page 3 parties rather than inside a kitchen. She's seen trying to bake a cake for her beefcake partner. Grooving and dancing (an ancient Hindi film song belts away in the background); she botches it up and sends the cake crashing into the dirty wall. But since it's turned out steely-hard, nothing happens to it. The hubby (who looks

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Nothing, he eats it easily as he brushes his teeth with the new Anchor White toothpaste. The Kajol Commercial This commercial has the capability of making people stop and take notice of the brand which is trying to get your wallet share (and the mouth share) from long. When your competitors are Colgate and Pepsodent, its always tough but Anchor has always been an established brand and not just a me-too. But still their real competitors always turned out to be the likes of Dabur Red,Amar etc.

Kajol endorsed this product for some time but then went missing. This new commercial doesnt feature any ambassador. The ordinary looking guy with super teeth makes the ad look even better. The Kajol Commercial Anchor never had the Wow factor or an eye grabbing commercial with them to get the attention. They were a known brand but not a great brand. Anchor was assumed to be the toothpaste of the older generation. The younger generation preferred Colgate or Pepsodent. Is it or not? Testis is not claiming that this commercial will make Anchor a known brand overnight but yes this commercial would be a hit. Keep the funds away for now, just enjoy the commercial.

Packaging
To reduce the impact of our product packaging on the environment, we will work to improve the environmental compatibility of all our packaging materials. Anchor endorses the worldwide hierarchy of solid waste management: source reduction; recycling (including reuse); incineration; and land filling. 29

Facilities
Anchor toothpaste committed to the health and safety of our employees and the communities in which we operate, as well as the protection of the environment. We will establish and maintain programs for the operation and design of our facilities that meet or exceed applicable environmental, health and safety laws and regulations.

Business
Anchor toothpaste will consider environmental, health and safety issues in all significant business transactions, including acquisitions, divestitures, discontinuance of operations, and entry into joint ventures. We will also act in a responsible manner with respect to the environmental protection of the lands under our management and ownership.

Oral care Toothpaste: Anchor has an 11% share in the oral care segment. Its flagship brand Anchor Dental Cream (ADC) is the selling toothpaste brand in the Indian market with a 6% market share. The company relented the ADC brand in FY01 with a new positioning. Two new brands Anchor Herbal targeted at traditional consumers who seek natural ingredients and Anchor White a brand catering to the economy segment were successfully launched during the year.

Leading brands and market shares

ANCHOR BRAND
Anchor White Anchor Gel

MARKET SHARE
5% 2%

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Anchor Herbal Toothpaste market share

1% 8%

Anchor has followed a flanking strategy by launch of brands in all price segments. Also the marketing focus has been on selective brands such as Anchor White, Anchor Gel, and Anchor Tooth Power. Which has been driving growth? Toothbrush: Anchor has a 3% market share in the toothbrush segment contributed by the Hi-Care Zig Sag, Flexi Care, Wave, Junior+, brands and extensions. This segment has traditionally been low profile with lower levels of brand awareness and loyalty. But the entry of competition from multinationals like SmithKline Beecham and Gillette has led to players offering superior quality and variety of products. Anchor has also launched a variety of specially designed toothbrushes in the last 2-3 years. The strategy in Toothbrush segment has been to focus on the premium segment, where margins are higher. Toothpowder: Anchor has carved out a strong niche in toothpowder market, where it has a 5% share in the organized market... Toothpowder is sold under the Anchor Tooth Powder.

Anchor Health and Beauty Care Pvt.ltd. has USA Company. It is the market leader in the Indian oral care market, with an 11% market share in the toothpaste segment, 4% market share in the toothpowder market and a 2% share in the toothbrush market. The company also has a presence in the premium toilet soap segment and in shaving products, which are sold under the Palmolive brand. Other well known consumer brands include Charms skin cream and Axiom dish wash Anchor has faced intense competition during the 31

last 5 years initially from the no.1 Colgate no. 2 player HLL and more recently from small local players (Meswak, Babool,) and other MNCs such as Smith Kline (Acquires). The company has been fighting back through new launches and revitalization of flagship brand CDC The effort to protect and improve market share has adversely impacted the companys profitability. Operating margin has dipped sharply in the last 5 years in direct congruence with successive hikes in ad spends. The company reinvested 10% of its turnover (Rs1.1bn) into advertising in FY01. The high ad spend is expected to be maintained in FY02 also. The company has relaunched its Gel toothpaste Anchor Ever fresh with an aggressive Talk to Me campaign with a view to revive growth in the stagnant segment. Anchor has not been able to achieve any significant success in expanding its non oral acre portfolio. The soap brand was relaunched last year in new transparent skin care variants with innovative see through packaging. Market shares in other categories such as shaving products, skin creams and shampoo has remained negligibleThe companys strategy is to focus on growing volumes by improving penetration through aggressive campaigning and consumer promotions. The company plans to launch new products in oral and personal care segments and is prepared to continue spending on advertising and marketing to gain market share. Margin gains are being targeted through efficient supply chain management and bringing down cost of operations. A substantial increase in profitability can be brought about through ad spend reduction Business. Anchors principal business is manufacturing and marketing of oral care products - tooth paste, tooth brush and tooth powder, which contribute to about 30% of its turnover. Other personal products include toilet soap, shampoo, skin cream and household cleaning products.

