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Dissertation Proposal Ppt

Dissertation proposal presented for MA Marketing

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Dissertation Proposal Ppt

  1. 1. Dissertation Proposal: Influencing Factors and Consumer Behaviour Towards the Purchasing of Colour Cosmetics in Saudi Arabia
  2. 2. Overview Introduction Background Information Literature Review to date Themes Key Marketing Theories Rationale Research Aims, Objectives and Significance Suggested Methodology and Time Line References to date 2
  3. 3. Introduction 3
  4. 4. Introduction This research study focuses on the influencing factors and the consumers behaviour towards the purchasing of colour cosmetics, in terms of their brand choice as a function of consumer decision- making, and the effectiveness of advertising in regards to Saudi women. 4
  5. 5. Background Information 5
  6. 6. Colour cosmetics in Saudi Arabia In 2008, Prestige brands signified 60% of value shares in colour cosmetics. Across all subsectors, the value growth is significant: Colour Cosmetics 2007/08 2003/08 TOTAL by Subsector % value growth % value growth Facial make-up 11.6 50.2 Eye make-up 12.5 57.6 Lip products 11.9 52.9 Nail products 10.6 42.7 (Euromonitor International, Colour Cosmetics , 2009) Colour cosmetics 11.7 51.2 Table Source: (Euromonitor International, Colour Cosmetics, 2009) 6
  7. 7. The Consumer The Saudi Arabian society is conservative. The consumer remains a competitive and lucrative target market. Due to the nature of the sector, Women characterize the consumer . The annual disposable income for women is continually increasing . Saudi women prioritise and care about their appearance. Young and wealthy Saudi consumers consider cosmetics an important purchase, and are attracted to the market due to the various (Euromonitor International, Colour Cosmetics, 2009) amounts of products. (Euromonitor International, Consumer Lifestyle, 2009) (AI-Shudukhi & Habib, 1996) 7
  8. 8. Competitive Activity The colour cosmetics market is decidedly competitive and fragmented. International premium and mass brands monopolise the market. Proctor and Gamble is the market leader with 12% market share. Leading companies and brands include: (Euromonitor International, Colour Cosmetics , 2009) 8
  9. 9. Market Activity International companies lead marketing activities. TV commercials are the preferred method by which many companies propagate themselves to elevate awareness of new launches and innovations. Companies are now offering new fashionable products to consumers. (Euromonitor International, Colour Cosmetics , 2009) (Euromonitor International, Consumer Lifestyle, 2009) 9
  10. 10. Distribution and Retail The boom in the real estate industry has resulted in the development of many retail outlets including malls, hypermarkets and department stores, with the beauty retailers rapidly expanding. Thus, distribution continues to be fundamental in the development of colour cosmetics. New labour law’s recently permitted Saudi Arabian women within the beauty retail and women-only department stores, to work as saleswomen and marketers . Saudi Arabian women are continually (Euromonitor International, Consumer Lifestyle, 2009) encouraged to shop more within these channels to raise the sales of colour cosmetics. 10
  11. 11. Literature review to date 11
  12. 12. Themes Marketing Strategy Consumer Branding Behaviour Culture Communication 12
  13. 13. Key Marketing Theories Marketing strategy in Saudi Arabia Porter’s competitive forces Foreign market entry mode for C&T company Product concepts and new products significance The importance and implications of branding Communications How advertising works? Word-of-mouth advertising Country of origin Culture Effect on consumer perception and attitude Women's behaviour towards advertising (Please refer to references for key Consumer behaviour articles) Influencing factors 13
  14. 14. Rationale 14
  15. 15. Rationale Due to Saudi Arabia being a developing country and the limited amount of information available, the study will need to be applied there in order to shed some insight in to the theoretical approach to consumers behaviour. Saudi Arabia has a very strong economy, with consumer expenditure projected to be US $110 billion. Has been minimally affected by the current global financial crisis. (Euromonitor International, Consumer Lifestyle, 2009) 15
  16. 16. Rationale Cont. Colour cosmetics are a rapidly growing sector, with a sales value approaching US $240 million and a 50% value growth within the periods of 2003- 2008. The Saudi market is monopolized by imported cosmetic products with the value of more than US $353 million. Sales are projected to reach US $1 billion by 2013. (Euromonitor International, Colour Cosmetics , 2009) (Euromonitor International, Cosmetics and Toiletries, 2009) (Dr Vernon, & Nwaogu, 2004) 16
  17. 17. Research Aims, Objectives and Significance 17
  18. 18. Research Aims To establish what the main influencing factors are behind the purchasing of colour cosmetic brands within the retail environment in Saudi Arabia. Further, to find out how effective is the advertising of these products in Saudi Arabia. 18
  19. 19. Research Objectives Verify which brands of facial colour cosmetic products are foremost in consumers minds; which are purchased, and how frequently among Saudi Arabian woman. Track the rate of willingness and recommendations to purchase and re-purchase colour cosmetic product brands in Saudi Arabia, and the interpretation behind this. Measure the significance of, and the fulfilment with, specific attributes of the purchasing experience of the colour cosmetics retail environment in Saudi Arabia. Evaluate the effectiveness of the current advertising methods currently adapted in Saudi Arabia for colour 19 cosmetics.
