CUSTOMER LOYALITY TOWARDS CLOSE-UP

TOOTHPASTE INDUSTRY OVERVIEW

The concept of toothpaste in India is relatively new. In ancient and medieval India oral hygiene
was taken care of by home made and ayurvedic products.
Practically all of rural India prefers cleaning their teeth with traditional products such as neem
twigs, salt, ash, tobacco or other herbal ingredients, contributing to a low per-capita consumption
of branded oral care products. According to WHO, Indias overall awareness of oral hygiene is
still very poor. The dentist-to-population ratio is 1:35,000 in comparison to 1:7,500 as recommended by the WHO. But with burgeoning middle class and multi-pronged advertising
campaigns, there is now a latent demand for the formal oral care products and this is set to rise
exponentially in the coming years. Growth is also likely to emanate from consumers upgrading
to matured, value-added and innovative products in this category. Of late, growth of modern
trade has also propelled brand sales, especially in the urban markets.
Overall, the oral care sector is mainly represented by toothpaste. Other products include
mouthwashes, sprays, teeth whiteners and oral rinses. In India, there is also significant usage of
toothpowders, especially in semi-urban and rural areas.

In India, toothpowder was primarily targeted at people who used traditional products like salt,
neem twigs and other herbal products. Brands like Colgate, Dabur, Babool, Vicco are the
prominent players in the toothpowder market in India.

Over the past decade it has become evident that growth opportunities really lie in the rising
demand for toothpaste as the toothpowder is beginning to show a phase of decline, as more and
more consumers are switching from powders to pastes. According to Amit Burman, vice
chairman, Dabur India Ltd, the toothpowder market is growing slowly and has been largely
stagnant, whereas the market for toothpastes has been witnessing strong double-digit growth,
largely driven by a consumer shift in rural markets from toothpowders to toothpastes.
However in the last few decades the toothpaste industry in India has shown impressive growth.
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CUSTOMER LOYALITY TOWARDS CLOSE-UP

Toothpaste market comprises of three pillars, namely:

Essential Care: these are paste based products catering the need of health benefit and

Oral hygiene. These give solution to your basic dental problems like tooth decay, cavity
problem and more. For example toothpaste like Colgate, pepsodent.
Advanced Care: These products are also a paste based product catering to the sensitive

needs of individuals with sensitivity in their teeth. For example Sensodyne and Colgate
Sensitive
Freshness Segment: these are Gel based products specially designed for catering the

problems of bad breath and non-whiteness of the teeth. For example Close-up and
Colgate maxfresh.
The oral market in India is estimated to be closer to Rs 2,700 crores of which the largest
contributor is the toothpaste segment accounting for approximately 75% of the total market in
India. It is expected to reach Rs. 3,226 crores by 2012. The fastest growing segment of the
toothpaste market is the Rs. 900 crore gel segment, where HULs Close Up has widened its lead
with a 60% share.
The growth in the urban market has been largely by the Gel segment. Presently, a large chunk of
the market is still held by Colgate. The major players in the toothpaste industry being Colgate
Palmolive and HUL, as well as several minor players like Balsara Hygiene, Dabur, etc.
In India toothpaste usage as compared to other countries is very low which signifies about the
potential of the market. In Urban India the usage of toothpaste per person per year is just
190gms. Where as it is 200gms of toothpaste per person per year in developing countries as
Indonesia and Thailand. In developed countries as USA and other European countries the
toothpaste usage is 375 gms per person year. In India the toothpastes companies are going in for
advertising on a heavy note, on an average the companies managing this FMCG category are
spending 6.15% of their sales on development.

CUSTOMER LOYALITY TOWARDS CLOSE-UP

Unlike in western countries, the market for new-age oral care products such as mouth freshening
washes, dental flosses and teeth whitening products are at a nascent stage in India. The limited
use of these products is also for now restricted to urban areas only.

EVOLUTION OF CLOSE UP
Initially most of the toothpaste catered to the essential Care of the customers i.e. providing them
with Oral health benefit, however there was a research and development conducted by Lever
Brothers and based on the findings, an Anti-essential care product was invented. The product was
invented with an innovative concept to cater to the need of freshness and whiteness with some
additional enhanced benefits. One of which included the Gel based feature. Close-up was the
first of its kind in the World to enter the toothpaste industry with a Gel based paste in the year
1967. However it entered Indian market in the late 1975.
Close up toothpaste is a famous product from the house of Uniliver. Thousands of people across
the world swear to start the day, by brushing their teeth with Close up toothpaste. For
generations, toothpaste was associated with an opaque pepper mint flavor substance. Uniliver
came out with this unique concept of brushing teeth with the help of a red gel. Unlike the usual
pepper mint flavor of other toothpastes, Close Up came up with a spicy cinnamon flavor that was
enough to kick start the day
Slowly they understood what the consumers were looking for and started providing them
innovative solutions like crystal form lemon close up Green Core, Jares, Snowman Green, Red
Hot Menthol Chill and Close up white now toothpaste. This made Close up toothpaste, the best
whitening toothpaste. Each paste took the concept of gel toothpaste to the next level. As a
consumer there was much on offer from the house of the Close up toothpaste.
There was no need for the product in the market earlier, however, close up created a need for the
product in the market.
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RISE AND FALL OF CLOSE UP

By 1980, Close Up had 3% of the 16,000 tonnes toothpaste market. The production capacity was
doubled through a deal with the third party manufacturer and the brand was taken National. Over
the next year and a half, the premium slashed by 30%. In 1983, Colgate started fearing after
witnessing a downfall in market share and started airing its campaign by inviting customers into
its Dental ring of confidence by stressing more on breath and posing as a complete toothpaste.
Close Up countered this move by sharpening product benefits, while urging the customers to do
the HA test by blowing air on their palm. The message was that Close Up feels a lot cooler which
reiterated the basic benefit of a fresh breath.
In 1987, Close Up was much below expectations with only 4.5% of the 32,000 tones toothpaste
market.
Twobasicproblemswereidentified:
(1) Appearance of Toothpastes detracts prospects from its serious buyers.
(2) Commercials displayed too much of proximity between couples which was too much for a
mother, who actually purchased the Toiletries.

1998, the 3 Ps in Close Ups Marketing mix was reworked in Tamil Nadu, where people have a
strong sense of Oral Hygiene and the area has a cost effective media Reach. The three reworked
Ps are as follows:
(1)Product:
Blue mint flavor introduced.
Tangerines of Read reduced. (for serious buyers.)
Soft Squeeze lamitubes for toothpastes introduced for the first time in the country.
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(2) Communication :
Advertisement focus moved from spotlight to Gregarious couples. This group orientation was
more acceptable to the Mother.
(3) Distribution :
Took Brand to Sub Urban and Rural areas.
Posters and Mobile Vans arrived in areas where Urban lifestyle was a matter of aspiration. This
was a purposeful move as the company did not want the Brand to be saddled with a restrictive.

MARKET SEGMENTATION & POSITIONING

Market Segmentation
Market segmentation is broadly classified into two categories:
Specific need based segment
a. Enhancement needs : this cater the need for having fresh breath and whiteness of
teeth
b. Hygienic needs : This caters to the overall Oral care needs
Demographic segmentation

CUSTOMER LOYALITY TOWARDS CLOSE-UP

The segmentation was specially to target youth between 18-25 years, however it did not
alienate the people who were above the age of 30 years (especially the ones who feel
young at heart).
This product was also targeted to those groups of audiences who liked experimenting
with different products.
Close up is targeted at young people; the target market being Multi Brand Households where
the young does not use what their parents use. This particular targeting was significant when
Close Up was launched because Colgate positioning was a sort of oral care and hygiene benefits.
Also, Colgate was going for a broad market constituting of all the age groups.

Positioning
A large part of Close Up's success is because of its brand positioning. "
Close up falls under the third pillar of toothpaste Freshness Segment particularly dealing the
need for white teeth and freshness. Also Close Up has positioned itself for Emotional benefit of
closeness and rational benefit of freshness.
The name Close Up was propounded with a motive of building social confidence to get closer
to others.
Close Up was positioned as a youth oral care brand from the very beginning. In 2004, the brand
was re-launched with a publicity blitz that communicated virtues of a Vitamin Fluoride system
present in the product -- a powerful mix of vitamins, fluoride, mouthwash and micro-whiteners,
for fresher breath and stronger, whiter teeth.

MARKETING MIX
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PRODUCT
Close Up falls under the umbrella brand HUL Hindustan Unilever Limited. The level of
product may be discussed as below:
Core benefit : Hygiene
Basic product Toothpaste
Expected product Freshness
Augmented product - Various Flavor
Future Product Target sensitivity segment.
Product line of Close Up is:
Red Hot
Menthol Chill
Peppermint Splash
Lemon Mint
Fire Freeze
The colour of the toothpaste depends upon the flavor. The colour also is decided with a motive to
evoke the mood and desire to affect the purchase decision of the potential customer. Various
colors of the same flavor are tested in the market and the best color for that flavor is selected.
The strength of the product is its USP of catering the customers who desire a fresh breath along
with white teeth.
There were extensive market test conducted by the producer before manufacturing and offering
the product in the market. The tests that were conducted were on the basis of the concept,
product testing, communication route, and the final advertisement.
Innovation : The first-move advantage in the gel market has helped Close Up secure an edge
over the other brands. A large part of its success can be attributed to two factors - youth-centric
product positioning and an innovative product pipeline. The most recent addition to its arsenal
has been the Fire Freeze variant.
Packaging The Packaging of Close Up is designed to exhibit liveliness and freshness. The
pack of the product has a metallic effect to make it more lively and attractive.
It also has a couple being featured on its pack to help the target audience identify with the
concept of the product. Close Up was the first brand who featured a couple on its cover.
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The packaging was designed in par with the competitors in the market. The color of the pack of
Close Up was decided as per the color of the toothpaste. The package of the product also
comprised with the details as per the norms laid down for consumer product. The packs offered
in rural area are relative of smaller, with a motive to enable the daily wage worker to purchase
the product.

PRICE
The price of the product is the same for the rural and the urban market, however the products are
offered in a smaller pack in rural area to enable them to purchase the same. Decision to fix the
price is taken into consideration after evaluating the competitors pricing strategy. However the
price for Close Up was on premium basis at par with the premium variance of the competitors.
In India, there is a high consideration given to the basic need of the consumer and based on
which price of the product is decided, which is mostly in parity with the basic needs.
With respect to the pricing aspects of the distribution channel, there are some trade discounts
given to the intermediaries, also there is a facility of 2-3 days credit purchase for the wholesalers
and distributers
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Brand name

Size

Amount (Rs.)

Close Up Red Hot

40g

15

80g

33

150g

59

150g *2 (combo saver pack)

94

150g

58

80g

32

Close Up Menthol chill

Close Up Peppermint 150g

55

Splash
Close Up Lemon Mint

150g

60

Close Up Fire Freeze

80g

35

150g

65

PLACE
Close Up has its presence in both, Urban as well as Rural market. However the sale is
comparatively more in Urban 60% and less in Rural area 40%.
In International market the presence of Close Up is felt in Brazil (as No.2 in Toothpaste market).
In Thailand, Philippines Close Up is the No.1 in the toothpaste market and in Nigeria it holds a
share of 82%. The market share of Close Up in India is 18% of the toothpaste market and it ranks
third in the toothpaste segment (after Colgate and Oral - B) and no.1 in the Gel segment.
Close Up toothpaste is made by Lever Brothers Limited (Unilever) and used all over Africa Limbe, Malawi to Lusaka, Zambia.from Tema in Ghana, Nairobi in Kenya, Uganda, Ethopia,
Tanzania, Thailand, Phillipines.

CUSTOMER LOYALITY TOWARDS CLOSE-UP

HUL has concentrated on building their rural distribution networks by rolling out smaller units of
toothpastes at affordable prices. The companies have also been using channels such as echoupals and Disha to further reach the rural population.

CLOSE UP
Carrying & Forwarding
Agents

Distribution Channel of Close Up

Redistribution Stockists
Wholesalers
Rural Retailers

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Urban Retailers

Consumers

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Promotion:
Promotion for Close Up is done

through

various modes of media. There is

advertisement telecasted on television,

especially

on the youth oriented channels like

MTV and

so on. The Close Up tune PAAS

AAO..PAAS

AAOPAAS

AAO

NA... is

very popular among the youth.

There are also promotional activities on radio, and outdoor media like banners and hoardings.
Also there are promotional activities done in mall. In Philippines promotion was carried out by
asking people to get their breath tested and then they were asked to brush their teeth in mall, after
which again there was a test conducted to know the difference in the freshness of their breath
after using Close Up. The findings of this experiment were that the subjects were convinced that
Close Up was effective in providing freshness.
There was also a promotional activity conducted in Nigeria by contacting the Schools and
helping the young students to understand the effect of using Close Up.
Close Up also conducts promotional activities in colleges all over the world to increase their sale.
They have recent tied up with online gaming company Zapak. The brand plans to use the
gaming platform to promote 'Fire Freeze'. Gaming apart, the brand is also betting on Facebook.
Close Up has sponsored a reality show called Nachenge Gayenge Joomenge on Doordarshan.
The brand recently roped in South Indian brand ambassador Suriya to protect its turf in the
South (Andhra Pradesh and Tamil Nadu), where the brand has historically been strong.
Based on the promotional activities, there was a finding that Peppermint Splash was currently
doing well in the market, however the newly introduced product Fire Freeze is yet to pick up
on sales in metro cities for which there are more promotional strategies introduced.
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Advertisements :
Kya aap Close Up karte Hai??
Paas Aao Na..The Closer the Better
Dooriyo Ko Mitaao . Paas Aao

MARKET SHARE
In terms of volume, Close Up increased its share from 11.7% in 2005-06 to 12.1% in 2006-07
and 12.7% in 2007-08 and 18% in 2010

Colgate is the clear leader in toothpastes, in both volume and value, with 53.1 percent share each
in 2011 followed by HULs Close Up which holds 18 per cent volume share (value 17 percent).
The remaining 30% is occupied by brands such as Pepsodent, Dabur, Babool and recently
launched Sensodyne.

COMPETITION
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Main competitor for Close Up is Colgate - Colgate Max Fresh and Colgate Fresh Energy Gel in
gel form.
To break into Close Up's stronghold, Colgate's Max Fresh gel has also been trying to don a
young image. A few months ago it roped in numerous celebrities like Shahid Kapoor, Genelia
D'Souza, Virender Sehwag, Gautam Gambhir and Zaheer Khan to promote the power of
freshness. It is also building an engaging Facebook page and organised a Max Fresh Alarm
contest during the IPL season 4, where winners got the opportunity to meet cricketer Virender
Sehwag.
However, breaking into the youth space will not be an easy feat for Colgate's Max Fresh as
Colgate gel's biggest handicap is its mother brand equity of a serious health brand and this fact
itself makes it less appealing to younger consumers.
Colgate has been actively advertising its gel toothpaste in the south and hence, in order to
counter this, Close Up roped in Suriya as its Brand Ambassador in the south.
Close Up's success has not been enjoyed by Hindustan Unilever's sister brand Pepsodent (white
toothpaste) which has seen a steady decline in sales in the last few years.This has largely been
due to getting the price points and rural strategy wrong

Apart from the market competition, Close-up also faces completion from:

Toothpowder.

Traditionally used Neem twigs.

Shelf space of the vendor.

To have Close Up as a brand recall name in the minds of the consumer.

For facing and surviving the competition in the market, Close Up always comes up with some
innovation in the product.
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COMPANY

BRAND NAME

Colgate-Palmolive India Limited

Colgate Dental Cream, Colgate Active Salt and

Colgate Total 12;
Colgate Max Fresh and Colgate Fresh Energy
Gel in gel form;
Colgate herbal; Colgate Cibaca; and Colgate
Advanced Whitening, Colgate Max Citrus
Blast, Colgate Max Peppermint Blue, Colgate
Max Spicy Red and Colgate Sensitive

Hindustan Unilever Ltd

Pepsodent

Vicco Group of Companies

Vicco Vajradanti Paste, Vicco Vajradanti Sugar

Free paste, Vicco Vajradanti powder

Henkel India Limited

Neem active

Johnson & Johnson Ltd.

Listerine and Coolmint Listerine.

Dabur Co.

Dabur Red, Dabur Red Gel, Babool, Babool

Neem and Meswak.

Competitors Pricing
Brand Name
Colgate Maxfresh

Size

Amount (Rs.)

150g

60

150g *2 (combo pack)

100

Colgate Maxfresh

40g

15

Colgate Maxwhite

150g

65
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Babool Mint Fresh gel

145g

30

Anchor Red gel

150g

45

Review of literature
Consumer behavior
Consumer behavior has been always of great interest to marketers. The knowledge of consumer
behavior helps the marketer to understand how consumers think, feel and select from alternatives
like products, brands and the like and how the consumers are influenced by their environment,
the reference groups, family, and salespersons and so on. A consumers buying behavior is
influenced by cultural, social, personal and psychological factors. Most of these factors are
uncontrollable and beyond the hands of marketers but they have to be considered while trying to
understand the complex behavior of the consumers. In this study, the researcher emphasizes the
importance of lifestyle and its impact on the buyer behavior.

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Consumer Personality Factors
There are two factors mainly influencing the consumers for decision making: Risk aversion
and innovativeness. Risk aversion is a measure of how much consumers need to be certain and
sure of what they are purchasing (Donthu and Gilliland,1996).Highly risk adverse consumers
need to be very certain about what they are buying. Whereas less risk adverse consumers can
tolerate some risk and uncertainty in their purchases. The second variable, innovativeness, is a
global measure which captures the degree to which consumers are willing to take chances and
experiment with new ways of doing things (Donthu and Gilliand,1996).The shopping
motivation literature is abound with various measures of individual characteristics (e.g.,
innovative, venturesome, cosmopolitan, variety seeking), therefore, innovativeness and risk
aversion were included in this study to capture several of these traits. Measures by Donthu and
Gilliland(1996) were used to measure innovativeness and risk aversion.

Perception:
Perception is a mental process, whereby an individual selects data or information from
the environment, organizes it and then draws significance or meaning from it. Perceived fit it is
an attitudinal measure of how appropriate a certain channel of distribution is for a specific
product .Morrison and Roberts (1998) found that consumers perception of the fit between a
service/product and a channel is very influential in determining whether they will consider using
that channel for a specific service. In fact, perceived fit was found to be more important than
consumers preferences for the distribution method or service.
Product Class knowledge :
Product class knowledge is a measure of consumers perceptions of how much they know about a
specific class of products (eg.,cars)This type of measure is consistent with what Brucks(1985)
called subjective knowledge, that is, consumers self-perceptions of knowledge levels. This is
often contrasted with objective knowledge, which is what consumers actually know. Park and
Lessing (1981) proposed that subjective knowledge provides a better understanding of

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consumers decision making processes because consumers level of confidence in their search and
decision making behavior, independent of their objective knowledge.
Product type :
Past research indicates that consumers purchase and channel decisions might be influenced by
the type of product being investigated (Cox and Rich 1964:Lumpkin and Hawes
1985;Morrison and Roberts 1998:Papadopoulos 1980:Prasad 1975:Sheth 1983: Thompson
1971).In particular ,these authors state 29 that certain products might be more appropriate for one
channel or another, which ultimately influences consumers channel preference and choice.2.7
QualityIt is our aim to provide the best product for the consumer and we believe that if the
products have quality the consumer will pay the price, says Amal pramanic, regional business
director .Oral-B 2.8 Packaging establishes a direct link with the consumers at the point of
purchase as it can very well change the perceptions they have for a particular brand. A product
has to draw the attention of the consumers through an outstanding packaging design. Earlier
packaging was considered only a container to put a product in, but today, research in to the right
packaging is beginning at the product development stage itself. Packaging innovation has been at
the heart of Daburs attempt to rap with the urban consumers. It spends large sums annually on
packaging research.-We have been laying emphasis on aesthetics, shelf appeal and convenience
for consumer says Deepak Manchandra, manager packaging development 2.9 Promotion
The greatest challenge faced by companies today is holding and increasing their market share
and value.
This is always a strenuous exercise and one of the tools for the same is marketing. There is no
specific game rule available for using these marketing tools .The reason is: each promotional tool
has its own characteristics.

Familiarity with a channel

Consumers familiarity with a channel is a measure of the general experience they have with
purchasing products through specific channels (i.e.. catalog, internet, and bricks and- mortar

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CUSTOMER LOYALITY TOWARDS CLOSE-UP

retailer). Through frequent use consumers should become accustomed to using the channel,
which reduces their apprehension and anxiety in purchasing products through the chan nel.

Brand Awareness
According to Rossiter and Prey (1987), brand awareness precedes all other steps in the buying
process. A brand attitude cannot be performed, unless a consumer is aware of the brand.In
memory theory, brand awareness is positioned as a vital first step in building the bundle of
associations which are attached to the brand in memory (Stokes, 1985).
Family influence
A family exerts a complex influence on the behaviors of its members. Prior family influence
research has focused on intergenerational rather than intergenerational influence in consumer
generationalisation. As has been compellingly demonstrated, parents influence children (Moore,
Wilkie, and Lutz2002; Moschis 1987).Yet, consumption domains clearly exist where sibling
efforts may also be exerted
Shopping motives
Shopping motives are defined as consumers wants and needs as they relate to outlets at which to
shop. Two groups of motives, functional and nonfunctional, have been proposed by Sheth
(1983). Functional motives are associated with time, place, and possession needs and refer to
rational aspects of channel choice. Whereas nonfunctional motives relate to social and emotional
reasons for patronage. The functional motives included: convenience, price comparison,
merchandise assortment. The nonfunctional motives entail: recreation. The purpose of the
study is
1. To examine the external factors influencing purchase decisions
2. To examine the consumer awareness of toothpaste
3. To find out how promotional schemes are influencing the consumers
4. To examine how the product attributes influencing the consumer buying toothpaste
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CUSTOMER LOYALITY TOWARDS CLOSE-UP

ANNEXURES
SURVEY QUESTIONNAIRE

Name: ___________________

Age Group: 18-25

26-35

and above
Sex: M
ale

Female

1. Which toothpaste brand do you prefer?

Colgate

Pepsodent

Close Up

Others ____

2. What qualities do you look for in toothpaste?

Freshness

F
lavor

Whitening

Cavity Prevention
19

Sensitivity

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3. Which factors affect your purchase decision?
Price

Advertisements

Availability

Packaging

Brand

Please specify in case of any other __________________

4. Do you prefer?
Gel Variety

Paste Variety

Either would do

5. Size Features you like in toothpaste

Small Size tube

Medium Size tube

Large Size tube

Makes no

difference
6. What kind of offers would most likely make you purchase another brand of toothpaste?
Buy One Get One free

Price Reduction

Coupons

No Brand change

7. Have you seen the Close up ads?

Yes

No

8. Do they appeal to you?

Yes

No

9. How satisfied were you in terms of product effectiveness the last time you used Close-Up
toothpaste?
Very dissatisfied

Dissatisfied

N
ot sure

Satisfied

applicable

10. What comes to your mind when you hear Close up?
_______________________________________________
11. Do you plan to purchase Close-Up toothpaste in the future?
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Very satisfied

Not

CUSTOMER LOYALITY TOWARDS CLOSE-UP

Yes

No

M
ay be

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