Focusing on Indian and French Market

1. Prof. Damien CHANEY
16th November, 2014 Market Value Proposition
Shiwangi
DAS Susmita
GUPTA Ankit
KANAPAKA Manohar
KAUR Janmeet
KUMAR Ranjan
RAMIREZ GARCIA Antonio
Submission By:

2. Table of Contents
Introduction...................................................................................................................................................2
Study 1: Qualitative Research ........................................................................................................................3
Study 2: Quantitative Research......................................................................................................................6
Conclusion .....................................................................................................................................................8
References...................................................................................................................................................10
Appendix A...................................................................................................................................................11
Appendix B...................................................................................................................................................18

3. Introduction
The objectives of this report include: to understand the cultural reasons for the selection of
cosmetics and how cosmetic industries leverage these facts into their products, marketing
strategy and communications.
Companies in this space don’t just sell make-up – they sell lifestyle ideals; glamour, confidence,
and style. So, to create a strong USP, there is a need to examine the profile of the perfect
customer and then market the products in a way that shows them that company can meet their
needs.
Secondary research suggests that rising consumer income and changing lifestyles are driving the
global beauty market. The cosmetic producers face strong challenges and obstacles in their
expansion in these emerging markets as the needs of people in these emerging markets are
different from those in developed markets. The needs vary as widely as desire for home remedial
ingredients in cosmetics in Indian market to the demand of organic ingredients like Dead Sea salt
in western market.
The study conducted by the group used the methodology as described below:
 The group decided to take two countries as subject of the study- France and India
 The group interviewed people in both the countries
 This preliminary insight into the responses of these interviewees gave the structure to
our questionnaire
 Further we floated the form through internet and gathered the responses of various
people from the two countries of research
 The questionnaire probes into frequency of purchase, influences in buying decision
making, ingredients preferred, place of purchase, factors effecting adoption of foreign
brands and so on
 The responses are analyzed in one of the sections of the following report
 The insights obtained from this analysis are used further to define the importance of
various attributes that the consumers look for in the cosmetic products
The next step was to analyze where the cosmetic companies can further add value to the
customers

4. Study 1: Qualitative Research
Method: Semi-Structured Interview with consumers of French (In-Person) & Indian (Telephonic
or Video Call) Nationalities
Goal: Identify the difference in usage and purchasing behavior for cosmetic products
Sample size: French Interviewees – 8 and Indian Interviewees - 8
Questionnaire:
1. Which cosmetic products do you use?
2. How do you feel after applying cosmetic products?
3. Role of price in your purchasing decision?
4. Describe your Decision making Process while buying a cosmetic product? (Here we
briefly explained our interviewees what a ‘decision making process’ is.)
5. What attributes do you look for in a product?
6. How much the country of origin of a brand matter in selection of a particular product?
Results:
1. The key categories of cosmetic products identified by the interviewees were skin care
(body and face), hair Care, color cosmetics, fragrances and toiletries.
a. France Interviewees: All the five categories were found to be very relevant.
b. Indian Interviewees: Skin care, hair care and color cosmetics were found to very
relevant. Also color cosmetics were found to have traditional and cultural
importance, mainly for married women.
c. Fragrances seemed an integral part in the lifestyle of French interviewees and
they showed affection for specific brands of perfumes. While Indian interviewees
mentioned to apply perfumes on special formal or informal occasions mostly.
2. Consumers of both nationalities seemed to have similar response that cosmetics boost
their confidence levels. It symbolizes glamour, confidence, and style.
3. For Price Considerations: French consumers prefer brand over price. They mostly
preferred high end brands. For Indian consumers, price is an important consideration.
People here preferred medium to low end products for daily use with high end brands
reserved for use during special occasions.
4. Decision Making Process:
a. Identify the decision to be made: According to the respondents, the decision to
make a new cosmetic purchase is not impulsive. Usually the next purchase is made
when the existing product gets used up, is lost or gets expired. However, if a new

