Analysing Consumer Behaviour and Marketing Strategies for Colgate

This report provides a comprehensive analysis of consumer behavior related to Colgate Toothpaste, a leading product of Colgate-Palmolive Company in the FMCG industry. It evaluates the factors affecting consumer decisions, including need recognition, information research, alternative evaluation, p...Read More

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Marketing Consumer Behaviour
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Marketing Consumer Behaviour 1
Executive Summary
The purpose of this report is to enlighten the reader about the Colgate Toothpaste product of
Colgate Palmolive Company. The report evaluates a critical analysis of the consumer behaviour
in the company along with the strategic recommendation as well. The customers present in the
FMCG industry are already attracted to the company due to present brand loyalty. Further, the
strategic recommendations provided in the report will help the company in increasing its market
share and attaining successful growth as well. More details about the report are discussed below:

Marketing Consumer Behaviour 2
Contents
Executive Summary.........................................................................................................................1
Product Overview............................................................................................................................3
Critical Analysis..............................................................................................................................3
Factors affecting Consumer’s Decisions.....................................................................................6
Strategic Recommendation..............................................................................................................6
References........................................................................................................................................8

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Product Overview
The previous assessment explained the toothpaste product provided by the company is highly
demanded in the market. It is one the leading product present in the FMCG industry. The
company is an umbrella brand that is used to purchase the oral hygiene products such as
toothpastes, toothbrush etc. The company was originated in the year 1873 by American
consumer goods conglomerate Colgate-Palmolive. Colgate toothpaste is the only brand present
in the market that is purchased by more than half of the households present in the industry (Sharp
2016). The company has now introduced diversified types of Colgate Toothpaste with different
specifications as well. The brand is highly recognized in the market and is consumed by loyal
customers as well. The global market penetration of Colgate Toothpaste is more than 50%. Being
present in the consumer goods industry, the company also enjoys the attention of customers in
organization. Further, the biggest competitor of Colgate present in the FMCG industry is
Pepsodent. However, the products of Colgate are comparatively more demanded in the market.
Colgate is being used by all type of members present in a family and the brand also gives
satisfaction to the customers in the market. The customers are highly satisfied with Colgate
Toothpaste in the market. Also, the company has already captured half of the market and strong
consumer analysis will successfully help them to capture the other half market share as well. The
product is strongly recommendable in the market by the customers as well (Hariharan, et. al.,
2018).
Critical Analysis
The consumer behaviour focuses on the buying behaviour of consumers that uses the goods and
services present by the company in the target market. This aspect helps the company to analyse
the aspects that affect the decision making process of an individual. It is very important for an
organization to understand the buying behaviour of the consumer in order to analyse the market
demand of the product. Consumer behaviour analysis can also help the company in increasing
the demand of the products in the market (Pieters, Erdem, and Martinovici 2017). Further, the
critical analysis of the consumer behaviour will help the Colgate Toothpaste in understanding the

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demand and consumer preferences for the product in the market. More details about the analysis
are discussed below:
Need Recognition
If a person present in the FMCG industry holds an unsatisfied need, then the buying process
initiated in the industry works to satisfy the need of the person. All the people present in the
industry are prospective buyers for them who wish to purchase the product if they attain
maximum marginal utility. Internal and external factors present in the environment actively
participate in increasing the need of the people in the society (Mathews, et. al., 2015). The
intensity of the want of the buyer will show the speed with which the buyer will fulfil the needs.
The order of priority towards certain products is identified on the basis of need and urgency. By
this time, it is important for the marketer also to specify the required information to the
customers and make the product available as well. In the case of Colgate Toothpaste, the
company adequately understand the needs of the customers present in the environment, in
response to which they also advertise the products by delivering the required information to the
prospective customers. The marketers need to accurately analyse the external environment in
order to recognize the needs of left out people and attract them as well (Thakur, and Soni 2018).
Information Research
After analysing the need of the customers present in the market, it is important for the Colgate
Toothpaste to identify ways with which they can easily satisfy the needs of the customers in the
market. If desired products are received to the customers in the market, then their needs will be
vulnerable only. There are different types of products present in the FMCG industry that confuse
the interest of the customers in the market due to which wrong choices dissatisfies them more in
the market. Thus, information research will help the company to analyse the right type of product
in the market that will equalize their desires in the market (Sethi, and Tandon 2017). This
process depends on the part of the customers as they need to search in market the right type of
product, its location and brand as well. Various sources like, friends, family, neighbour and
advertising etc. help in finding such information about the product and the company. According
to the company Colgate, the most important source of information for the customers are mouth
are mouth advertisement and social media and television. These are the most important source on

