Benefit-based segmentation of cosmetic product's market

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Benefit-based segmentation of cosmetic product's market

  1. 1. First Page : "Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum."
  2. 2. Presented by: CAMALL SAIB Amiirah RAMSURRUN Sudha DABEEDYAL Sohinee ESSOO Ayesha NUNNOO Nawseen BURNAH Neeta
  3. 3. The etymology of the word cosmetics Greek word kosmetikē tekhnē’ “technique of dress and ornament” “skilled in ordering or arranging”. Introduction Amiirah CAMALL SAIB
  4. 4. The U.S Food and Drug Administration (FDA) defines cosmetics as: intended to be applied to the human body Beautifying, For cleansing, promoting attractiveness, or altering the appearance without affecting the body's structure or functions Amiirah CAMALL SAIB
  5. 5. Cosmetics have been used for as long as there have been people to use them. • As face painting is mentioned in the Old Testament (Ezekiel 23:40) • Eye shadow was used in Egyptian burials dating back to 10,000 BC (Llewellyn) Amiirah CAMALL SAIB
  6. 6. Usage of cosmetics for centuries: Enhance beauty Promote good health Sun Protection Class system Amiirah CAMALL SAIB
  7. 7. Amiirah CAMALL SAIB Cosmetic products in the 21st Century Good looks and physical magnetism are persistently emphasised as a desirable characteristic. The habit of using cosmetic products has sometimes turned into passion which affect the individual deeply
  8. 8. Segmenting cosmetic products using benefit segmentation. Amiirah CAMALL SAIB Market segmentation is regarded as one of the core elements of marketing, with benefit segmentation often is referred to as the most meaningful form of segmentation.
  9. 9. The aim of this study is to: • Explore the benefits associated with cosmetic products from the Mauritian consumer’s perspective. • Analyse the comparative effect of the target group on consumer’s satisfaction. • Evaluate the usefulness of benefit-based segmentation in understanding cosmetic-related behaviour among consumers in Mauritius. Amiirah CAMALL SAIB
  10. 10. Literature Review
  11. 11. Sudha RAMSURRUN Overview of cosmetic industry African Countries- Mauritius fast developing market-high demand for international product from Europe and North America. Thailand major manufacturer of Johnson and Johnson, Procter & Gamble, Uniliver and Colgate Palmolive India shift from basic product to more advanced cosmetic. Brazil ‘Green theme’ market for natural cosmetic product. European Countries and USA- renowned brands like Max Factor, Elisabeth Arden, L’Oreal and Revlon
  12. 12. Demographic Profile Mauritius (icongrouponline.com) Amiirah CAMALL SAIB
  13. 13. Sudha RAMSURRUN Forms and categories of cosmetic products
  14. 14. Forms of cosmetics Solutions Creams/ Emulsions Lotions Suspensions Ointment/ Pastes Tablets & Capsules Powders Gels Sticks Aerosols
  15. 15. Sudha RAMSURRUN Categories No Hair Care (20%) Skin Care (27%) Makeup (20%) Fragrance (10%) Other (23%) 1 Shampoo Skin moisturisers Lipstick Perfumes Toothpaste 2 Conditioners Cleansers Nail polish Deodorants 3 Styling products Facial products Blush Sunscreens 4 Hair colour Anti-ageing product Eye shadow Depilation 5 Relaxers Wrinkle treatments Foundation Other personal care
  16. 16. Sudha RAMSURRUN Types of cosmetic users and their behaviours
  17. 17. Sudha RAMSURRUN Benefit based segmentation • Market segmentation is the process of splitting customers, or potential customers, in a market into different groups. • Benefit based segmentation is a form of behaviouristic segmentation which relies on the underlying assumption that the benefits sought by consumers forms the basis for the existence of segmenting the market.