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Other product
Toilet soaps: Anchor has a highly sophisticated, backward integrated toilet soap manufacturing plant with matching fatty acid capacity at Aurangabad. Its two major brands, Dyna positioned as premium and antibacterial soaps respectively. The company launched Transparent Naturals premium soap in unique see through packaging during the year.

Toothpaste Market in India

Toothpaste Market in India

Synopsis (part) of our research on toothpaste market in India.

o Toothpaste market in India is worth Rs 2200 Crore (2009).

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o In India, per capita toothpaste consumption stood at 74g in 2008, which is amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam respectively. o Toothpaste enjoys a country wide penetration level of 50%. o Rural: 39% o Urban: 75% o Oral hygiene continues to be under aggressive competition, with sales increasing by a modest 3% in current value terms in 2008 to Rs. 2,400 Crore. Toothpaste accounted for a whopping 83% of value sales . o HLL's market share in the dental care market has grown from a mere five per cent in 1979 to an impressive 36 per cent today, whereas Colgate-Palmolive has been seen its market share decline from a dominating 75 per cent to a struggling 56 per cent. Segments: Popular Segment Colgate Dental Cream, Pepsodent Declining Low Price Packs Cibaca, Babool Growing Niche Products Ayurvedic and Sensitive toothpastes Stagnant Freshness Segment Colgate MaxFresh, Close Up, Anchor Gel Growing Price-based Segments: Regular Segment: 100 gm: Rs 25-30 Low Price Segment: 100 gm: Rs 14-20 o The Lower Price Point segment accounts for around 25% of total category volumes. Small and regional brands from the low priced segment are expected to perform well because they are often close to the market, respond faster to changes and are willing to learn from mistakes.

Colgate o Colgate has been present in the domestic oral care market (of India) for the last 70 years. o A dominant position in the toothpaste segment with a 48% market share in the domestic market. o 1.5 times the second largest player. O Cibaca was acquired by Colgate in 1994 from Ciba Geigy.
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O the Company today has two main brands in the toothpaste segment ' Colgate and Colgate Cibaca. O Colgate Cibaca has risen to become the 4th largest paste brand in the country in volume terms after Colgate Dental Cream, Pepsodent and Close-Up Pepsodent O Brand of Hindustan Unilever Ltd (HUL, erstwhile HLL) O In a declining toothpaste market, HLL has managed to grow its brands and this has been attributed to Peps dents value proposition being redefined. O Pepsodent share has been climbing steadily from 15.5 per cent in the last quarter of 2002 to 16.3 per cent in the quarter ending June 2006. O HLL's Dental insurance scheme, being launched through a partnership with the New India Assurance, offered a dental insurance of Rs 1,000 on purchase of any pack of Pepsodent. Anchor O Anchor belongs to Anchor Health and Beauty Care (AHBC), a part of the Anchor Group (makers of Anchor Electrical switches). O Anchor White Toothpaste was positioned as Indias first British Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997. O Anchor and Ajanta price their offerings at more than 40% discount, giving the market leaders a run for their money. These low priced competitors accounted for more than 80 per cent of the growing 'discount segment'.

Top 5 Brands - Market Share (2009)

1. Colgate Dental Cream 34% 2. Close-Up 14%

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3. Pepsodent Complete 10.11% 4. Colgate Cibaca Top 5.7% 5. Colgate Fresh Energy Gel 3% 6. Other Brands 32.3%

a. Anchor, Babool, Ajanta, etc

Company Market Share (Value), 2009

1.

Colgate Palmolive Ltd: 47.3% HLL: 33% Dabur: 5% Anchor : 8%

2.

3.

4.

Actual and desired statescertain considerations:

Research could provide insights into the specific aspects of states. A desired state need not necessarily involve a very specific benefit (as stated earlier). When there is a proliferation of brands or when two strong brands compete strongly in a non-durable market (egg Coke Vs Pepsi), the desired state could just be an extension of the brand personality. Pepsis recent commercial, involving a well-known celebrity, projects a young, popular, lively state which could be associated with the desired state. Though a soft drink is not a habitual product for most people (except maybe a small cross-section), the association of the demand could trigger off the desired state whenever 36

the consumer feels a need for a soft drink. Loral, Raymond and Videocon (the Supermarket refrigerator model commercial) are examples of marketing communication which have made a good attempt to create a desired state by combining functional and/or emotional benefits.

Actual and desired states are dynamic

Marketers should note that the states regarding needs are not static. As individuals go through family life-cycle stages, differing earning capacities and lifestyles, the states keep changing and this is one of the reasons why marketers offer an updated product line to hold on to loyal buyers. The entry of Raymonds into ready-mades (Park Avenue) and updated models of Marti are examples of catering to changing desired states apart from competing with new brands. It is essential to have a