Marketing Consumer Behaviour 5
the basis of which the customers take decision in the society. So, the company converted the
mouth to mouth advertisement into television advertisement by making people share their views
of using Colgate Toothpaste on TV.
Analysis of Alternatives
Evaluation of alternative can be considered as one of the most important phase in the process of
consumer behaviour analysis as it helps the customers to look for various alternatives present in
the market. One of the major reason due to which Colgate earned reputation in the market is due
to its age-old market presence. The company is present in market since there were very few
competitor. Colgate succeeded the competitors and attain the present growth in the market.
However, now the market specifications have been changed as the customers have started
looking for various alternatives as well. The product is seen as the bundle of attributes like while
purchasing Colgate Toothpaste, along with the product the buyer looks for prices, quantity,
quality etc. Further, brand image, after sale services and distribution networks also plays a lead
role in helping the customers to purchase a product (Chatterjee, et. al., 2018).
Implementation of Purchase Decision
Post evaluating the alternatives the customers finally makes purchase on the basis of choices that
they make in the environment. The choice to purchase a product varies on different aspects like
competition, price, quality, quantity etc. The outcomes of the process of evaluation develop likes
and dislikes about the alternative products in consumer. The attitude of customer towards brands
influence them to make purchases in the market. Thus, under this step, after analysing all the
internal and external factors the customers purchases the products in the market (Foxall 2017).
Post-Purchase Behaviour
Post-purchase behaviour is very important for the organizations to look forward as it defines that
the customer will make repeated purchase of their product or not. The customer gets brand
preference only when the brand lays up to the expectation. The process of brand preference
automatically drives the customers to make repeated sales. A satisfied buyer is a silent
advertisement in itself but if the customers do not gain optimum level of satisfaction from the
product then they will develop negative attitude towards the brand. So, in the company Colgate

Marketing Consumer Behaviour 6
Toothpaste should aim to provide after sale services to the customers in the market in order to
maintain their satisfaction level (Juster 2015).
Factors affecting Consumer’s Decisions
Families and Friends: People living in families always prefer buying the Colgate brand because
of the specification present in the product as well as company. The product is fit for all type of
people present in the market. The product is most purchased by families in mega saver pack so
that all members of the family consume it for a long period. Further, singles are also convinced
with the advertisements of the company and word of mouth as well. Due to which they make
sales for Colgate Toothpaste in the market.
Internal and External factors: The memory of the customers helps them to look for the brand
with which they are familiar in the market. Further, the external factors like strong advertising
and word of mouth significantly support the customers in making purchase decisions (Foxall
2014).
Product and Consumer Characteristics: A product characteristic along with company and
consumer characteristics plays a lead role in influencing the decisions of the customers in the
market. Colgate Toothpaste has a strong brand as well as product characteristics that attract the
customers to make purchase in the market. The taste, quality, quantity and packaging of product
is liked by the customers in the market due to which the make sales as well. The brand has also
captured the market effectively due to which no customer is left behind (Anker 2016).
Strategic Recommendation
Colgate Toothpaste is a diversified organization present in the FMCG industry; the company has
significantly captured the market and created optimum brand position as well. The company is
assumed as one of the top brands present in the world and a leading brand of oral hygiene as
well. Colgate has dominated the industry by its toothpaste and dental hygiene products. The
marketing strategies of the company are efficient enough that it attracts the customers in the
target market. On the basis of positioning strategies of the company, Colgate target the mass
segment, however, the middle class people are the main customers of the company who initiate
repeated sales in the target market (Grover, and Dasgupta 2018). The mission of Colgate is to

