Medium & low priced products constitute 90% of sales volume.
Thus, we see that paying more for shelf space and POP does not lead to greater sales.
Regarding the Pack sizes : medium & large pack sizes are preferable
Cosmetics buying behaviour in India
A Study On :Cosmetics Buying Behavior in India<br />By :<br />AnandNarayanShukla<br />Arpita Jain<br />RashiArora<br />Ravi Shankar Mishra<br />SahilJandial<br />
Changing Trends of Cosmetics usage due to:<br />Increase in disposable income<br />Changing lifestyles<br />Information explosion<br />Thus, retailing in cosmetics has become a major challenge with cosmetics competing with other segment of products for shelf space in a retail outlet.<br />
Outcome of the Study :<br />The Consumer & Need Recognition for Cosmetics:<br />The Need for Cosmetics is generally seen as the self Esteem need, where Indian women perceive beauty not just in terms of face, but also in terms of a fit body, confident attitude and Impressive personality.<br />Thus, Brands try to Cater to this specific need with Taglines like :<br /><ul><li>L’Oreal : Because I’m Worth It
Maybelline's’ : May be she’s Born with it. May be its Maybelline
Lakme : On Top Of the World</li></li></ul><li>Outcome of the Study :<br />Information Search & Alternative Evaluation :<br /><ul><li> Major Driving force for the Indian Consumers to buy Cosmetics : Word-of-Mouth or Opinion leaders (peers, friends & Beauticians).
Advertising & Promotions are effective but In-store displays do not have much impact.
In-Store Sales girls (Beauty Consultants) exerts an influence over the purchase. However, there is greater preference for tried & tested products.
The factors which influence the final purchase most is QUALITY, followed by PRICE and VARIETY.</li></li></ul><li>Outcome of the Study :<br />How different cosmetic companies manage different outlets ???<br />
Outcome of the Study :<br />Brand Awareness/ Recall :<br />Most Recalled Brands and their perceptions according to the consumers :<br />Lakme : heritage, economical, brand for regular use, high level of trust.<br />Revlon: foreign brand that is homely but modern<br />L’Oreal : for hair color, for occasional use<br />Maybelline : Variety<br />The advertisement recall is high for TV ads as compared to print ads. Also, the presence of celebrities makes a brand more noticeable.<br />
Outcome of the Study :<br />Customer Purchase Behavior :<br />
Outcome of the Study :<br />Post-Purchase Evaluation :<br />Most Customers, while buying cosmetics, are brand loyal & seek value for money.<br />Leading Players : Lakme, Revlon & L’Oreal<br />Emerging Trend towards Herbal products, with the go natural mindset of the foreign as well as Indian customer.<br />
Conclusion<br />The Indian Consumer is growing more & more brand conscious when it comes to purchasing cosmetics.<br />The form of advertising which plays the biggest role here is Word of mouth (success of direct marketing companies like Amway, Avon etc.)<br />Promotions are a key factor in a price sensitive economy like India.<br />Visual Merchandising is important only at the 2nd stage of buying decision ( searching & evaluating alternatives ).<br />Brand loyalty & customer satisfaction is an area where marketers need to work upon to generate sales of their product, as personal care items involve extensive buying decisions. <br />