This document is a project report submitted by Sneha Arora to her professor Gurleen Kaur at the Institute of Innovation in Technology & Management in New Delhi. The report examines consumer perception of online versus in-store cosmetics purchases in India. It provides background on the growing Indian cosmetics industry. Key trends include rising disposable incomes, increased fashion awareness, and growing popularity of herbal cosmetic brands. The report will analyze consumer survey data and provide conclusions and recommendations.

1. 1 | P a g e
PROJECT REPORT
ON
CONSUMER PERCEPTION ON USAGE OF ONLINE PURCHASE
VERSUS IN STORE PURCHASE OF COSMETICS IN INDIA.
Submitted in partial fulfilment of the requirements
for the award of the degree of
Bachelor of Business Administration (BBA)
Guru Gobind Singh Indraprastha University, Delhi
Submitted To: Submitted By:
Ms. Gurleen Kaur Name – Sneha Arora
(Assistant Professor) Enrolment No. -13390301720
Institute of Innovation in Technology & Management,
New Delhi – 110058
Batch (2020-2023)

2. 2 | P a g e
DECLARATION
I, Miss, Sneha Arora, Enrolment No. 13390301720 certify that the Project Report (BBA310) entitled
“CONSUMER PERCEPTION ON USAGE OF ONLINE PURCHASE VERSUS IN STORE
PURCHASE OF COSMETICS IN INDIA” is done by me and it is an authentic work carried out by me.
The matter embodied in this project work has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.
Signature of the Student
Date:
Certified that the Project Report (BBA-310) entitled “CONSUMER PERCEPTION ON USAGE OF
ONLINE PURCHASE VERSUS IN STORE PURCHASE OF COSMETICS IN INDIA” is done by
Miss. Sneha Arora , Enrolment No. 13390301720 is completed under my guidance.
Signature:
Ms. Gurleen Kaur
Assistant professor
Date:
Countersigned
(Director / Project Coordinate)

3. 3 | P a g e
ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my guide Ms. Gurleen Kaur
for his exemplary guidance, monitoring and constant encouragement throughout the course of this project.
The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life
on which I am about to embark. Last but not least, my sincere thanks to my parents and friends for their
wholehearted support and encouragement. I also hereby declare that the project work entitled "
CONSUMER PERCEPTION ON USAGE OF ONLINE PURCHASE VERSUS IN STORE
PURCHASE OF COSMETICS IN INDIA" under the guidance of "Ms. Gurleen Kaur" is my original
work and it has not been submitted earlier in any other university or institution.
Signature of the Student
Name – Sneha Arora
Enrolment no.- 13390301720

4. 4 | P a g e
CONTENTS
Topic Page No.
Chapter-1: Introduction to the Industry
• Introduction
• Objectives of the Study
• Review of Literature
• Research Methodology
• Limitations of the Study
5-16
Chapter-2: Profile of the Organization
17-20
Chapter-3: Analysis and Interpretation of Data
Chapter-4: Conclusions and Recommendations
References / Bibliography
Annexure