37

pioneering lead to cater to changing desired states. Park Avenue entered readymade wear much before other brands. LML Vespa marched ahead of Bajaj to cater to the changing desired states of consumers. Product analysis is a technique which could be used by marketers to identify the problem recognition aspects concerning consumers. It involves researching how consumers purchase or use a product. For example, toothpastes (like shampoos), are now being offered in sachets. However, consumers, after having used the paste, may want to store it to be used on a later occasionso Close-up has introduced sachets with a cap. Similarly, the process of using medicinal drops for the eyes and ears has often posed problems for consumers in terms of breaking the nozzle of the container, finding a dropper which could be used or just making a puncture on the container from where the medicine can flow. Norfloxacin is a brand which offers a built-in mechanism with which consumers can easily break the nozzle. Another example is readymade wear brands which offer different kinds of fits from which consumers can choose. As brand differentiation becomes a difficult proposition to achieve over a period of time, brands will be forced to concentrate on exploring consumer needs. Prior to liberalization, the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Alwen, Kelvinator and Voltas. Together, they controlled nearly 90% of the market. They were first superseded by players like BPL and Videocon in the early 1990s, who invested in brand-building and in enhancing distribution and service channels. Then, with liberalization came a spate of foreign
38

players from LG Electronics to Sony to Aiwa. Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a large number of foreign players means the consumer is no longer starved for choice. But this has also resulted in an oversupply situation in recent times as growth levels have tapered off. The major players in the consumer durables industry, operating in different sectors such as air conditioners, washing machines, refrigerators & television include Blue Star Ltd., Mirc Electronics Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd., Thomson Ltd. & Daewoo Ltd.

There may finally be a silver lining to the gloomy economic picture prevailing in the country. Last week, there were economic forecasts from three important quarters that saw a better future for the country's economy in the current year. The Centre for Monitoring Indian Economy (CMIE) forecast a 6.3 per cent growth in real GDP in the current financial year against 5.2 per cent growth in GDP in the last fiscal. Its forecast was quickly followed by estimates from the Reserve Bank of India (RBI) which saw the economy growing at over 6.5 per cent in FY2001-2002 and then the finance minister stated that he saw the economy turning around by the end of the calendar year. In a nutshell, the picture for Indian economy appears to be brightening up as we go forward into the year. However, the most remarkable feature of this improving economic outlook is that the growth is projected to come almost entirely from the
39

agriculture sector. CMIE has forecast that growth in the agriculture production during the current year would be a whopping 9 per cent over the previous year. This would be almost the highest in the last seven years and comes after two consecutive years of shrinkage in agriculture sector
.

PART: - 2

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OBJECTIVE OF THE PROJECT

Marketing Strategies play a vital role in maximization of sales revenue with customers satisfaction. The objective of the project is to evaluate the marketing strategy adopts by Anchor Health and Beauty care for marketing its by products. The strategies are related the various aspects of marketing like market segmentation, target market, promotional activities, pricing policies etc. These strategies are evaluated on the basis of the kind of effort that the marketing department makes and its effectiveness in generating the desire result of maximization of sales revenue and customer satisfaction. The following are some of the few objectives of my project study: To evaluate the present marketing strategy of Anchor health and Beauty care from marketing mix point of view. To find out potential market for by-product. To frame a competitive pricing strategy to fight global and domestic competition. To know the internal environment of marketing department with its customers.

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To assess the feedback mechanism of Anchor Health and Beauty care for its by product.

RELEVANT CONCEPTS OF MARKETING USED 1. Marketing

Marketing is the process or art of bringing together buyers and sellers. A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product/service because they have a need, or because it provides a perceived benefit. Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments.

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Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and economics. Anthropology is also a small, but growing influence. Market research underpins these activities. Through advertising, it is also related to many of the creative arts. For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers or Shoppers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory. Within most organizations, the activities encompassed by the marketing function are led by a Vice President or Director of Marketing. A growing number of organizations, especially large US companies, have a Chief Marketing Officer position, reporting to the Chief Executive Officer. The American Marketing Association (AMA) states, Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives

Two Levels of Marketing

Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy

43

the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps). Four Ps of Marketing In popular usage, "marketing" is the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning which recognizes that marketing is customer-centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language.

The Four Ps are:

Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention Promotion: This includes advertising, sales promotion, publicity, and selling, branding and refers to the various methods of promoting the product, brand, or company. Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or

44

services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. These four elements are often referred to as the marketing mix. A marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. As a counter to this, Morgan, in Riding the Waves of Change (Josses-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "which you should be aware of ,is that it unconsciously emphasizes the insideout view (looking from the company outwards), whereas the essence of marketing should be the outsidein Approach". Even so, having made this important caveat , the 4 Ps offer a memorable and quite workable guide to the major categories of marketing , as well as a framework within which these can be used.

Seven Ps of marketing:
As well as the standard four Ps (Product, Pricing, Promotion and Place), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are: People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service. As a

45

result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event). Process: This is the process involved in providing a service and the behavior of people, which can be crucial to customer satisfaction. Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations.

2. SALES
A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. The Deal is Closed means the customer has consulted to the proposed product or service by making full or partial payment (as in the case of installments) to the seller. Selling is mistakenly a thought of as a part of marketing however the two disciplines are completely different. It often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salesperson. Sales are considered by many to be a sort of persuading art. Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestone, by which a

46

salesperson relates his offering of a product of service in return enabling the buyer to achieve his goal in an economic way.

Sales Techniques:
The sale can be made through: Direct Sales, involving person to person contact Buying Facilitation Method Pro forma sales Agency-based sales agents (real estate, manufacturing) Sales Outsourcing through direct branded representation Transaction sales Consultative sales Complex sales Consignment telemarketing or telesales retail or consumer Door-to-door or traveling salesperson Request for Proposal is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.