5. product is launched in the market, having some unique features, then customers
accepted to try the same out of curiosity.
b. Gather Relevant Information: The main sources of gathering information as cited
by the interviewees are: through newspaper and TV advertisements, friends and
family suggestions, suggested by specialists, online through social media and
beauty blogs, fashion and lifestyle magazines and cosmetic stores
c. Identify, Weighing and choosing alternatives: A number of factors decide whether
a brand would go in the decision set. For the Indian interviewees, price played an
important role in choosing a product. The other factors were the brand, the
benefits it promises and the key ingredients. Indians accepted being more inclined
to the products based on herbal ingredients which promise to make their skin look
fairer and radiant. For hair care products, they opted for products which offer
benefits such as “long and strong”.
The European responded that they don’t mind much the price of the product as
long as it is a good brand. Buying a luxury cosmetic brand was not uncommon.
“Fair and radiant” skin is not what they look for in a product. On the contrary,
many accepted using products, which gives their skin a natural tan. For hair care
products, color protection seemed more important to them.
Also, in color cosmetics, French respondents opted for more bold colors as
compared to the Indian respondents, with Red being the favorite color for most
of the French respondents.
d. Based on these specific needs and likings, the respondent claimed to identify the
different alternatives. They then weigh their pros and cons, and choose the best
alternative.
e. Take Action: Normally on the basis of the steps followed above, they buy the
product to which they have narrowed down to. If they still have confusion, they
do take the advice of the store assistants.
f. Review Decision and Consequences: The purchased product is highly scrutinized
during its use. Since the product is directly related to the appearance of one
person, any mismatch between the benefits promised and actually delivered, is
not accepted by the consumers. In such a case, they don’t hesitate to switch to a
different brand when making the next purchase of the product.
5. Key Attributes looked for in the product: There was a trend towards product with herbal
ingredients. Organic products are gaining popularity in both the markets as people have

6. recognized the side effects of harmful chemicals. However the ingredients’ preference
differed among the regions. Indians preferred Ayurvedic herbs whereas French people
cited ingredients such as sea minerals and special oils.
6. Importance of country of origin in selecting a brand: People gave a mixed response to this
question. Some people said that though not a deciding factor; it does raise the willingness
to pay a premium if the country is famous for the product. They mostly give more
importance to the communication by the brand in deciding for a product. However, some
people admitted that perception about a country does make a difference. While choosing
a product, they would prefer something ‘Made in France’ or ‘Made in Italy’ over
something ‘Made in Bangladesh or China’.

7. Study 2: Quantitative Research
Method: Structured Survey form filled by consumers of French & Indian Nationalities
Goal: Validate the findings of the Qualitative Research
Link to the Survey: https://esctroyes.az1.qualtrics.com/SE/?SID=SV_8k6w9i2NuKmljoN
Sampling Method: Convenience Sampling (Non-Probabilistic)
Survey Method: Survey form shared through email and social media platforms
Sample Size: 69
Demography of sample
Age group: 19 years to 34 years old
Nationality & Gender:
Male Female Total
French 20 10 30
Indian 23 16 39
Results
1. In our survey, 81% of the respondents claimed to be using cosmetic products.
2. Skin Care, Hair Care and Fragrances were the most commonly used categories of
cosmetics. The Toiletries market seemed smaller in India with only 10% claiming to use
them.
3. 82% of the respondents claimed to be using the cosmetic products daily. The result was
similar for both India and France.
4. Selection of brand: The respondents seemed divided on this question. While it became
clear that consumers did not believe in Celebrity Endorsements for choosing a product,
with only 4% of the respondents agreeing to it. They all relied on personal
recommendations. 35% of the respondents were influenced by friends or families while
selecting a brand. 33% relied on specialists’ recommendations. Nationality wise: Indians
relied more on Friends’ and relatives’ advice (41%) as compared to French people who
relied more on Specialists’ advice (47%).

8. 5. 65% of the respondents claimed to be checking the ingredients for the product they buy.
83% of the French and 66% of the Indians claimed to be checking the ingredients.
6. 59% of the respondents of both the countries answered that product containing herbs
and sea minerals are their preferences while buying cosmetics.
7. The most important attribute while selecting a brand were the Brand name (50%) and
Problem solving Attribute of the brand (50%) for French respondents. For Indians, Price
also is an important consideration with 38% of them agreeing to the same. The next
important attribute for the Indians is Brand (24%).
8. Place of Purchase: The preferred place for purchase for French is e- commerce websites (40%)
and Specialists/ Brand Outlets (33.33%). The Indians preferred Supermarkets/ General Stores over
exclusive outlets. One reason could be the availability of products at discounted rate at these
stores in comparison to Branded outlets which offer products at fixed price.
9. Nearly 74% of the respondents buy foreign cosmetic brands. The percentage is almost same for
both France and India.
10. The choice of a foreign brand is based on Brand Awareness for French Respondents (47%). For
Indian respondents, recommendation from friends and families is important in choosing a foreign
brand.
11. The country of origin does not matter much for both Indian and French respondents.
12. French respondents preferred a particular foreign brand if that country was famous for that
particular brand. Indian respondents preferred brands recommended by acquaintances.