5. 5 | P a g e
CHAPTER – 1

6. 6 | P a g e
COSMETIC INDUSTRY
Cosmetics are substances or products used to enhance or alter the appearance or fragrance of the body. Many
cosmetics are designed for use of applying to the face and hair. They are generally mixtures of chemical
compounds; some being derived from natural sources (such as coconut oil), and some being synthetics.
Common cosmetics include lipstick, mascara, eye shadow, foundation, rouge, skin cleansers and skin
lotions, shampoo, hairstyling products (gel, hair spray, etc.), perfume and cologne. Cosmetics applied to the
face to enhance its appearance are often called make-up or makeup.
The Indian cosmetic industry has witnessed rapid growth over the last couple of decades. In that time the
range of cosmetic and beauty products in India has widened tremendously.
Indian competitors have begun to manufacture products to cater to an international need. Herbal cosmetics
from India have a great demand in the overseas market and many cosmetic products that are manufactured
in India today are supplied to international suppliers of branded cosmetic products like the Baby shop. New
facts that have been reveal that the industry of cosmetic products in India is growing at an average rate of
almost twenty percent annually, this increase is attributed to two main factors.
The first being the increase for the demand in Indian cost-effective products and the second being the
increased purchasing power of the average Indian. There are also many reasons for the increased demand
for cosmetic products in particular. With the introduction of satellite television and a wide array of
television channels as well as the internet, the average Indian consumer is constantly bombarded with
advertisements and information on new cosmetic products which often translates into the desire to purchase
them. A boom in the Indian fashion industry has been linked to the increased awareness of Indian people
about their appearances & consequently contributed to an increase in the demand for cosmetic products.
However, even with the massive surge in the popularity of cosmetic products, statistics have shown that the
average Indian consumer spends much less on cosmetic products than consumers from every other part of
the world. This means that the Indian cosmetic industry has an even greater potential for growth than it is
presently experiencing and it is highly fragmented and concentrated in the Tier-I cities only. Hence it is
very essential that the products should reach to the other cities as well as in rural area. Here the marketing
plays an important role. The companies need to understand the expectations of prospects. This requires a
thorough understanding of consumer behaviour and buying motives. Consumer behaviour is the behaviour
that consumers display in searching for, purchasing, using and evaluating products, services & ideas which
they expect will satisfy their needs. Consumer behaviour encompasses a vast area including consumption
pattern, consumer preferences, consumer motivation, and consumer buying process & shopping behaviour.
The purchase decision is influenced by various factors such as social, cultural, demographic, personal,
economic etc. So, for effective marketing, the marketer must know the basis of decisions taken by
customers.
The Indian Cosmetic is defined as skin care , hair care, colour cosmetic, fragrances and oral care segments
which stood at an estimated $2.5 billion in 2008 and is expected to growth at 7%, according to an analysis
of the sector. Today herbal cosmetic industry is driving growth in the beauty in Indian and is expected to
growth at a rate of 7% as more people shun chemical product in favour of organic ones. The emphasis of the
herbal cosmetic has been on the spectacular growth of the herbal and ayurvedic beauty products business as
conveyed by beauty expert Shahnaz Husain who was the first to introduce the concept of ayurvedic
cosmetic to the world when she launched her product way back in 1970. Today, the Indian cosmetic
industry has a plethora of herbal cosmetic brands like forest Essentials, Biotique, Himalaya, Blossom

7. 7 | P a g e
Kochhar, Dabur and Lotus and many more. The Indian cosmetic industry has emerged as one of the unique
industries holding huge potential for further growth. In 2009, the cosmetic industry registered sales of INR
356.6 billion (US$ 7.1 Billion) despite the global economic recession. Indian cosmetic Industry has mainly
been driven by improved purchasing power and rising fashion consciousness of the Indian population and
industry player spending readily on the promotional activities to increase consumer awareness and develop
their products. According to a new research report, the Indian Cosmetic Industry is expected to witness
impressive growth rate in the near future owing to rising beauty concern of both men and women. Today the
industry holds promising growth prospects for both existing and new players.
The baseline is that has been a rise in variety of product offered by the industry players in the country. The
companies have started going for rural expansion and are offering specialised products to generate revenues
from all the comers of the country. Improvement and strengthening of the Indian economy in the coming
years will also pave the way for the Indian cosmetic market over the forecast period and develop the
Cosmetic Industry.
The Indian cosmetic market which traditionally a stronghold of a major Indian player like Lakme, and
Ponds has seen a lot of foreign entrants to the market within the last decade. Indian is a very price sensitive
market and the cosmetic and personal care product companies, especially the new entrants have to work out
new innovative strategies to suit Indian preference and budgets to establish a hold on the market and
establish a niche market for them.
INDIAN COSMETIC INDUSTRY AT A GLANCE
Skin care or hair care, fragrances or oral care, you name a thing about your personal care, cosmetic covers
them all. According to an analysis, in 2008, Indian cosmetic industry did a business of $2.5 billion. Quite a
number! A part from the chemical cosmetics, herbal cosmetic has also shown an upward trend. The analysis
also shows that herbal cosmetic is expected to grow at a rate 7% due to gaining popularity against chemical
products.
As the cosmetic industry holds a promising growth for its participants, it is expected to witness a remarkable
growth in the near future. The cosmetic player is also expanding their business in rural areas due to increasing
demand and spewing revenues from all corners of the country.
The foreign cosmetic entrants are establishing a niche market in Indian and also ensemble Indian preferences
that suit their budget. The figures disclosed by Confederation of Indian industries (CII) say that the Indian
cosmetic market holds the currents size of US$950 million, which means a growth of 15-20% per annum. CII
also estimate that overall wellness market includes US$2,680 million.
Globally, the Indian cosmetic industry has a size of $274 billion and the Indian cosmetic Industry is $4.6
billion. The current size of the Indian Cosmetic is US$ 600 million (approx.) CII also estimate a growth rate
20% per annum, which reflects the increasing demand of all kind of personal care beauty products.
Indian imports a big amount of beauty and wellness products. There are no restrictions on the entry of
cosmetic products. However, the current average import tariff is around 39.2%.
A report by KPMG wellness sector shows that India’s beauty markets will reach to Rs 80,370 crore by 2017-
18. It was Rs 41,224 corer in 2012-2013. The report also indicates that the workforce requirement will grow
to 12.1 million in 2022 to that of 3.4 million which was in 2013

