Marketing by hedongchenchen



                     PROJECT REPORT





                   MARKET SOURCE.

                      SUBMITTED BY

                  UNDER THE GUIDANCE OF

                      SUBMITTED TO

                   “UNIVERSITY OF PUNE”


                      THE DEGREE OF





I, Mr. XYZ hereby declare that this project is the record of authentic work carried out
by me during the academic year 2009 – 2011 and has not been submitted to any other
University or Institute towards the award of any degree.

                                                                           (Mr. XYZ)

        How far that little candle throws his beams
       so shines a good deed in a weary world.
                                               ~William Shakespeare

        There are several people who have spread their beams of knowledge and have
helped me come successfully through this project. I express my gratitude towards all
those who have been Kingpins behind the satisfaction that I have received through
this project.
        I wish to express my deep sense of gratitude to my Guide Mr. Mukesh
Tripathi & Mr. Vipin agarwal, for their constant guidance throughout this project.

The completion of the project could not have been possible but for the ungrudging
efforts put in by a large number of individuals. I express my thanks to all the staff at
COLGATE PALMOLIVE Ltd & MARKETSOURCE who with their continuous
support assisted me at every stage.

        I express my profound gratitude to Sinhgad Institute of business
Administration & Research and Colgate palmolive Ltd. for giving me the opportunity
to work on the project and broaden my knowledge and explore new horizons.

        As I express my gratitude, I must never forget that the highest appreciation is
not to utter words, but to live by them.

Sr. No.                              Title               Page No.

1         Executive Summery.                             1

2         Company Profile.                               2

3         Objectives, Scope & Limitation of the Study.   12

4         Review of Literature.                          14

5         Research Methodology.                          23

6         Data Analysis & Interpretation.                27

7         Observations & Findings.                       38

8         Recommendation & Suggestions.                  40

9         Bibliography.                                  41

10        Annexure.                                      42

TABLE NO.         PAGE NO.

Table no. 6.1     27
Table no. 6.2     28
Table no. 6.3     29
Table no. 6.4     32
Table no. 6.5     33
Table no. 6.6     34
Table no. 6.7     35


TABLE NO.         PAGE NO.
Figure no. 2.1    3
Figure no. 2.2    5
Figure no. 2.3    7
Figure no. 2.4    9
Figure no. 6.1    27
Figure no. 6.2    28
Figure no. 6.3    29
Figure no. 6.4    30
Figure no. 6.5    31
Figure no. 6.6    32
Figure no. 6.7    33
Figure no. 6.8    34
Figure no. 6.9    35
Figure no. 6.10   36
Figure no. 6.11   37
                                   CHAPTER 1
                        EXECUTIVE SUMMARY

This internship report consists of the overall experience of working as a part of
Colgate Palmolive Ltd.This experience helped me understand the basic functioning of
the particular market where I was inducted.
My Internship consisted of the On Job Training as A Management Trainee. The best
learning experience was that I started from the very basics of getting to that position
and not from the position itself. This helped me get useful insight and understanding
of various products, the market details about them and the benefits provided by them
to the customers. Emphasis was given in analysis of the consumer behavior.
Training sessions were held to give me insights about the various products that
Colgate Palmolive deals in like: Toothpaste, Toothbrush, Soaps, and Mouthwash.
Presentations on the same after self study and analysis were a part of this internship
I provided advice and suggestions to the Retailer & customers for Colgate Sensitive
Toothpaste & Toothbrush which may prove prudent to them. For other products I
studied the customers buying behavior and assisted the manager.
I found that proper promotional activities can really push the sales. Many times
advertisement or POP material influences the customers to a great extent. From the
research it can be drawn out that a proper awareness of the technology have to be
spread among the dealers and a good relation with stockiest can also push sales
because in many cases it was found that when the question was asked regarding the
brand the customer generally wants to buy then the response of many dealers where
that it was on their wish and they can sell any brand to them because all the brand
have a slight difference and in terms of price and quality, so most of the customers
depends on the stockiest or making final decision regarding the purchase of the

                                  CHAPTER 2

                           COMPANY PROFILE

Colgate was founded in the United States in 1806 and for the first 100 years, its
business focus was only there. However, in the very early 1900's, the Company began
a very aggressive expansion program that led to the establishment of Colgate
operations throughout the world. Today, Colgate-Palmolive is a $9 billion company,
marketing its products in over 200 countries and territories under such internationally
recognized brand names as Colgate, Palmolive, Ajax, Fab, and Mennen as well as
Hill's Science Diet and Hill's Prescription Diet. Colgate   Total   is   considered     the
greatest evolution in toothpaste since the introduction of fluoride. This highly
effective formula, containing fluoride and the antimicrobial ingredient, Triclosan, has
been demonstrated clinically to help prevent gingivitis, plaque, cavities and tartar.

And, its unique patented formula, containing the co-polymer, Gantrez, continues to be
active between brushings. It continues to work fighting plaque, gingivitis, tartar and
cavities after you stop brushing, even if you eat or drink. No other toothpaste
manufactured in the US contains Triclosan or has been cleared to make claims for
gingivitis and plaque reduction. Since the announcement of the FDA clearance of
Colgate Total on July 14, 1997, retailers have expressed unprecedented enthusiasm
and interest. Dr. Sigmund S. Socransky, Associate Professor of Oral Biology, Harvard
School of Dental Medicine, and Senior Member of the Staff and Head, Departments
of Microbiology and Periodontology, Forsyth Dental Center, said, "Colgate Total
represents one of the most remarkable oral therapeutic achievements in the last 20
years." Colgate Total will benefit the oral health of all users. The most common non-
contagious diseases are periodontal diseases such as gingivitis. In fact, 63% of
Americans suffer from gingivitis. As the only toothpaste with this formula, Colgate
Total will help Americans take greater care of their teeth and gums than ever before
and will help younger people prevent these dental problems. Since Colgate Total was
introduced internationally in 1992, over half a billion tubes have been purchased.

These included five major studies that supported the safety and efficacy of the
toothpaste. Independent dental associations in 30 countries, including the American,
Canadian and British Dental Associations, have awarded seals of acceptance to
Colgate Total. Colgate Total will begin shipping to food, drug and mass
merchandisers nationwide on December 15, 1997, and will have a suggested retail
price of $2.49, $2.99 and $3.49 for 4.2, 6.0 and 7.8 ounce tubes, respectively.
Colgate-Palmolive is a leading global consumer products company tightly focused on
Oral Care, Personal Care, Household Care, Fabric Care and Pet Nutrition. In the U.S.,
Executive summary Successful international marketers possess the ability to identify
with and adapt to different cultural environments. International marketing requires
that one

                                 Fig no. 2.1
actively anticipate the effects both foreign and domestic uncontrollable environments
exert over the marketing mix, and then adequately adjust the marketing mix to
minimize potential negative effects. Often times an international marketer‟s self-
reference criterion impede his or her ability to accurately assess and properly respond

to foreign operating environments. Rather than rely on their own self reliance criteria,
international marketers must conduct far-reaching, comprehensive cultural and
economic analyses of potential foreign markets in order to develop more effective and
responsive marketing mixes that improve the success potential of their market-
development strategies.
Argentina certainly represents a viable market-development opportunity for
Colgate Total toothpaste. U.S. companies intending to export to Argentina Should
consider economic, demographic, as well as cultural characteristics that differentiate it
from other Latin American countries. Having the highest per capita gross domestic
product and the second highest total gross domestic product and life expectancy in
Latin America, as well as low rates of population increase and illiteracy rates,
Argentina attracts many business opportunities.
The population and economic activity are highly concentrated in the Greater
Buenos Aires area. The population is largely of European descent and continues to
have strong ethnic, cultural, as well as business ties with Europe. Consumer
preferences tend to resemble more those of Europeans than those of other Latin
America nationals. However, revenues are highly dependent on MERCOSUR trade,
especially with Brazil, and the regional economic situation. In many sectors,
European competitors of U.S. firms are already present in the market, and may be
well entrenched. Nevertheless, the U.S. is Argentina‟s single largest trade and
investment partner and many U.S. firms have been very successful. U.S. lifestyle and
consumption habits are increasingly influential. U.S. products have a strong
reputation for quality and technological innovation, but U.S. firms are sometimes seen
as lacking commitment to the market. It is important to be prepared for a competitive
market environment. As in many countries, personal relationships are fundamental to
doing business in Argentina. Success requires taking the time to develop a close
personal relationship with your representative, agent or distributor. Marketing U.S.
products and services in Argentina requires the same level of research, preparation
and involvement if not more--as domestic marketing. U.S. firms handicap themselves
if their product literature, labels, manuals and other written materials are not in
Spanish. When preparing Spanish-language materials, care should be taken to ensure
the meaning is consistent for all Spanish-speaking markets in which they will be used.

                                 Fig no. 2.2

Major U.S. investors, including car manufacturers and food processors access
Mercosur markets through operations in Argentina. Mercosur has become a key
element of the business strategy of many foreign manufacturing and services firms in
Argentina. To avoid reliance on self-reference criterion during the marketing plan
development process, the international marketer carefully researched Argentina‟s
unique cultural elements (i.e.: geographic setting, social institutions, religion and
aesthetics, living conditions and language) and economic elements (i.e.: population,
economic statistics and activity, and developments in science and technology). The
information gathered through these analyses helped the international marketer to
identify key strategic issues and to formulate actionable strategies for the introduction
of Colgate Total toothpaste in Argentina. Furthermore, the unique cultural and
economic elements exhibited by Argentina guided the international marketer in
making decisions throughout the international marketing planning process, which
consists of the following four phases: preliminary analysis and screening adapting the

marketing mix developing the marketing mix control and evaluation. Preliminary
Analysis and Screening In the process of conducting a situation analysis, the marketer
must identify the strengths and weaknesses of Colgate-Palmolive and Colgate Total
toothpaste along with the opportunities and threats present in Argentina. Smoking out
key strategic issues naturally flows from drawing connections between the strengths
and opportunities, strengths and threats, weaknesses and opportunities, and
weaknesses and threats of Colgate-Palmolive and Argentina respectively. The most
relevant strategic issues related to the introduction of Colgate Total toothpaste in
Argentina are listed under the following subheadings: Deep Capital Reservoirs
Capable of Fueling Market Development Colgate-Palmolive achieved a recorded-
setting cash flow of $917 million for 1996, up 13 percent from 1995. Furthermore, on
March 6, 1997, the Board of Directors declared a 17 percent dividend increase and a
two-for-one stock split starting April 25, 1997.
Undoubtedly, overcoming major barriers to market entry, such as the high costs of
educating the public about prevention of periodontal disease, strengthening product
distribution intensity, and gaining strategic shelf positioning, would require Colgate-
Palmolive to shell out huge amounts of capital. In addition to already having a record
supply of internal capital at its disposal, Colgate-Palmolive, could capitalize
stockholder confidencetoraise the marginal capital it needs to aggressively Experience
Curve to Facilitate New Product Introduction When applied to Colgate-Palmolive, the
experience curve concept states that product costs, corrected for inflation, decline
with accumulated output.       Learning effects, technological improvements, and
economies of scale are the three sources for cost declines vis-à-vis increases in
volume. With its extensive expertise in research and development (introduced 602
new products world-wide in 1996) Colgate-Palmolive would benefit from these gains
in worker skill and output with Colgate Total toothpaste in Argentina. Furthermore,
Colgate-Palmolive would likely call on several of its factories located in South
America to manufacture Colgate Total for Argentina before purchasing domestic
production facilities. Foreign-based factories could realize short-term economies of
scale until Colgate-Palmolive decides it would like to make a long-term commitment
with respect to production in Argentina.

Newly initiated members of the middle class in Argentina will become more
concerned with their health and capable of paying for related products. Since Colgate-
Palmolive already markets many oral and personal care products, it could benefit
from capitalizing on this growing market in Argentina. Colgate Total toothpaste could
serve as the lead product that would leverage future line extensions in the form of oral
care products. Gantrez Gives Colgate Total a Sustainable Competitive Advantage A
product must fulfill the following criteria in order to possess a strategic competitive
advantage:    (1)   better    than   competing     products     with    respect   to   a
feature/advantage/benefit that customers and competitors perceive as meaningful, (2)
better by a significant amount and not imitable, and (3) advantage must be perceived
by customers and competitors. First, Gantrez, a co-polymer additive and key
ingredient in Colgate Total toothpaste, prolongs the retention of fluoride, Tricloscan
and other active ingredients that help prevent plaque, gingivitis, cavities, tartar, and
bad breath on oral and soft tissues. Gantrez prolongs product benefits for up to twelve
hours after brushing, even after product users eat or drink something, giving their
teeth unparalleled protection against periodontal disease. Second, performance of and
benefits derived from comparably-priced products do not even compare to that of
Colgate Total toothpaste, and due to the patent on Gantrez competitors may not
easily copy this product. Third, both consumers and competitors perceive Colgate
Total as one of the greatest achievements in oral care over the last 20 years.

                                 Fig no.2.3

sustainable competitive advantage over competing products in Argentina, which
affords Colgate the opportunity to implement a niche-based differentiation marketing
strategy. After performing the situation analysis, the marketer must then position
Colgate Total Toothpaste to appeal to the needs of a customer segment whose
members are identifiable and accessible and also demonstrate adequate potential and
responsiveness. When positioning a product, the marketer must proceed through each
of the following three steps: segmentation target market selection positioning
Following the processes and fulfilling the criteria involved with the aforementioned
steps required by this process yielded the following positioning statement: To position
Colgate Total toothpaste as offering superior prevention of periodontal diseases to
members of middle class households between the ages of 6 and 45 with the
competitive superiority of prolonged protection of oral and soft tissues based on its
patented co-polymer additive, Gantrez.
A specialty niche positioning strategy best matches the features, advantages and
benefits of Colgate Total toothpaste. Ultimately, Colgate-Palmolive should market
Colgate Total toothpaste to younger, married, middle class, Argentine women. Gender
roles dictate that women exert considerable influence over family related purchase
decisions. Especially with respect to convenience and shopping goods, the wife of the
household plays the role(s) of the initiator, information gatherer, influencer, decision-
maker, and purchasing agent. Adapting the Marketing Mix Laying the groundwork
for making marketing mix decisions, the product-market definition serves to keep
marketing strategies focused. To fulfill the criteria for the product-market definition,
the marketer must determine product type, geographic area, customer type, and
customer needs. Colgate-Palmolive would likely choose to market Colgate Total
toothpaste in 4.2, 6, and 7.8 ounce squeezable tubes. Considering that 84.5 percent of
Argentines live in urban areas, Colgate-Palmolive could achieve greater economies of
scale and better measure correlation between promotions and sales by distributing
Colgate Total through larger, more modern grocery store chains located in densely
populated, cosmopolitan Buenos Aires and Southern Santa Fe.
As stated earlier, Colgate-Palmolive should market Colgate Total toothpaste to
younger, married, middle class, Argentine women to fulfill their needs for value
(longevity of product benefits requires fewer brushings per day than regular
toothpastes to achieve similar benefits)

for toothpaste in Argentina appears to be selective, but substantial primary demand
has yet to be cultivated due to lack of personal income and/or consumer education.
Worldwide annual per-capita consumption of toothpaste averaged 363 grams or 12.8
ounces while consumers in India used only 67 grams of toothpaste annually. The
average annual per-capita consumption of toothpaste in Argentina is probably
somewhat lower than the worldwide average due to a lower average personal income
and a lack of consumer education. However, with the help of Colgate-sponsored
mobile clinics that would bring dental hygiene programs, dental care professionals,
and product samples to uneducated consumers throughout the major urban areas in
Argentina, primary demand for toothpaste could grow along with selective demand
for Colgate Total. Cultural constraints often inhibit the fulfillment of international
marketing. Objectives. Due to the cultural similarities between Latin America
countries, it is entirely plausible that government officials and local businessmen in
Argentina customarily accept bribes from domestic and foreign-owned corporations.

                              Fig no.2.4
experiences higher levels of efficiency through the standardization of marketing mix
elements. Colgate-Palmolive could standardize the paste, tube, and packaging
materials for Colgate Total toothpaste. If another nearby factory in a neighboring
country also manufactures product for Spanish-speaking consumers-such as Ecuador,
standardization could be achieved for the copy imprinted on the Colgate Total tubes
and boxes.

However, some primary research should first be conducted to test consumer reaction
to language differences, such as colloquialisms and annunciation. Developing the
Marketing Mix The lion‟s share of the product decisions have already been made by
Colgate-Palmolive‟s product development team. After analyzing product information,
the marketer subdivided product information for Colgate Total toothpaste into
features, advantages, and benefits.