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 Business-to-business Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another Electronic

Web Business-to-business and business-to-consumer Electronic Data Interchange (EDI) is a set of standards for structuring information to be electronically exchanged between and within businesses Indirect, human-mediated but with indirect contact Mail-order In capitalist apologetics, the purpose of the selling is to help a customer realize his or her goals in an economic fashion. This assumption neglects the fact that buyer and seller may not have the same interests. Even if the selling organization recognizes that its sustainability depends on the maintenance of a healthy relationship with repeat customer, the sales person does not necessarily share that goal. Many sales professional are characterized by their short-term goals, a desire for quick returns on effort, and not the long term building of relationships that the most successful sales person undertakes. This dysfunctional behavior is encouraged by: Incentives of salespeople to increase their total number of sales, especially where retailers keep track of sales or offer commission-based salaries.

48

 Incentives from the manufacturer of products or the companies of service providers to sales people to sell their products where other similar products offered by competitors are offered. The incentive to sell a customer a product that is in need of being cleared out, despite the fact that a customer may be better to wait for a new product. Sales person recognize that having being deceived a customer is unlikely to buy a similar product for a long time, and so the salesperson has no incentive to offer any extra quality of service to encourage a long term relationship. This behavior is generally true only of business-to-consumer sales.

3. Customer Value Proposition

A customer value proposition is the sum total of benefits a consumer is promised to receive in return for his or his custom and the associated payment (or other value transfer). In simple words value proposition is what the customer gets for what the customer pays. Therefore a companys value proposition is evaluated on two broad dimensions with multiple subsets. Relative performance: what the customer gets from the vendor relative to a competitor's offering; Price: which consists of the payment the customer makes to acquire the product or service; plus the access cost

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A customer value proposition is being promised by a companys marketing and sales efforts and then fulfilled by its delivery and consumer delivery service processes.

4. Marketing Research
Research is the scholarly or scientific practice of gathering existing or new information in order to enhance ones knowledge of a specific area. Research has many categories, from medicine to literature. Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business (B2B) market research, which was previously known as industrial marketing research. Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another. Consumer market research is a form of applied sociology that concentrates on understanding the behaviors, whims and preferences, of consumers in a market-based Economy. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. In addition to marketing research, other forms of business research include: Market research :Market research is broader in scope and examines all aspects of a business environment. It asks questions about competitors, market structure, government regulations, economic trends, technological advances, and numerous other factors that make up the business environment. Sometimes the term refers more particularly to the financial analysis of companies, industries, or sectors.

50

In this case, financial analysts usually carry out the research and provide the results to investment advisors and potential investors. Product research - This looks at what products can be produced with available technology, and what new product innovations near-future technology can develop. Advertising research - is a specialized form of marketing research conducted to improve the efficacy of advertising. Copy testing, also known as "pre-testing," is a form of customized research that predicts in-market performance of an ad before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ads flow of attention and flow of emotion. Pre-testing is also used on ads still in rough (diplomatic or anima tic) form.

All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research. Outlook/Strategy evaluation
Despite technology support from the global leader in oral care, a strong brand equity and distribution network, Colgate has been facing the threat of losing its market dominance. The company has adopted an aggressive strategy of new launches and a significant hike in marketing expenditure. The company has been targeting schools to create oral awareness among children. Rural reach and penetration is sought to be increased by conversion of non-users through 51

various sales promotion measures such as small volume low priced sachets, distributing free toothbrushes, Rural Van Programmed etc. The high decibel advertising will have to be continued in the wake of stiff competition from not only the number 2 player, but also from small local brands which compete by attractive pricing.

Earnings sensitivity factors

Competition activity: Ability to maintain market share in the toothpaste segment and success of strategies adopted by the management. Success of new launches in toothpaste as well as other product segments. New launches entail large investments in marketing and advertising expenditure and put a strain on margins Expansion of rural market, where a vast potential for volume growth exists. Volume growth and capacity utilization in toilet soaps. Raw/ packaging material (tubes, sorbitol, flavor etc) prices.

Anchor is distinguished by the skill and depth of its leadership team. The Company's core team of seasoned executives is experienced across all geographies and functions. Having played a major role in our past success, this team will lead our growth momentum going forward. The biographical information for Colgate's executive officers follow :

Consumer affairs:

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Our business is consumer products - our success lies in the satisfaction, trust and goodwill of our consumers. We believe, we can best serve the needs of consumers through a consistent, fair and sensitive consumers communication program. For that reason, Colgate has established Consumer Affairs in 31 locations around the world - many of them with toll-free 800#s. The mission of Consumer Affairs representatives who answer these phones is to:

Listen and learn about consumers in a professional, consistent and caring manner that exceeds their expectations so that they experience satisfaction with our products, in all respects.

Bring consumer feedback to the decision-making process at Colgate to help improve existing products and develop new products that will meet consumer needs.

The Consumer Affairs Department in India is staffed with professional representatives who are knowledgeable about Colgate-Palmolive products and welcome the opportunity to hear from consumers. To benefit our consumers we have in place a Toll-free # and helpline.