8. 8 | P a g e
TOP 10 COSMETIC BRANDS IN INDIA
Cosmetic are something which have become an integral part of a women’s fashion statement. They not only
manage to camouflage her flaws but also enhance her features. ASSOCHAM prepared a report in 2012 on
India’s cosmetics market and showed that it has growing at an annual pace of capture the various brands that
are popular among the consumers due to different reasons ranging from being economical, or being organic
or being made up of superior ingredients.
List of Top 10 or Leading Cosmetic Brands in the Indian Market
Lakme
Lakme is a reputed Indian brand which is owned by Unilever. The company is headed is by
Mr Anil Chopra who is the CEO of the company. Lakme was founded in the year 1952 by JRD Tata. In
1996 the Tata group decided to sell its stake in Lakme to Hindustan Lever Limited.
Lakme was also ranked at 47th as one of the most trusted brands in Indian according to the Brand Trust
Report in 2011. This brand also sponsors the Lakme Fashion Week (LFW) twice a year. It also launched the
Lakme Perfect Radiance and Lakme eye conic kajal which gained significant market share. In the financial
year 2012, Hindustan Unilever limited had a rise in profit tax and interest of about 23%.
Lotus
The company lotus herbals Ltd. Was set up two decades ago in the year 1993 by Kamal Pasi. This brand
deals with manufacturing and selling of various kinds of cosmetics. The list includes face cleansers,
sunscreens, winter care, hair oil, and shampoos. Pasi knew the importance of good packaging and made sure
his product stands out in design. He also priced his product at least 10-15% lower than the contemporary
brands in the segment. However, he doesn’t believe making a huge expenditure on advertising. Lotus
Herbals Ltd Company specialises in producing cosmetic that claim to have Ayurveda as well as herbal
goodness. The brands promote their product by accrediting their USP to be an amalgamation of traditional
knowledge along with modern technology. They believe in making use of herbal ingredients and making
their product devoid of chemical-based, synthetic cosmetics. This brand is also strictly against the cruel
practise of animal testing. Lotus Herbals Ltd. Is growing at a rate of 35% - 40% a year.
Biotique
Biotique was launched by Vinita Jain in the year 1984. This brands also manage to stand out in the world of
chemical- based cosmetic as it doesn’t contain any artificial preservative or synthetic fragrances. The
ingredients used are extracted naturally from herbs. Moreover, the herbs/plants used for extracting raw
material are also monitored from its nascent stage hence the end product is organic.
L’Oréal
L’Oréal is one of the giants in the cosmetic segment in the world. Jean-Paul Agon is the chairman and
CEO. The Company has been present in India for about20 years. Today, L’Oréal India is a subsidiary of
L’Oréal which is growing at a very fast rate. L’Oréal Paris is one of the trademark brands of this company.
In 2013 L’Oréal decided to invest Rs. 970 crores in India. Moreover, in the same year L’Oréal made its first
acquisition in India – Cheryl’s Cosmeceuticals, thus entering the professional skincare segment. In 2013 the
company grew at a commendable rate 70%.