  18. 18. Sudha RAMSURRUN Segmenting the market Researches revealed that: • the benefits sought are not only restricted to instrumental or functional benefits but may also relate to hedonistic or emotional consumption experiences (Hartmann et al., 2000) • there is a difference between affective and cognitive consumer’s behaviour (Goldsmith et al., 2008). • cosmetics give feelings of social and professional success
  19. 19. Sudha RAMSURRUN New trend showed marketing opportunities "Growing consumer focus on wellness and a more holistic approach to beauty, on top of an increasing demand for products that offer “benefits beyond beauty”, will also drive growth in these new product segments (IBISWorld, 2009)."
  20. 20. Methodology
  21. 21. Encyclopedia Merriam-Webster defined Methodology as: “a body of methods, rules and postulates employed by a discipline and the analysis of the principles or procedures of inquiry in a particular field.” Sohinee DABEEDYAL Introducing Methodology
  22. 22. Crouch and Housden (2003) research process: 1. Defining the research required 2. Planning the research 3. Carrying out the fieldwork 4. Analysing, interpreting and reporting 5. Using the research 6. Feedback We’ve used only the first four stages Sohinee DABEEDYAL
  23. 23. • Deciding the data requirement Sohinee DABEEDYAL • Review of existed information • Search demographics through books, thesis, Internet & Online Journal articles(Emerald & Ebsco) • Get insightful theoretical & realistic understanding of the study
  24. 24. Sohinee DABEEDYAL • Deciding on the type of data • Best research design, data collection & selection of variables. • Literature search used Exploratory Research • Uses statistical methods (survey) to know facts & numbers as to what respondents look at as benefits when buying cosmetics. Descriptive Research
  25. 25. Sohinee DABEEDYAL • Deciding on the research method Primary research • Focus group • Very useful- behaviour noted • Limitation: • Girls > Boys • Age group 19-24 Secondary research • Internet • Journals • Books • Thesis
  26. 26. • Sampling unit specification and sampling method The sampling method used was convenience sampling method. • Convenience sampling involves the sample being drawn from that part of the population which is close to hand. • Cheap and quick method for generating the sample. • Considerably influenced by the researchers who select the respondents. Ayesha ESSOO
  27. 27. • Sample Size - 200 people were given a chance to participate whereby respondents were asked to rate a number of items related to their perception on benefits. Ayesha ESSOO
  28. 28. • Data Collection Surveys Online QuestionnaireInterview Ayesha ESSOO
  29. 29. • Specification of sampling plan • Questionnaire The design of the questionnaire was a review of the problem definition of the research required. • Pilot Test The draft of the questionnaire was pilot tested on 8 respondents and the opinion gathered were used to make various changes. Ayesha ESSOO
  30. 30. • Problems encountered • Some people were reluctant to give their income range even if the interviewer reassured that it was confidential. • Some people preferred to answer no instead of answering yes because they had to justify themselves. • Some respondents needed more explanation in more details about particular questions. • Some people were not willing to participate. Ayesha ESSOO
  31. 31. Analysis and Findings
  32. 32. Hypothesis 1 H0 : There are different types of cosmetic categories that Mauritians prefer. H1 : There are no different types of cosmetic categories that Mauritians prefer. Nawseen NUNNOO
  33. 33. Hypothesis 2 H0 : Mauritians seek benefits when buying cosmetic products. H1 : Mauritians do not seek benefits when buying cosmetic products. Nawseen NUNNOO
  34. 34. Report: 64% 36% Mauritians usually buy benefits not products Yes No
  35. 35. Hypothesis 3 H0 : There is a purpose behind cosmetic consumption. H1 : There is no purpose behind cosmetic consumption. Nawseen NUNNOO
