Dissertation proposal presented for MA Marketing

1. Dissertation Proposal:
Influencing Factors and Consumer Behaviour
Towards the Purchasing of Colour Cosmetics
in Saudi Arabia

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. Introduction
3

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. Background Information
5

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. 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. 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. 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. 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. Literature review to date
11

12. Themes
Marketing
Strategy
Consumer
Branding
Behaviour
Culture Communication
12

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. Rationale
14

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. 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. Research Aims, Objectives
and Significance
17

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. 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. 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. Suggested Methodology
and Time Line
21

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. 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. 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. 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. 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. 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: www.euromonitor.com [accessed: 21st
November 2009]
Euromonitor International (2009) Colour Cosmetics - Saudi Arabia.
July. [online] Available from: www.euromonitor.com [accessed: 30th
November 2009]
27

28. References to date
Euromonitor International (2009) Cosmetics and Toiletries - Saudi Arabia.
July. [online] Available from: www.euromonitor.com [accessed: 30th
November 2009]
Euromonitor International (2009) Global Retailing: Retail in the GCC –
Locating Potential in a Slowing Global Market. April. [online] Available
from: www.euromonitor.com [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.
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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.
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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.
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31. ‫ﺃﺷﻛﺭﻛﻡ ﺟﻣﻳﻌﺎ ﻋﻠﻰ ﻭﻗﺗﻛﻡ‬
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Thank you for your time