9. 9 | P a g e
Shahnaz Husain
This brand was founded in the 1970’s by Shanaz Husain. In the year 2006 she was awarded the Padma Shri.
This brand also tries to harness the natural goodness of ayurveda. Currently it has around 350 products
spread out over different categories like skin, hair, makeup etc. The brand claims that its USP is the hard
work done on research so that the quality of the product is of superior grade.
Revlon India
Among all the international player in the cosmetic segment in India, the first one to launch was none other
than Revlon in 1995. It happens due to the collaboration between Umesh K Modi along with Revlon Pvt
Ltd in 1994. Pricing is done for the mid-level consumers as it neither too high nor too low priced. The
company owns approximately 2025% of the domestic market share.
Maybelline
It was launched way back in 1915 by T.L. It was later acquired by L’Oréal and in India it was launched by
its subsidiary, L’Oréal India. One of the major factors that have helped this brand to carve its niche is being
reasonable priced in spite of having an international appeal. Yeh Maybelline colossal range hit in India
which made the brand more popular.
Himalaya
The Himalaya Drug Company was founded in the year 1930 by Mr. M. Manal who had a vision to make
Ayurveda accessible to the world. Himalaya has been able to patent its sunscreen; Under-Eye Cream, Anti-
Acne range and Hair Loss cream among others form the
United State Patent and Trademark Office. The business of Himalaya in India contributed
60% of the brand’s sales of Rs 1, 200 crores in 2011. Himalaya is also the owner of the popular face wash
‘Purifying Neem’ which is very popular in a country like India where problems like acne and greasy skin
are widespread.
Colorbar
Colorbar Cosmetic is one the of the leading brands of cosmetic I India. It was founded in 2004. The founder
as well as managing director of the brands is Samir Modi. The brands are known for its bright peppy
colours and has a number of products of product to add colour to nails, lips and face.
Elle 18
The brands Elle 18 is owned by Hindustan Unilever limited (HUL). It was launched in 1998. Elle 18 is
aimed at the youth as it has bright colours along with neon shades in its products. The pricing of the
products is also done keeping in mind the youth. The Elle 18 Colour Pop Liner (5ml) is priced at Rs 75.

10. 10 | P a g e
HERE ARE THREE MAJOR CONSUMER TRENDS…
Made for social
Social media does more than channelling trends, it also creates them, and is now driving the creation of new
products. Brands that have been able to react quickly have been able to unlock whole new revenue streams.
For example, the desire to be "selfie-ready" for younger consumers who want to portray a flawless look on
social media and emulate the style of stars such as Kim Kardashian or Tanya Burr, has given rise to new
camera-ready make up ranges. Almost a quarter (22%) of women aged 16-24 said they wear make-up to
create a camera-ready look, up from an average of 7% the previous year. Eyebrow grooming products –
designed to give make-up users thicker and darker-than-natural eyebrows, with models such as Cara
Delevingne driving the trend – now form a market worth over £42 million annual, up £10 million from the
previous year. That’s the sale of nine million eyebrow product units in 12 months.
"Brands are no longer in control", says Ojo, "Our consumers demand what they want and then co-create
with us. Social media enables a two-way dialogue. Marketers can stay ahead by being consumer-obsessed:
constantly attuned to what fans, followers, competitive users and beauty lovers, in general, are telling us
they want. And, hearing and seeing certain signals even before they've fully emerged. We do a lot of trend
sensing through sophisticated research and social-listening techniques."
Some brands are using Artificial Intelligence (AI) to help - Berube explains what L’Oréal is doing: : "AI
helps us predict and forecast market-wide trends and so serve the consumer. AI helps us connect with our
consumers, allows us to personalise our approach and develop our business in line with consumers."
Individual customer experiences
The cosmetics industry has become much more focused on inclusivity with new products catering for every
demographic, and marketing campaigns showing consumers of all sizes and ages. Dove’s marketing
campaigns kicked this off a few years ago, but even fashion brands such as Asos, now show photographs of
the same clothes on different size models, and H&M has an app that puts you in the catalogue styling the
clothes yourself.
Brands across the industry are revamping how they speak to and listen to consumers, who largely just want
to find products that suit them. Rihanna’s Fenty Beauty range has created an ultra-personalised product
range. The Fenty Beauty range brings more choice to black women, its Pro Filter Foundation line, carrying
40 tonnes, saw the darkest sell out fastest. The company was valued at a reported $72m in the first month
the products went on sale - clearly it has found a winning formula
This change is long overdue, for example, according to a 2016 Raconteur study, 61% of British women
were not able to find their foundation match, and women with darker skin tones were paying 70% more for
foundation from specialist ranges. Mintel research found that older women feel frustrated by a lack of
information on how to care for their skin as it ages. As Suzy Ross says, "the cosmetics industry is not just
about selling products, it about giving someone confidence, a feeling of wellbeing and satisfaction. That
can’t happen unless there are products and experiences that suit everyone".

