CHAPTER - I

INTRODUCTION

1. Background of the Study

The concept of brand equity emerged in the early 1990s. Brand equity can be regarded as a
managerial concept, as a financial intangible asset, as a relationship concept or as a customer-
based concept from the perspective of the individual consumer (Tuominen,2007).
In the few last decades, brand equity concept has grown rapidly. One reason for its popularity is
strategic role of that and importance in obtaining competitive advantage in strategic management
decisions. Brand equity is appropriate metric for evaluating the long-run impact of marketing
decision (Atilgan, et al. 2005).“In a practical sense, brand equity is the added value a product
accrues as a result of past investments in the marketing activity for the brand.
It’s the bridge between what happened to the brand in the past and what should happen to it in
the future” (Keller,1998).Due to globalization to the business the world has become small. If the
company'smarketing plans are better, company can easily set access to the market of the other
partsof the world and can achieve their goals. So, company should know his market situation in
targeted area. If company is unknown on his market situation that means they are blindly
adoption the strategies in the market. So, those companies are failures for their goals."In this
modern marketing era, every marketer should be understanding consumer's
satisfaction"(Shrestha: 1996)

1.1 Profile of Organization

Colgate is the first toothpaste in a collapsible tube, introduced in 1896 when it was previously
been sell in glass jar since 1930’s Colgate is almost synonymous with the toothpaste in the
Indian and Nepal market it is the accepted well both in the urban and rural areas. It has been
ranking as the 17th most trusted branded in the India.
In the context of Nepal there are so many brands are found in Market produced by Nepalese
companies even in foreign companies. Colgate toothpaste is produced by Nepal Lever limited in
Nepal. Nepal Lever Limited is one of the leading companies in Nepal.
Which produce the “Colgate” toothpaste; This Company produces many kinds of consumer
goods like "Soap", "Shampoo", “Toothpaste"etc.."The study of market share of Colgate on
comparison with other brands." But this study concern in the market situation of another brands.

1.2 Objectives of the study

The objective of this study is to measure brand equity of “Preference of Toothpaste selection in
Nepal.” Our dimensions of consumer-based brand equity i.e. brand loyalty, perceived quality,
brand association, and brand awareness.

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The specific objectives of this research are:
 To know the relationship of brand loyalty with satisfaction.
 To know the consumer buying behavior toward toothpaste.
 To know the attitude of customers.
 To know the customer’s need and preference of different brand.

1.3 Rationale of the Study

Today's marketing era is modern market era. The third business is running in 21st century.Even
our companies are lacking by the better marketing policies, management and strategies. Nepal
Lever Limited is one of leading company in Nepal, primary objective of the study is to know the
marketing policy and structure of Nepal Lever Limited and is expected to find out the positive/
negative of its marketing aspects in the context of "Colgate" in Kathmandu. Which may useful
some same or other industries to give an insight to their own policy and reformulate it to draw
the attention of consumers? Besides, the new firms looking for a proper marketing policy and
structure and willing to take the lesson from the success or failure of others firms may be the
benefited by the study.

CHAPTER II

RELATED LITERATURE REVIEW

1.5.1 Conceptual Literature Review
Consumers always buy goods and services individually, however decisions always involve
several people, the following is the common decision making process;
a) the initiator: the person who starts the decision making process and gathers information,
b) the influencer: the person who influences people to buy or purchase goods and services,
they often collect information also,
c) the decider: who has the financial authority to make the final decision on the purchase
and
d) the user: who actually utilizes the product (Jobber 2004) It qualities and can also change
the role.

Gender plays an important role in the decision making as men and women have different
preferences (Jobber 2004). It qualities and can also change the role. Gender plays an important
role in the decision making as men and women have different preferences (Jobber 2004). Brand:
“A trade name used to identify a specific product, manufacturer or distributor” (Pallister& Law,
2009). In order to accurately define the term “brand” we can select to use an up- to –date
definition of Pallister and Law (2009), the term “brand” can be defined as a name of a brand that
identifies a certain product, manufacturer or distributor.

In comparison to a brand, a strong brand is a product, service, person or place that can be
identified and improved in the way that the consumer or buyer gains essential, unique added

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values which meet their needs in the best possible way. In addition, success of a brand results
from being able to maintain added values in spite of competitors’ actions (Chernatony et al.,
1992).