Code of contact:
Anchor people around the world have built a reputation as a successful company with the highest ethical standards. Through living our values of Caring, Global Teamwork, and Continuous Improvement, and adhering to the highest principles of integrity, honor, and concern for the environment and others, we seek to:

Provide safe and quality products of value to consumers Increase shareholder value

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Offer opportunities for personal and professional growth to all Colgate people Fulfill our corporate social responsibilities as a member of the global community

MARKETING STRATEGIES OF ANCHOR STRATEGIES

MARKETING STRATEGIES OF ANCHOR FOR URBAN INDIA : MARKETING STRATEGIES OF ANCHOR FOR URBAN INDIA Adopted Total Productive Maintenance (TPM) to meet zero error, zero loss. Focuses on short supply chain for distribution. To meet the every needs of people everywhere. Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush. Build segments & market for the future where Unilever has strong expertise. MARKETING STRATEGIES OF ANCHOR FOR RURAL INDIA Project Shakti, partnership with self help groups of rural women & covers 5000 villages in 52 districts in different states. Appointed 6000 Sub-stockiest that directly covers about 50,000 villages & 250 million customers. Integrate Economic, Environment & Social objectives with Business agenda.

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Corporate social responsibility providing education on health and hygiene Women empowerment Water management Rehabilitation of special or underprivileged children Care for the destitute and HIVpositive rural development. Plays active role in natural calamities EVERYDAY I WILL SELL. EVERYDAY I WILL EARN. MONEY.

Segmentation
Toothpaste: Toothpaste is segmented based on product attributes as white, gel and herbal. White toothpaste leads the pack with 50% market share. Price wise, toothpaste can segmented as economy, regular and value added products. About 60% of the toothpaste is sold on family platform in India. There is generally one toothpaste for the entire family. Only 35% of the toothpastes are sold on cosmetic propositions.

World over, the oral care sector is represented by toothpaste and toothbrush. Other products include mouthwash, sprays and oral rinses. In India, there is significant presence of toothpowder as well. Valued at Rs 21 ban, the Indian oral care market is dominated by large multinational companies and a few Indian ones such as Anchor, and Dabur. Major players in this market are Colgate Palmolive, HLL and SmithKline with its Acquires brand.
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Toothpowder: Use of toothpowder is not a global phenomenon. Toothpowder was developed to cater to the people who used the traditional products like salt, neem and other herbal products. The unorganized sector mainly catered to this market and the products were black and red in color. It is only in the last few years, that the MNCs have ventured into the toothpowder segment and launched the white toothpowder. Today it accounts for 65% of the market share. Only about 50 %of Indias population uses toothpastes, around 35 % uses toothpowder while the rest, mainly concentrated in the rural areas, are yet to adopt oral care. Unlike western countries, the market for innovative oral care accessories such as mouth freshening washes, dental floss and teeth whitening products are at a nascent stage in India. The use of these products is limited to urban areas only. Market players: Colgate Palmolive is the market leader in the oral care segment. Colgate is a household name and until a few years back, Colgate was almost like a generic name for toothpaste in India. Colgate and HLL together account for over 70% percent of the organized toothpaste market. In toothpowder segment, Colgate and Dabur are the two major players with Colgate having 48% share. Anchor also has major share of approximately 8 % of the toothbrush market. Opportunity: Penetration of modern oral care products is very low in India. The average per-capita consumption of toothpaste in India is very low at

56

approximately 100 gms and many people in rural India still clean their teeth with traditional products like twigs of the neem tree, salt, ash, and other herbal items. Also, people brushing twice in a day are just 7% of the population as compared to 61% in China.

Percapita % twice consumption bruising a day China 219 61 Malaysia 285 86 India- Urban 110 7

To promote greater penetration of oral care products in the rural areas, anchor in association with dental associations have launched nationwide community dental health programs and informative commercials on oral health to raise awareness on dental hygiene. The companies are also using channels like e-choupals and Disha (unregulated periodic markets). anchor increased its reach from 162 villages in 2004 to 3,765 in 2005 through west bangal.

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RESEARCH METHODOLOGY
58

RESEARCH METHDOLOGY RESEARCH METHODOLOGY

DEVELOP THE RESEARCH PLAN

COLLECT THE INFORMATION

ANALYZE THE INFORMATION

PRESENT THE FINDINGS 59 MAKE THE DECISION

The methodology adopted in the current research would be a blend of primary research and Diagnostic research. Considering the two major objectives of the research, primary research would be conducted using the method of Questionnaire and Interview. The customer would be personally approached and would be interviewed as well as requested to fill up a pre determined and standardized questionnaire. The questionnaire would include objective as well as subjective questions and would be precise and formulated in such a manner so as to extract maximum information from the respondent (customer). The information thus collected from the responses would be evaluated in the next phase of study. This involves diagnostic research as the emphasis would be upon finding the causes of the problem areas and the making pertinent suggestions. Sampling used in the given study would be simple random sampling with a simple size of 150 respondents, considering the customer profiles.

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METHODOLOGY PROPOSED FOR RESEARCH STUDY

Following are the steps and techniques, which were used by me for methodology: -

Universe of the StudyUniverse covers the whole defined field on which the study is based. The present study was carried In GLA ITM located on the outskirts of Mathura city

Sample SizeSample size depends on the nature of the universe so it should represent the whole universe without any bias. The limitation of time and money has not permitted the researcher to study the whole universe. So the research involves only 100 individuals.