11. 11 | P a g e
How the industry is dealing with change of online
store versus offline stores.
In response to these industry trends, beauty and cosmetics brands are busy making plans for the future, with
the big names still having the muscle to make big moves and take risks. But brands of all sizes are
embracing digital technologies to get closer and more personal with their consumers.
For example, L’Oréal bought Modi face, an artificial-reality beauty company that maps an individual’s face
digitally then virtually applies product. Chief digital officer Lyubomir Rochet said Modi face would
"support the reinvention of the beauty experience around innovative services to help our customers
discover, try and use our brands". Pushing technological boundaries only works if it has a purpose – and
isn’t done for technology’s sake. Modi face clearly solves a consumer problem, how to test make-up
effectively.
Established brands are learning from the new market-entrants and building new partnerships to reach their
consumers and stay relevant. Elizabeth Arden partnered with You Cam Makeup, a make-up app, so users
can try products then buy directly from the company’s site. Ophelia Cefradine, VP of digital innovation and
technology at Estee Lauder, cites the use of an online tutorial that has helped launch a new range of eye and
face cream: "We show people how to apply the eye cream and use a massaging applicator and we’ve
developed a Facebook Messenger chatbot to help customers choose and layer products. We can also direct
customers to a live chat with a skin expert."
However, maximising digital channels is not without its own challenges, and proper curation is required.
The Beauty Digital Brand Report published early in 2018 said that 65% of women felt overloaded with
options – and this included the impact of influencers, media and celebrities.
To sort through this jungle of choice, consumers want guidance, they want customisation and
personalisation. That’s where the science comes in. The Beauty Digital Brand Report quotes brand
consultant Antony Hawkman from The Partnership Atelier: "Brands should be investing in their data
science/analytics teams, as these insights drive all new product development, buying and marketing
decisions. In the climate that we’re in, this is a gift, as it means we’re able to base our buying decisions on
qualitative and quantitative customer feedback and shopping habits along with our sell through reports, to
give the best shopping experience we can."
The industry recognises there is no ‘one size fits all’ approach, and it can now do something about it through
the use of their consumers’ data. Key examples of truly personalised cosmetics are Tinny London’s
computer-generated prescription of products and Eeco’s bespoke mascara service, as well as skincare which
tackles anti-ageing at its source. In the case of beauty brand ALLÉL’s, even DNA analysis is included.
Indeed, data, when used effectively, can be extremely beneficial to a brand. Recent research from Accenture
Interactive shows that consumers are more likely to buy from an on-line retailer that knows their purchase
history (65% more likely) or one that recommends options based on their past purchases (58% more likely).
"Brands can be hyper-personalised and relevant like never before which is really exciting", said Sohal Aziz,
managing director, Accenture Interactive. "However, to build experiences and products that consumers
really value, brands need to ensure they use their consumers’ data responsibly and focus on the core
proposition.

12. 12 | P a g e
OBJECTIVES OF THE STUDY
1. To determine the factors that influence consumers to purchase cosmetics online or in-store.
2. To identify the benefits and drawbacks of purchasing cosmetics online versus in-store.
3. To analyse the impact of online and in-store purchase on consumer satisfaction.
4. To investigate the level of trust consumers, have in online purchases of cosmetics.
REVIEW OF LITERATURE
Introduction: A literature review is an evaluative report of information found in the literature related to your
selected area of study. The review should describe, summarise, evaluate and clarify this literature. It should
give a theoretical base for the research and help you determine the nature of your research. Works which are
irrelevant should be discarded and those which are peripheral should be looked at critically.
A literature review is more than the search for information, and goes beyond being a descriptive annotated
bibliography. All works included in the review must be read, evaluated and analysed. Relationships between
the literatures must also be identified and articulated, in relation to your field of research.
1: Desai K. (2014) studied consumer buying behaviour of cosmetic products in Kolhapur. His main
objective to study the paper is to identify the factors influencing the consumer buying decision of
consumers for cosmetic products. Another objective of the research was to study buying process for
cosmetic products. Convenient sampling method was used as data collection method. Simple percentage
and ranking techniques were used as statistical techniques. He found that the major part of cosmetic market
is covered by females. According to his research, quality is the most important factor influencing the
consumer buying decision. Television and reference groups are other important factors to influence
consumer buying decision.
2.Rameshwari P., Mathabane R., Jagannathan M., (2016) studied consumer buying behaviour of cosmetic
products in Thanjavur, Tamandu. Main objective of the study is to identify reasons for purchasing cosmetics
and to identify factors influencing consumer buying decision for cosmetic products. Convenient sampling
method was used as research method. Factor ranking method was used as statistical technique for analysing
data. In this study, it was found that though cosmetic market is dominated by female consumers, male
consumers also participate in the same. The working respondents are more focused about their appearance
and ready to buy high end products.