                         Organization Structure:-

                         General Manager

                         Assist. General
          Head HRD
                         Manufacturing              Production

            Head                                     Head Quality

                                                    Head R &D
           Head Stores                              Quality

                                                    R &D
           Head                                     Head Innovan.

           Vendor                                   & Strat.Mgt


Source: - HR Dept. Colgate-Palmolive Ltd. (India)
          Finance &                                 Innovan. &

          Accounts                                  Strat.Mgt


Of the Study
                                     CHAPTER 3

                          OBJECTIVES OF STUDY

The Objective of the study of the sales Promotion activities is related to the new
product launch by Colgate.
Some objectives are as follows:

   • To find out company‟s current market share in the FMCG market in India.
   • To identify effectiveness of promotional activities of the company.
   • To study the factors considered by customers while purchasing Toothpaste and
   • To analyze promotional activities carried out by Colgate.
   • To justify that publicity tools to increase sales of Colgate Sensitive Toothpaste &

Scope of Study:-

The study of the promotional activities is very important in the company view so for
that I started the study of promotional activities in the Colgate. Scope of the study is
to find out the promotional activities carried out by Colgate & new innovative
Branding strategies on shop level.

I wised my area by studying the various activities by the different techniques and
also by different views and added the brand awareness to the customers.

Time dedicated – 2 months for all surveys and practical part of it.

                      LIMITATIONS OF THE STUDY

There was a limited span of two months for the project work in which the study of
„Sales Promotion activities carried out for Colgate Sensitive‟ was to be done.

Considering the nature of subject, the study was mainly dependent on the
feedback/survey method. As a result, one does not get a proper statistical data because
the information furnished is in the form of views and opinions. Therefore, the report
will be rather view findings than fact findings.

The limitation for the study of the Promotional Activities carried out in Colgate for
Latur region only.

The project is related to only Colgate Sensitive product which is in the category of
medicated product so the work area restricted to only chemist store.

Actually 2 months period is not sufficient to detail study about Topic.
Sample size is 150 only.

As in the project there is product detailing is carried out for only chemist and not for
the dentist as well as wholesaler.

Review of
                                  CHAPTER 4

                      REVIEW OF LITERATURE

Sales promotion is an important component of a small business's overall marketing
strategy, along with advertising, public relations, and personal selling. The American
Marketing Association (AMA) defines sales promotion as "media and non media
marketing pressure applied for a predetermined, limited period of time in order to
stimulate trial, increase consumer demand, or improve product quality." But this
definition does not capture all the elements of modern sales promotion. One should
add that effective sales promotion increases the basic value of a product for a limited
time and directly stimulates consumer purchasing, selling effectiveness, or the effort
of the sales force. It can be used to inform, persuade, and remind target customers
about the business and its marketing mix. Some common types of sales promotion
include samples, coupons, sweepstakes, contests, in-store displays, trade shows,
price-off deals, premiums, and rebates.

Businesses can target sales promotions at three different audiences: consumers,
resellers, and the company's own sales force. Sales promotion acts as a competitive
weapon by providing an extra incentive for the target audience to purchase or support
one brand over another. It is particularly effective in spurring product trial and
unplanned purchases. Most marketers believe that a given product or service has an
established perceived price or value, and they use sales promotion to change this
price-value relationship by increasing the value and/or lowering the price. Compared
to the other components of the marketing mix (advertising, publicity, and personal
selling), sales promotion usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate sale, and contributes
highly to profitability. In determining the relative importance to place on sales
promotion in the overall marketing mix, a small business should consider its
marketing budget, the stage of the product in its life cycle, the nature of competition
in the market, the target of the promotion, and the nature of the product.

Similarly, sales promotion is often used in the growth and maturity stages of the
product life cycle to stimulate consumers and resellers to choose that product over the
competition rather than in the introduction stage, when mass advertising to build
awareness might be more important. Finally, sales promotion tends to work best when
it is applied to impulse items whose features can be judged at the point of purchase,
rather than more complex, expensive items that might require hands-on

Growth of Sales Promotion

Sales promotion has grown substantially in recent years. There are several reasons for
this dramatic growth in sales promotion. First, consumers have accepted sales
promotion as part of their buying decision criteria. It provides reluctant decision
makers with an incentive to make choices by increasing the value offered by a
particular brand. Second, the increasing tendency of businesses to focus on short-term
results has helped spur growth in sales promotion, which can provide an immediate
boost in sales. Product managers also tend to view sales promotion as a way to
differentiate their brand from that of competitors in the short term. Third, the
emergence of computer technology has enabled manufacturers to get rapid feedback
on the results of promotions. Redemption rates for coupons or figures on sales volume
can be obtained within days. Finally, an increase in the size and power of retailers has
also boosted the use of sales promotion. Historically, the manufacturer held the power
in the channel of distribution. Mass marketers utilized national advertising to get
directly to consumers, creating a demand for the heavily advertised brands that stores
could not afford to ignore. With consolidation and the growth of major retail chains,
however, retailers have gained the power to demand incentives from manufacturers to
carry their products. Many sales promotions are designed to provide benefits to the

Limitations of Sales Promotion

Although sales promotion is an important strategy for producing quick, short-term,
positive results, it is not a cure for a bad product, poor advertising, or an inferior sales
team. After a consumer uses a coupon for the initial purchase of a product, the
product must then take over and convince them to become repeat buyers.

Consumer Promotions

Consumer sales promotions are steered toward the ultimate product users typically
individual shoppers in the local market but the same techniques can be used to
promote products sold by one business to another, such as computer systems, cleaning
supplies, and machinery. In contrast, trade sales promotions target resellers
wholesalers and retailers who carry the marketer's product. Following are some of the
key techniques used in consumer-oriented sales promotions.