Sampling MethodOut of various types of sampling methods the Random Sampling is used in research, as it was both times saving as well as easy method of picking up the sample. As random sampling is also of many types so stratified random sampling was used for study because it was more reliable. In this method whole population that is required for study is divided into different groups and sample were selected from them.

Sampling
Sampling is that part of practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of inference. Each observation measures one or more properties (weight, location, etc.) of an observable entity enumerated to

61

distinguish objects or individuals. Results from probability theory are employed to guide practice.

Research Design
Exploratory research is used here. For this relevant literature related with the subject had been carried out. It also includes experience survey, selection of respondents, proper questioning etc. 1) DATA COLLECTION Data collection was carried out using two distinct sources of data depending on the type of data to be collected. Both primary as well as secondary data sources were utilize in such a manner so as to complement each other. 2(a) PRIMARY DATA For the purpose of gathering data unique each area primary data was extensively used for e.g. primary data is necessary for a research, is collected from bulandsahar market where data is collected from the student of college. PERSONAL INTERVIEW Short personal interviews were also carried out with individuals as and when time permitted. The purpose of this activity was to gain some insight in to the real impact of advertising on the purchasing of the consumers. Added to this was the motive of determining of what extent

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the preference of consumer can be diverted through the electronic media. 2(b) SECONDARY DATA Secondary data was collected through the medium of the Internet and was duly supplemented by the existence of web sites. Data was also collected through the study of magazines like, Advertising, A&M, Business Today, Business world, etc. Another source of secondary data was the study of journals of Indian Journal of Marketing which are the monthly issues. There are various websites where the authentic data are available in large amount. Anybody can access the data through the clicking the web sites easily. I have also taken the help of some old report, which are prepared by the old student of this institute. 1. Other Sources: Secondary data has been used from newspapers,

internet, books, journal, business world magazine, India today, other relevant materials.

Although still supported by mainstream philosophers, psychologists and neurologists, this theory is nowadays losing momentum. The theory of active perception has emerged from extensive research of sensory illusions, most notably the works of Professor Emeritus Richard L. Gregory. This theory is

63

increasingly gaining experimental support and could be surmised as dynamic relationship between

FMCG
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately.

ANCHOR HEALTH AND BEAUTY CARE PVT.LTD. Is India's leading provider of scientifically proven oral care products with multiple benefits at various price points? The range includes toothpastes, toothpowder and toothbrushes under the 'ANCHOR' brand, as well as a specialized range of dental therapies under the banner of Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. Annual Survey for India's Top Brands for eight out of nine years during the period 1992 to 2001.

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ANCHOR Total 12 works like a protective shield around teeth and gums -actively fighting 12 teeth and gum problems to: 1. Prevent tooth cavities 2. Prevent exposed root cavities 3. Prevent gum inflammation 4. Prevent tartar 5. Prevent plaque build up 6. Keep fighting germs 7. Remove plaque 8. Remove stains 9. Fight bad breath 10. Reduce gum bleeding 11. Clean between teeth 12. Strengthen weak tooth enamel

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SWOT
66

ANALYSIS

STRENGTH
HIGH QUALITY CONSUMER PRODUCTS AT REASMABLE PRICE . GOOD AND EFFICIENT MARKETING SYSTEM.

GIVING PRIME IMPORTANCEC TO R & D.

EXISTENCE OF GOOD INDSTRIAL RELATION.

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 THE VEST NETWORK OF THE COMPANYS FIELD STAFF

REGULARLY COLLECTS INFORMATION FROM THE MERKRT INTELLIGENCE.

WEAKNESSES
LONG PRODUCTION PROCEDRES.

NON UTILIZATION OF 100% PRODUCTION CAPACITY . LACK OF EMPLOYEES PARTICIPATION IN THE MANAGERIAL ACTIVITIES.

THE PRODUCTION UNIT IS SITUATED IN AN INDUSTRIALLY BACKWARD AREA.

THE TECHNOLOGY USED FOR THE PRODUCTION PROCESS IS

OLD.

OPPORTUNITIES

GOOD DEMAND FOR THE PRODUCT.

SCOPE FOR MORE EXPORT.

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 CHANCE TO DEVELOP NEW AND IMPROVED PRODUCT THRUGH R & D.

GLOBALIZATION AND LIBERALIZATION POLICIES HAVE

OPENED NEW OPPORTUNITIES TO THE FIRM.

THREATS

CUTTHROAT COMPETITION.

ENTRY OF DUPLICATIONS.

PERMANENT CUSTOMER MAY SUBSTITUTE OTHER PRODUCTS.

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DATA ANALYSIS

Gender wise usage of the product:DEMOGRAPHICS OF SAMPLE

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GENDER:-

G END ER

47% 53%

MALE FEMALE

In the total sample size of 100.there were 53 males and 47 females. So sample has a balance contribution of men and women respondents.

Q. what is your age?

Ans. The responses of individuals are as follows:71

AGE:

AGEOFTH S E AMPL E

6% 11%

15% 10 - 20 year 20-30 30-40 40-50 68%

Most of the respondents lay in the age bracket of 20-30 years 68% further. Up to 10-20 15%, 30-40 6%, above 40 years 11%

Q. what is your education background? Ans. The responses of individuals are as follows:-

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EDUCATION BACKGROUND. :60% 50% 40% 30% 20% 10% 0% 4% 26% 21% 49%

EDUCATION BACKGROUND

The most of the respondents are quite educated as pie chart is showing 52% are graduate 23% are post graduate and 23% are 12th only 2% are 10th pass.