13. 13 | P a g e
3.Dr. Anand Rajan S., Sakagami T. (2016) studied consumer purchase decision behaviour towards cosmetic
marketing. The aim of the study was to study consumer behaviour marketing of cosmetic products. They
also want to know the influence of various media in motivating the consumer on a particular brand of
cosmetics. Random sampling technique was used. Sample size was 200. Direct Interview method was
adopted to collect data. Simple and bi-variate tables were prepared from information collected. Percentage
Analysis was used for analysing data. It found that reduction in price and attractive promotional schemes
can attract more customers. The study concluded that cosmetics are not part of luxury. Manufactures need
to identify the need before marketing the cosmetic product.
4.Prof. Ante N., Rd. Deshmukh A. Prof. Khand gale A. (2015) studied consumer buying behaviour towards
cosmetic products. The main aim of study was to study demographic profile of consumers and to find
factors affecting consumer purchase decision. They also want to know the purchase pattern for cosmetic
products. They found that majority of people use domestic cosmetic brand, television is most effective
media to get information of cosmetics; quality of product is considered as most important factor for
consumer purchase decision.
5.Jawahar V., Rd. Atmajyoti K.( 2013) studied consumer attitude towards cosmetic products. The main aim
of the study was to examine the influence of attitude on consumer buying behaviour and to identify the
important factors that determine the buying behaviour.
6.Banu Rekha M., Gokula K. (2012) studied consumer awareness, attitude and preference towards herbal
cosmetic products with special reference to Coimbatore city. The main aim of study was to consumer
awareness towards herbal cosmetics, to identify the factors influencing the consumers to use herbal
products. Descriptive research design was used with non-probability convenience sampling with 50
respondents of Coimbatore city. Karl Pearson’s co-efficient of correlation, average ranking analysis and chi-
square analysis were used for data analysis. They found that family income per month and spending for
herbal products have positive correlation. Quality was ranked as most important factor that influences
consumers to purchase cosmetics. They concluded the research with a note that consumers believe that
herbal cosmetics are not a luxury now and should be used by consumers.
7.Research suggests that beauty consciousness among people in general is changing. Vigneron and Johnson
(2011) reported that people’s needs for appearances and materialism were increasing. That is human beings
wanted to satisfy the need to look and feel good. This created a boom in the cosmetic and toiletries sector
across the world. Chambers Encyclopaedia defines cosmetics as (a) articles intended to be rubbed, poured,
sprinkled or sprayed on, introduced into or otherwise applied to the human body or any part thereof for
cleaning, beautifying, promoting attractiveness or altering the appearance and (b) articles intended for use as
a component of such articles. Now a variety of cosmetic and toiletries ranging from natural to sophisticated

14. 14 | P a g e
items are available in the market. The pattern and preference of use of these items vary according to different
segments of gender, age and socio-economic class. When we review the literature on the cosmetic and
toiletry industry, not many studies are available especially about Indian scenario.
8.Most early theories of consumer behaviour were concerned with the purchasing characteristics and
influential factors. Schutte and Carlene (Schutte & Carlene, 2010)argued that in China the purchase decision
is typically based on the usefulness of the product such as its physical characteristics and price value.
However, recent studies outlined by Liang (Liang, 2008) suggested that women’s purchasing pattern differs
with men. Their buying decision tend to influenced easily by the purchasing environment, and have more
impulse purchase. Besides, generally speaking, females have strong self-awareness when purchasing, which
means majority of the decisions were made on the basis of personal preference or subjective impression,
sensation.
9.Matic M., Barbara P. (2009) studied consumers’ purchase intensions towards Natural cosmetics. The main
aim of study was to identify the determinants that influence intensions of consumers towards purchasing
natural cosmetics. The data was collected through online questionnaire .data were collected from 204
samples. Logistic regression and correlation were used for data analysis. Results of the correlation analysis
indicate that there is a strong positive correlation between purchase intentions towards natural cosmetics
and consumer references of natural cosmetics. The findings may be useful to online retailers, as well as
marketers and practitioners to recognize and better understand the new trends that occur in the industry of
natural cosmetics.

15. 15 | P a g e
RESEARCH METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical
model, phases and qualitative or quantitative technique.
Data needed for the study is collected from the employees through questionnaire. Analysis
and interpretation have been done by using the statistical tools and data presented through
tables and charts.
Research Design
Descriptive research has been applied, which is also known as statistical research, describes
data and characteristics about the population or phenomenon being studied. Once the
theoretical framework was developed, the data collection procedure was planned and
executed as research design.
Source of Data
Primary Data
Primary data are those which are collected a fresh and for the first time and thus happen to be
original character. Under this study, the primary study collection tool used is questionnaire.
Data is collected through the questionnaires from the respondents.
Secondary Data
Secondary data are those which have already been collected by someone else these are
already existing data. Under this study, secondary data like textbooks and websites are used.
Sample Design
A sample design is a definite plan for obtaining sample from a given population. Sample
design method is used in selected samples.
Sample Size
The items selected constitute what is technically called a sample. The sample size for this
study is 50 respondents.
Sampling Technique
In survey methodology sampling is concerned with selection of subset of individual from
within a statistical population to estimate characteristics of whole population. The sampling
technique used here is simple random sampling.
Tools of Study
Likert Scale - five-point scale