A consumer price deal saves the buyer money when a product is purchased. The main
types of price deals include discounts, bonus pack deals, refunds or rebates, and
coupons. Price deals are usually intended to encourage trial use of a new product or
line extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer's foremost criterion or
when brand loyalty is low.

Buyers may learn about price discounts either at the point of sale or through
advertising. At the point of sale, price reductions may be posted on the package, on
signs near the product, or in storefront windows. Many types of advertisements can be
used to notify consumers of upcoming discounts, including fliers and newspaper and
television ads. Price discounts are especially common in the food industry, where
local supermarkets run weekly specials. Price discounts may be initiated by the
manufacturer, the retailer, or the distributor. For instance, a manufacturer may "pre-
price" a product and then convince the retailer to participate in this short-term
discount through extra incentives. For price reduction strategies to be effective, they
must have the support of all distributors in the channel. Existing customers perceive
discounts as rewards and often respond by buying in larger quantities. Price discounts
alone, however, usually do not induce first time buyers.

Refunds aim to increase the quantity or frequency of purchase, to encourage
customers to "load up" on the product. This strategy dampens competition by
temporarily taking consumers out of the market, stimulates the purchase of
postponable goods such as major appliances, and

creates on-shelf excitement by encouraging special displays. Refunds and rebates are
generally viewed as a reward for purchase, and they appear to build brand loyalty
rather than diminish it.

Coupons are legal certificates offered by manufacturers and retailers. They grant
specified savings on selected products when presented for redemption at the point of
purchase. Manufacturers sustain the cost of advertising and distributing their coupons,
redeeming their face values, and paying retailers a handling fee. Retailers who offer
double or triple the amount of the coupon shoulder the extra cost. Retailers who offer
their own coupons incur the total cost, including paying the face value. In this way,
retail coupons are equivalent to a cents-off deal.

Manufacturers disseminate coupons in many ways. They may be delivered directly by
mail, dropped door to door, or distributed through a central location such as a
shopping mall. Coupons may also be distributed through the media magazines,
newspapers, Sunday supplements, or free-standing inserts (FSI) in newspapers.
Coupons can be inserted into, attached to, or printed on a package, or they may be
distributed by a retailer who uses them to generate store traffic or to tie in with a
manufacturer's promotional tactic. Retailer-sponsored coupons are typically
distributed through print advertising or at the point of sale. Sometimes, though,
specialty retailers or newly opened retailers will distribute coupons door to door or
through direct mail.


The main difference between contests and sweepstakes is that contests require
entrants to perform a task or demonstrate a skill that is judged in order to be deemed a
winner, while sweepstakes involve a random drawing or chance contest that may or
may not have an entry requirement. At one time, contests were more commonly used
as sales promotions, mostly due to legal restrictions on gambling that many marketers

feared might apply to sweepstakes. But the use of sweepstakes as a promotional tactic
has grown dramatically in recent decades, partly because of legal changes and partly
because of their lower cost. Administering a contest once cost about $350 per
thousand entries, compared to just $2.75 to $3.75 per thousand entries in a
sweepstake. Furthermore, participation in contests is very low compared to
sweepstakes, since they require some sort of skill or ability.


According to the consulting firm International Events Group (IEG), businesses spend
over $2 billion annually to link their products with everything from jazz festivals to
golf tournaments to stock car races. In fact, large companies like RJR Nabisco and
Anheuser-Busch have special divisions that handle nothing but special events. Special
events marketing offer a number of advantages. First, events tend to attract a
homogeneous audience that is very appreciative of the sponsors. Therefore, if a
product fits well with the event and its audience, the impact of the sales promotion
will be high. Second, event sponsorship often builds support among employees who
may receive acknowledgment for their participation and within the trade. Finally,
compared to producing a series of ads, event management is relatively simple. Many
elements of event sponsorship are prepackaged and reusable, such as booths, displays,
and ads. Special events marketing are available to small businesses, as well, through
sponsorship of events on the community level.


A premium is tangible compensation that is given as incentive for performing a
particular act usually buying a product. The premium may be given for free, or may
be offered to consumers for a significantly reduced price. Some examples of
premiums include receiving a prize in a cereal box or a free garden tool for visiting
the grand opening of a hardware store. Incentives that are given for free at the time of
purchase are called direct premiums. These offers provide instant gratification, plus
there is no confusion about returning coupons or box tops, or saving bar codes or
proofs of purchase.

Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium an incentive to
lure a prospective buyer to a store. A door-opener premium is directed to customers at
home or to business people in their offices. For example, a homeowner may receive a
free clock radio for allowing an insurance agent to enter their home and listening to
his sales pitch. Similarly, an electronics manufacturer might offer free software to an
office manager who agrees to an on-site demonstration. The final category of direct
premiums, referral premiums, rewards the purchaser for referring the seller to other
possible customers.


Continuity programs retain brand users over a long time period by offering ongoing
motivation or incentives. Continuity programs demand that consumers keep buying
the product in order to get the premium in the future. Trading stamps, popularized in
the 1950s and 1960s, are prime examples. Consumers usually received one stamp for
every dime spent at a participating store. The stamp company provided redemption
centers where the stamps were traded for merchandise. A catalog listing the quantity
of stamps required for each item was available at the participating stores. Today,
airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-
shopper programs, and bonus-paying credit cards are common continuity programs.
When competing brands have reached parity in terms of price and service, continuity
programs sometimes prove a deciding factor among those competitors. By rewarding
long-standing customers for their loyalty, continuity programs also reduce the threat
of new competitors entering a market.


A sign of a successful marketer is getting the product into the hands of the consumer.
Sometimes, particularly when a product is new or is not a market leader, an effective
strategy is giving a sample product to the consumer, either free or for a small fee. But
in order for sampling to change people's future purchase decisions, the product must
have benefits or features that will be obvious during the trial.

There are several means of disseminating samples to consumers. The most popular
has been through the mail, but increases in postage costs and packaging requirements
have made this method less attractive. An alternative is door-to-door distribution,
particularly when the items are bulky and when reputable distribution organizations
exist. This method permits selective sampling of neighborhoods, dwellings, or even
people. Another method is distributing samples in conjunction with advertising. An
ad may include a coupon that the consumer can mail in for the product, or it may
include an address or phone number for ordering. Direct sampling can be achieved
through prime media using scratch-and-sniff cards and slim foil pouches, or through
retailers using special displays or a person hired to hand out samples to passing
customers. Though this last technique may build goodwill for the retailer, some
retailers resent the inconvenience and require high payments for their cooperation.

A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery to
homogeneous consumer groups, such as newlyweds, new parents, students, or
tourists. Such packages may be delivered at hospitals, hotels, or dormitories and
include a number of different types of products.

Trade Promotions

A trade sales promotion is targeted at resellers, wholesalers and retailers who
distribute manufacturers' products to the ultimate consumers. The objectives of sales
promotions aimed at the trade are different from those directed at consumers. In
general, trade sales promotions hope to accomplish four goals: 1) Develop in-store
merchandising support, as strong support at the retail store level is the key to closing
the loop between the customer and the sale. 2) Control inventory by increasing or
depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3)
Expand or improve distribution by opening up new sales areas (trade promotions are
also sometimes used to distribute a new size of the product). 4) Generate excitement
about the product among those responsible for selling it. Some of the most common
forms of trade promotions profiled below include point-of-purchase displays, trade

shows, sales meetings, sales contests, push money, deal loaders, and promotional


Manufacturers provide point-of-purchase (POP) display units free to retailers in order
to promote a particular brand or group of products. The forms of POP displays
include special racks, display cartons, banners, signs, price cards, and mechanical
product dispensers. Probably the most effective way to ensure that a reseller will use a
POP display is to design it so that it will generate sales for the retailer. High product
visibility is the basic goal of POP displays. In industries such as the grocery field
where a shopper spends about three-tenths of a second viewing a product, anything
increasing product visibility is valuable. POP displays also provide or remind
consumers about important decision information, such as the product's name,
appearance, and sizes. The theme of the POP display should coordinate with the
theme used in ads and by salespeople.


Thousands of manufacturers display their wares and take orders at trade shows. In
fact, companies spend over $9 billion yearly on these shows. Trade shows provide a
major opportunity to write orders for products. They also provide a chance to
demonstrate products, disseminate information, answer questions, and be compared
directly to competitors. Related to trade shows, but on a smaller scale, are sales
meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open
to all potential customers, sales meetings are targeted toward the company's sales
force and/or independent sales agents. These meetings are usually conducted
regionally and directed by sales managers. The meetings may be used to motivate
sales agents, to explain the product or the promotional campaign, or simply to answer
questions. For resellers and salespeople, sales contests can also be an effective
motivation. Typically, a prize is awarded to the organization or person who exceeds a
quota by the largest percentage.


Similarly, push money (PM) also known as spiffs is an extra payment given to sales-
people for meeting a specified sales goal. For example, a manufacturer of
refrigerators might pay a $30 bonus for each unit of model A, and a $20 bonus for

each unit of model B, sold between March 1 and September 1. At the end of that
period, the salesperson would send evidence of these sales to the manufacturer and
receive a check in return. Although some people see push money as akin to bribery,
many manufacturers offer it.


A deal loader is a premium given by a manufacturer to a retailer for ordering a certain
quantity of product. Two types of deal loaders are most typical. The first is a buying
loader, which is a gift given for making a specified order size. The second is a display
loader, which means the display is given to the retailer after the campaign. For
instance, General Electric may have a display containing appliances as part of a
special program. When the program is over, the retailer receives all the appliances on
the display if a specified order size was achieved.


Trade deals are special price concessions superseding, for a limited time, the normal
purchasing discounts given to the trade. Trade deals include a group of tactics having
a common theme to encourage sellers to specially promote a product. The marketer
might receive special displays, larger-than-usual orders, superior in-store locations, or
greater advertising effort. In exchange, the retailer might receive special allowances,
discounts, goods, or money. In many industries, trade deals are the primary
expectation for retail support, and the marketing funds spent in this area are
considerable. There are two main types of trade deals: buying allowances and
advertising/display allowances.

A buying allowance is a bonus paid by a manufacturer to a reseller when a certain
amount of product is purchased during a specific time period. For example, a reseller
who purchases at least 15 cases of product might receive a buying allowance of $6.00
off per case, while a purchase of at least 20 cases would result in $7.00 off per case,
and so forth. The payment may take the form of a check or a reduction in the face

                                   CHAPTER 5

                    RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may
be understood as a science of studying how research is done scientifically. The study
of research methodology gives the student the necessary training in gathering
materials and arranging or card indexing them, participation in field work when
required and also training in techniques for the collection of data appropriate to
particular problems, in the use of statistics, questionnaire and controlled
experimentation and in recording evidence, sorting it out and interpreting it. Research
methodology plays a key role in project work.
Definitions of Research:-
1. Clifford Woody:- “Research comprises of defining and redefining problems,
   formulating hypothesis or suggested solution, collective, organizing and
   evaluating data, making deduction and reaching on conclusion; and at last
   carefully testing the conclusions to determine whether they fit the formulating
2. Advanced Learner’s Dictionary:- “A careful investigation or inquiry specially
   through search for new facts in any branch of knowledge”
3. Redmond and Mory:- “Systematized effort to gain new knowledge”
4. D. Dlesinger and M. Stephenson in Encyclopedia of Social sciences:- “ The
   manipulation of things, concepts or symbol for the purpose of generalizing to
   extend, correct or verify knowledge, whether that knowledge aids in construction
   of theory or in the practice of an art.”
Descriptive method adopted for research. Questionnaire and Interview research
techniques are used for data collection.