Q.what is your occupation? Ans. The responses of individuals are as follows:-

OCCUPATION :1

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OCCUPTION
1% 3% 4% 6% GOVT. SERVICE SELF EMPLOYED EXECUTIVE STUDENT 86% OTHER

As already mentioned that sample collection was mainly one at college campus so masts of the respondents 86% are student further breakup is visible in pie chart.

Q.what is your annual family income?

Ans. The responses of individuals are as follows:-

ANNUAL FAMILY INCOME:74

ChartTitle
50 45 40 35 30 25 20 15 10 5 0 0-1 lack 1-2 lack 2-3 lack 3-4 lack 4-above fam incom annuel ily e

As it is very much well known that people are quilt reluctant to tell their family income so the figure above is not exact but the representative. There was lot of respondent who did not fill the question.

Q. which mode you are using for cleaning the teeth?

Ans. The responses of individuals are as follows:MODE OF CLEANING THE TEETH

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ChartTitle
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% TOOTHPASTE TOOTHPOWER OTHER

MODE OF CLEANING THE TEETH

MOD OFC EANING E L

2% 9%

TOOTHPASTE TOOTHPOWER other

89%

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Q.which brand do you prefer?

Ans. The responses of individuals are as follows:-

BRAND PEPOLE USE

Brand wise market is quite fragmented, the reason are first there good amount of small and big player in the market at the same time presence of half number brand of from a single company. But it is clear that Colgate is undisputed leader but hul is not for behind with its two major brands close up and Pepsodent and British dental product anchor.

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Q.where do you buy toothpaste from?

Ans. The responses of individuals are as follows:PLACE TO SHOP TOOTHPASTE

PL ACEOFT TH AS S OP OO P TE H
5%

30%

NEIGHBOURHOOD SHOP MEDICAL STORE SUPER STORE 65%

65% of people still relay to their local kirana shop for toothpaste, 30% purchase from super store and 5% from medical store. The 30% is showing growing growing Craze of organized retailing in India.

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Q.what is your monthly consumption of toothpaste?

Ans. The responses of individuals are as follows:-

AVERAGE CONSUMPTION OF TOOTHPASTE

60% 50% 40% 30% MONTHLY CONSUMPTION 20% 10% 0% 50 -100 GM 100-200 GMABOVE 200 GM 9% 38%

53%

India has a very less per capita toothpaste consumptions. The research is supplying that also as in 53% families the approximate consumption is 100-200 gm in 38% families more than 200gm and in 9% families even less than 100 gems.

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Q.what is duration of using for particular brand?

Ans. The responses of individuals are as follows:-

Duration of using
70% 60% 50% 40% 30% 20% 10% 0% SIXMONTH ONE YEAR TWO YEAR MORE THAN TWO YEAR 13% 13% 10% 64%

MONTHLY CONSUMPTION

Major chunk of population 64% is associated with same brand for more than two year 10% for about two year 13% each for 6 month and 1 year .It shows that a good amount of population brand loyal in trams of toothpaste

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Q.what is your source of information?

Ans. The responses of individuals are as follows:-

SOURCE OF INFORMATION

S OURCEOFINF ORMA TION

1% 3% 4% TV ADS PRINT ADS 41% HORDINGS STORE DISPLAY 43% ROADSHOW SALESMAN 4% 4% FRIENDS/FAMILY

How a consumer came to know about a particular brand it is very much important for markets because with the help of this than can reach to their market in better way. It is clean from the finding the TV advertisement are the major source of information for costumer

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Q.WHICH FACTORS AFFECT THE CONSUMER DECISIONS: Ans. The responses of individuals are as follows:-

60 50 40 30 20 10 0 CONS UMER DECIS ION

PR ICE PACK AGING AVAIL ITL B TY S TYOFTEETH AF DUE TO PR OMATION OTHER

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Q. Which ingredients influence Consumers? Ans. The responses of individuals are as follows:-

THE PERCENTAGE OF INGREDIENTS WHICH INFLUENCE THE CONSUMERS

10%

5%

15%

31% 14%

25%

MINT FLUORIDE TASTE OLIVE OIL COLOUR OTHERS

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Q. How many people are satisfied from anchor? Ans. the responses of individuals are as follows:-

SATISFACTION LEVEL OF BRAND

S TIS AC A F TIONL EVEL

1%2% 14% 29% HIGHLY SATISFIED MODERATE SATISFIED 44% LEST UNSATISFIED

The prime aspect that will decide brand loyalty is the satisfaction level of a customer. Hence 46% people are satisfied with their existing brand.
About the Dental Council of India

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The Dental Council of India was constituted in 1948 to regulate dental education, the dental profession and dental ethics in the country and to recommend to the Government of India to accord permission to start Dental Colleges, higher courses and increase seats. About the Indian Dental Association The Indian Dental Association, formed in 1946 is the largest recognized body of dental professionals in India, which has helped shape the National Oral Health Policy. Working towards the promotion, encouragement and advancement of dental and allied sciences the IDA has a national presence with 23 state branches and over 185 local branches spread across India. It has a combined strength of around 22,000 dentists and student members registered with it. The detailed report India Info line Sector Studies: Indian Oral Care Industry is available in Adobe PDF format. The Report provides comprehensive information on Indian oral care market, overview of major categories, segmentation, consumer habits, market size, growth, market share, and profile and brand strategies of leading players.