9. Conclusion
Thus from the Qualitative and Quantitative research carried out, these are the key differences
identified in Customer Perception and Buying Behavior:
1. The focus on cosmetics in Indian market is on providing a radiant and glowing skin. In
French market, the focus is on looking either natural or tanned.
2. Demand for organic and herbal products are on a rise in both the markets
3. Innovation in products could lead to product trials, as consumers accepted that they
usually go with one brand, and may try a new brand if some new features are introduced
with its product.
Based on the above analysis, we propose the following ways to the cosmetic brands to add value
to their products in the respective markets (Indian and European):
 French Market:
o Consumers showed a high inclination to specialist’s advice/recommendation, so
they play a key role in decision making. Beauticians/hair dressers should be
included as prominent actors in designing communication plan.
o With reference to above point, specialty brand outlets/stores are preferred over
general retail store. Basically someone to advice or expert opinion is needed while
making heavy/costly cosmetics. Well-trained shop assistant is necessary.
o Organic products are preferred over advance research Hi-Tech formula products.
As seen through qualitative study, natural salts/minerals containing cosmetics are
given priority and decision is mainly linked to cultural aspects.
o Country origin of a brand does not influence the decision but if it does in some
cases, consumers decide whether to use or not based on brand awareness. Global
brand communication is necessary.
 Indian Market:
o Product: The stress should be on herbal products based on Indian Ayurvedic herbs
on which Indians have a lot of trust.
o Place: Supermarkets and General Retail Stores should be major targets.
o Promotion: Instead of focusing on celebrities for endorsement, the stress should
be on building personal relations. Since Indians give a lot of importance to advice
given by friends and families, focus should be on developing networks amongst
customers. Special promotions based on referrals or loyalty programs can be
encouraged.
o Price: It should be moderately low price for every day-use cosmetics. As special
occasions – marriage, festivals, anniversaries, etc. influence cosmetic usage and
usage intensity too, so special cosmetic packs based on occasion can be
introduced with premium pricing.

10.  Global Market:
o Men consumers prefer to buy products mostly online. E-Commerce option for
cosmetics can be a very good value proposition for products fulfilling needs of
male.
o Organic/natural product is preferred over advanced researched products. But, the
culture specific to the country defines what natural ingredient consumer would
like.

11. References
 “The influence of culture on cosmetics consumer behavior”, 1Mrs.
HemaPatil,2Dr.BBakkappa, 2012, IOSR Journal of Business and Management (IOSRJBM)
 “Global beauty industry trends in the 21st century”, Aleksandra Łopaciuk, Mirosław
Łoboda, Active Citizenship by Knowledge Management & Innovation Management,
Knowledge & Learning Conference 2013
 http://www.in-cosmetics.com/Online-Press-Centre/Normal--Industry-
articles/MarketingTrendsReview2014/

12. Appendix A
Initial Report
Last Modified: 11/15/2014
1. Do you use beauty/cosmetic products?
# Answer Response %
1 Yes 57 81%
2 No 13 19%
Total 70 100%
Statistic Value
Min Value 1
Max Value 2
Mean 1.19
Variance 0.15
Standard Deviation 0.39
Total Responses 70
2. What kind of products do you use?
# Answer Response %
1 Skin Care 54 95%
2 Hair Care 51 89%
3
Color
Cosmetics
36 63%
4 Fragrances 40 70%
5 Toiletries 30 53%
Statistic Value
Min Value 1
Max Value 5
Total Responses 57