16. 16 | P a g e
Tools for Presentation
• Pie-chart representation of data
• Tabular representation of data
LIMITATIONS OF THE STUDY:
1. Age- Age is a limitation for the study. As the study did not collect the age of the respondents it became a
difficulty to segregate the responses as per the age of the person/ respondent.
2. Geography- The area of the study is not determined in the survey. As the area is not specific, it may
have a change in the type and number of responses of the respondents.
3. Survey method- The survey for the case study was carried out using convenient sampling method. Due
to limited resources, high rated surveys were not conducted and thus we have limited number of
responses.
4. Human Behaviour- Human Behaviour cannot remain constant all the time. Thus, the responses from
people also changes depending on the situation and the time. Thus, it is a huge difficulty to come to a
conclusion with the responses.
5. Time Limit: The survey and the research had a time limit and hence, it had a pressure on the
respondents to answer in a short period of time as the research had to have a conclusion.

17. 17 | P a g e
CHAPTER -2

18. 18 | P a g e
COMPANY’S PROFILE
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was
born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into
what would grow to be amongst the leading, high consumer interest segments in the Indian
Industry - that of skincare and cosmetic products. Armed with a potent combination of
foresight, research and constant innovation, Lakme has grown to be the market leader in the
cosmetics industry. Lakme today has grown to have a wide variety of products and services
that cover all facets of beauty care, and arm the consumer with products to pamper herself
from head to toe. These include products for the lips, nails, eyes, face and skin, and services
like the Lakme Beauty Salons.
LAKMÉ HISTORY:
In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever
that would market and distribute Lakmé's products. In 1998, Lakmé sold its brands (and the 50
per cent it owned in the JV) to HLL, renamed itself Trent and entered a different business
(retail). Only, the years between 1995 and 2000 saw HLL wrestling with several issues with a
bearing on Lakmé's future. A brand that has over 5 decades talked of beauty is none other than
Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from
the early 80’s. Lakmé also understands the importance of maintaining and accentuating a
women’s natural beauty, for this it has introduced a range of skincare products from 1987.
These ranges have been constantly innovated to bring specialized beauty care and complete
the range for the definitive women. A brand that has over 5 decades talked of beauty is none
other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes &
lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and
accentuating a women’s natural beauty, for this it has introduced a range of skincare products
from 1987. These ranges have been constantly innovated to bring specialized beauty care and
complete the range for the definitive women.
Chopra accepts that distribution has been the company's Achilles heel for some time: ''The
supply-chain hasn't been as robust as it should have been, but that has been the result of our
efforts to reposition and reintroduce the brand.'' The positioning bit, although complex, is
clear: Ponds is Lever's primary skincare brand; Lakmé, its aspirational colour cosmetics brand,
which also has a presence in skincare. The 'aspirational' qualification would mean Lakmé
would compete at what the company terms the 'upper-mass' (premium) end of the colour
cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors,
ranging from Revlon (through Modi Revlon) to Chambor, are already slugging it out. Says
Meghna Modi, 26, Executive Director, Modi Revlon: ''The numbers say it all.
According to ORGMARG's retail audit, we have an 84 per cent share of the premium end of
the colour cosmetics market.'' Chopra is quick to rubbish this claim; he says ORG-MARG
does not have a representative sample of the 60,000 outlets through which colour cosmetics
are sold in India. Still, it is conceivable that Lakmé's new-found aspirational strategy could
have been brought about by competitors like Revlon and Maybelline, which targeted this
segment. Indeed, the company's nontransfer lip-colour range follows in the wake of
Maybelline's launch of a similar range, and its new nail-enamel colours come soon after
Maybelline and Revlon launched their nail-enamel range.