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FINDINGS
It is found that the brand awareness of Anchor is quite low in

comparison by Close-up and Pepsodent.

It is found that the consumer purchase rate for Anchor is lowest

for the Pepsodent, Colgate and Close-up. The advertisement plays the very crucial role for the promotion of any particular brand that is indicated by the result of recall rate of advertisement of toothpaste.

The major concern of consumer is about the safety of teeth that motivate them for the use of toothpaste. That indicates the price and factors like availability are not in the consumer mind.

The recall rate of USP of any particular brand simply indicates that the effectiveness of any advertisement.

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PROBLEM ANALYSIS
INSUFFICIENT PROMOTION OF THE PRODUCT Poor Marketing Strategy. Irregularity of Advertisement. Lack of Sales promotion

Consumers priority and nature of recognized problems

How consumers respond to the strategies of actual and desired states would depend on two important factors: 1. The magnitude of discrepancy between the desired and actual stats: A new dimension to scooter brands is the introduction of the four-stroke scooter. If fuel consumption is a vital evaluation criterion of a prospective consumer (maybe even in the replacement market), the desired state in terms of fuel economy should be significantly higher in a four-stroke scooter for the consumer to consider the new offering, especially given the fact that the updated version of the product will cost a few thousand more than conventional scooters. The magnitude aspect becomes important when brands offer new benefits to gain an edge over competing brands.

2. The relative importance of the problem: A consumer owning a two87

wheeler may like to own a car which may be his desired state of satisfying a transport need. But given the priority hierarchy in the mind of the consumer, he may attach very little importance to buying a car. In the Indian context, generic competition (where the purchasing power of consumers competes for a number of categories) is an important aspect. While the consumer may be interested in several product categories, he may priorities television as a priority buying item. The consumer durables could make use of this aspect by creating an immediacy of purchase around specific products. The microwave oven is one category which has been around for almost a decade, and this approach may be very applicable to it (though the benefits of the product may not be sufficient to create an impending desire to own it).

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Suggestion
1. Introducing new advertisement policies. 2. Launching new schemes. 3. Market survey before the introduction of the product. 4. Product should be diversified in its maximum categories.

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Conclusion
Most of the people using toothpaste are of the age group 20-30.And the people who is using tooth pest most of them are of the graduate back ground, means most of the user are literate.86% of the people from the sample is service man who is using tooth pest and they are belonging from the income group 2 to 3 lack. From the sample population only 8% people are using anchor tooth Pest So Anchor tooth pest need to increase its market share.100-200 gm packs are using by 53% of sample people. Updated version of the product will cost a few thousand more than conventional but it is current demand so we have to promote new product with some diversification. We need to improve and pay attention to quality aspect of the product and also go for heavy promotion of product by TV shows and more Product has some effective brand ambassador for promotion of product and who its own identity among the people .and have a forceful appeal to promote the product.

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BIBLIOGRAPHY

Marketing Research : G.C. Berri

Research methodology: C. R. Kothari Marketing management : Philip kotlar Advertisement Management. Advertising Express.

Website:
http://www.google.com http://www.anchorglobal.com

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APPENDIX

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QUESTIONNAIRE
. Respondent name: Profession: . Q 1 how many age of user? A.10-20 age C.30-40 age b.20-30 age d.40-80 age Ph.no. e-mail:

Q 2 what is your educational background? a.10th c.gradutaion Q3 what is your occupation? A.govt.service C. executive E. other Q4 what is your annual family income? A.0-1 lack b.1-2 lack b self employed d.student b.12th d.post graduation

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C.2-3 lack E .more then to 4 lack

d.3-4lack

Q5.which mode you are using for cleaning teeth? a. Toothpowder C other Q6 where do you buy toothpaste from? a. Neighbourhood shop c.super store Q 7.What is your monthly consumption of toothpaste? a.50-100 gm c.more then 200 gm Q8. What is duration of using for particular brand? a. six month c .two year Q9.whate is your sourse of information? A. T.V ADS . b. PRINT ADS c. HOLDINGS b.one tear d.more then ywo year b.100-200 gm b.medical store b. toothpaste

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d. STORE DISPLAY f. ROAD SHOW g. SALESMAN h. FRIENDS/FAMILY Q10.which factors affect the consumer decision ? a. Price b. Availability c. Packaging d. Safety of teeth

Q.11 which ingredients influence Consumers? a. Mint b. Fluoride c. Taste Q12 what are you satisfaction level of this brand? a. highly c. moderate e.unstisfied Q13.Which brand of toothpaste do you own? a. Colgate b. Close-up c. Cibacca d. Meswak e. Pepsodent f. Babool g. Neem h. Anchor b.satisfied d. list d. Olive oil e. colour

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Q14. Which advertisements of toothpaste can you recall easily please write in Descending order? a. Colgate b. Close-up c. Cibacca d. Meswak e. Pepsodent f. Babool g. Neem h. Anchor

Q15.are you using regularly of anchor toothpaste? a. Yes b. No

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