13. 3. How often do you use cosmetics?
# Answer Response %
1 Daily 47 82%
2
2-3 Times a
Week
9 16%
3
Less than
Once a
Month
1 2%
Total 57 100%
Statistic Value
Min Value 1
Max Value 3
Mean 1.19
Variance 0.19
Standard Deviation 0.44
Total Responses 57
4. What influences the selection of brand/company?
# Answer Response %
1
Information from
Advertisement
11 19%
2
Celebrity/Ambassador
Endorsement
2 4%
3 Specialist's Advice 19 33%
4
Friends or
Acquaintances
20 35%
5 None 5 9%
Total 57 100%
Statistic Value
Min Value 1
Max Value 5
Mean 3.11
Variance 1.52
Standard Deviation 1.23
Total Responses 57

14. 5. Do you check for ingredients in a product before selecting?
# Answer Response %
1 Yes 37 65%
2 No 20 35%
Total 57 100%
Statistic Value
Min Value 1
Max Value 2
Mean 1.35
Variance 0.23
Standard Deviation 0.48
Total Responses 57
6. You enter a store and find these product options. Which of these
you are more likely to pick?
# Answer Response %
1
A product
which has
100% natural
ingredient
10 23%
2
A product
having
Advanced
Research & Hi-
Tech Formula
4 9%
3
A product
containing sea
minerals,
herbs, etc.
(Inclined to
Home
Remedies)
26 59%
4 No Preference 4 9%
Total 44 100%

15. 7. While purchasing a product which attributes matters more?
# Answer Response %
1 Brand 25 44%
2 Price 5 9%
3
Problem
solving
message
conveyed by
label
26 46%
4
Consumer
Offer
1 7%
Total 57 100%
8. Where do you prefer to buy cosmetics?
# Answer Response %
1
Supermarket or
General Retail
Stores
21 38%
2
Specialists/Brand
Store
15 27%
3
Pharmaceutical
Store
5 9%
4
e-Commerce
website
15 27%
Total 56 100%
Statistic Value
Min Value 1
Max Value 4
Mean 2.25
Variance 1.50
Standard Deviation 1.22
Total Responses 56
9. Do you use foreign cosmetic brands?
# Answer Response %
1 Yes 42 74%
2 No 15 26%
Total 57 100%

16. Statistic Value
Min Value 1
Max Value 2
Mean 1.26
Variance 0.20
Standard Deviation 0.44
Total Responses 57
10. What influences the choice of using foreign cosmetic brands?
# Answer Response %
1
Recommendation
from
Friends/Acquaintances
12 29%
2 Advertisement 5 12%
3
Celebrity/Ambassador
Endorsement
3 7%
4 Brand Awareness 22 52%
Total 42 100%
Statistic Value
Min Value 1
Max Value 4
Mean 2.83
Variance 1.80
Standard Deviation 1.34
Total Responses 42
11. Does country origin of Foreign Brand matter?
# Answer Response %
1 Yes 17 40%
2 No 25 60%
Total 42 100%
Statistic Value
Min Value 1
Max Value 2
Mean 1.60
Variance 0.25
Standard Deviation 0.50
Total Responses 42

17. 12. The reason for which you prefer a foreign brand would be:
# Answer Response %
1
Country is famous
for that kind of
product
6 35%
2
Country is among
developed
economies
4 24%
3
Brand is famous
for the product
irrespective of
country origin
5 29%
4
Personal
Recommendation
from close
acquaintances
2 12%
Total 17 100%
Statistic Value
Min Value 1
Max Value 4
Mean 2.18
Variance 1.15
Standard Deviation 1.07
Total Responses 17
13. Gender:
# Answer Response %
1 Male 43 62%
2 Female 26 38%
Total 69 100%
Statistic Value
Min Value 1
Max Value 2
Mean 1.38
Variance 0.24
Standard Deviation 0.49
Total Responses 69

18. 14. Age:
# Answer Response %
1
17 years old
& below
1 1%
2
18 years to 22
years old
25 36%
3 23 years to 28 40 57%
4
28 years and
above
4 6%
Total 70 100%
Statistic Value
Min Value 1
Max Value 4
Mean 2.67
Variance 0.37
Standard Deviation 0.61
Total Responses 70
15. Nationality:
# Answer Response %
1 France 31 44%
2 India 39 56%
3 Others 0 0%
Total 70 100%
Others
Statistic Value
Min Value 1
Max Value 2
Mean 1.56
Variance 0.25
Standard Deviation 0.50
Total Responses 70