Data Collected from following sources:

   1. Primary Data: - The Primary Data was collected by questionnaire to the
       customers & visiting to the Stockiest.
   2. Secondary Data: - The Secondary Data was collected with the help of
       company‟s website, organizational booklets, company reports, and records
       available/provided by the company etc.

As there are various methods in data collection namely; questionnaire, interview, and
observation. In this project the researcher has used all these methods.

 Observation:
        The observation was used to find out the various promotional activities
carried out by Colgate.

 Questionnaire:
       The questionnaire is made for the customer feedback for new products such as
new Colgate Sensitive toothpaste & Toothbrush.

 Interview:
     Stockiest & Retailers interview was taken for the customer response for new
products & promotional activities. Customer preference for brand & features.

 Research Design
     This was an experience based project and inputs were collected through
interaction with Stockiest & customers. The information collected was used to frame
the study and derive at conclusions.

 Sampling
    Everyone is accustomed to draw conclusion about a large group, on the basis of
a small group known as sample. After clearly defining the problem to be researched
and developing an appropriate research design and data collection instrument, the
next step in market research is to select those elements from whom the information
will be collected. One way to proceed would be to collect information from each
member of the population with interest.

Sample Size
  Some of the Colgate‟s Stockiest and Retailers (150).

Sample Design
    The sample design is done on the basis of two factors:
    Representative basis i.e. Probability or Non-Probability sampling.

    Elements selection basis i.e. unrestricted and restricted.

The sampling method used for survey was

Stratified sampling method:

This is an improved type of random or probability sampling. In this method, the
population is sub-divided into homogeneous groups or strata, and from each stratum,
random sample is drawn.

To serve the project purpose, the population was sub-divided into homogeneous

Need for Stratification:

           1. Increasing a sample‟s statistical efficiency

Stratification was useful when different methods of data collection were used for
different parts of the population e.g.; feedback from Retailer

Data Analysis
& Interpretation
                                    CHAPTER 6


1.Which Type of category is available in chemist?
    Medicines          Baby Foods                 Cosmetics
    Toothpaste         Toothbrush                Mouthwash

Type of         Medicines Baby     Cosmetics Toothpaste Toothbrush Mouthwash
category                 foods
Available 150            70        76             124         124      36
in no. of
                                 Table no.6.1





















                                   Fig no. 6.1
The availability of medicines in all 150 chemist stores and Mouthwash available in
about 35 chemists.

2.Types of Toothpaste available in chemist store?

    Pepsodent                Sensodent                 Thormoseal
    Emoform                  Colgate Sensitive

Type of          Pepsodent         Sensodent      Thermoseal Emoform   Colgate
Toothpaste                                                             Sensitive
Available        80                56             60              70   75
in no. of
                                  Table no.6.2









                 CS          Th         Em        Pep       Sen

                              Fig no.6.2
    Availability of Pepsodent toothpaste is highest which are about in 80 chemist
    store and the Thermoseal toothpaste lowest in that category.

3.Types of Toothbrush available?

   Colgate ZigZag                     Colgate Sensitive
   Colgate 360                            Oral-B

Type of              Colgate Zigzag Colgate                 Colgate 360   Oral-B
Toothbrush                            Sensitive
Available in         70               50                    30            80
no. of chemist

                          Table no. 6.3

                                                   Colgate Zigzag
                                                   Colgate Sensitive
                                                   Colgate 360

                   Fig no. 6.3
Oral-B is most preferable brand of toothbrush in chemist store it‟s about in 80 stores
and Colgate 360 is lowest preferable brand by chemist store.

4.From where you get medicated toothpaste?
    Stockiest                   Wholesaler





                   Fig no.6.4

From above figure its shows that most of the chemist get medicated toothpaste from
wholesaler rather than stockiest.

5.From where you get medicated toothbrush?
   Stockiest                    Wholesaler


                              Fig no. 6.5

From above figure its show that the maximum no of chemist get medicated
toothbrush from wholesaler.

6.How do you find response for Colgate Sensitive Toothpaste?

      Very Good           Good             Fair      Poor

Response for       Very good          Good               Fair           Poor
CS Toothpaste
No. of chemist     45                 30                 50             25

                                 Table no.6.4

          very good     good          fair        poor

                        Fig no. 6.6

As from chemist store survey the response for Colgate sensitive toothpaste is fair.

7.How do you find response for Colgate Sensitive Toothbrush?

     Very Good           Good        Fair            Poor

Response for       Very good        Good                Fair          Poor
CS Brush
No. of chemist     40               60                  30            20

                                Table no.6.5







             very good      good              fair          poor

                                 Fig no. 6.7

As from the data response for the Colgate Sensitive toothbrush is good.

8.How do you find Promotional activities helpful for brand awareness and sales

      Very Useful         Good        Fair        Not Useful

   Response for      Very useful       Good              Fair           Not useful
   No. of chemist    55                30                30             35

                                   Table no.6.6







           very useful     good          fair        not useful

                           Fig no. 6.8

From above figure its show that the promotional activities are very useful for brand
awareness & sales promotion.

9.How do you find Product Detailing useful to improve your Sale?

   Very Useful         Good        Fair     Not Useful

   Response for      Very useful      Good               Fair      Not useful
   No. of chemist 25                  35                 30        60

                               Table no.6.7







             very useful    good            fair    not useful

                              Fig no.6.9

Product detailing to chemist is not as useful as expected

10.Is promo unit of Colgate Sensitive Toothpaste sold?

    YES                NO
    If No Reason Why NO_____________________________

                                                                 Unit sold
                                                                 Unit not sold

\                           fig no.6.10

The promo unit of Colgate Sensitive toothpaste is sold in most of the chemist store &
the Store where it not sold because of Dentist is not aware with that brand so the
prescription of Colgate Sensitive toothpaste is less in number as compare to other.

11.Is promo unit of Colgate Sensitive Toothbrush sold?

    YES                NO
    If No Reason Why NO_____________________________


                                                         Unit sold
                                                         Unit not sold


                         Fig no.6.11

The promo unit of Colgate Sensitive toothbrush is sold from maximum no. of chemist
store and the reason for unsold is premium price.

& Findings
                                  CHAPTER 7

                   OBSERVATIONS & FINDINGS

From the above study it can be observed that various promotional activities carried
out by Colgate, but however it is not sufficient for completing their objectives.
Customer aware of the brand but still unaware its products.

   •   In Dentist prescription Colgate Sensitive products are very less in number as
       compared to their competitors.

   •   As stated, the customers of Colgate‟s products generally do not switch over to
       any other company‟s product.

   •   Colgate merely concentrating on selective distribution strategy to promote
       Colgate sensitive products.

   •   Colgate Sensitive products are available in major Stockiest of Latur.

   •   Chemists who are nearby Dentist keep Colgate Sensitive stock in large

   •   Colgate Sensitive Toothpaste is not only medicated toothpaste it also for
       general purpose so its differ from other brand.

   •   Colgate Sensitive toothbrush is one of the ultra soft toothbrush available in

   •   Colgate launches the no. of toothpaste in market as that all toothpaste has their
       specific use behind it.

                                CHAPTER 8


•   Sales Promotion activities should be increased and it‟s more efficient.

•   Colgate Sensitive products detailing should carry out for Dentist also and
    shouldn‟t restricted to retailer only.

•   High margin should be offered to the Stockiest so that they can promote
    Colgate Sensitive products in place of competitors.(push strategy)

•   Company may arrange more detailing campaign and advertisement about
    product awareness.

•   Sales promotional schemes should be extended regularly to both customers &

•   Launching different promotional strategy for Colgate sensitive products
    regularly shall improve market share.

•   Availability of Colgate Sensitive toothpaste in variety of flavors is
    recommended to attract more customers.

•   Company should arrange more free dental checkup campaign which is
    ultimately useful for sensitive products awareness

   & Suggestions

Colgate is a leading company in FMCG of Indian and global market.

Colgate Sensitive products are different than competitor‟s product.

Colgate Sensitive products are limited to few customers in India majorly who are
suffering from Dental problem.

Colgate Sensitive product‟s premium pricing policy is welcomed by Indian

Colgate‟s entry in Indian market with different promotional strategy helps them to
compete in Indian market to promote sensitive product effectively.

Role of detailing about Colgate sensitive products is very important as it helps to
retailer as well as costumer to aware about the product and its way of application.

Colgate company focusing on its distribution channel which resulting that Colgate
company having highest share in oral care.

                                CHAPTER 9


 Published Books:

 C.R Kothari, Research Methodology, 2nd edition 1990, Wishwa publications.

 Philip Kotler‟s Marketing Management 13th edition.

 Saxena‟s Marketing Management.

 Company manual of Colgate Palmolive (I) Pvt.Ltd.

 Websites:
  American Marketing Association:

                               CHAPTER 10



Name of the store: _______________________________

   1.Which Types of category available in store?
   Medicines           Baby Foods            Cosmetics
   Toothpaste          Toothbrush            Mouthwash

   2.Types of Toothpaste available?
   Colgate sensitive      Thermoseal          Emoform
   Pepsodent               Sensodent

   3.Types of Toothbrush available?
   Colgate ZigZag                   Colgate Sensitive
   Colgate 360                      Oral-B

   4. From where you get medicated toothpaste?
   Stockiest                  Wholesaler

Name of Stockiest / Wholesaler ___________________________
Address and Contact No._________________________________

Name of Stockiest / Wholesaler ___________________________
Address and Contact No._________________________________

   5.From where you get medicated toothbrush?
   Stockiest                Wholesaler

Name of Stockiest / Wholesaler ___________________________
Address and Contact No._________________________________

Name of Stockiest / Wholesaler ___________________________
Address and Contact No._________________________________

   6.Is there any Dentist close by you?
     If YES Then His / Her Name_______________________

   7.How do you find response for Colgate Sensitive Toothpaste?
   Very Good        Good         Fair        Poor

   8.How do you find response for Colgate Sensitive Toothbrush?
   Very Good        Good         Fair        Poor

   9.How do you find Promotional activities helpful?
   Very Useful      Good        Fair      Not Useful

   10. How do you find Product Detailing useful to improve your Sale?
   Very Useful      Good        Fair    Not Useful

   11. Is promo unit of Colgate Sensitive Toothpaste sold?
   YES               NO
   If No Reason Why NO___________________________

   12. Is promo unit of Colgate Sensitive Toothbrush sold?
   YES               NO
   If No Reason Why NO_____________________________

Address of the Store: __________________________________
Contact Person: _______________________________________
Contact no: ___________________________________________

Date:    /   /                                 Sign & Stamp of Store


To top