  36. 36. Hypothesis 4 H0: There is no relationship between other behavioural variables and benefits sought from cosmetics. H1 : There is a relationship between other behavioural variables and benefits sought from cosmetics. Nawseen NUNNOO
  37. 37. Hypothesis 5 H0 : Cosmetic market can be segmented according to consumers’ benefits H1 : Cosmetic market cannot be segmented according to consumers’ benefits. Nawseen NUNNOO
  38. 38. Tables Healthy Skin Frequency Percent Valid Percent Cumulative Percent Yes 104 57.8 57.8 57.8 Valid No 76 42.2 42.2 100.0 Total 180 100.0 100.0 Fresh look Frequency Percent Valid Percent Cumulative Percent Yes 99 55.0 55.0 55.0 Valid No 81 45.0 45.0 100.0 Total 180 100.0 100.0
  39. 39. To look glamorous Frequency Percent Valid Percent Cumulative Percent Yes 101 56.1 56.1 56.1 Valid No 79 43.9 43.9 100.0 Total 180 100.0 100.0 Tables Nawseen NUNNOO
  40. 40. Report Treatment 7% Hygine 10% To look glamourous 14% UV Protection 4% Bio 1% Hypo Allergenic 1% Healthy Skin 15% To avoid acne problem 11% Skin Whitening 5% Moisturise Skin 8% Fresh Look 14% Anti Wrinkle 2% Water Proof 1% Not tested on animal 3% Well Known Brand 3% New Products 1% Benefits Based Segmentation
  41. 41. Results: H0 is accepted and the Mauritian cosmetic market can be segmented into three major parts: (1) Healthy skin (2) To look glamourous (3) Fresh look Nawseen NUNNOO
  42. 42. Hypothesis 6 What are the groups of cosmetic consumers in Mauritius? H0 : There are different groups of consumers for cosmetic products. H1 : There are no different groups of consumers for cosmetic products. Neeta BURNAH
  43. 43. Report Groups of cosmetic consumers that were tested: Age group Gender Civil status Occupation Income Age group of children Income spent on children cosmetics Neeta BURNAH
  44. 44. Demographics of segments: AGE 0 10 20 30 40 50 60 70 Below 16 17-25 26-35 36-45 46-55 Age Fresh Look To Look glamorous Healthy Skin
  45. 45. GENDER 0 10 20 30 40 50 60 70 80 90 Healthy Skin To Look glamorous Fresh Look Gender Female Gender Male
  46. 46. CIVIL STATUS 0 10 20 30 40 50 60 Single In a relationship Engage Married Divorced Other Fresh Look To Look glamorous Healthy Skin
  47. 47. OCCUPATION 0 10 20 30 40 50 60 Student Unemployed Employed (PT) Employed (FT) Other Fresh Look To Look glamorous Healthy Skin
  48. 48. INCOME LEVEL 0 10 20 30 40 50 Not applicable Below Rs 10 000 Rs 10001 to Rs 20000 Rs 20001 to Rs 30000 Rs 30001 to Rs 40000 Fresh Look To Look glamorous Healthy Skin
  49. 49. Hypothesis 7 H0: The benefit based clusters can be profiled based on consumer characteristics. H1: The benefit based clusters cannot be profiled based on consumer characteristics. Neeta BURNAH
  50. 50. Cluster analysis: Number of Cases in each Cluster • Cluster 1 106.000 • 2 38.000 • 3 1.000 • 4 34.000 • Valid 179.000 • Missing 1.000 Neeta BURNAH
  51. 51. Cluster 1 • Segments: to look glamorous, healthy skin, fresh look, water proof and well known brand. • 106 respondents • Segments: treatment factor, hygiene, UV protection, bio, hypo-allergenic, to avoid acne problem, skin whitening, moisturise skin and anti-wrinkle. • 38 respondents. Cluster 2 Neeta BURNAH
  52. 52. Cluster 3 • Segments: new products that I haven’t tried and not tested on animal factors. • Not too feasible, comprises of one person. Cluster 4 • New product that I haven’t tried. • 34 respondents. Neeta BURNAH
  53. 53. Tests  Normality test  Non-parametric tests: Mann-Whitney U, Wilcoxon W and Mc Nemar  Frequency tables  Cross tabulation  Correlations  Chi-square test  Cluster analysis Neeta BURNAH
  54. 54. Limitations of Study: • Time constraint • Financial constraint • No response from respondents • Difficulties of analysing data on SPSS • Problem in doing cluster analysis • Reliability of segment • Accuracy Neeta BURNAH
  55. 55. Recommendations: • Sampling method • Representative segments • Distribution of questionnaires • Pre-knowledge of the software SPSS Neeta BURNAH
  56. 56. QUESTIONS
  57. 57. presentation THE END

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