Positioning and Behavioral Dimensions: Implications for Big Bazaar

Positioning and Behavioral Dimensions:  Implications for Big Bazaar

As disposable incomes increase in India, oral care consumers have increasingly taken advantage of the benefits provided by the toothpaste category.  Increased awareness in oral care health and hygiene has turned the toothpaste industry in India into a $1.6 billion market with an expected growth of 12%.  Future Group, a large retail conglomerate with several different branded chains, has also benefitted from the toothpaste category growth, to include Big Bazaar.  An assistant manager of Big Bazaar conducted a study to determine consumer attitudes in this fast growing industry.  The target consumers were young adults, between the ages of 18-30, who were either working professionals or currently in school.  The objective of this study was to identify the factors that shape consumer attitudes in order to help Future Group and Big Bazaar make informed decisions within the oral care market. This paper outlines the toothpaste category, the consumer, current brand positioning, and the implications for Big Bazaar.

Consumer Attitudes in Oral Care

When analyzing the toothpaste category results in Exhibit 2, respondents indicated that toothpaste is beneficial and has a useful application with value.  The category characteristics that ranked the highest were trustworthiness, followed by caring and family oriented.  Respondents also placed a large value on Product Quality (4.56 rating) and Prestige (3.98 rating) when deciding on a brand of toothpaste. Conversely, Price, with a rating of 3.28, indicates that it is not a leading factor in purchasing decisions.  In a recent article from Live Mint (2017), Colgate, the market leader in India, reported Quarter 2 results that showed a 2% decrease in revenue, highlighting just how competitive the oral care market has become in India.

The study further focused on four major brands covering the toothpaste industry, specifically how their offerings covered consumer needs.  Analyzing Exhibit 3, the Close-Up brand scored the highest in Perceived Quality and General Brand attractiveness.  This is not surprising considering the Close-Up advertising campaign focused on the younger population.  This indicates that the target age group of 18-30 places a premium on the benefits of breath-freshness and white teeth as it pertains to confidence in social interactions.  Under the brand association attribute question of most “Advanced” brand, Close-Up brand had the highest rating (4.20) among respondents even though their marketing campaign did not focus on features of technology.  This indicates that the gel toothpaste segment, which is the market leader in India with a market share of 7.8%, giving a perception of greater technology, even though the entire positioning of Close-Up focuses on freshness and whitening.

The leading offers of herbal toothpaste are Patanjali and Dunbar, and there is a distinct connection between the leading herbal offers and Indian culture.  Both brands are pursuing marketing campaigns that push an ayurvedic position and other natural ingredients in their offerings.  The highest ratings in Trust and Honest in Exhibit 3 were achieved by Patanjali and Dunbar, indicating that consumers have confidence in an Indian product that offers herbal features.  Furthermore, Patanjali also matched their prestigious competitor Colgate in the Quality rating.

Relevant Consumer Reference Groups

The biggest influence on consumers’ attitudes and behaviors come from reference groups, which are groups that a consumer identifies with and may want to join.  While reference groups can be comprised of family members, close friends, or colleagues, the research indicates that family members are recognized as having the most important influences on buying behavior.  In this section, we will evaluate how consumer attitudes are influenced by reference groups, specifically the influencer attribute section, with respect to the purchase of toothpaste, and how that correlates to specific brands.

When analyzing the Exhibit 2 results of the data obtained on the toothpaste category in the Influencers attribute section, the results support the claim above that family members in India are recognized as having the most important influences on buying behavior with consumers 18-30 years old.  Family Members was the highest by far with a rating of 4.28 followed by Close Friends with a rating of 3.61.  Not surprisingly, online social media groups had the lowest score with a rating of 2.67.  Opinions from Customer Reviews was rated higher than opinions from Peers and Colleagues, 3.37 and 3.26, respectively.  

When looking at the same Influencers attribute section in  Exhibit 3, the results were relatively similar.  Family members remained the highest rated category in each of the four brands of toothpaste with an average rating of 4.14, while close friends, with an average of 3.44, was the second highest rated category in three of the four brands (close friends was tied for 3rd in the Close-Up brand). Online social media groups remained the lowest rated category with an average rating of 2.80.  Unlike Exhibit 2, where customer reviews were rated higher than peers and colleagues, customer reviews was higher among the Close-Up and Dabur brands, whereas peers and colleagues was ahead among the Colgate and Patanjali brands.  

Insight on the Indian Consumer

As India transitions rapidly into a consumerist society, being able to dissect and understand what shapes the attitudes of the Indian consumer will be critical to commercial success within the market. Roughly 65% of the population of India was born after 1980, comprising of 443 million Millennials and 393 million individuals in Generation Z (Lu, Yiu, Soman, 2016).  This strikingly young population has fueled a great deal of modernization within the country, resulting in a more connected society with increasingly complex consumer needs. As the youth of India continue to shape the consumer landscape of the country as a whole, appealing to this portion of the population is the main goal of the most successful oral care brands in the region.  This is further supported by the fact that the ads of the region’s top brands are centered around a youthful culture, with young families, social (romantic) interaction, and celebrity endorsements all taking center stage.

Interestingly enough, when examining the Indian consumer, youth does not necessarily mean a break from traditional values.  As previously mentioned, Quality was the most important determining factor when purchasing a toothpaste, with Price being the least relevant.  This can be expected as the target market becomes more connected and informed.  Even with this modernization, respondents placed a high value on brand “trustworthiness” and the recommendations of their families.  The focus on trust could have implications dating back to the Consumer Protection Act of 1986, which aimed to put an end to a long history of unfair trade practices and misleading marketing campaigns within the region, however, it appears to more appropriately paint a picture of a culture that is still very much attached to its roots.  The dominance of natural products and those containing Ayurvedic properties show that Indian consumers are heavily influenced by religious, spiritual, and traditional values. Additionally, the prevalence of trustworthiness and family influence in India’s consumer habits reinforce the importance of an “old world” view of society and the respect of a traditional nuclear family, of which 70% of India is comprised (Singhi, 2017).