According to Ind (1997), brand can be described as a feature of a plain idea of product or
service, and it includes the definition or a view of the values that go deeper in the functional
performance. In the other words, “--A product is something that is made, in a factory; a brand is
something that is bought by a customer” (Ind, 1997).performance. In the other words, “-A
product is something that is made, in a factory; a brand is something that is bought by a
customer” (Ind, 1997). Aaker (1991) noted that the brand signals the source of the product to
consumers, and protects the customer, as well as, the producer from possible competitors who
would attempt to provide products that appear to be identical. In relation to competitors,
Nicholas Ind points out the following crucialnotion: “A product can be copied by a competitor, a
brand is unique.” (Ind, 1997)

Characteristics of Brands

In order to understand how brands work and create value, we have to take a look at the different
levels of which they have been conducted. Chernatony et al. (1992) noted that brands can be
viewed in four levels. On the first level, buyer’s or user’s basic needs are met. As an example of
this, air plane fulfilling the need of transportation.
This generic level of viewing brand is also the easiest level for competitors to copy. Second level
is called the expected level. On the second level more and more buyers enter the market, and as
repeat buying occurs, the brand keeps on developing because there are better chances to match
resources to meet customers’ needs, via enhanced customer service, for example. Consequently,
the product or service is meant to create extra value to satisfy purchase conditions of a certain
target group, availability, pricing, for instance. On the third level, as firms gain more experience,
buyers and users become more aware of products and services.
This means that the brand should try to become augmented in new better ways. Way to do this is
to make added values satisfy non-functional, such as emotional needs, as well as functional
needs, delivery, for instance. Customers, who have the most experience of the brand, tend to be
more critical than the other customers. As Chernatony et al., (1992) argue in their book “Creating
Powerful Brands”, creativity is the only aspect that limits the extent to which the brand can
mature to the fourth; the potential level.
On the third level, as firms gain more experience, buyers and users become more aware of
products and services.as firms gain more experience, buyers and users become more aware of
products and services.Brand Equity
Over the past years, significant advances in brand equity have been made by many researchers.
In this chapter, the literature review on brand equity will be presented in terms of
conceptualizing, measurement of brand equity, validation of brand equity measurement, and
brand equity in service. Especially, brand equity research on hotel industry will be reviewed.
Conceptualizing of Measuring Brand Equity, Keller (1993) defines customer-based brand equity
as the differential effect of brand knowledge on consumer response to the marketing of the

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brand. Brand knowledge consists of two dimensions: brand awareness and brand image. He
stated that factors such as awareness of brand, and consumer memory including favorability,
strength and uniqueness in which a customer had experienced brands affected brand knowledge.
Customer-based brand equity, thus, is enhanced by creating favorable responses to pricing,
distribution,advertising, and promotion activity for the brand. Aaker (1996) suggests brand
equity ten, a specific guideline for measuring brand equity. He groups ten sets of measures into
five categories brand loyalty, perceived quality, association, awareness and market behavior
measure. The first four categories represent customer perceptions and the fifth expressed the
information obtained from the market.He also suggested that all measurement items did not have
to be standard across different market segments. He indicated that one should take appropriate
modifications according to the characteristics of each industry into consideration when adopting
the measurement of this brand equity ten.Brand equity can help customers to interpret, process
and store big quantities of information about brands, as well as give them confidence in the
purchasing decision and bring satisfaction to the user of a brand by making them feel more
important, for instance(Aaker, 1991). Keller (2008) continues that companies with high brand
equity gain higher perceptions and greater loyalty concerning the brand by the customers. These
companies are less vulnerable to competition, they maintain higher profit margins, their
customers react less negatively to price increases and they have greater support of middlemen.
Keller (2008) suggests that companies with high brand equity also enjoy higher marketing
promotion effectiveness, their licensing in increased and they have greater brand extension
opportunities.Relating to their previous study of brand equity in marketing, Yoo and Donthu
(2001) continued to research on consumer-based brand equity. They developed a
multidimensional consumer-based brand equity scale (MBE) on the basis of brand equity
concepts from Aaker (1991) and Keller (1993). In their scale, they combined brandawareness
and brand association with one dimension because of the lack of discriminant validity.
Therefore, they calculated the MBE index with just three dimensions. MBE = mean of brand
loyalty + mean of perceived quality + mean of brand awareness/association
By adopting this MBE scale, they actually measured among Americans, Korean –Americans and
Koreans MBE of several product categories such as camera film, athletic shoes and television
sets.

CHAPTER III: METHODS

Research Methodology

This chapter is designed to explain the research methods used to meet the stated objectives of the
study. The methodologies undertaken in relation to the research paradigm are sampling process,
data collection and analysis techniques to study the factors influencing consumer based brand
equity are explained in this chapter.

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This chapter also explains the data collection procedure and methodology used by researcher for
analyzing the available data. It includes preparation of the questionnaire to be answered by the
respondents. A description of method and procedure employed for collecting and analyzing the
data has been explained.