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become one of the fastest growing companies present in the consumer good industry by
providing innovative and new products in the market. Further, the vision of the company states
that they want to become best truly global company. The product Colgate Toothpaste is a star
product of the company that does not need support of other product or organizational strategies
to grow. The product has already become a market leader as well. Further, it should be noted that
the company has significantly earned reputation in the market however, it requires few
recommendations to grow, these recommendations are discussed below:
Product Differentiation: The company has already earned more than half market share but it
should now focus on the other section left un-captured in the market. For that purpose, the
organization should initiate the product differentiation strategy in the market. This strategy helps
the company to create the products in differential ways so that the customers in the market easily
identify them. The purpose of this type of strategy is to create product that creates differentiation
in the market. Differentiation will reduce the level of competition and will make the customers to
purchase the products from the company (Romaniuk, and Wight 2015).
Cost effectiveness: As the company is present in the FMCG industry so it is important for them
to be cost effective so that the customers can easily purchase product from them in the market.
The company targets the middle income level consumers in the market who cannot afford to
purchase high income level product in the market. Thus, along with differentiation, if the
company will provide products to the customers that are cost effective, then they will easily
achieve success in the market (Mondol 2018).
Improvement in Customer Loyalty: The fact should be noted that no organization becomes
prosperous by making sales but they become prosperous by making repeated sales in the market.
Repeated sales can only be made when the company is able to gain the loyalty of the customer in
the market. Thus, the company should focus on initiating strategies that improve the customers’
loyalty in the market. The market and advertisement strategies should also significantly support
the objective of the company. Further, the company should make use of strategies that attract
them and retain them as well (Pieters, Erdem, and Martinovici 2017).
Thus, in the limelight of above mentioned events, the fact should be noted that the report
explained a critical analysis of the customers behaviour for the purchase of Colgate Toothpaste

Marketing Consumer Behaviour 8
product in the market. It also explained strategic recommendation for the company to succeed in
the FMCG industry.

Marketing Consumer Behaviour 9
References
Anker, T.B., 2016. Truth in Marketing: A theory of claim-evidence relations. UK: Routledge.
Chatterjee, K., Adhikary, K., Sen, S. and Kar, S., 2018. Identification and Analysis of Factors
Affecting Consumer Behavior in Fast Moving Consumer Goods Sector. Business Perspectives–
Aims and Scope, p.2.
Foxall, G., 2017. Advanced introduction to consumer behavior analysis. UK: Edward Elgar
Publishing.
Foxall, G.R., 2014. Invitation to consumer behavior analysis. In Consumer Behavior
Analysis (pp. 23-40). UK: Routledge.
Grover, P. and Dasgupta, S., 2018. The Impact of Brand Variance on Gender in FMCG Sector:
With a Special Reference to Toothpaste Category. In Holistic Approaches to Brand Culture and
Communication Across Industries (pp. 24-35). IGI Global.
Hariharan, V.G., Desai, K.K., Talukdar, D. and Inman, J.J., 2018. Shopper marketing moderators
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Juster, F.T., 2015. Anticipations and purchases: An analysis of consumer behavior. UK:
Princeton University Press.
Mathews, S., Jain, R., Shah, T., Hizli, S., Porwal, J. and Virani, S., 2015. Effect of Celebrity
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http://samvad.sibmpune.edu.in/index.php/samvad/article/view/98314/71451
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Toothpaste [online]. Available from:
http://dspace.uiu.ac.bd/bitstream/handle/52243/287/Revised_Report_jubairur_Latest.pdf?
sequence=1 [accessed on: 7th October 7, 2018].

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