  20. 20. Research Significance Because of the nature of the society, and with the main researcher being a woman, this will aid access to Saudi women consumers that would otherwise prove challenging to male researchers. The study will aid companies marketing departments with relation to: Clarifying the companies marketing strategy, especially the branding strategy. Understanding the purchasing rate, process and behaviour. Establishing profitable methods to comprehend and relate to the Saudi consumer. (AI-Shudukhi & Habib, 1996) 20
  21. 21. Suggested Methodology and Time Line 21
  22. 22. Sampling Non-probability sampling will be used. Thus, snowball sampling is used to enable access to a number of respondents and their referrals. Selection will be from some specific demographic groups in order to circumspectly subdivide the target population and represent it accordingly. Females represent 53% of the total population, with the 20 - 24 year olds showing significant increase in population growth. The city of Jeddah is significant due to the population enlargement and the second highest population of female works in Saudi Arabia, with an (Malhotra, 2010) elevated proportion of Saudi women (Euromonitor International, Consumer Lifestyle, 2009) being/becoming highly educated. 22
  23. 23. Sampling Cont. Thus, the sample are women between 20 - 24 years of age, some that work, have a high educational level (student or graduate), and are living in the city of Jeddah. Research Method In-depth interview Survey No. Of 10 200 Respondents (Malhotra, 2010) 23
  24. 24. Time Line Research Method Time May/ Jun Survey Questionnaire Apr Hypothesis Observation in shopping surveys Feb/ In-depth semi-structured interviews Mar Jan Secondary Research (Birn, 1999) 2010 24
  25. 25. Research Method Cont. The Observation method will enable analysis of consumers retail experience during the shopping of colour cosmetics. The respondents will be monitored in 2 beauty outlets. The qualitative and quantitative research questions will be behavioural as well as attitudinal types. Question Type Information Sought Behavioural The frequency with which certain actions are carried out Attitudinal What people think of (Hague, Hague & Morgan, 2004) something. Their image and rate of things 25
  26. 26. References to date AI-Shudukhi, H.N. & Habib, R.A.K (1996) Brand Choice as a Function of Consumer Decision Making; A Study of Factors Underlying Saudi Women's Selection of Facial Makeup Brands. Journal of King Saud University. 8 (2), pp. 3-27. Al-Juhiam, O. (2008) An Empirical Investigation of the Cultural Impact on Consumer Perception and Attitude Towards Advertising. A Thesis Submitted To the University of Huddersfield in Partial Fulfilment of the Requirements for the Degree of Doctor of Philosophy. Huddersfield: Huddersfield University Business School. Balter, D. & Butman, J. (2005) Grapevine: The New Art of Word-of- mouth Marketing. England: Portfolio. Birn, R. (1999) The International Handbook of Market Research Techniques. 2nd ed. England: Kogan Page Limited. Birn, R. (2004) The Effective Use of Market Research: A guide for Management to Grow the Business. 3rd ed. England: Kogan Page Limited. 26
  27. 27. References to date Brown, W.F. (1979) The Determination of Factors influencing brand choice. The Journal of Marketing. p.699 Dickinson.S. & Gill,D. (2009) Are women offended by the way they are portrayed in advertising? Advertising in East Asia: Special Issue. 28(1) pp. 175-178. Dr Vernon,J. & Nwaogu,T. (2004) Comparative Study on Cosmetics Legislation in the EU and Other Principal Markets with Special Attention to so-called Borderline Products. London: Risk & Policy Analysts Limited. Euromonitor International (2008) Consumer Lifestyles - Saudi Arabia. July. [online] Available from: [accessed: 21st November 2009] Euromonitor International (2009) Colour Cosmetics - Saudi Arabia. July. [online] Available from: [accessed: 30th November 2009] 27
  28. 28. References to date Euromonitor International (2009) Cosmetics and Toiletries - Saudi Arabia. July. [online] Available from: [accessed: 30th November 2009] Euromonitor International (2009) Global Retailing: Retail in the GCC – Locating Potential in a Slowing Global Market. April. [online] Available from: [accessed: 30th November 2009] Evans, M. (1988) Consumer Behaviour towards Fashion. European Journal of Marketing. 23(7) pp. 7-16. Journal of Business & Industrial Marketing. 16 (1) pp. 59-68. Kumar, S., Massie, C. & Dumonceaux, M.D. (2006) Comparative innovative business strategies of major players in cosmetic industry. Industrial Management & Data Systems. 106 (3) pp. 285-306. Fill, C. (2009) Marketing Communication: Interactivity, Communities and Content. 5th ed.England: FT Prentice Hall. 28
  29. 29. References to date Guthrie, M., Kim, H. & Jung,J. (2008) The effects of facial image and cosmetic usage on perceptions of brand personality. Journal of Fashion Marketing and Management. 12 (2) pp. 164-181 Hague, P., Hague, N. & Morgan, C. (2004) Market Research in Practice: A guide to the Basics. UK: Kogan Page Limited. Jasimuddin, S. (2001) Analyzing the competitive advantages of Saudi Arabia with Porter's model. Journal of Business & Industrial Marketing, 16 (1) pp. 59-68. Malhotra, N. (2010) Marketing Research: an applied Orientation. 6th ed. New Jersey: Pearson. McGuire, W. (1976) Some Internal Psychological Factors Influencing Consumer Choice. Journal of Consumer Research. 2 (March) pp. 302-319. Moskowitz, H. (2003) Jumpstarting Product Development: Competitive Analysis and Conjoint Measurement in the Cosmetic Industry. Journal of Advertising Research. (March) pp.62-77. 29
  30. 30. References to date Vakratsas,D. & Ambler,T. (1999) How Advertising Works: What Do We Really Know? Journal of Marketing. 63 (January) pp.26-43. Warner, F. (2006) The Power of the Purse: How Smart Businesses are Adapting to the World’s most Importent Consumers- Women. New Jersey: Pearson Prentice Hall. 30
  31. 31. ‫ﺃﺷﻛﺭﻛﻡ ﺟﻣﻳﻌﺎ ﻋﻠﻰ ﻭﻗﺗﻛﻡ‬  Thank you for your time