1.6.1 Research Plan and Design

A descriptive as well as exploratory research was carried out for the purpose of carrying out this
research. The findings of this research were based upon the primary survey. The data had been
collected by formulating a set of questionnaire and the questionnaire was distributed to the
respondents. The questionnaire was self-administered. The findings had been totally based in the
data and facts provided by sampled respondent. Apart from questionnaire, the expert opinion was
obtained depending upon the necessity of the research.
The study is based on various statistical tests such as correlation, regression, mean, standard
deviation and etc. The software called Statistical Package for social science (SPSS) and
Microsoft Excel was used to analyze and interpret the quantitative data.

This software is commonly used by researchers an easily available in business setting.

1.6.2 Population and Sample Size

Selection of sample is very important part to carry out during the research. Population for this
study was consumers of ‘Colgate Toothpaste’. The age of respondents was below 20 years to
above 50 years of age. The researcher distributed questionnaires to 35 person respondents but
only 30 respondents respond the distributed questionnaire. The respondents are consumers of
‘Colgate toothpaste.’

1.7 Limitations of the study

Any research study may not be free from its own limitations. So, there are couples of limitations,
which weaken the generalization and objectives of the study. Aaker (1996) defines five key
dimensions of consumer based brand equity i.e. perceived quality, brand awareness, brand
loyalty, brand associations and other proprietary brand assets as a set of assets (and liabilities)
which are linked to brand’s name and symbol that adds to (or subtracts from) the value provided
by a product or service to a firm and/or that firm’s consumers. However, the fifth dimension
(other proprietary brand assets) has been eliminated, since it is about market share which is not
directly related to intrapersonal considerations. about market share which is not directly related
to intrapersonal considerations, while conducting the research study.
1.8 Summary
It was not possible to visit more consumer and shopkeeper due to many limitation Os, randomly,
questionnaire were distributed and collected. Among consumer 82% have responded and among
shopkeepers 92% have response for questionnaire. Most of consumers are converting students
and age (15-25) years. Group which are from school and campus and other are from service

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holder from different office. By the study the market situation of "Colgate" is good. Keeping
view of objectives:
 By sales position "Colgate" is in first position and "Pepsodent" is second position.
 Consumers are brand loyal, most of consumers suggest to decrease or not to increase the
price of "Colgate" and maintaining the best quality.
 Accodring to consumers "Colgate" advertisement is very effective on TV and most of
them watch and advertisement.
 Distribution channel of "Colgate" is so effective, most of counter have been put
"Colgate"
 In ktm, mostly "Colgate","Pepsodent ", "Close-up", "Anchor", "Dabur", Neem, Babul,are
also available here.
1.9 Conclusion
Consumers buy a specific brand to satisfy their physiological stimuli aware by different
promotional campaign including advertising. There are so many brands are found in market
produced Nepalese Companies even in foreign companies. Colgate Palmolive co. Pvt. Ltd is one
of the leading companies in Nepal. This company produces many kinds of consumer goods like
“Shampoo”, "Toothpaste” etc concerning about "Colgate" that are production of Colgate
Palmolive co. Pvt. Ltd. By analyzing and presenting the above raw data, it was find out that
"Colgate" toothpaste market is better than the other toothpaste. It was increasing trend in the
market position. It is higher then the other paste's quality and cheap in price. But recently some
other company launches a new product in the market. That is why; Colgate Palmolive co. Pvt.
Ltd had to face challenging in other toothpaste. So, the company must be aware to maintain the
best quality then the other toothpaste. So, the company must be aware to maintain the best
quality then the other toothpaste. Advertising is the effective means to notify the project. So the
company has the expanded his advertising by the means of TV, Newspaper, hoarding boards, as
soon as possible.

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BRAND EQUITY OF COLGATE TOOTH PASTE

TABLE OF CONTENTS

Declaration i
Recommendation ii
Endorsement iii
Acknowledgement iv
Table of content v
Abbreviations vi
CHAPTER I 1

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Introduction
1.1 Background of the Study 1
1.2 profile of the organization 3
1.3 Objectives of the study 3
1.4 Rationale of the study 4
1.5 Review of Literature 5
conceptual of the study 5
Consumer 5
Brands 5
Characteristics of Brand 7
Brand Equity 7
Enpirical Literature Review 11
Brand Equity Research in the service Industry 11
Validation of Measuring Equipment 13
Pros & Cons of prospective 13
Categories’ of brand Association 14
Brand Loyalty 16
Brand Awareness 17
1.6 Research Design &Mythology

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