19. 19 | P a g e
The company's defense is that it takes at least 15 months from the conceptualization to the
actual launch of products. And fashion consultants like Meher Castelino believe the brand
commands an edge at the high-end: ''By appropriating the fashion platform for itself, Lakmé
has entrenched itself at the glamour-end.''
SWOT ANALYSIS OF LAKME
Strengths:
➢ Local brand of specific relevance to India.
➢ Strong R&D capability well linked with business.
➢ Integrated supply chain and well spread manufacturing units.
➢ Ability to deliver Cost Savings.
➢ Access to Unilever global technology capability and sharing of best practices from
another Unilever.
Weaknesses:
➢ Price positioning in some categories allows for low price competition.
➢ Varying quality range in its products.
➢ Falling Quality of Lakme salons
Opportunities:
➢ Brand growth through increased consumption depth and frequency of usage across all
categories.
➢ Upgrading consumers through innovation to new levels of quality and performance.
➢ Building brand image by collaborating with top designers in Lakme Fashion week
Threats:
➢ Aggressive price competition from local and multinational players.
➢ Spurious/counterfeit products in rural areas and small towns.
➢ Non-Existence of brand image in long Run

20. 20 | P a g e
Everything a girl wants
Lakmé has a wide range of products in colour cosmetics that bring visible results. To add to
this vast repertoire is a range of specialized skin care products for the discerning women.
Keeping skin looking healthy and glowing is also a part of looking great. Lakmé provide the
complete package with the skin care range and the wide range of colours to spice up the look.
Lakme products Colours From the spicy shades to the flattering look, Lakme offers a range of
products in the face, lips, eyes and nail segment for the beauty aficionados.
Face
Lakmé Daily Wear Soufflé ,Lakmé Perfecting liquid Foundation - Lakmé Radiance Compact ,
Lakmé Flawless Matte Complexion Compact Lips Lakmé Enrich
Lipcolor
. Perfecting Definition Lip Pencil - Starshine Lipgloss - Glosses in lustrous shades available in
14 shades.
Eyes
From dramatic to natural look- a wide range of products are on offer to create the perfect
eyes. 1. Lakmé Kajal: 2. Lame Insta Eyeliner eyelids 3. Lakme Lakmé Shimmer Eye Cube:
Nails True Wear
Nail Enamel
Nail Enamel with Lacquer-like finish. Contains resins and silicone with colour lock
technology that gives brilliant long-lasting shine
Skin
For radiant skin Lakmé is there to pamper your skin with specialized products for the diva in
you. Cleansing Strawberry Silk Splash Face Wash , Lakmé Fundamental Deep Pore Cleansing
Milk - Moisturizing 1. Lakmé Fundamental Peach Milk Moisturiser skin. 2. Lakmé
Fundamental
Winter Care Lotion
Sun Protection The range comprises of lotions to keep your skin healthy and younger looking.

21. 21 | P a g e
Annexure
I am Sneha Arora, a management student from Institute of Innovation in Technology and Management
affiliated to Guru Gobind Singh Indraprastha University. I am conducting a survey on CONSUMER
PERCEPTION ON USAGE OF ONLINE PURCHASE VERSUS IN STORE PURCHASE OF
COSMETICS IN INDIA for me project would like you to help me by filling up the questionnaire. I assure
you that all the information shared by you will strictly remain confidential and will be used for academic
purpose only. kindly support by filling in the questionnaire given below.
Name: ...............................................................................................
E-Mail: ............................................. Age: ...............................
Q1. From where do you prefer shopping cosmetic products?
 Online/marketplaces/websites
 Offline stores
Q2. What’s the first thing you will consider before buying a cosmetic in offline store?
 Salesman advice
 Price
 Quality
 Payment mode
 Return policy
Q3. What’s the first thing you will consider before buying a cosmetic in online shopping?
 Delivery
 Price
 Quality
 Shade match
 Payment mode
 Return policy
Q4. If you prefer online shopping, which marketplace you prefer?
 Nykaa
 Purplee
 Company’s website
 Amazon
 Flipkart
 I don’t prefer online shopping

22. 22 | P a g e
Q5. Do you find easy to access the offline stores?
 Yes
 No
 May be
Q6. On which platform, you get the maximum offers and discounts?
 Online/marketplaces/websites
 Offline stores
Q7. Out of all, which company’s online services are best?
 Lakme
 Maybelline
 L’Oréal
 Sugar cosmetic
 biotique
Q8. Choose the reason, why you choose online shopping?
 Saving valuable time
 Organizing finance
 Shipping orders anytime, anywhere
 Finding items which might not see in stores
Q9. Choose the reason, why you choose in-store shopping?
 Better return policies
 Prefer to touch product
 No product disappointment
Q10.How far are you willing to travel to shop in offline store?
 Less than 20 minutes
 More than 20 minutes
 More than an hour
 Less than an hour