19. Appendix B
Male Female Total France India Others Total Percentage
Yes 30 26 56 30 27 0 57 81%
No 13 0 13 1 12 0 13 19%
Total 43 26 69 31 39 0 70
Skin Care 28 25 53 30 24 0 54 95%
Hair Care 28 22 50 30 21 0 51 89%
Color Cosmetics 12 24 36 21 15 0 36 63%
Fragrances 24 15 39 29 11 0 40 70%
Toiletries 16 13 30 26 4 0 30 53%
Total 30 26 56 30 27 0 57
Daily 22 24 46 25 22 0 47 82%
2-3 Times a Week 8 1 9 5 4 0 9 16%
Less than Once a Month
0 1 1 0 1 0 1 2%
Total 30 26 56 30 27 0 57
Information from
Advertisement 5 6 11 6 5 0 11 19%
Celebrity/Ambassador
Endorsement 1 1 2 1 1 0 2 4%
Specialist's Advice 11 8 19 14 5 0 19 33%
Friends or
Acquaintances 9 11 20 4 16 0 20 35%
None 4 0 4 5 0 0 5 9%
Total 30 26 56 30 27 0 57
Yes 19 18 37 25 19 0 37 65%
No
11 8 19 5 8 0 20 35%
Total 30 26 56 30 27 0 57
A product which has
100% natural ingredient
11 11 22 7 3 0 10 23%
A product having
Advanced Research &
Hi-Tech Formula 2 1 3 3 1 0 4 9%
A product containing
sea minerals, herbs,
etc. (Inclined to Home
Remedies) 3 10 13 11 15 0 26 59%
No Preference 4 2 6 4 0 0 4 9%
Total 20 24 44 25 19 0 44
Brand 12 13 25 15 7 0 25 44%
Price
3 2 5 0 11 0 5 9%
Problem solving
message conveyed by
label 14 11 25 15 5 0 26 46%
Consumer Offer 1 3 4 0 4 0 4 7%
Total 30 29 59 30 27 0 57
Value Proposition of Beauty and Cosmetic Companies in Different Geographical Domains
Gender: Nationality:
While purchasing a product which
attributes matters more?
Do you use beauty/cosmetic
products?
What kind of products do you use?
How often do you use cosmetics?
What influences the selection of
brand/company?
Do you check for ingredients in a
product before selecting?
You enter a store and find these
product options. Which of these
you are more likely to pick?

20. Male Female Total France India Others Total Percentage
Supermarket or General 9 12 21 3 18 0 21 38%
Specialists/Brand Store 4 11 15 10 5 0 15 27%
Pharmaceutical Store 4 1 5 4 1 0 5 9%
e-Commerce website 12 2 14 12 3 0 15 27%
Total 29 26 55 29 27 0 56
Yes 21 21 42 22 20 0 42 74%
No 9 5 14 8 7 0 15 26%
Total 30 26 56 30 27 0 57
Recommendation from 3 9 12 3 9 0 12 29%
Advertisement 4 1 5 2 3 0 5 12%
Celebrity/Ambassador 1 2 3 3 0 0 3 7%
Brand Awareness 13 9 22 14 8 0 22 52%
Total 21 21 42 22 20 0 42
Yes 5 12 17 9 8 0 17 40%
No 16 9 25 13 12 0 25 60%
Total 21 21 42 22 20 0 42
Country is famous for 1 5 6 4 2 0 6 35%
Country is among 1 3 4 2 2 0 4 24%
Brand is famous for the 3 2 5 2 3 0 5 29%
Personal
Recommendation from 0 2 2 1 1 0 2 12%
Total 5 12 17 9 8 0 17
Male 43 0 43 20 23 0 43 62%
Female 0 26 26 10 16 0 26 38%
Total 43 26 69 30 39 0 69
Gender: Nationality:
Gender:
0.0715980529785160.071598052978516,0.053771018981934,0,0.024965286254883,0.010340929031372
Where do you prefer to buy
cosmetics?
Do you use foreign cosmetic
brands?
What influences the choice of
using foreign cosmetic brands?
Does country origin of Foreign
Brand matter?
The reason for which you prefer a
foreign brand would be: